The Director General of Taxes has issued regulation No. PER-5/PJ/2023 concerning the acceleration of tax refunds. This regulation became effective on May 9 2023.

Qualified individual taxpayers who have submitted annual income tax returns with a maximum overpayment amount of IDR 100,000,000 and are requesting a refund under Article 17B or 17D of the General Tax Provisions Law may be granted a preliminary refund.

If the Director General of Taxes audits a taxpayer who has received a preliminary refund and issues an underpaid tax assessment, the taxpayer will only receive an administrative sanction in the form of interest under Article 13 of the Law on General Provisions and Tax Procedures instead of an increment penalty of 100%.

The Director General of Taxes has issued regulation No. PER-2/PJ/2023 as an amendment of PER-26/PJ/2021, concerning the procedure for collecting stamp duty in cases of electronic stamp system failures.

The following amendments have been made to Article 3, paragraphs (2) and (3) of PER-26/PJ/2021:

Furthermore, the stamp duty collector may extend the period of system integration for a maximum of three months from the six-month deadline mentioned above, by submitting a request to the Director General of Tax before the period ends and stating reasons.

Supreme Court Regulation Number 1 of 2019 was issued as a legal basis for holding hearings electronically. The implementation of electronic hearings at the Tax Court is decided by the Chief Judge of the Tax Court.

On May 11 2023, the Tax Court secretariat held an outreach session regarding the e-Tax Court for the purpose of achieving electronic-based justice. This suggests that the Tax Court will soon conduct hearings entirely online.

The e-Tax Court is an information system used to administer tax disputes electronically through:

• A series of tax dispute registration processes (e-registration);

• Receipt of appeal letters/lawsuit letters/appeal description letters/response letters/rebuttal letters;

• Additional data;

• Letters of declaration of revocation of a tax dispute;

• Determination of panel/Single Judge;

• Submission of notifications/subpoenas; and

• Management, submission, and storage of documents.

The benefits of using e-Tax Court are as follows:

1. The dispute file is recorded in the e-Tax Court system and is accessible to the parties;

2. It is an integrated system that tracks the process of dispute resolution from the filing of appeals/lawsuits to conclusion;

3. Cost effectiveness for all parties;

4. Documents can be submitted and meetings can be held electronically;

5. Appeals/lawsuits can be filed at any time and from any location; and

6. Document transfer is quicker.

Taxpayers, the Directorate General of Taxes, the Directorate General of Customs and Excise, and others can use the e-Tax Court.

The following features are included in the e-Tax Court:

1. e-Registration: the process of registering parties online;

2. e-Filing: online filing of an appeal/lawsuit;

3. e-Litigation: supports online trials (schedule, trial notification, and others);

4. e-Decision: decisions are delivered online; and

5. Dashboard: displays real-time disagreement information to the parties.