Tax Refunds Aligned with Coretax System

The Government is accelerating the harmonization of regulations concerning procedures for preliminary refunds of tax overpayments. This policy constitutes an update to the regulatory framework under Regulation of the Minister of Finance (“PMK”) No. 39/PMK.03/2018 on Procedures for Preliminary Refunds of Tax Overpayments, which has been amended several times, most recently by PMK No. 119 of 2024 (collectively referred to as “PMK 39/2018”).

“This adjustment forms part of an ongoing effort to enhance tax services through better system integration and more accountable regulations,” stated Rosmauli, Director of Counseling, Services, and Public Relations of the Directorate General of Tax (DJP), Ministry of Finance (Kemenkeu).

This regulation is designed to fully support the Coretax System, whereby the validation process for proof of withholding, tax collection, and input tax is now conducted automatically by the system. It also expands the scope of Low-Risk Taxable Entrepreneurs (Pengusaha Kena Pajak – “PKP”).

Previously, the threshold for tax refunds was highly restrictive. The new regulatory framework (as initiated by PMK 209/2021 and further strengthened in 2024/2025) provides greater flexibility for compliant taxpayers to obtain liquidity without undergoing time-consuming field audits.