PPh 23 / PPh 4(2) Withholding Compliance

Corporate entities in Indonesia are statutorily required to withhold taxes from payments made to domestic vendors for services, royalties, and property rentals under Article 23 and Article 4 Paragraph 2 of the Income Tax Law (UU PPh).

PPh Article 23 applies at a rate of 2% on gross compensation for technical, management, consulting, and legal services. PPh Final Article 4(2) mandates a strict 10% final tax withholding on land and villa lease payments, commercial rentals, and construction services. Failure to withhold and remit these levies results in administrative fines and disqualifies the related expenses from being deducted on your annual corporate tax return.

Today Consultant audits your supplier invoices, generates official electronic withholding tax slips via DJP e-Bupot Unifikasi, and remits state revenue with official billing codes to keep your vendor relations and corporate tax standing completely compliant.