An early tax refund is available for taxpayers that meet certain criteria, as follows :

A.Golden Taxpayers

1)Submit tax returns in a timely manner;

2)Have no tax arrears for all types of taxes, except tax arrears which have obtained a permit to pay tax in instalments or that have been audited;

3)Financial Statement audited by a public accountant or the audit board with an Unqualified Opinion for three consecutive years; and

4)Never have been convicted of a tax crime in the last five years.

B.Taxpayers with low refund values

1)Individuals that do not have any business or freelance activity that apply for an income tax refund in their Annual Income Tax Return (AITR);

2)Individuals that have business or freelance activities that apply for income tax refund in their AITR of a maximum of IDR 100 million (previously IDR 10 million);

3)Companies that apply for an income tax refund in their AITR of a maximum of IDR 1 billion (previously IDR 100 million); or

4)PKPs that apply for VAT refund in their VAT Return of a maximum of IDR 1 billion (previously IDR 100 million).

C. Low-risk PKPs

Companies that engage in the following business activities are considered as low-risk PKPs:

1) Export Activities

2) Delivering VAT-able goods and/or services to a VAT Collector; and/or

3) Delivering VAT-able goods and/or services for which VAT is not collected.

A preliminary tax refund is requested by way of ticking the refund box in the relevant tax return. If the approved tax refund amount is different from the requested amount, the taxpayer can re-apply using a separate letter. However, the taxpayer needs to revise the relevant tax return if they do not want to re-apply. The DGT will conduct a formal and/or material examination on all applicants.

The tax office can still do a tax audit on the tax year or period that has been granted a preliminary tax refund and the administrative sanctions will be followed if the tax audit results in a tax underpayment positions.