Taxation ยท KBLI 69101

Professional Services & Consultant Tax

Professionals such as consultants, lawyers, doctors, and accountants face Article 21 or Article 23 Income Tax withholding from corporate clients that must be credited during Annual Tax Return reporting. The choice between full bookkeeping or NPPN Norm affects final tax burden. Arunika Consulting helps professional services optimize tax positions and manage withholding proof from various clients.

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What usually goes wrong

  • Withholding Proof from Many Clients

    Professionals with dozens of corporate clients must collect and match Article 23 Income Tax withholding slips for tax credits.

  • NPPN vs Bookkeeping Choice

    Using Norm (50% of turnover considered net income) can be higher or lower than actual expenses depending on expense structure.

  • Individual vs Business Entity Status

    Professionals can operate as individuals (progressive rates max 35%) or establish PT (flat rate 22%). Choice affects total tax.

What we do

  1. 01

    Withholding Proof Reconciliation

    Tracking system for Article 21/23 Income Tax withholding slips from all clients to ensure maximum tax credits in Annual Tax Return.

    • Complete tax credits
    • No overpayment left behind
    • Audit ready
  2. 02

    NPPN vs Bookkeeping Simulation

    Calculating tax burden comparison if using Norm vs actual bookkeeping to determine optimal method.

    • Minimal legal tax burden
    • Data-based decision
    • Annual planning
  3. 03

    Business Structure Consultation

    Evaluation whether establishing a PT or remaining as individual is more advantageous from tax and liability perspectives.

    • Optimal structure
    • Long-term tax planning
    • Personal asset protection

Related regulations

  • PPh Pasal 21

    Income Tax on Income Related to Work, Services, or Activities

    Tax withholding on honorariums and professional service fees by employers/clients.

  • PPh Pasal 23

    Income Tax on Income from Capital, Services, or Prizes

    2% withholding on technical, management, consulting services paid by business entities.

  • PER-16/PJ/2016

    Norma Penghitungan Penghasilan Neto (NPPN)

    Alternative Income Tax calculation for professionals with turnover below IDR 4.8 Billion without full bookkeeping.

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

Can consultants use 0.5% Final Income Tax?

Yes, if in the form of business entity (CV/PT) with turnover below IDR 4.8 Billion. But if individual, must use progressive rates or NPPN Norm.

What percentage is NPPN Norm for consultants?

Norm varies per service type and location. Consultants in Jakarta generally 50%, meaning 50% of turnover is considered taxable net income.

What if the client doesn't provide withholding proof?

Request formally from client. If not provided, tax credit cannot be claimed and there is risk of tax overpayment.

Who handles my tax work?

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

What should I do if I receive an SP2DK letter or tax audit notice?

Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.

What does tax planning cover?

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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