Professional Documents
Culture Documents
Scope
This policy applies to all companies in the Kargo group and all supplier payments.
Policy elements
This policy shall discuss the following conditions surrounding payments within the
Kargo group, including:
Required documentation
Procurement to payment request approval
Payment release approval
Payment terms
Payment cycle
Required documentation
All transactions requiring payments must be supported with the following
documentation:
VAT:
Entities that have gross revenue more than IDR4.8billion are required to
register for PTKP (‘’VAT-registration’’).
Individuals typically issue invoices without VAT.
For all invoices billed to Kargo, please ensure that the accompanying VAT
slips have at the minimum, the following information:
1. the name, address and NPWP of the taxpayer delivering the taxable
goods or services;
2. the name, address and NPWP of the purchaser;
3. the type of goods or services, the quantity, the sales price or
compensation and any discounts;
4. the VAT that has been collected;
5. the LST collected (if any) on luxury goods;
6. the code, serial number and date of issue of the invoice;
7. the name and signature of the authorised signatory to the invoice.
The validity of particular tax invoices is a key to successfully claiming the input
tax as a tax credit. These VAT Input can be utilised to offset against Kargo’s
VAT Output. Any incorrect information may result in VAT slips being
unusable, ie: incorrect quotation of Kargo’s tax ID.
WHT:
All counterparties that are entities typically have a corporate tax ID. However,
in cases where the companies are initially set up, they may not have a tax ID
readily.
Similarly, individuals may or may not have a tax ID, depending on their tax
registration status.
In the absence of a tax ID, these counterparties are charged a tax surcharge
on top of the standard rates.
Corporates that do not have tax ID are charged a 100% additional surcharge
on top of the standard rate. Tax rates may vary depending on the nature of
services. For example: services subject to WHT 23 of 2% qualifies for a 4%
tax rate in the absence of a tax ID.
In contrast, individuals are set on a progressive income tax. Individuals that
do not own a tax ID will be charged a 20% surcharge on top of the standard
rates.
All invoices are assumed to be gross amounts, and are therefore subject to
withholding taxes, unless otherwise agreed upfront in the form of a signed
contract.
Note that the amount of withholding tax depends on the nature of services
being rendered to Kargo.
Copy of signed contract
All invoices for services above IDR25 million must require a signed contract
by both parties to provision against cases of undelivered services. For
payment purposes, all contracts must at least, contain the following agreed
provisions:
1. Terms and conditions of services
2. Payment terms
3. Fees and payments
4. Taxes
It should be made clear whether the amount charged is on a
gross or net of tax basis.
5. Other information, as follows:
Bank name
Bank account number
Bank account holder
City
SWIFT CODE (for overseas banks)
Tax ID
Payment terms
o Standard payment terms are 30 days.
o Due date is calculated by applying agreed terms to the latter of valid
invoice presented or goods receipt or services rendered date. All
invoices are paid on our calculated due date.
o If an invoice falls due during a weekend or holiday, the payment
transaction is executed on the following business day.
Payment cycle
o We make payment on a daily basis where we are currently scheduling
two payment batches per day:
1. At 12:00
2. At 16:00
o It is mandatory to submit your payment at the latest 2 hours before the
payment batch is executed. Any late submission will be processed in
the next batch.
o Please note that there is a lead-time for processing payments to non-
BCA accounts.
Do’s
Don’t’s