Pro Maid Company is an outsourcing company which providing servant that has been taught

in the company. We have trained our employees to become a responsible on their job and
selected with carefully so our clients can put ease in their minds.

Our business process:

Pro Maid Company Expenses

Pro
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Contract Agreement Client
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Tax aspect:

1. Article 4A paragraph (3) letter k of Law Number 42 of 2009

2. Article 76 Paragraph 2
3. Article 86 Paragraph 5
4. Article 76 Paragraph 2
5. Article 88 Paragraph 3
6. Article 93 Paragraph (1) of Law no. 13 of 2003
7. Article 156 Paragraph (4)
8. Article 167
 01-Sep-2021 Pay for employment insurance for all employees (19 employees)

(@Rp500.000,00) (Rp9.500.000,00)

According to VAT regulation, Article 86 Paragraph 5, about the safety of employees, every
employees entitled to occupational health and safety. This is also stated in Article 99, about
labor social security.

Provide pay leave to female employees who take PMS or maternity

01-Sep-2021
leave Rp500.000,00

According to VAT regulation, Article 76 Paragraph 2, the company is prohibited from

employing pregnant women who can be harmful to womb and to themselves.

Pay for facilities in the form of housing and food for employees who
01-Sep-2021
work outside the city Rp 2.000.000,00

According to VAT regulation, Article 88 Paragraph 3, the company must provide wages to
provide protection to workers who work outside the city.

Pay the salaries of administration staff, accounting, finance, and

banking, marketing, and customer service (12 staff)

 Administration (2 staff)
 Accounting (2 staff)
01-Sep-2021
 Finance and banking (2 staff)
 Marketing (4 staff)
 Customer Service (2 staff)

(@Rp3.760.000,00) Rp45.000.000,00
Not subject to VAT

Pay the salaries of IT staff, HR staff (5 staff)

(@Rp3.570.000,00) Rp17.850.000,00
01-Sep-2021
 IT (2 staff)
 HR (3 staff)

(@Rp3.570.000,00) Rp17.850.000,00

Not subject to VAT

Pay the salaries of cleaning service (2 Staff)

01-Sep-2021
(@Rp2.900.000,00) Rp5.800.000,00

(@Rp2.900.000,00) Rp5.800.000,00

Not subject to VAT

All salary payments are made using the bank transfer payment method. And in accordance with
the VAT regulation, everything in the form of wages, bonuses, commissions, and salaries that
are individual is not subject to VAT, contained in Article 4a point k of Law no. 42 year 2009.

Salaries, wages, or bonuses given to employees are not subject to VAT because salaries, wages,
or bonuses are personal which should be subject to income tax.

Mrs. Grace pays BPJS facilities fees of the employees for the month
01-Sep-2021
Rp15.000.000,00

According to the VAT regulations in Article 86 Paragraph (1), every worker had the right to
get protection for safety and health; morality and decency; and an attitude that is accordance to
the dignity of human rights. So, the VAT will be Rp1.500.000,00
 03-Sep-2021 Five of the employees are getting swab test for COVID-19

(@Rp500.000,00) Rp2.500.000,00

This transaction does not include VAT because it is a health services transaction. However,
according to the Article 86, company is responsible for the workers safety and health so the
company must pay for the cost.

A worker got into a mild car accident on the way to client house and
is hospitalized for 7 days.
04-Sep-2021
 Hospital room (@Rp1.000.000,00) Rp7.000.000,00
 Medicines Rp5.000.000,00

Rp12.000.000,00

This transaction does not include VAT because just as stated in the VAT regulations, any kind
of health services is not subject to the Value Added Tax.

A worker decided to retire from the company after 15 years. He will

06-Sep-2021 be getting pension fund and old age guarantee fund for
Rp70.000.000,00

According to VAT regulation Article 167, a worker could terminate their contract with
company if they are already in the retiring age and if the company had included the worker for
retire program which dues have been paid full by the company, so the worker is entitled for
compensation money as stated in Article 156 Paragraph (4).
 Ms. Rita wants to hire two workers. Administration fee from each
09-Sep-2021
worker is Rp3.000.000,00

According to VAT regulations, tax services will get 10% of their administration fee. So, the
VAT will be Rp600.000,00

Mrs. Susanti wants to hire a worker. Administration fee from each

11-Sep-2021
worker is Rp3.000.000,00

According to VAT regulations, tax services will get 10% of their administration fee. So, the
VAT will be Rp300.000,00

Mrs. Jane wants to hire three workers. Administration fee is

19-Sep-2021
Rp9.000.000,00

According to VAT regulations, tax services will get 10% of their administration fee. So, the
VAT will be Rp900.000,00

An old worker retreats because of personal issue. The worker has

22-Sep-2021
worked for 10 years with salary Rp 1.500.000, - each month.

