Other Right of the Taxpayer: Tax Overpayment

1. In the implementation of tax obligations the following may happen:
   
   • The total tax payable in a tax year is less than total tax paid or
   
   
   • The tax which is actually not due has been paid and therefore becomes a tax overpayment. (Article 17 Law No. 6 Year 1983)


2. There are 2 ways to request a refund for the above:
   
   
   
   • by submitting an annual tax return
   
   
   • by submitting a letter addressed to the Head of Tax Office requesting the refund.


3. After carrying out an examination or audit the Director General of Taxation will issue a Tax Overpayment Assessment (SKPLB) within twelve months after receiving the request for refund from taxpayer. If the issuance of Tax Overpayment (SKPLB) exceeds the time period specified, the request for a refund from the taxpayer shall be considered granted. (Article 17-paragraph (1) Law No. 6 Year 1983)
   


4. The tax overpayment based on the Tax Overpayment Assessment (SKPLB) shall be refunded, but where it appears that the taxpayer still has tax payable, the overpayment shall be directly used to settle the arrears first.(Article 11-paragraph (1) Law No. 16 Year 2000).
   


5. Upon issuance of the Tax Overpayment Assessment (SKPLB). The taxpayer has to provide information to the tax office to transfer the overpayment to him. The tax overpayment shall be paid within a maximum period of one month from the receipt of the above-mentioned information. (Article II-paragraph (2) Law No. 16 Year 2000).
   


6. If a refund of tax overpayment is delayed beyond one month, the Government shall pay interest of 2% per month on the late refund, calculated from the end of the time limit provided for in Article 11 paragraph (2) Law No. 16 Year 2000 up to of the date the refund is made. (Article 11-paragraph (3) Law No. 16 Year 2000).