Legal Literacy - This article discusses a complete and up-to-date guide on filing tax restitution for individual taxpayers at the Directorate General of Taxes (DGT). A detailed explanation of the procedures, requirements, and documents needed for tax restitution is outlined, providing insight into the taxpayer's right to apply for a refund of overpaid taxes. In addition, this article also explores the stages of the restitution process and the appeal mechanism in the event of a rejection of the restitution application. With actual data and credible references, this article is a valuable source of information for taxpayers who plan to apply for restitution or gain a deeper understanding of current tax policies.
Introduction
The legal provisions related to the filing of restitution by individual taxpayers at the Directorate General of Taxes aim to provide clear guidelines and procedures for submitting restitution applications. Restitution is the return or replacement of tax payments that have been made by taxpayers if there is an overpayment or underpayment. This is important in maintaining fairness and tax justice for taxpayers. These provisions fully explain the definition of restitution, the purpose of restitution, and the scope of restitution that applies to submissions by individual taxpayers at the Directorate General of Taxes.
In Article 17 of Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times by Law Number 28 of 2007 (UU KUP), tax restitution is a request for the return of a number of excess taxes that have been paid by the Taxpayer to the state. This right arises if there is an overpayment of tax as stated in the Annual Tax Return (SPT) or if there is an error in recovery or reduction that results in an overpayment of tax. This means that the DGT will return the tax paid by the taxpayer. For information, the realization of tax restitution throughout 2021 reached IDR 196.11 trillion.
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:
- 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;
- The SPT is submitted on time, where taxpayers must submit the Annual Tax Return (SPT) on time in accordance with applicable regulations;
- There are no tax arrears, where taxpayers must not have tax arrears for all types of taxes; and
- 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;
Documents Required for Filing Restitution
For filing restitution, there are several documents that need to be attached. Here are some documents that are generally requested in filing restitution:
- Photocopy of the customs, excise and tax deposit slip or its equivalent;
- Photocopy of SPTNP (Tariff and Customs Value Determination Letter);
- Photocopy of SPKTNP (Tariff and/or Customs Value Redetermination Letter);
- Photocopy of SPKPBM (Notice of Underpayment of Import Duty, Excise, Administrative Fines, Interest, and Taxes);
- Photocopy of SPP (Customs Determination Letter);
- Document containing import cancellation;
- Photocopy of the objection decision; and
- Court decision.
Period of Time
Overpayment of tax after being offset against tax debts shall be refunded within a maximum period of 1 (one) month starting from, among others:
- Receipt of an application for a refund of overpayment due to the issuance of a Decree of Overpayment Tax Assessment (SKPLB) based on an examination process of the Notification Letter submitted by the Taxpayer stating underpayment, nil, or overpayment that is not accompanied by an application for a refund of overpayment of tax;
- Issuance of SKPLB for the process of refunding overpaid taxes that should not be owed or the process of refunding taxes that are not submitted by Taxpayers who meet certain requirements or certain criteria;
- A Decree of Preliminary Refund of Overpayment of Tax is issued;
- An Objection Decision is issued;
- An Appeal Decision or a Judicial Review Decision is received by the Directorate General office
- Taxes authorized to implement the Appeal Decision or Judicial Review Decision;
- A Correction Decree is issued;
- A Decree on Reduction of Administrative Sanctions or a Decree on Revocation of Administrative Sanctions is issued;
- A Decree on Reduction of SKP or a Decree on Cancellation of SKP is issued; or
- A Decree on Reduction of STP or a Decree on Cancellation of STP is issued.
Rejection and Appeal of Restitution Submission
Submitting a tax refund is a taxpayer's effort to pay excess tax payments or the amount of tax payable in accordance with applicable tax laws and regulations. However, requests for tax refunds can sometimes be rejected. In this case, the Taxpayer has the right to appeal the rejection decision. Rejection of a tax refund application can occur if the Taxpayer submits an incorrect or incomplete tax refund application. For example, if the documents attached are incomplete or do not meet the requirements stipulated in. In addition, rejection is also possible if there is an error in the calculation or application of tax regulations as stated in the tax letter.
In the event that a tax refund application is rejected, the Taxpayer has the right to appeal the rejection decision. An appeal is a legal recourse that can be taken by a taxpayer or tax guarantor against an appealable decision, based on prevailing tax laws and regulations. The requirements for filing an appeal include:
- The Taxpayer may only submit an appeal application to the tax court against the Objection Decision Letter;
- The application must be submitted in writing in Indonesian with clear reasons no later than 3 (three) months from the date the Objection Decision Letter is received and must be accompanied by a copy of the Objection Decision Letter; and
- 1 (one) Appeal Letter is submitted for 1 (one) Decision.
The parties who file an appeal include:
- An appeal may be filed by the Taxpayer, their expert, their heir, a manager, or their legal representative;
- If the Appellant dies during the Appeal process, the Appeal may be continued by their heir, the legal representative of their heir, or their guardian in the event that the Appellant is bankrupt; and
- If during the Appeal process the Appellant carries out a merger, consolidation, division/spin-off of a business, or liquidation, the application in question may be continued by the party who accepts responsibility for the merger, consolidation, division/spin-off of a business, or liquidation in question.
References
- Rani Maulida, Tax Restitution: Definition, Objectives and Requirements for Tax Restitution Acceleration, https://www.online-pajak.com/tentang-pajak/restitusi-pajak, accessed in Pematang Siantar May 10, 2024, at 16.40
- Fitriya, Tax Restitution: Examples, Requirements, How to Restitute VAT and Income Tax, https://www.online-pajak.com/tentang-pajak/restitusi-pajak, accessed in Pematang Siantar May 10, 2024, at 17.00
- Djp, Restitution, https://www.pajak.go.id/en/node/34994, accessed in Pematang Siantar May 10, 2024, at 17.04
- Djp, Appeal, https://pajak.go.id/en/node/34972, accessed in Pematang Siantar May 10, 2024, at 17.18
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