This study aims to analyze the tax refund mechanism through the direct tax deposit under Minister of Finance Regulation (PMK) 81/2024, and to identify the obstacles to implementing this mechanism among taxpayers and the tax authority. A complex and convoluted tax refund mechanism is one of the factors behind low taxpayer compliance in paying taxes. The government has therefore taken a strategic step by digitalizing tax administration processes and, at the same time, establishing a new mechanism for tax refunds through the direct tax deposit. As a breakthrough, this mechanism offers a range of benefits. However, the challenges in its implementation must also be taken into account. This study uses a normative legal research method with statute and conceptual approaches. The results show that PMK 81/2024 introduces a number of new provisions: an expansion of refund types to include regular, expedited, and automatic refunds; refund subjects who are assessed through risk profiles; and the newest refund option, the direct tax deposit. These provisions bring benefits to both taxpayers and the tax authority. However, challenges concerning law enforcement and the facilities needed for implementation must be addressed in order to build trust and foster compliance with tax obligations among taxpayers.