Editorial collage of a personified pair of large scissors with arms, a high-heeled leg, and a portrait head, set against coloured paper rectangles, illustrating consultant tax in Indonesia and the PPh Article 23 withholding cut from a consultant's invoice paid by a PT PMA.

Consultant Tax in Indonesia: PPh Article 23 and the Consultant-Employee Line

New foreign-owned PT PMAs frequently make a recurring error: paying the full consultant invoice without applying the withholding. This article works through the PPh Article 23 framework, the seven-factor consultant-employee substance test, the 2 or 4 per cent rate structure, and the NPWP rule.

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