Definition of Tax Restitution

Tax restitution is a request for a tax refund submitted by a taxpayer to the state. The term "tax refund" is regulated in the Law on General Provisions and Tax Procedures (UU KUP). Tax restitution occurs when a taxpayer pays more than the amount due according to tax regulations. The state has an obligation to return the overpayment to the taxpayer after a series of examination processes by the Directorate General of Taxes (DJP). Tax restitution is a government effort to create a healthy tax system and as a guarantee of trust given by the government to taxpayers. Tax restitution also aims to protect the rights of taxpayers.

Requirements for Filing Restitution for Individual Taxpayers

Filing for restitution for Individual Taxpayers applies, if:

  1. The tax overpayment is less than or equal to IDR 100 million, where individual taxpayers who have a tax overpayment of less than or equal to IDR 100 million are entitled to accelerated restitution;
  2. The SPT is submitted on time, where taxpayers must submit the Annual Tax Return (SPT) on time in accordance with applicable regulations;
  3. There are no tax arrears, where taxpayers must not have tax arrears for all types of taxes; and
  4. An audit of the financial statements is conducted, where taxpayers must submit financial statements for a tax year that has been audited by a public accountant or authorized institution;