Final PPh for Construction Services Revised

The Indonesian Government has made several revisions regarding the framework for the imposition of final Income Tax (Pajak Penghasilan – “PPh”) upon the incomes of construction service businesses through the introduction of Regulation of the Government No. 9 of 2022 on the Second Amendment (“Second Amendment”) to Regulation of the Government No. 51 of 2008 on PPh for the Incomes of Construction Service Businesses (“Regulation 51/2008”). These revisions have been introduced in order to provide greater legal certainty and an improved framework for the imposition of income taxes upon construction service businesses and also to ensure a more advantageous climate within the construction services sector.[1]