Tax Newsletter – New tax rule for preliminary tax refunds

The Indonesian Minister of Finance recently released MoF Regulation No. 28 Year 2026 (“MoFR 28/2026”) enacted on 1 May 2026 concerning Procedures for Preliminary Tax Refunds. It essentially revokes MoFR 39/2018 and its amendments concerning the same subject.
MoFR 28/2026 introduces new stricter requirements on the qualifications of taxpayers eligible for accelerated tax refunds, new thresholds on revenues and tax overpayments are set under the low-limit refunds taxpayers, rigorous analysis undertaken by the DGT in granting the tax refunds as well as considerations that trigger revocation of the golden taxpayer and the low risk VATable entrepreneur status by the DGT.
All golden taxpayers status granted under the old regulation are revoked by the enactment of MoFR 28/2026. The respective taxpayers can reapply for the same status starting from 1 June 2026 to 10 June 2026 or alternatively using the timeline set for new application.
Any outstanding request for accelerated tax refunds filed by golden taxpayers will be processed under the new regulation, whilst outstanding request for accelerated tax refunds filed by low-limit refund taxpayers and low-risk VATable entrepreneurs will be processed under the old regulation.