A Quick Guide to Indonesia Stamp Duty and its Amendments
As of 2021, there have been significant legal changes in Indonesia, and this includes the law on stamp duties. The revisions aim to streamline efficiency and lessen legal ambiguities. As a one-time document tax, Indonesia stamp duty provides legal authenticity to relevant records.
While the legislation is already in force, there are still uncertainties and irregularities to iron out. Hence, it is important to understand what this levy is and the amendments making it more accessible and practical.
What is Stamp Duty in Indonesia?
Certain types of documentation need legal validation so that their legitimacy is not in question. To facilitate this, governments impose a levy known as stamp duty. The payment of this tax ensures that the document is legal and admissible in a court of law.
Law 10 of 2020 on Stamp Duty lists an extensive category of documents that now require this levy. It ranges from land deeds, loan documents, and sale and purchase agreements to certificates, auction papers, and securities. Foreign records or articles, such as an overseas company’s constitution documents, need stamp duty to be applicable in Indonesia.
The party who must pay the Indonesia stamp duty will depend on the type of document. Both concerning parties will have to pay stamp duty in some instances, such as contracts or deeds. In other cases, such as for auction documents, only the recipient needs to make payment. In each instance, it is best to do your due diligence before paying for anything.
Further Changes of Stamp Duty Law
The new Stamp Duty Law (the Law) continues to streamline the process to ensure expediency and clarity. One important change is the introduction of a standard flat rate of IDR1,000 for stamp duty. It replaces the previous rates of IDR3,000, IDR6,000, or a combination of both.
The other significant change is the implementation of an electronic or e-stamp via Minister Regulation No. 134/2021. It introduces a system that provides a unique 22-digit code as verification and a mandatory e-stamp affixation service.
Currently, the following state-owned enterprises handle the manufacture, distribution, and sales and purchase of e-stamps:
- Perusahaan Umum Percetakan Uang Republik Indonesia (Peruri)
- PT Telkom Indonesia (Persero)
- PT Pos Indonesia (PT Pos)
Aside from e-stamps, the Law also recognises an affixed, computerised, printed, or franked stamp duty. However, there are strict guidelines as to their applications. Thus, engaging professional help will ensure no problems occur.
Savvy entrepreneurs seeking more clarification on Indonesia Stamp Duty are welcome to get in touch with 3E Accounting Indonesia. Our team has the experience and expertise to ensure a satisfactory outcome to all queries.
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