Tax Refund Soars 40.3% as of August

JAKARTA. The amount of tax overpayment refunds or restitutions as of the end of August 2025 soared by 40.3% year-on-year to IDR 304.3 trillion.

For comparison, the total restitution as of the end of August 2024 was recorded at only IDR 216.85 trillion. However, the Directorate General of Taxes did not specify the types of restitutions granted.

According to kontan.co.id, this increase occurred due to moderated commodity price increases in the previous year, resulting in taxpayers having paid more in tax credits than their actual tax liabilities.

Impact on Tax Revenue

This restitution issuance has affected the overall tax revenue realization. As of the end of August 2025, tax revenue realization was recorded to have declined by 5.1% year-on-year to only IDR 1,135.44 trillion.

This amount consists of Corporate Income Tax at IDR 194.2 trillion, Individual Income Tax at IDR 15.91 trillion, Value-Added Tax and Sales Tax on Luxury Goods (VAT and STLG) at IDR 416.49 trillion, and Land and Building Tax at IDR 14.17 trillion.

This tax revenue realization is equivalent to 54.7% of the 2025 revenue target based on the 2025 State Budget outlook.

Reason for Filing Restitution

Restitution is usually filed by taxpayers for various reasons. First, due to tax payments exceeding the amount owed. Second, due to tax payments on canceled transactions. Third, due to tax payments that should not have been paid. Fourth, due to tax payments related to a request for termination of a criminal tax investigation. (ASP/KEN)