Review of Taxation Aspects in an Integrated Construction Company: A Case Study of PT Z

Abstract

The construction sector is one of the most significant contributors to national tax revenue. Integrated construction companies have complex tax obligation structures because they integrate the design, material procurement, and construction execution processes within a single entity. This study aims to identify the taxation aspects and describe the implementation of PT Z’s tax obligations as an integrated construction company following the adoption of the latest tax regulations. A descriptive method was employed by examining PT Z’s 2025 tax data, including recapitulations of withholding tax slips for Income Tax Articles 21, 22, 23, and 4(2), VAT periodic tax returns, and the income statement. The results show that PT Z’s taxation aspects encompass Income Tax Article 21 (calculated using the Average Effective Rate/TER scheme), Income Tax Article 22 (collected by state-owned enterprises on goods sales), Income Tax Article 23 (withheld by PT Z on service fees), Income Tax Article 4(2) (on integrated construction services at a rate of 2.65%), VAT (both self-collected and collected by designated collectors), and Corporate Income Tax (calculated using the Article 31E facility). PT Z has fully implemented all tax obligations in accordance with applicable regulations and maintains separate bookkeeping for final and non-final income. The study concludes that PT Z is a corporate taxpayer that is both adaptive and compliant with the latest tax regulations.

Keywords:  Taxation Aspects; Construction Services; Integrated Construction; Average Effective Rate; Final Income Tax