Tax Brief: Director General of Taxes Regulation Number PER-6/PJ/2025
In May 2025, the Directorate General of Taxes (DGT) continued its regulatory rollout by issuing Director General of Taxes Regulation Number PER-6/PJ/2025, which governs the implementation of preliminary refunds for tax overpayments. This new regulation addresses refunds for taxpayers with specific criteria, taxpayers with specific requirements, low-risk taxable entrepreneurs (Pengusaha Kena Pajak/PKPs), as well as special purpose entities (SPEs) and collective investment contracts (CICs) categorized as low-risk PKPs.
Repealing two previous regulations, PER-6/PJ/2025 is structured across 14 articles and five chapters, covering general provisions, the definition of low-risk PKP, procedures for preliminary tax refunds, and transitional and closing provisions.
According to the regulation’s recital, greater legal certainty is necessary in determining low-risk PKPs and streamlining the preliminary tax refund process. The prior framework, particularly PER-04/PJ/2021, was considered inadequate in providing such administrative convenience.
Preliminary tax refunds may be granted to taxpayers with specific criteria as referred to in Article 17C of the General Provisions and Procedures of Taxation (Ketentuan Umum dan Tatacara Perpajakan/KUP) Law, taxpayers with specific requirements as referred to in Article 17D of the KUP Law, and low-risk PKPs.
Taxpayers with specific criteria are defined under Article 3, Paragraph 2, of the Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 39/PMK.03/2018 as taxpayers who meet all of the following:
- file tax returns punctually;
- have no tax arrears for all tax types except those approved for installment or deferral;
- provide audited financial statements by a public accountant or government financial oversight agency with unqualified opinions for the past 3 (three) consecutive years; and
- have no criminal tax convictions within the last 5 (five) years.
Meanwhile, the definition of taxpayers with specific requirements is outlined in Article 9, Paragraph 2, of PMK Number 39/PMK.03/2018 as follows:
- individual taxpayers without business or freelance income requesting income tax refunds;
- individual taxpayers with business or freelance income applying for income tax refunds under IDR 100,000,000.00 (one hundred million rupiah);
- corporate taxpayers requesting income tax refunds of up to IDR 1,000,000,000.00 (one billion rupiah); or
- PKPs filing monthly VAT returns for tax refund claims of up to IDR 1,000,000,000.00 (one billion rupiah).
On the other hand, low-risk PKPs are initially defined by Article 13, Paragraph 2, of PMK Number 39/PMK.03/2018 under six categories. However, Director General of Taxes Regulation Number 6 of 2025 broadens this list and adds more eligible entities, including:
- publicly traded companies;
- state-owned enterprises (SOEs) and municipal enterprises under the provisions of laws and regulations governing SOEs and municipal enterprises;
- PKPs designated as main customs partners;
- PKPs designated as authorized economic operators;
- manufacturers or producers other than PKPs referred to in Letters (a) to (d):
- produce taxable goods or services, and
- have an established production facility.
- PKPs that qualify as taxpayers with specific requirements under Article 13, Paragraph 2, Letter (f), of PMK Number 39/PMK.03/2018;
- pharmaceutical wholesaler with:
- pharmaceutical distribution certificate or pharmaceutical wholesaler license under the provisions of laws and regulations governing pharmaceutical wholesalers, and
- good distribution of pharmaceutical products certificate under the provisions of laws and regulations governing good distribution of pharmaceutical products.
- medical equipment distributor with:
- medical device distribution certificate or medical device distributor license under the provisions of laws and regulations governing medical device distributors;
- good distribution of medical devices certificate under the provisions of laws and regulations governing good distribution of medical devices; or
- companies directly owned more than 50% by an SOE, with consolidated financial statements with the parent SOE under generally accepted accounting principles.
Although PER-6/PJ/2025 expands the scope of eligible parties, the procedures for applying for preliminary refunds remain aligned with PMK 39/2018. A notable addition is the eligibility of SPEs and CICs categorized as low-risk PKPs to apply for preliminary VAT refunds during real estate acquisition periods. This is done through a formal application process governed by PMK No. 200/PMK.03/2015.
PER-6/PJ/2025 further clarifies the nature of these entities. CIC is a binding agreement between an investment manager and a custodian bank that binds the unit holders. The investment manager is authorized to manage the collective investment portfolio, and the custodian bank is licensed to carry out collective custody exclusively for real estate fund management.
SPE is a limited liability company in which a real estate CIC owns at least 99.9% (ninety-nine-point nine percent) of the shares. It exists exclusively to support the fund’s investments.
Legal References
- Law of the Republic of Indonesia Number 6 of 1983 concerning General Provisions and Procedures of Taxation, as amended by Law of the Republic of Indonesia Number 7 of 2021 concerning Harmonization of Tax Regulations.
- Minister of Finance Regulation Number 39/PMK.03/2018 concerning Procedures for Preliminary Refund of Tax Overpayments
- Director General of Taxes Regulation Number PER-6/PJ/2025 concerning the Implementation of Preliminary Refunds of Tax Overpayments for Taxpayers with Specific Criteria, Taxpayers with Specific Requirements, and Low-Risk Taxable Entrepreneurs, as well as Special Purpose Entities or Collective Investment Contracts Categorized as Low-Risk Taxable Entrepreneurs.
