New Procedures for Claiming Tax Overpayment Refunds

The Minister of Finance(“Minister’)has issued Regulation No. 244/PMK.03/2015 on Procedures for Calculating and Refunding Tax Overpayments(“2015 Regulation”). In essence, the 2015 Regulation redefines the conditions by which taxpayers can claim refunds for tax overpayments, as well as application procedures relating to these refunds which are undertaken at a Taxation Service Office. [1] Prior to the 2015 Regulation, these matters were incorporated under Ministerial Regulation No. 16/PMK.03/2011 , which was then amended by Ministerial Regulation No. 185/PMK.03/2015 on Procedures for the Calculation and Return of Excess Tax Payments (“2011 Regulation”)The 2015 Regulation is of relevance to all taxpayers.Tax Overpayment Refund ClaimsTaxpayers who have paid a greater amount of tax than that which is outstanding and payable may claim a refund through the Head of the Taxation Office where they are domiciled (“Office”). [2] Types of taxes that can be refunded in cases of overpayment under the 2015 Regulation are Income Tax(PPh), Luxury-Goods Sales Tax(PPnBM), Value-Added Tax(PPN), and Land and Building Tax(PBB).Tax overpayments can be refunded under several conditions, as set out in the following table: