Professional Documents
Culture Documents
CONSTRUCTION
CONTRACTS
Josua Pranata (008201600059)
Kevin Kenn Tangkas (008201600013)
Nathania Neysa (008201500022)
Silvia Sely Grace Gea (008201600062)
Ding Zisheng (008201600082)
ACCOUNTING FOR CONSTRUCTION
CONTRACTS
while in its formulation can be formed in various ways which are classified as follows:
1 fixed price contract
2 plus cost contract
use of percentage completion
method
Using the percentage method, the completion of this contract requires the company to
recognize revenue and costs according to the level of progress or the level of
completion of the work that is not required to wait for the completion of the contract
Income tax for construction
services
Definition
1. If the service user is a government body, subject of domestic tax entity, permanent
business form or domestic individual taxpayer appointed by the Director General of
Tax is deducted by the service user at the time of payment.
2. If the service user is other than above, the recipient of the income is paid by himself at
the time of payment.
Payment and Reporting
Procedures
1. In the case of Income Tax owed through deductions, then the Payment or tax payment is
deposited to the perception bank or post office, no later than the 10th of the following month
after the tax period ends;
2. In the event that the Income Tax is payable must be paid by the service provider, then it must be
deposited to the perception bank or post office, no later than the 15th of the following month
after the tax period ends;
3. Taxpayers are required to submit a report on deductions and or deposits of tax through a Periodic
Notice to the Office of Tax Servants or KP2KP, no later than 20 days after the tax period ends.
In the event that the maturity of the deposit or the tax reporting deadline coincides with a
holiday including Saturday or a national holiday, deposits or reporting can be made on the
following business day.
The scope of other employment and transitional
rules of Hubungan Kebesaran Tidak Standar
Jobs such as maintenance which is building’s cleaning and painting or other physical form
done by non construction company, the installation and maintenance/repair of machinery
and mechanical equipment also building’s prefabricated components after sales service
done by the suppliers itself, technical service, interior design, and landscape gardening
done by non construction agent, is not included in the term of constructions job. Thus for
the income received by the said company, it is not applicable for the provisions of the
construction service, but it is applicable for the general provision of Income Tax as it
usually is for the non construction service Tax Payer .
In the application of the new regulations, the construction service
involves more than one tax period. It is affirmed that:
For the contract or part of the contract’s payment until 31 st December 2008,
the application of Income Tax based on the Government’s Rule number 140
year 2000 about Income Tax for Income from Construction Job Service. It still
refers to the old regulations.
For the contract or part of the contract’s payment after 31 st December 2008,
the application of Income Tax based on the Government’s Rule number 51
year 2008 about Income Tax from Construction Job Service.
The Income Tax for construction job service which has been cut and
deposited based on Government’s Rule number 10 year 2000 can be
bookkept as the payment of Final Income Tax for the constructions service
corresponding Government’s Rule number 51 year 2008 as long as it comply
the regulations:
1. The cutting and deposit of the Income Tax is done to the income from the construction
service based on the signed contract since 1st January 2008; and
2. The contract or part of the contract’s payment as is mention in point 1 is done at the longest
until the end of the month the Government’s Rule is set