Regulation of the DGT No. PER-5/PJ/2023 concerning the Acceleration of Tax Refund

Ideatax, Jakarta -- On May 9, 2023, the Directorate General of Taxes issued Regulation of the Director General of Tax Number PER-5/PJ/2023 concerning the Acceleration of Tax Refund.

 This regulation is a derivative rule from Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations.

 This regulation is also a technical guideline for Minister of Finance Regulation Number 39/PMK.03/2018 concerning Procedures for Preliminary Return of Tax Overpayment as amended by Minister of Finance Regulation Number 209/PMK.03/2021.

 The issuance of PER-5/PJ/2023 is motivated by DGT who want to provide legal certainty, fairness, convenience, and acceleration of tax overpayment refund services for individual taxpayers who submit annual returns of overpaid income tax with a certain amount of overpayment. Thus, DGT need to simplify the administration of tax overpayment refunds.

As a derivative rule from the KUP cluster HPP Law, there are several new things regulated in the Director General Regulation Number PER-5/PJ/2023. Among them are the following:

• Individual taxpayers who meet certain requirements are given a preliminary refund of tax overpayment based on the provisions of Article 17D of the Law on General Provisions and Tax Procedures.

• Included in Individual Taxpayers who meet certain requirements are Individual Taxpayer taxpayers who submit an Annual Return of Income Tax with a maximum amount of Rp100,000,000.00.

• DGT issues a Decree of Preliminary Return of Excess Tax for certain Taxpayers no later than 15 (fifteen) working days after the Annual Return is submitted in complete.

• In case the DGT conducts an examination of the Taxpayer who has been issued a preliminary return and the Taxpayer is issued a tax notice, then the Taxpayer is subject to sanctions administrative amounting to 100% of unpaid taxes.

• However, for taxpayers who are issued the tax notice as mentioned above, administrative sanctions are reduced (as regulated in article 36 paragraph (1) a of the General Provisions and Tax Procedures Law) to the amount of sanctions administration in the form of interest article 13 paragraph (2) of the General Provisions and Tax Procedures.

• Claim of tax refund which have been submitted completely before May 31, 2023 and have not been audited, the provisions of PER-05/PJ/2023 is applied.

•  This Director General of Taxes Regulation PER-05/PJ/2023 comes into effect on May 9, 2023.