New Stamp Duty Law Issued

On October 26, 2020 the government enacted Law No. 10 of 2020 on Stamp Duty (the “2020 Stamp Duty Law”). The purpose of the 2020 Stamp Duty Law is, among others, to increase state revenues and provide legal certainty on stamp duty collection. Stamp duty was previously regulated under Law No. 13 of 1985 dated December 27, 1985 on Stamp Duty (the “1985 Stamp Duty Law”).  The 2020 Stamp Duty Law revokes and replaces the 1985 Stamp Duty Law entirely.

The 2020 Stamp Duty Law will enter into force on January 1, 2021.

  • Stamp Duty Tarriff

The 2020 Stamp Duty Law introduces a single stamp duty tariff of Rp10,000 (ten thousand Rupiah). Previously, under Government Regulation No. 24 of 2000 dated April 20, 2000 on Amendment of Stamp Duty Tariff and Amount of Nominal Price Imposition Limit Imposed by Stamp Duty, stamp duty tariff was set out at Rp3,000 (three thousand Rupiah) or Rp6,000 (six thousand Rupiah), depending on the nominal value of a document. However, the 2020 Stamp Duty Law recognizes that the stamp duty tariff may be increased or decreased in accordance with the national economy and income rates. Change of stamp duty tariff shall be set out under a Government Regulation.

  • Stamp Duty Objects

Stamp duty is imposed on documents that are made that in handwriting, print, or electronic. The definition of “documents” under the 2020 Stamp Duty Law is expanded from the previous definition of documents under the 1985 Stamp Duty Law, which only include “paper documents.”

Stamp duty shall be imposed 1 (one) time for each of the following documents:

  1. documents made for court evidence; and
  2. documents made for the purpose of clarifying occurrences of a civil nature, which include:
    1. agreements, statement letters, or other similar letters and their copies;
    2. notarial deed and its grosse, copies, and quotations;
    3. securities in any name and form;
    4. securities transaction documents, including futures contract transaction documents, in any name and form;
    5. auction documents in the form of quotation of auction minutes, copy of auction minutes, and grosse of auction minutes;
    6. documents with monetary value of more than Rp5,000,000 (five million Rupiah) which (i) states the receipt of money, or (ii) consists of statement that the entire or partial of payable amount has been settled or calculated; and
    7. other documents stipulated under Government Regulation.

Please note that unless required by laws and regulations, stamp duty does not affect the validity of a document. The stamp duty only constitutes the payment of tax over the document.

  • Payment of Stamp Duty

Stamp duty shall be paid by:

  1. the person who receives the document if the document is made unilaterally;
  2. each party involved in the document if the document is made by 2 (two) or more parties;
  3. the party who issues the securities; or
  4. the party who submits the document to a court of law.
  • Electronic Stamp Duty

The 2020 Stamp Duty Law acknowledges stamp duty in electronic and other forms, such as by way of digital stamp duty machine or any other technology. By including this provision, the Government clarifies that electronic documents are also subject to stamp duty. Further provisions on electronic stamp duty and stamp duty in other forms shall be regulated under the Minister of Finance’s Regulations.

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December 23, 2020

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