Taxation ยท KBLI 41010

Tax Consultant Specializing in Building Construction

Optimize your building construction project tax obligations. We help with final income tax, installment VAT, withholding reconciliation, and tax strategies for multi-year contracts.

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What usually goes wrong

  • Final Income Tax with Two Rates

    Certified contractors are subject to 1.75% final income tax, while those without certification are subject to 4%. This difference is significant and must be mapped from contract signing.

  • VAT on Construction Services

    11% VAT on construction services must be issued per billing installment. Delayed tax invoice issuance results in fines and tax invoice blocking.

  • Withholding from Project Owners

    Project owners (usually state-owned enterprises or large companies) withhold income tax on payments. These withholding receipts need reconciliation so tax credits are not lost.

  • Subcontractor Withholding Obligations

    Main contractors must withhold Article 23/26 income tax on payments to subcontractors. Failure to withhold results in joint tax liability.

What we do

  1. 01

    Final Income Tax Rate Mapping

    Analysis of construction company certification status to determine optimal final income tax rate and ensure no discrepancies with reporting.

    • Targeted income tax rate
    • More accurate contracts
    • Reduced correction risk
  2. 02

    Installment VAT Management

    Tax invoice management system for VAT per billing installment and work progress so monthly VAT returns are always on time.

    • No late reporting
    • Recorded tax credits
    • Low sanction risk
  3. 03

    Multi-Project Withholding Reconciliation

    Collection, verification, and matching of withholding receipts from all project owners to ensure full tax credit recording.

    • Maximum tax credit
    • Neat and accurate tax returns
    • Audit ready

Related regulations

  • PP 9/2022

    Construction Service Final Income Tax

    1.75% final income tax for certified construction, 4% without certification on gross basis

  • PMK 68/2022

    Income Tax on Rental and Other Income

    VAT provisions for construction services and progress billing

  • UU HPP

    Harmonization of Tax Regulations

    VAT rate change to 11% and final income tax provisions for construction services

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

What is the final income tax rate for building construction contractors?

Final income tax rate for construction: 1.75% if the company has certification (SBU/SIUA), or 4% without certification. This rate is applied on gross receipts.

Can construction final income tax be credited against corporate income tax?

No. Final income tax is final and cannot be credited against corporate income tax. Therefore, final income tax calculations must be accurate from the start to avoid overpayment.

How to handle VAT on construction project installments?

VAT tax invoices must be issued according to billing installments agreed in the contract. Each installment must be reported in the following month's VAT return. We help create a tax invoice issuance schedule synchronized with project installments.

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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