Tax Refund

You are entitled to claim for tax overpayment refund. The refund can be claimed under two conditions:

  1. Non-Payable Tax Overpayment Refund (this condition occurs when a Taxpayer pays tax that is supposed to be non-payable); and
  2. Income Tax, Value-Added Tax (VAT), and/or Sales Tax on Luxury Goods Overpayment Refund (this condition occurs when a Taxpayer pays more tax than they should).

NON-PAYABLE TAX OVERPAYMENT REFUND

You can access the full information on Non-Payable Tax Overpayment Refund via the following link (link).

The requirements that must be met to claim for non-payable tax overpayment refund are classified based on the cause of the overpayment:

Tax Overpayment Refund of Tax Payment by Payor

  1. The claim for refund is submitted in writing in Indonesian;
  2. The claim for refund must be signed by the payor;

The payors include:

  1. Individual Taxpayers;
  2. Corporate Taxpayers; and
  3. Individuals or entities not required to have a Taxpayer Identification Number (TIN);

If the claim is signed by someone other than the payor, the claim must enclose a special power of attorney pursuant to the provisions of the tax laws and regulations;

  1. The claim for refund must enclose the following documents:
  1. An original copy of proof of tax payment in the form of Tax Payment Slip (SSP) or other administrative instruments equivalent to Tax Payment Slip;
  2. Calculation of non-payable tax; and
  3. Reason for claiming for non-payable tax overpayment refund;
  1. The claim for refund is submitted directly to the:
  1. Tax Office (KPP) where the Taxpayer is registered; or
  2. Tax Office whose working area covers the place of residence of the individual or the place of domicile of the entity if the individual or entity is not required to have a TIN, and for which a proof of letter receipt will be provided;
  1. Besides direct submission of claim, the claim can also be submitted:
  1. By post with a delivery receipt; or
  2. Through delivery company or by courier service with a delivery receipt;

The said proof of letter receipt is a proof of letter of claim receipt.

Tax Overpayment Refund of Import Tax Overpayment

  1. The claim for refund is submitted in writing in Indonesian;
  2. The claim for refund must be signed by the Taxpayer.

If the claim is signed by someone other than the Taxpayer, the claim must enclose a special power of attorney pursuant to the provisions of the tax laws and regulations;

  1. The claim for refund must enclose the following documents:
  1. A copy of proof of tax payment in the form of Customs, Excise, and Tax Payment Slip (SSPCP) or other administrative instruments equivalent to Customs, Excise, and Tax Payment Slip;
  2. A copy of Notice of Customs Value Provision Tariff (SPTNP), Notice of Customs Value Reassignment Tariff (SPKTNP), Notice of Import Duty Underpayment (SPKPBM), Payment Request Letter (SPP), or document indicating import cancelation approved by an authorized officer;
  3. A copy of decision of objection, decision on appeal, and/or decision on case review related to Notice of Customs Value Provision Tariff, Notice of Customs Value Reassignment Tariff, Notice of Import Duty Underpayment, or Payment Request Letter if an objection, appeal, and/or case review is filed against the Notice of Customs Value Provision Tariff, Notice of Customs Value Reassignment Tariff, Notice of Import Duty Underpayment, or Payment Request Letter;
  4. Calculation of non-payable tax; and
  5. Reason for claiming for non-payable tax overpayment refund;
  1. The claim for refund is submitted directly to the Tax Office where the Taxpayer is registered and for which a proof of letter receipt will be provided;
  2. Besides direct submission of claim, the claim can be submitted:
  1. By post with a delivery receipt; or
  2. Through delivery company or by courier service with a delivery receipt;
  1. The proof of letter receipt or delivery receipt is a proof of letter of claim receipt.

Tax Overpayment Refund for Error in Withholding or Collection

  1. The claim for refund is submitted in writing in Indonesian;
  2. The claim for refund must be signed by the Taxpayer or the party entitled to submit the claim;

If the claim is signed by someone other than the Taxpayer or the party entitled to submit the claim, the claim must enclose a special power of attorney pursuant to the provisions of the tax laws and regulations.

 

Attachment to claim and Party submitting claim

 

No.

In case of error in tax withholding or collection:

Non-payable tax withheld or collected can be claimed for refund by:

Claim for refund must enclose the following documents:

Tax Office for Submitting Claim (submitted directly)

1

Related to Income Tax

The Taxpayer from whom tax is withheld or collected

1. An original copy of withholding or reducing tax receipt or Tax Invoice or other documents equivalent to Tax Invoice;

The Tax Office where the Taxpayer from whom tax is withheld or collected is registered and to the claimant, a proof of letter receipt will be provided.

2

Related to VAT

The party from whom tax is collected, provided that they are not a VAT Entrepreneur

2. Calculation of non-payable tax; and

In addition, the claim can be submitted:

3

Related to Sales Tax on Luxury Goods

The party from whom tax is collected

3. Reason for claiming for non-payable tax overpayment refund.

1. By post with a delivery receipt; or

 

2. Through delivery company or by courier service with a delivery receipt.

4

From Non-Resident Taxpayer having Permanent Establishment in Indonesia

The Non-Resident Taxpayer via their Permanent Establishment

1. An original copy of withholding or reducing tax receipt;

The Tax Office where the Permanent Establishment is registered and to the claimant, a proof of letter receipt will be provided.

