Stamp Duty Law

On 26 October 2020, Law of the Republic Indonesia Number 10 of 2020 concerning Stamp Duty was promulgated. Previously, on 29 September 2020 the House of Representatives approved the draft bill on stamp duty as an amendment of Law of the Republic Indonesia, which we discussed in the Monthly Tax Update for October 2020.

1. Stamp Duty Rate.
   The new stamp duty rate will be a single rate of IDR 10,000
2. Imposition of Stamp Duty
   Stamp Duty is imposed on the following documents:
   1. Documents with a signature of:
      1. Agreement Letter and their copies
      2. Notarial deeds with counterpart originals (grosse), copies and excerpts
      3. Deeds that are drawn up by land-deed officials and their copies
   2. Documents which are made for:
      1. Securities under any name and in any form
      2. Securities transaction documents, including transaction documents of future contracts.
   3. Documents submitted to the parties for whom they are made:
      1. Certificates, Statement Letters, or other letters
      2. Auction Documents
      3. Documents stating sums of money in nominal values which exceed IDR 5 million and which address the receipt of money or which contain acknowledgement of full or partial payments or calculation of loans.
   4. Documents which are used as evidence in court and
   5. Documents which are used in Indonesia.
3. Payable Stamp Duty
   Payable stamp duty can be paid via the following media:
   1. Stamps: either in the form of affixed duty stamp (meterai tempel), electronic stamp, or other forms of the stamp.
   2. Tax-payment slips.
4. Parties that owe the Stamp Duty:
   1. for documents that are made unilaterally, the stamp duty is payable by the party receiving the documents.
   2. For documents that are made by 2 (two) or more parties, the stamp duty is payable by each party receiving the documents.
   3. For securities documents, the stamp duty is payable by the party issuing the securities.
   4. For documents which are made overseas and used in Indonesia, the stamp duty is payable by the party receiving the benefits of the documents.
5. Exemption from Imposition of Stamp Duty
   Temporary or Indefinite e  xemption from the imposition of stamp duty shall be granted in relation to   certain types of documents, as follows:
   1. Documents which address transfers of rights over land and/or buildings in order to accelerate  the restoration of socioeconomic conditions
   2. Documents which address transfers of rights over land and/or buildings used for non- commercial regional/social purposes
   3. Documents which promote or implement government programs
   4. Documents that relate to implementation of international agreements or based on reciprocal arrangements.
6. Stamp Duty payable will expire after a period of 5 (five) years from the time it is payable.
7. Law No. 10 of 2020 will become effective starting 1 January 2021.