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]