Comprehensive Guide to the Refund of Tax that Should Not be Owed (PYSTT) in the Coretax Era

What is PYSTT and Its Differences from Book-Entry (Pbk)

In the tax system, taxpayers often face situations involving payment errors, over-withholding, or failed transactions causing funds to be inadvertently deposited into the state treasury. Under the previous system, taxpayers generally submitted a Book-Entry (Pbk) request to shift the tax balance to another tax period or tax type.

However, in the Coretax era, the scope of Pbk is tightened. Book-entry essentially only moves tax balances from one type to another without any cash being refunded. Conversely, if taxpayers genuinely want their money refunded to their corporate bank accounts because there are no pending tax obligations, the appropriate route is PYSTT (Pengembalian Pajak yang Seharusnya Tidak Terutang).

For example, if there is a payment of Import VAT or VAT on the Utilization of Intangible Taxable Goods/Services from outside the Customs Area (JKPLN) with the wrong Taxpayer Identification Number (NPWP) inputted which cannot be credited, the taxpayer can no longer apply for Pbk and is obliged to use the PYSTT route to get their funds back.

Scope and Objects of PYSTT in Coretax

Based on the latest regulations, the scope of PYSTT submission is very broad and encompasses various types of tax assessments. Tax objects that can be submitted for a PYSTT request include Income Tax (PPh), Value Added Tax (PPN), Sales Tax on Luxury Goods (PPnBM), Land and Building Tax (PBB), Stamp Duty, Carbon Tax, and balances in the Tax Deposit account.

Specific conditions that allow Taxpayers to apply for PYSTT include:

1. Non-Tax Object Payments: There is a tax payment on a transaction that is essentially not a tax object owed or that should not have been owed in the first place.
2. Withholding/Collection Errors with Facilities: The taxpayer's tax was withheld or collected even though the subject or object was entitled to tax facilities (such as Uncollected or Exempted VAT).
3. P3B (Tax Treaty) Application Errors: Excess withholding of Article 26 Income Tax for Foreign Tax Subjects due to errors in applying the Double Taxation Avoidance Agreement (P3B) rates.
4. Unutilized Tax Deposits: Balances in the taxpayer's Tax Deposit account that were inadvertently deposited (e.g., wrong nominal or Tax Deposit Code) and remain unused for the settlement of any tax debts.
5. Excess Unified Income Tax: The Unified Income Tax Periodic Return (Articles 4 paragraph 2, 15, 22, 23) which is amended and carries an Overpaid status absolutely cannot be compensated to the next period, thus it must be disbursed through PYSTT.

Procedure and Submission Method of PYSTT in Coretax

The PYSTT application in Coretax prioritizes digitalization and automation. The application can be submitted online by the withholding/collecting taxpayer or the party whose tax was withheld.

Here are the steps and procedural requirements:

1. Submission via Portal: The person in charge (PIC) logs into the Coretax portal and uses the impersonate feature to access the Corporate Taxpayer profile. The application is submitted via the "Payments" menu by selecting the "Refund Request Form".
2. Main Bank Account Requirement: An absolute prerequisite for submitting a PYSTT is that the Taxpayer must have registered and validated a bank account within their Coretax profile as the primary account. If not available, the taxpayer must update it in the "Data Changes" menu.
3. Document Completeness: Taxpayers must attach the tax calculation document, the reason for the request, withholding/collection slips (normal and amended), proof of payment/NTPN, invoices related to cancellations, and a Power of Attorney (Surat Kuasa) from the party whose tax was withheld if the request is submitted by the tax withholder/collector.
4. Verification Process by the Tax Office: Unlike annual tax restitution which goes through an Audit process, a PYSTT request will undergo a "Verification" (Penelitian) process carried out by the Extension Team (Tim Penyuluh) at the registered Tax Office. The Tax Office will quickly verify material and formal correctness without having to conduct field testing.
5. Issuance of SKPLB and Tax Debt Compensation: If approved, the Tax Office will issue a Notice of Tax Overpayment Assessment (SKPLB). However, before the cash is transferred to the taxpayer's account, the Coretax system will automatically track whether the taxpayer has other outstanding tax arrears. If any exist, the SKPLB funds will be compensated first to pay off those tax debts, and only the remaining balance will be disbursed to the bank account.

PYSTT Case Simulations

Scenario 1: Article 23 Income Tax Overpayment due to Transaction Revision (Unified Income Tax)

PT Andromeda withheld Article 23 Income Tax for consulting services from PT Orion in February amounting to Rp50,000,000.00 and has deposited and reported the Unified Periodic Return. In April, it turned out the project experienced a contract value cut, and the invoice was revised so that the Article 23 tax that should have been withheld was only Rp30,000,000.00. Resolution: PT Andromeda amends the Unified Withholding Slip to Rp30,000,000.00 and reports the February Amended Unified Return. There is an Overpaid difference of Rp20,000,000.00. Because Unified Income Tax Overpayments do not have a compensation facility in Coretax, PT Andromeda attaches a Power of Attorney from PT Orion and submits a PYSTT request for Rp20,000,000.00 via the Refund Request Form in Coretax to be withdrawn in cash to PT Andromeda's account (to be subsequently returned to PT Orion).

Scenario 2: Deposit Error to Tax Deposit

Mr. Budi intends to pay off his Annual Tax Return Underpayment of Rp10,000,000.00. However, when transferring funds to his Tax Deposit account in Coretax, he accidentally inputs a nominal of Rp100,000,000.00. Mr. Budi's Tax Deposit balance increases by Rp100,000,000.00, and the system deducts Rp10,000,000.00 to settle the Tax Return. Resolution: There is an idle and unutilized remaining fund of Rp90,000,000.00 in the Tax Deposit. Mr. Budi does not want to leave the funds sitting there. He logs into the Coretax portal, selects a PYSTT request with the reason "Unutilized Tax Deposit". The Tax Office will verify and transfer the remaining Rp90,000,000.00 back to Mr. Budi's bank account in full.

Tax Regulation References

1. Minister of Finance Regulation Number 81 of 2024 (PMK 81/2024) concerning Tax Provisions within the Framework of Implementing the Core Tax Administration System. Regulates the basis for shifting from book-entry and PYSTT facilities for non-object payments, Unified Periodic Return excess taxes, and mechanisms for Tax Deposit refunds.
2. Director General of Taxes Regulation Number PER-10/PJ/2024 concerning Provisions for Tax Payment and Remittance as well as Refund of Excess Tax Payments within the Framework of Implementing the Core Tax Administration System. Details the formal requirements and document completeness for PYSTT submissions, and the technical calculation of taxes that should not be owed.
3. Director General of Taxes Regulation Number PER-11/PJ/2025 concerning Provisions for Tax Reporting within the Framework of Implementing the Core Tax Administration System.