Complete Guide to Claim Overpaid Taxes Easily

Tax restitution refers to the process of requesting a refund for overpaid taxes or taxes that were not supposed to be levied, including Income Tax (PPh), Value Added Tax (VAT), and Luxury Goods Sales Tax (PPnBM). The government, through the Directorate General of Taxes (DJP), is required to return the overpaid tax amount after conducting a series of examinations in accordance with applicable tax regulations.

Taxpayers Eligible for Tax Restitution

Both individual and corporate taxpayers have the right to apply for tax restitution. According to Minister of Finance Regulation (PMK) No. 209/PMK.03/2021, certain categories of taxpayers qualify for an expedited tax refund:

1. Taxpayers with Certain Criteria:

• Timely submission of Tax Returns (SPT).

• No outstanding tax debts.

• Financial statements audited by a public accountant or government financial oversight institution with an unqualified opinion for three consecutive years.

• No criminal conviction for tax-related offenses in the last five years.

  
  

2. Taxpayers Meeting Certain Conditions:

• Individual taxpayers not engaged in business or freelance work, requesting a tax refund of up to IDR 100 million.

• Individual taxpayers running a business or freelance work, requesting a tax refund of up to IDR 100 million.

• Corporate taxpayers requesting a tax refund of up to IDR 1 billion.

• VAT-Registered Persons (PKP) requesting a tax refund of up to IDR 5 billion.

  
  

3. Low-Risk VAT-Registered Persons (PKP):

• PKPs whose shares are publicly traded on the Indonesia Stock Exchange (BEI), companies majority-owned by the central or regional government, or those designated as primary customs partners.

• PKPs engaged in manufacturing/production, other than those listed above, who have filed VAT Periodic Returns (SPT Masa PPN) on time for the past 12 months.

• PKPs who are not under preliminary tax investigation or tax crime investigation.

• PKPs who have not been convicted of a tax crime in the past five years.

Steps for Filing a Tax Restitution Claim

Online Submission:

1. Log in to DJP Online: Ensure you have a DJP Online account and log in.

2. Select the Restitution Menu: Find the specific feature for tax restitution applications.

3. Complete the Form: Fill in the restitution request form accurately following the given instructions.

4. Attach Supporting Documents: Upload the required documents, such as tax returns, proof of tax payment, and other relevant supporting documents.

5. Submit the Request: Once all data and documents are complete, submit your restitution request.

6. Monitor the Process: Track the status of your application through DJP Online.

Offline Submission:

1. Prepare the Required Documents: Gather all necessary documents, including tax returns, proof of tax payment, and other supporting documents.

2. Draft a Request Letter: Write a formal request letter addressed to the Head of the Tax Office (KPP) where you are registered.

3. Submit to KPP: Visit the nearest Tax Office and submit your request letter along with supporting documents to the tax officer.

4. Await Examination: The tax officer will review your submitted documents.

5. Follow-Up: If there are any deficiencies or inquiries, the tax office will contact you.

Commonly Required Supporting Documents:

• Tax Return (SPT) that has been examined and/or reported.

• Proof of tax payment (SSP).

• Calculation of excess tax payment.

• Other relevant supporting documents (e.g., tax invoices, credit notes).

Comparison of Online vs. Offline Submission:

Additional Tips for Tax Restitutions :

• Mind the Deadlines: File your restitution request before the deadline.

• Keep All Records: Retain copies of all restitution request documents for future reference

• Tax restitution procedures and requirements may change over time. Always check the latest information on the official website of the Directorate General of Taxes (DJP) or consult a tax officer

• Consult a Tax Accountant: If you find the process challenging, seek assistance from Bhakti Nagara Mulia.