According to VAT regulation, Article 156 paragraph (1) stated that the company needs to pay
the worker with severance pay and or working award for the period of service and
compensation for entitlements.

As for severance pay, article 156 paragraph (2i) stated that the period of working between 8
years or more, will get 9 months of salary. So, for the severance pay, it will be Rp13.500.000,00

As for the working award, article 156 paragraph (3c) stated that the period of working between
9 years not more than 12 years, will get 4 months of salary. So, for the working award, it will
be Rp6.000.000,00
As for the compensation for entitlements, article 156 paragraph 4 stated for worker will get
unreceived annual leave, transportation cost, treatment cost (15% from severance pay), and
other cooperation agreement. The worker has received all the annual leave, Rp100.000,00 for
the transportation cost, Rp2.025.000,00 for treatment cost. Since the worker retreats before the
contract expired, according to article 61 the worker will be fined for 3 times of salary. The
fined will be Rp4.500.000,00 total compensation for entitlements will be Rp2.125.000,00

Ms. Lin wants to hire five workers. Administration fee is

23-Sep-2021
Rp15.000.000,00

According to VAT regulations, tax services will get 10% of their administration fee. So, the
VAT will be Rp1.500.000,00

A worker retreats because of marriage. The worker has worked for

26-Sep-2021
2 years with salary Rp1.500.000,00 each month.

According to VAT regulation, Article 156 paragraph (1) stated that the company needs to pay
the worker with severance pay and or working award for the period of service and
compensation for entitlements.

As for severance pay, article 156 paragraph (2c) stated that the period of working between 2
years or more, will get 3 months of salary. So, for the severance pay, it will be Rp4.500.000,00

As for the working award, article 156 paragraph (3) stated that the period of working between
3 years not more than 6 years, will get 2 months of salary. So, for the working award, the
worker won’t get anything because the worker only works for 2 years.

As for the compensation for entitlements, article 156 paragraph 4 stated for worker will get
unreceived annual leave, transportation cost, treatment cost (15% from severance pay), and
other cooperation agreement. The worker has received all the annual leave, Rp100.000,00 for
the transportation cost, Rp675.000,00 for treatment cost. Since the worker retreats before the
contract expired, according to article 61 the worker will be fined for 3 times of salary. The
fined will be Rp4.500.000,00 total compensation for entitlements will be Rp775.000,00
 26-Sep-21 ProMaid pays Rp 500.000,00 for property damages caused by the worker.
Rp500.000,00

This transaction does not include VAT, according to Letter of the Director General of Taxes
Number: S-495/PJ.32/1988, that on the receipt of the compensation, Value Added Tax is not
payable.

Client pays Rp1.500.000,00 of compensation money as he decided to

28-Sep-21 terminate the contract midway before the official date that had been
agreed upon by both parties.
Rp1.500.000,00

For the payment of the fine due to the termination of the contract, is not an object of VAT, so
Pro Maid is not required to collect VAT.

This is because the termination penalty payment is not a payment for submission of Taxable
Services. The plan for the delivery of Taxable Services, in this case the agency’s services has
been cancelled and for such cancellation Client A must pay a fine (termination penalty).

Worker returns to hometown as a personal issue came up. 7 days

30-Sep-21
@Rp50.000,00
Rp350.000,00

This transaction does not include VAT, as stated in Article 4A paragraph (3) letter k of Law
Number 42 of 2009 (VAT Law) which is further explained in the implementing regulation of
PMK Number 83/PMK.03/2012 that the types of services that are not subject to Value Added
Tax are certain services in labour service group, includes compensation in the form of salary,
wages, honorarium, allowances, and anything of the sort.

Though, the salary will still be omitted as there is no prohibition for companies to not pay
workers’ wages if in accordance with Article 93 paragraph (1) of Law no. 13 of 2003
concerning Employment. In the Manpower Act, it is written that employees are not paid if they
do not work. This is also known as the 'no work no pay' principle.