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Tax Glossary

Tax Overpayment Assessment (SKPLB)

An SKPLB (Tax Overpayment Assessment) specifies the overpaid tax amount determined after audit-based calculation. Governed by Article 17 of UU KUP. DJP issues an SKPLB when tax credits or payments exceed the tax liability. It must be issued within 12 months of receiving a complete refund application. DJP must refund the overpayment within 1 month of SKPLB issuance. Late refunds incur 2% monthly interest payable to the taxpayer.

Tax Guides

SKPLB: Indonesia's Tax Overpayment Assessment Explained

Tax Glossary

Tax Assessment Letter (SKP)

A Tax Assessment Letter (SKP) encompasses SKPKB (underpayment), SKPKBT (additional underpayment), SKPLB (overpayment), and SKPN (nil). Governed by Article 1 paragraph 15 of UU KUP (No. 28/2007). SKPs are issued by the DJP after auditing or examining a taxpayer's return. The statute of limitations for issuing an SKP is 5 years from the end of the tax period or year. Taxpayers who disagree may file an objection within 3 months of the SKP date.

Tax Glossary

Tax Refund (Restitusi)

A Tax Refund (Restitusi) is the return of overpaid tax to a taxpayer who has paid, or had withheld/collected, more than the actual tax due. Governed by Articles 17 and 17B of UU KUP and Article 9 paragraph (4) of the VAT Law. The process: apply in the return, DJP audits, and issues an SKPLB if the overpayment is confirmed. Processing times: 12 months for corporate PPh; 12 months for general VAT; 8 months for low-risk PKP (accelerated refund). DJP pays 2% monthly interest on late refunds.

Tax Guides

Indonesia Tax Refund Guide: Eligibility, Procedure, and How to File

A complete guide to Indonesian tax refunds: legal basis (UU KUP, UU PPN, PMK 28/2026), advance vs regular refund mechanisms, eligibility for each taxpayer category, how to file via Coretax, plus worked examples and FAQ.

Tax Guides

Low-Risk PKP Guide: Criteria, Coretax Application, and the Accelerated VAT Refund

Low-Risk PKP status (Pasal 9 ayat (4c) UU PPN) lets a taxpayer claim VAT refunds through document research instead of a full audit. This guide covers eligibility, the legal basis, the Coretax application flow, a worked example, and a practical FAQ under PMK 28/2026.

Tax Updates

Indonesia Reopens Status for Qualified Taxpayers and Low-Risk PKPs: 1-10 June 2026

PMK 28/2026 voids every Qualified Taxpayer and Low-Risk PKP designation issued under PMK 39/2018. Eligible taxpayers must reapply through Coretax between 1 and 10 June 2026 to keep the accelerated refund facility.

Tax Glossary

Tax Audit

A Tax Audit is a structured process of collecting and processing data, information, and/or evidence conducted objectively and professionally to test taxpayer compliance or for other purposes. Governed by Article 29 of UU KUP and PMK No. 17/PMK.03/2013. Two types: Field Audit (at taxpayer premises, 4-8 months) and Office Audit (at KPP, 3-6 months). DJP may audit overpayment returns, loss returns, or randomly selected returns. Taxpayers have the right to receive a Draft Audit Report (SPHP) before an SKP is issued.