Company Registration at Paul Hype Page Indonesia
Indonesia Stamp Duty

Jun 205 mins

In transactions such as certificates, agreements, deeds or securities among other documents, stamp duty is a necessity in order for the documents to be recognised in court as evidence. Stamp duty is one of the many taxes levied on companies in Indonesia.

The most prominent change for the stamp duty in Indonesia is the replacement of varying rates with a standard rate, along with the introduction of electronic stamp duty.

What is Stamp Duty?

Stamp Duty is a levied tax on legal documents or assets that are required to recognise these documents in court.

Stamp duty in Indonesia acts as a governmental tax on properties and other documents for legalization purposes. It also acts as evidence of the legal acquisition of the property on which the levy is imposed.

Stamp Duty is required for legal documents such as:

  • Agreements, Certificates, Statement Letters, Similar Documents and their copies;
  • Notarial Deeds and Executorial Deeds and their copies;
  • Deeds made before a land deed officer and their copies;

  • Securities; and
  • Documents stating a sum of money more than IDR 5,000,000, which describe the receipt of money or contain an acknowledgement of dept payment or settlement, either entirely or partially
  • Auction Documents
  • Documents stipulated by Government Regulation
  • Documents made abroad and used in Indonesia

There is also a list of documents that are exempted from stamp duty, these include:

  • Transfer of Land and Building rights documents used for

    ✓ Handling and restoring social conditions following natural disasters
    ✓ Religious or non-commercial activities

  • Documents related to the implementation of

    ✓ Government programs and monetary or financial policies
    ✓ International agreements under binding international treaties or reciprocal laws

  • Documents relating to the movement of people and goods
  • Diplomas,
  • Salary Payments,
  • Tax Receipts, and many others

It is common for stamp duty to be paid in full to show evidence for the purchase or sale of the property. Listed below is the specifics of who pays for stamp duty and when it is paid:

Types of Document Payer for Stamp Duty
Agreements, Contracts, Deeds – Payable upon signing
– Paid by each party to the document
Securities-related documents – Payable upon issuance
– Paid by Issuer of the securities
Auction Documents,Documents acknowledging debt repayment – Payable upon issuance to whom the document was made for
– Paid by recipient of the document
Documents used as evidence in court – Payable upon submission to Court
– Paid by the party submitting the document

Stamp duty provides evidence that the parties involved have a mutual and acceptable deal between them on top of indicating if the parties intend to use the stamp duty for evidentiary purposes which is vital for any problems about the property acquisition.

Introduction to Electronic Stamp Duty

The law that was implemented in 2021 regarding stamp duty saw the introduction of electronic stamp duty. This was introduced to manage stamp duties for electronic documents.

As the government is still in the process of building the software and infrastructure needed to manage these electronic stamps, the legal basis for these electronic stamp duties has been established but not yet implemented.

Changes in The Imposition of Stamp Duty in Indonesia

Since the revision of the Stamp Duty Law, there are some changes that you should take note of. These include:

  • Implementation of a standard rate of IDR 10,000 for all documents that require stamp duty, up from either IDR 3,000 or IDR 6,000.

  • Documents that require stamp duty still remain the same with some additions such as securities transaction documents which include future contract transactions, minutes and copies of auction documents, as well as any other documents stipulated by Government Regulation

  • Documents that state a monetary value of less than IDR 5,000,000 will no longer require stamp duty

Stamp duty taxes essentially still remain imposed on properties such as land, buildings, and property title transfers, among others.

Corporate Tax checker

How Stamp Duty Is Paid in Indonesia

In the case that stamp duty is required in the time being, it may be obtained by using an affixed Duty Stamp or paid via a tax payment certificate. The latter is commonly used for convenience, such as situations where large quantities of documents are to be used as evidence in court.

In the revised law for stamp duty regarding nazegelen, the subsequent payment of due stamp duty, it is indicated that it will be further regulated in a separate Minister of Finance Regulation. However, since there has yet been a regulation revoking the implementation, the payment for nazegelen will still be subjected to the Regulation No. PMK 70/2014.

That being said, it is not considered a tax crime and any subsequent due stamp duty can be paid at any local post office at a penalty of 200% of the initial cost of stamp duty due.

Ready to incorporate your company in Indonesia or require taxation services? Reach out to us for a free consultation today

contact us

FAQ

Is Indonesia a good place to work or live in?2021-11-05T16:10:57+08:00

Indonesia has the biggest economy in South East Asia, this means that there is potential in the economic growth. Thus, Indonesia has a wide range of goods and services along with better standards of living.

In the city of Jakarta and Bali, there is a large expat community as it is popular amongst tourists and travellers alike.

I obtained the stamp duty before the implementation of the new stamp duty law, is it still valid?2021-11-05T16:10:17+08:00

Yes. It will still be valid one year since the implementation of the new law with a total minimum value of nine thousand rupiah.

How long does it take to obtain a stamp duty for my documents?2021-11-05T16:09:20+08:00

Stamp duty can be obtained at any postal office in Indonesia and thus can be paid and obtained in a day.

If I do not pay for Stamp Duty, will that affect the validity of the agreement ?2021-11-05T16:08:33+08:00

Although failing to pay for stamp duty does not affect the legality or validity of an agreement, the failure to pay for stamp duty will result in the documents being unrecognised in court as evidence.

In the case that you want to add a stamp duty, you may purchase it at any post office at a higher cost due to a penalty of 200%.

Share This Story, Choose Your Platform!

Just keep reading...

click here to view our fourm threads

Join the discussions

Latest Forum Discussion