In transactions such as certificates, agreements, deeds or securities among other documents, stamp duty is a necessity for the documents to be recognised in court as evidence. Stamp duty in Indonesia is one of the many taxes levied on companies.
The most prominent change for 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?
Although, stamp Duty is a levied tax on legal documents or assets that are required to recognise these documents in court.
However, stamp duty in Indonesia acts as a governmental tax on properties and other documents for legalisation 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 over IDR 5,000,000 acknowledging money receipt or debt settlement, fully 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 in Indonesia, 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
Meanwhile, it is common for stamp duty to be paid in full to show evidence of the purchase or sale of the property. Listed below are the specifics of who pays for stamp duty and when it is paid:
| Types of Documents | Payer for Stamp Duty |
| Agreements, Contracts, Deeds | – Payable upon signing – Paid by each party to the document |
| Securities-related documents | – Payable upon issuance – Need to be paid by the Issuer of the securities |
| Auction Documents, Documents acknowledging debt repayment | – Payable upon issuance to whom the document was made for – Paid by the recipient of the document |
| Documents used as evidence in court | – Payable upon submission to the Court – Payable by the party submitting the document |
Additionally, stamp duty in Indonesia 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 property acquisition.
Introduction to Electronic Stamp Duty in Indonesia
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.
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.
- Stamp duty applies to securities transactions, auction documents, and also documents as specified by Government Regulation.
- Documents that state a monetary value of less than IDR 5,000,000 will no longer require stamp duty
Hence, stamp duty taxes essentially remain imposed on properties such as land, buildings, and property title transfers, among others.
How Stamp Duty Is Paid in Indonesia?
Moreover, in the case that stamp duty is required, 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 in situations where large quantities of documents are to be used as evidence in court.
However, the revised stamp duty law states that Nazegelen will be regulated in a separate Minister of Finance Regulation. Al, since there has yet to be a regulation revoking the implementation, the payment for Nazegelen will still be subjected to Regulation No. PMK 70/2014.
However, 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.
FAQ
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.
Yes. It will still be valid one year since the implementation of the new law with a total minimum value of nine thousand rupiah.
Stamp duty can be obtained at any postal office in Indonesia and thus can be paid and obtained in a day.
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%.
