DGT Tightens Preliminary Tax Refunds, Focuses on Compliant Taxpayers

JAKARTA. The government will begin implementing a new policy on tax refunds effective May 1, 2026. This regulation will be stipulated in a revision of the Minister of Finance Regulation (PMK) No. 39/PMK.03/2018, as last amended by PMK 119/2024.

This change is not without reason. The Minister of Finance, Purbaya Yudhi Sadewa, previously stated that the existing refund scheme is suspected to be one of the vulnerable points for leakage in state revenue.

The amount is also significant. Throughout last year, tax refunds reached approximately IDR 361.5 trillion, marking a 35.9% increase compared to the previous year.

Amid these figures, the DGT is now directing its policy toward tighter controls, particularly for preliminary refunds.

The Director of Dissemination, Services, and Public Relations at the DGT, Inge Diana Rismawanti, emphasized that the right to refunds remains guaranteed.

"Regarding the right to refunds, we fully understand that refunds are indeed the right of taxpayers. We certainly will not retain them if they already belong to the taxpayers," Inge said in Nganjuk, as quoted by CNBCIndonesia.com.

However, for accelerated schemes, the DGT will be more selective.

"At this point, we are ensuring that those who receive fast refunds or preliminary refunds are truly taxpayers with a high level of compliance. Essentially, the goal is to ensure that the benefit is accurately targeted," she stressed.

More Selective

This tightening is also reflected in the draft of the new refund regulation. It states that the maximum processing time for refunds will be three months for Income Tax and one month for Value Added Tax, starting from the date the application is received.

"As part of regulatory updates, this draft Minister of Finance Regulation will revoke and replace several previous regulations related to preliminary tax refunds and is planned to take effect on May 1, 2026," according to the Directorate General of Legislation at the Ministry of Law.

The regulation also emphasizes that preliminary refunds will no longer be automatic. The DGT will conduct a review first. If the requirements are met, the refund may be granted. However, if not, or if the taxpayer is undergoing an audit or legal enforcement process, the application may be rejected. (KEN)