Overpaid Tax Refund Mechanism for Certain Individual Taxpayers to Be Expedited: Decrees on Refunds to Be Issued Within 15 Business Days of Full Submission of Annual Tax Returns

In an effort to facilitate and expedite overpaid tax refund (“Refunds”) services (“Services”) for individual taxpayers (“Taxpayers”) who have submitted annual income tax returns (Surat Pemberitahuan Pajak – “SPT”), the Director-General of Tax (“Director-General”)  has issued Regulation No. PER-5/PJ/2023 on the Acceleration of Overpaid Tax Refunds (“Regulation 5/2023”), which has been in force since 9 May 2023.[1] However, it should be noted that the issuance of Regulation 5/2023 does not revoke the applicability of Regulation of the Director-General  No. PER-04/PJ/2021 (“Regulation 4/2021”)[2], which specifically addresses Refunds for certain low-risk taxable entrepreneurs, provided that the provisions set out under the framework of Regulation 4/2021 do not contradict the newly introduced Regulation 5/2023.[3]