Director General of Taxes Regulation Number PER-6/PJ/2025 (“PER-6”) concerning Implementation of Preliminary Refunds of Tax Overpayments for Taxpayers with Certain Criteria, Low-Risk Taxable Entrepreneurs, and Special Purpose Companies or Collective Investment Contracts as Low-Risk Taxable Entrepreneurs

Overview

To provide legal certainty in determining low-risk taxable entrepreneurs and to facilitate the implementation of preliminary refunds of tax overpayments, the Director General of Taxes (DGT) has issued Regulation PER-6. This regulation became effective as of May 21, 2025, with the following key highlights:

1. Low-Risk Taxable Entrepreneurs
   • Entrepreneurs classified as Low-Risk Taxable Entrepreneurs (as referred to in Article 13 paragraph (2) letter f of Minister of Finance Regulation Number 39/PMK.03/2018) are not required to obtain a formal designation from the Director General of Taxes. No application for designation is required for such entrepreneurs.

2. Applications for Preliminary Refunds
   • Preliminary refund applications may be submitted by:
     • Taxpayers with Certain Criteria
     • Taxpayers meeting Certain Requirements
   • Low-Risk Taxable Entrepreneurs conducting certain activities will be processed in accordance with the provisions under Minister of Finance Regulation Number 39/PMK.03/2018.

3. Refunds for Previous Tax Periods
   • Applications for preliminary refunds submitted by Taxpayers with Certain Criteria or Low-Risk Taxable Entrepreneurs covering preliminary refunds for tax returns or corrections of tax returns for tax periods, parts of tax years, or tax years prior to or after the taxpayer is designated as a Taxpayer with Certain Criteria or Low-Risk Taxable Entrepreneur will be processed accordingly.

4. Special Purpose Companies or Collective Investment Contracts
   • Special Purpose Companies or Collective Investment Contracts classified as Low-Risk Taxable Entrepreneurs may be granted preliminary refunds on Value Added Tax (VAT) overpayments for the tax period in which the asset is acquired, subject to submission of an application in accordance with the provisions under Minister of Finance Regulation Number 200/PMK.03/2015.

5. VAT Overpayments for Low-Risk Taxable Entrepreneurs
   • For preliminary refund applications on VAT overpayments submitted by Special Purpose Companies or Collective Investment Contracts classified as Low-Risk Taxable Entrepreneurs, the Director General of Taxes will issue a notification letter stating that a preliminary refund application has been received. The VAT overpayment will be further processed in accordance with Article 17B of the General Tax Provisions and Procedures Law.

This regulation aims to streamline the process for obtaining preliminary refunds, reduce administrative burdens, and provide greater legal certainty for eligible taxpayers.