REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 28 OF 2026 CONCERNING PROCEDURES FOR PRELIMINARY REFUNDS OF TAX OVERPAYMENTS

The provisions of Minister of Finance Regulation (PMK) Number 28 of 2026 are aimed at enhancing accuracy and strengthening legal certainty in the exercise of taxpayers’ rights and the fulfillment of tax obligations. Accordingly, adjustments to the procedures governing preliminary refunds of tax overpayments are necessary.

The following are the provisions in PMK 28 of 2026:

The Director General of Taxes issues a Decision Letter on Preliminary Refund of Tax Overpayment after conducting a review of applications for tax overpayment refunds from:

a. Taxpayers with certain criteria;

b. Taxpayers who meet certain requirements; or

c. Low-risk Taxable Entrepreneurs (VAT-registered businesses).

Taxpayers meeting specified criteria, as well as those fulfilling certain requirements, may be granted preliminary refunds of tax overpayments for both Income Tax and Value Added Tax. In addition, low-risk Taxable Entrepreneurs may be granted preliminary refunds of Value Added Tax overpayments for each tax period.

To be designated as a taxpayer with certain criteria, the following requirements must be met:

1. Submitting Tax Returns (SPT) on time;
2. Having no outstanding tax liabilities, except those that have received approval for installment payments or deferrals;
3. Financial statements audited with an unqualified opinion for 3 (three) consecutive years; and
4. Never have been convicted of a tax crime within the last 5 (five) years based on a final and binding court decision.

The Decision Letter on Preliminary Refund of Tax Overpayment for taxpayers with certain criteria shall be issued within a maximum period from the date the application is received of:

1. 3 (three) months, for Income Tax; or
2. 1 (one) month, for Value Added Tax.

If this time period is exceeded without the issuance of a decision or notification, the taxpayer’s application shall be deemed approved, and the Decision Letter shall be issued.

The criteria for taxpayers who meet certain requirements include:

1. Individual taxpayers who do not conduct business or independent professional services and who file an Annual Tax Return (SPT) with an overpayment position;
2. Individual taxpayers who conduct business or independent professional services with an overpayment of a maximum of IDR 100 million for a part of a tax year or a full tax year;
3. Corporate taxpayers with annual gross revenue of up to IDR 50,000,000,000 and an overpayment of up to IDR 1,000,000,000; or
4. Taxable Entrepreneurs (VAT-registered businesses) with total taxable supplies of up to IDR 4,200,000,000 and an overpayment of up to IDR 1,000,000,000 for a tax period.

Based on the results of the review, the Director General of Taxes will issue a Decision Letter on Preliminary Refund of Tax Overpayment or provide a notification to the taxpayer.

The period of issuance of the decision or notification is calculated from the time the application is received for the Taxpayer who meets certain requirements, with the following conditions:

1. A maximum of 15 (fifteen) working days for Personal Income Tax;
2. A maximum of 1 (one) month for Corporate Income Tax; and
3. A maximum of 1 (one) month for Value Added Tax.

Low-risk Taxable Entrepreneurs who carry out certain activities can obtain a preliminary refund of excess VAT in each Tax Period. Low-risk Taxable Entrepreneurs include:

1. The company is listed on the Indonesian stock exchange;
2. SOEs and BUMDs;
3. Customs Main Partner;
4. Certified Economic Operators (AEOs);
5. Manufacturers/manufacturers who have production facilities;
6. Pharmaceutical wholesalers licensed and certified good distribution;
7. Licensed and certified distributor of medical devices; or
8. Companies directly owned by SOEs are more than 50%.

To be designated as a low-risk Taxable Entrepreneur (VAT-registered business), the following requirements must be met:

1. Included in the designated category of Taxable Entrepreneurs (PKP);;
2. Submitting Monthly VAT Returns (SPT Masa PPN) on time for the last 12 (twelve) months;
3. Not currently undergoing an open preliminary evidence examination and/or investigation of a tax crime; and
4. Never having been convicted of a tax crime within the last 5 (five) years based on a final and binding court decision.

The decision to designate a low-risk Taxable Entrepreneur shall be issued within a maximum of 15 (fifteen) working days after a complete application is received.

The designation as a low-risk Taxable Entrepreneur remains valid until it is revoked by the Director General of Taxes. Revocation of the designation shall occur if the Taxable Entrepreneur:

1. Is late in submitting the Monthly Value Added Tax Return within the last 12 (twelve) months.
2. Is subject to an open preliminary evidence examination and/or investigation of a tax crime;
3. Is convicted of committing a tax crime based on a final and binding court decision; or
4. No longer meets the requirements as referred to in Article 13 paragraph (2).

This regulation comes into force on May 1, 2026.

  Rani Widianti

  T. (+6221) 2222-0200

  E. rani.widianti@shinewing.id

  Alvina Oktavia

  T. (+6221) 2222-0200

  E. alvina.oktavia@shinewing.id