Construction & Contractors
Construction companies face Final Income Tax, term VAT, and many withholding slips from project owners. With multi-year projects, administrative negligence can easily lead to penalties. Arunika Consulting helps contractors manage tax obligations so project cash flow remains healthy.
Compliance Warning
Contractors without certification are subject to higher Final Income Tax rates. Ensure SBU certification is valid for tax optimization.
Tax Rate
1.75%
PPH FINAL
Risk Level
High
Typical Turnover
IDR 5 Billion - 500 Billion per year
Tax Challenges
Different Final Tax Rates
Final Income Tax rates depend on certification and type of work, so they must be mapped from the start of the contract.
Withholding Slip Reconciliation
Withholding slips from owners need to be matched so that tax credits are not lost.
Term Tax Invoices
VAT must be issued according to billing progress so VAT reporting is not late.
Our Tax Solutions
Final Tax Scheme Mapping
Determining Final Income Tax rates based on certification and service category since tender.
- Correct rates
- More accurate contracts
- Lower correction risk
Project Withholding Reconciliation
Collecting and matching withholding slips so tax credits are fully recorded.
- Maximized tax credits
- Neat Tax Return
- Audit-ready
Term VAT Compliance
Managing tax invoices according to billing terms and work progress.
- No late reporting
- Maintained cash flow
- Low penalty risk
Related Tax Regulations
PP 9/2022
Final Income Tax on Construction Services
1.75% Final Income Tax for construction execution services with certification, 4% without certification
PPN Jasa Konstruksi
VAT on Construction Services
11% VAT on construction services (except simple houses)
Need a Tax Consultant for Construction & Contractors?
Consult your business tax strategy with our certified tax consultants. Free initial consultation.
Free Consultation via WhatsAppConstruction & Contractors Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
What is the Final Tax rate for contractors?
Construction execution rate: 1.75% with certification or 4% without certification. Planning/supervision has different rates according to regulations.
Can construction Final Tax be credited?
No. Final Income Tax is final and cannot be credited against Corporate Income Tax.
Is Arunika Consulting officially licensed as a tax consultant?
Yes. We are registered tax consultants and support clients with compliant, professional tax advisory and representation.
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.
How much tax saving can tax planning deliver?
It depends on your structure and transactions. We identify legal efficiencies, incentives, and reporting improvements without crossing into tax evasion.
Related Industries
Property Developer Tax
KBLI 41011
Property developer tax: 2.5% Final Tax, Housing VAT, BPHTB. Real estate tax consultation with Arunika Consulting.
Mining & Minerals Tax
KBLI 05100
Mining tax services for corporate income tax, PNBP royalties, withholding tax, and minerals sector compliance.
Manufacturing & Industrial Tax
KBLI 10710
Factory manufacturing tax: input-output VAT, Article 22 Income Tax, refund. Industrial tax consultation with Arunika Consulting.