Tax Refund Over Payment

Refund of the overpayment (refund) occurs when the amount of tax credits or tax paid is greater than the amount of tax payable or tax payments have been made that should not be payable, with taxpayer records had no other tax debts.
Procedures for Tax Refund Over Payment
In the event that the amount of tax credits or tax paid is greater than the amount of tax payable Taxpayers (WP) may apply for restitution to the Director General of Taxes through the Tax Office (KPP), a taxpayer is registered or domiciled.

Director General of Taxation after examination of the application for refund of the overpayment, issued a Tax Overpayment (overpayment) in the case:
• Income Tax, if the tax credit amount is greater than the amount of tax payable;
• Value Added Tax, if the tax credit amount is greater than the amount of tax payable. If there is a tax levied by the collector of Value Added Tax, the amount of tax payable is calculated by deducting the amount of output tax to the tax levied by the Value Added Tax collector, or;
• Sales Tax on Luxury Goods, if the amount of tax paid is greater than the amount of tax payable.

Overpayment issued by the Director General of Taxes no later than 12 (twelve) months from receipt of complete application letter.

If within a period of 12 months from the request for restitution, the Director General of Taxation did not give a decision, the applicant considered to be granted, and overpayment issued no later than 1 (one) month after the period ends. If the overpayment was published too late, the taxpayer provided benefits interest of 2% (two percent) per month calculated from the expiry of 1 (one) month to date issued Letter of Tax Overpayment.
In terms of tax payments that should not be payable

The tax should not have tax payable is paid by the taxpayer which was not subject to tax payable or errors that result in cutting or collecting taxes withheld or collected is greater than the tax that should be withheld or collected under the provisions of tax legislation or not a subject to tax.

Taxpayer (WP individual and entity, including individuals who do not have a TIN) can apply for restitution to the office of the Director General of Taxes through KPP where WP is registered or domiciled, if something goes wrong on the tax payment that should not have owed taxes. A letter of application should enclose:
a. Original proof of tax payment;
b. Calculation of tax that should not be payable; and
c. The reason for the tax refund request should not be payable.

WP withheld or collected (income tax, VAT and luxury sales tax) may apply for restitution to the office of the Director General of Taxes through KPP place WP withheld or collected through KPP registered or where the levied tax Taxable confirmed with record income tax and VAT and luxury sales tax cut or collected has not been credited or expensed. A letter of application should enclose:
a. Original proof of deductions / tax collection;
b. Calculation of tax that should not be payable; and
c. The reason for the tax refund request should not be payable.

WP who perform cutting or harvesting can apply for restitution to the office of the Director General of Taxes through KPP where WP is doing cutting or collecting registered or Taxable Entrepreneur who did polling confirmed, if something goes wrong or tax cuts that do and those who withheld or collected is :
• individuals who do not have a TIN;
• subject to foreign tax, or
• application of the provisions contained errors by cutting or harvesting unless WP is doing cutting or harvesting can not be found which is caused partly because of the dissolution of the business.

A letter of application should enclose:
a. Original proof of tax payment;
b. Calculation of tax that should not be payable;
c. The reason for the tax refund request should not be payable; and
d. Letter of authorization from the taxpayer deducted or withheld to the conduct cutting or harvesting or Taxable Entrepreneur who did polling.

Director General of Taxation conducted a study on the tax refund request should not be payable within a period of maximum 3 (three) months from receipt of complete application for WP and publish overpayment if the results of these studies found that tax payments should not be payable.

If there is no research that should not owed taxes, the Director-General of Taxation shall notify in writing to the taxpayer.
Preliminary Excess Tax Refunds

Taxpayers who meet certain requirements that can be given refund of tax overpayments are:
a. Individual taxpayers who do not run businesses or independent;
b. Individual Taxpayer is engaged in business or professional services with a total circulation of the business stated in the individual income tax returns of less than Rp1.800.000.000, 00 (one billion eight hundred million rupiahs) and a number of more pay less than 1,000,000, 00 (one million rupiah) or at most 0.5% (half percent) of the total circulation of business listed in the individual income tax returns;
c. Taxpayers with a total circulation of the business entity listed in the top individual income tax returns 5,000,000,000, 00 (five billion rupiah) and a number of more pay less than 10,000,000, 00 (ten million rupiahs); or
d. Taxable Entrepreneur lodges The Value Added Tax with the total submission to a Tax Period of Rp 400,000,000.00 (four hundred million rupiah) and at most pay the amount over USD $ 28,000,000.00 (twenty eight million dollars .)

On request for the refund of the overpayment from the taxpayer who meets certain requirements, head of the KPP conduct research on:

* Completeness of SPT and annexes;
* Truth writing and tax calculation;
* Truth tax payments made by the WP; and
* Truth address listed in the SPT SPT or change of address.

and issued a Preliminary Excess Tax Returns within 3 (three) months from receipt of complete applications for income tax and no later than 1 (one) month after receipt of complete application for Value Added Tax.

In the event that research results do not declare an overpayment, the attachment SPT incomplete, incorrect tax payments, or addresses do not match those listed in the SPT or by notice change the address so that the Decree of the Preliminary Excess Tax Refunds are not issued, the Chief must notify in writing KPP to WP.

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