Page 2 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.09 I November 2020 Page 2 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

New Regulation on Stamp Duty (vii) a document that states an amount of money
exceeding IDR 5,000,000 and declares
The government has issued a new regulation to replace the receipt of money or contains an
the provisions on stamp duty previously regulated acknowledgment that the debt has been fully
under Law No. 13 of 1985 concerning Stamp Duty or partly paid or calculated; and
(Law No. 13/1985). The new provisions on stamp
duty are outlined in Law no. 10 of 2020 concerning (viii) other documents stipulated by Government
Stamp Duty (Law No. 10/2020). Regulations.
The law has been issued to adapt to technological and Stamp duty is charged once for each of the
communication developments as well as international abovementioned documents. The government
prevalence in economic activity. On another note, currently sets the tariff at IDR 10,000. The amount
Law No. 13/1985 is no longer in line with legal of the document in point vii above and the amount
developments, society needs, and governance of stamp of the stamp duty tariff may be reduced or increased
duty, thus, needs to be substituted. This regulation will according to national economic conditions and the
come into effect on 1 January 2021. level of public income.

As per the provisions under Article 2 of Law No. Moreover, the aforementioned documents may be
10/2020, stamp duty is regulated based on the subject to stamp duty at different fixed tariffs to
principles of simplicity, efficiency, fairness, legal implement government programs and support the
certainty, and expediency. The regulation of stamp duty implementation of monetary and/or financial sector
covers five purposes. First, optimizing state revenues policies. These policies are stipulates after consultation
to finance national development independently with the DPR.
towards a prosperous Indonesian society.
Not all documents, however, are subject to stamp
Second, providing legal certainty in the collection of duty. The documents that are not subject to stamp
stamp duty. Third, adjusting to society needs. Fourth, duty remain the same as the previous regulation.
fairly applying the definition of stamp duty. Fifth, However, the government has added one document
harmonizing the provisions of stamp duty with the that is not subject to stamp duty, i.e. documents issued
provisions of other statutory regulations. or produced by Bank Indonesia in the context of
implementing monetary policy.
Based on Article 3 paragraph (1) of Law No. 10/2020,
stamp duty is imposed on documents prepared as a Stamp duty becomes payable when the documents
means of explaining a civil event and documents used are signed, completed, submitted to the parties for
as evidence in court. Referring to Article 3 paragraph whom the documents are prepared, submitted to the
(2) of Law No. 10/2020, civil documents may include court, and prepared abroad for use in Indonesia. Next,
the following. parties liable to stamp duty are described in further
detail in the new law as indicated in Table 1.
(i) letters of agreement, certificates, statement
letters, or other similar letters, along with the
copies thereof; Table 1 Parties Liable to Stamp Duty
Type of Documents Parties Liable to Stamp Duty
(ii) notarial deeds and grosse, copies and excerpts
thereof; Unilaterally prepared documents Parties receiving the documents

(iii) deeds of Land Deed Officials along with copies Documents prepared by two or Each party for documents they
more parties receive
and excerpts thereof;
Documents in the form of Parties issuing the securities
(iv) securities under whatever name and form; securities
Documents used as evidence in Parties submitting the
(v) securities transaction documents, including court documents
futures contract transaction documents, under
Documents listed in Article 3 of Parties making benefit of the
whatever name and form; Law No. 10/2020 and prepared documents
abroad and used in Indonesia
(vi) auction documents in the form of quotations
of auction reports, minutes of auction reports, Source: Law No. 10/2020.
copies of auction reports, and grosse of auction
reports;