Tax audit after a refund claim
SPT badan kami lebih bayar. Pasti diperiksa?
The situation
A refund claim in an annual return generally leads to a tax audit, unless the company qualifies for a faster refund route.
The law
- Art 3, Law 6/1983 on General Provisions and Tax Procedures (KUP Law), as last amended by Law 6/2023: Returns are due 20 days after the month for most monthly returns, end of the next month for VAT, 3 months after year end for individuals and 4 months for companies; annual returns can be extended by up to 2 months
- Art 8, Law 6/1983 on General Provisions and Tax Procedures (KUP Law), as last amended by Law 6/2023: A taxpayer may correct a filed return on its own initiative before an audit starts, and may disclose errors during a preliminary evidence examination with a penalty
What it means for you
Prepare full records: ledgers, contracts, slips and TP documents. Some taxpayers choose to carry forward a small overpayment to avoid an audit. Example: IDR 50 million overpaid from excess PPh 23 credits.
What to do
- Check why there is an overpayment.
- Prepare records.
- Decide refund or carry forward.
- Plan for the audit.
An audit can find issues in other taxes too.
We can do this for youCorporate annual income tax return (SPT Tahunan PPh Badan): fiscal adjustments, Art 31E, instalments and financial statements: IDR 7.500.000