2. Calculation of non-payable tax;

In addition, the claim can be submitted:

3. Reason for claiming for non-payable tax overpayment refund; and

1. By post with a delivery receipt; or

4. A statement letter from the Non-Resident Taxpayer that the tax claimed for refund has not been calculated against their Tax Payable abroad and/or charged as an expense in the calculation of their Taxable Income abroad.

2. Through delivery company or by courier service with a delivery receipt.

5

From Non-Resident Taxpayer having no Permanent Establishment in Indonesia

The Non-Resident Taxpayer via the Taxpayer making the withholding or collection

1. An original copy of withholding or reducing tax receipt;

The Tax Office where the Taxpayer making the withholding or collection is registered or the VAT Entrepreneur making the collection is registered and to the claimant, a proof of letter receipt will be provided.

 

If the Taxpayer making the withholding or collection cannot be found due to, among others, business dissolution, the claim is submitted directly by the Non-Resident Taxpayer and must enclose the following documents:

2. Calculation of non-payable tax;

In addition, the claim can be submitted:

 

1. An original copy of withholding or reducing tax receipt;

3. Reason for claiming for non-payable tax overpayment refund;

1. By post with a delivery receipt; or

 

2. Calculation of non-payable tax;

4. A claim from the Non-Resident Taxpayer;

2. Through delivery company or by courier service with a delivery receipt.

 

 

3. Reason for claiming for non-payable tax overpayment refund; and

5. A power of attorney from the Non-Resident Taxpayer from whom tax is withheld or collected to the Taxpayer making the withholding or collection; and

 

 

 

4. A statement letter from the Non-Resident Taxpayer that the tax claimed for refund has not been calculated against their Tax Payable abroad and/or charged as an expense in the calculation of their Taxable Income abroad.

6. A statement letter from the Non-Resident Taxpayer that the tax claimed for refund has not been calculated against their Tax Payable abroad and/or charged as an expense in the calculation of their Taxable Income abroad.

 

6

From individual or entity not required to have a TIN

The individual or entity via the Taxpayer making the withholding or collection

1. An original copy of withholding or reducing tax receipt or Tax Invoice or other documents equivalent to Tax Invoice;

The Tax Office where the Taxpayer making the withholding or collection is registered or the VAT Entrepreneur making the collection is registered and to the claimant, a proof of letter receipt will be provided.

 

 

If the Taxpayer making the withholding or collection cannot be found due to, among others, business dissolution, the claim is submitted directly by the individual or entity and must enclose the following documents:

2. Calculation of non-payable tax;

In addition, the claim can be submitted:

 

 

1. An original copy of withholding or reducing tax receipt or Tax Invoice or other documents equivalent to Tax Invoice;

3. Reason for claiming for non-payable tax overpayment refund; and

1. By post with a delivery receipt; or

 

 

2. Calculation of non-payable tax; and

4. A power of attorney from the party from whom tax is withheld or collected to the Taxpayer making the withholding or collection or the VAT Entrepreneur making the collection.

2. Through delivery company or by courier service with a delivery receipt.

 

 

3. Reason for claiming for non-payable tax overpayment refund.

 

 

INCOME TAX, VAT, AND/OR SALES TAX ON LUXURY GOODS OVERPAYMENT REFUND

If the tax you pay according to calculation is greater than it is supposed to be in accordance with the tax provisions, you can claim for tax overpayment refund.

To claim for tax overpayment refund, submit your request through your Annual Income Tax Return (for Income Tax) or Periodic VAT Return (for VAT and/or Sales Tax on Luxury Goods). On the Annual Income Tax Return and Periodic VAT Return, there is a column section containing treatment options that the Taxpayer can choose from in case of tax overpayment.

When claiming for tax overpayment refund, you can choose to have an Advance Refund or a regular Refund.

 

The Advance Refund process is only available to certain Taxpayers. It is faster because only verification is required, but it is possible to continue with an audit in the future if new data is found. Find out more about Advance Refund via this link.

Meanwhile, for refund other than Advance Refund, the process requires an audit. The audit period spans maximum 12 (twelve) months following the receipt of a complete claim.

If your Tax Return states an overpayment but is not accompanied by a claim for Advance Refund, thus not prompting a Decision Letter on Advance Tax Overpayment Refund, it will be proceeded with an audit.

PERIOD OF REFUND

After being calculated against Tax Payable, the tax overpayment will be refunded within a maximum period of 1 (one) month following:

  1. The granting of the claim for tax overpayment refund as a result of a Notice of Tax Overpayment Assessment issued following an audit of the Tax Return filed by the Taxpayer stating underpayment, nil, or overpayment that is not accompanied by a claim for tax overpayment refund;
  2. The issuance of Notice of Tax Overpayment Assessment for the refund of non-payable tax overpayment or the refund of tax claimed by someone other than the Taxpayer meeting certain requirements or criteria;
  3. The issuance of Decision Letter on Advance Tax Overpayment Refund;
  4. The issuance of Decision Letter on Objection;
  5. The receipt of Decision on Appeal or Decision on Case Review by the office of the Directorate General of Taxes (DGT) authorized to execute the Decision on Appeal or Decision on Case Review;
  6. The issuance of Decision Letter on Correction;
  7. The issuance of Decision Letter on Administrative Penalty Reduction or Decision Letter on Administrative Penalty Annulment;
  8. The issuance of Decision Letter on Notice of Tax Assessment Reduction or Decision Letter on Notice of Tax Assessment Cancelation; or
  9. The issuance of Decision Letter on Notice of Tax Collection Reduction or Decision Letter on Notice of Tax Collection Cancelation.