Indonesia: Guidance concerning taxation of income from construction services

Guidance introduces a new construction service category, among other changes

Guidance introduces a new construction service category, among other changes

The government issued guidance concerning the taxation of income from construction services which, among other changes, introduces a new construction service category.

Government Regulation No. 9 year 2022 (21 February 2022), the second amendment to Government Regulation No. 51 year 2008, applies to payments for construction services made after its release, regardless of whether the relevant contract was signed or the services were delivered prior to its release.

The Ministry of Finance stated that it will re-evaluate the taxation of construction services within three years.

Read an April 2022 report [PDF 549 KB] prepared by the KPMG member firm in Indonesia

 

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