The Government of Indonesia recently passed a new Stamp Duty Law (Law No. 10 of 2020 on Stamp Duty), which came into effect on January 1, 2021. The new Stamp Duty Law revokes Law No. 13 of 1985 on Stamp Duty (“Law 13/1985”).
The Stamp Duty Law regulates stamp duty, the one-time tax on certain documents. As of January 1, 2021, the government officially enforces a stamp duty of ten thousand rupiah. However, there is a one-year transitional period during which stamp duty of three thousand rupiah and six thousand rupiah are still valid in certain conditions.
Enactment of the new Stamp Duty Law is hoped to improve the efficiency and legal certainty surrounding the use of stamp duty, and in turn help improve the Indonesian economy. One of the key changes under the new law is the introduction of electronic stamp duty.
We look at that and some of the other main points of the new Stamp Duty Law.
Objects of Stamp Duty
The new Stamp Duty Law stipulates that stamp duty is applicable to:
- Documents created as a tool to explain an event of a civil (perdata) nature; and
- Documents to be used as evidence in a court of law.
Civil (perdata) documents as mentioned above cover:
- Letter of Agreement, Letter of Reference, Letter of Statement and similar letters, along with their copies;
- Notarial deeds and grosse (a first copy of an authentic deed/notarial deed), including copies and excerpts;
- Land Deed Officer's deed along with its copies;
- Commercial paper in any name and form;
- Commercial paper transaction documents including for futures contract transactions in any name and form;
- Auction documents in the form of excerpts, minutes, copies and grosse;
- Documents stating a sum of money above five million rupiah that (i) describe the receipt of money or (ii) contain an acknowledgement of debt payment or settlement, either entirely or partially; and
- Other documents stipulated by Government Regulation.
Stamp Duty Fee
The documents as referred to above are subject to stamp duty at a fixed rate of ten thousand rupiah.
Electronic Stamp Duty
The Stamp Duty Law introduces the idea of electronic stamp duty, which will have a unique code generated digitally by a computer system. The e-stamp duty is to be regulated by ministerial regulation, which as of this writing has not been issued.
The new Stamp Duty Law stipulates that a stamp duty on dutiable documents drawn up before the Stamp Duty Law came into effect on January 1, 2021, will follow the provisions of Law 13/1985. A stamp duty that has been printed based on Law 13/1985 and its remaining implementing regulations can still be used for the period of one year after the new Stamp Duty Law came into effect with a total minimum value of nine thousand rupiah.
This total minimum value of nine thousand rupiah as mentioned above can be a combination of three three thousand rupiah stamp duty, one three thousand rupiah stamp duty and one six thousand rupiah stamp duty, or two six thousand rupiah stamp duty. (18 January 2021)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.