The Indonesian government has issued a new law requiring the use of a new stamp duty imposed on civil documents and documents for use in court.
The Indonesian Government has revoked Law No. 13 of 1985 on Stamp Duty and issued Law No. 10 of 2020 on Stamp Duty ("Law 10/2020") which sets the single-priced stamp duty to be further valid as of January 1, 2021. The Stamp Duty, now uninformedly valued at Rp. 10,000, is tax imposed on civil documents and documents for use in court.
Law 10/2020 stipulates that the civil documents subject to Stamp Duty shall include:
- Agreement, Certificate, Statement Letter, or other similar letters, along with its duplicate;
- Notarial deed, transcript and excerpt thereof;
- Land Deed Official Deeds along with transcript and excerpts thereof;
- Securities under any name and in any form;
- Securities transaction documents, including futures contract transaction documents, with name and in any form;
- Auction documents in the form of quotation of auction minutes, minutes of auction minutes, copy of minutes auctions, auction and grosse minutes;
- Documents stating the amount of money with a nominal value of more than IDR 5,000,000.00 (five million rupiah) which:
- mentions the receipt of money; or
- contains acknowledgment that the debt has been paid in whole or in part or be taken into account; and
- Other documents stipulated by Government Regulation.
Additionally, these following documents are not subject to the new Stamp Duty:
1. Documents related to the traffic of people and goods:
- a deposit of goods;
- bill of lading;
- Passenger and goods transportation documents;
- evidence for delivery and receipt of goods;
- a letter of delivery of goods for sale at the sender's expense; and
- other letters which may be equivalent to the letter referred to in number 1 up to number 5;
2. All forms of diploma;
3. receipt of payment of salaries, waiting money, pensions, allowances, and other payments relating to employment relationships, as well as letters submitted to get payment referred to;
4. proof of receipt of state money from the state treasury, regional government treasury, banks and other institutions appointed by the state based on the provisions of statutory regulations;
5. receipts for all types of taxes and for other receipts equivalent to it originating from the state treasury, regional government treasury, banks and other designated institutions based on statutory provisions;
6. receipt of money made for internal purposes of the organization;
7. Documents stating deposits of money or securities, payment of deposits to depositors by banks, cooperatives and other agencies that organize deposits money, or issuance of securities by the custodian to customers;
8. pledge;
9. a sign of distribution of profit, interest or yield from securities, with name and in any form; and
10. Documents issued or produced by Bank Indonesia for the purpose of implementing policies monetary.
Even so, Law 10/2020 also stipulates that the usage of the old stamp duty under a nominal value of IDR 3,000 and IDR 6,000 are possible at least until December 31, 2021. The Directorate General of Taxes in its official twitter account stated that stamp duty with values of IDR 3,000 and IDR 6,000 can still be used, but with the provision that one usage per one document shall be in a minimum value of IDR 9,000.
There are three combinations with which the old stamp duty with a nominal value of IDR 3,000 and IDR 6,000 can still be used in accordance with Law 10/2020, namely:
- Stamp duty IDR 3,000 plus IDR 6,000
- Stamp duty IDR 6,000 plus IDR 6,000
- Stamp duty of IDR 3,000 plus IDR 3,000 plus IDR 3,000
The Directorate General of Taxes of the Republic of Indonesia also issued a picture guideline on combination of stamp duty with a nominal value of IDR 3,000 and IDR 6,000 which are affixed horizontally.