Page 3 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.08 I November 2020 Page 3 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

Nonetheless, the stipulation of parties liable to stamp government programs and/or policies of
duty above does not prevent a party or parties from authorized institutions in the monetary or
agreeing on or determining which parties pay stamp financial services sector; and/or
duty. Stamp duty may be collected by stamp duty
(iv) documents referred to in Article 3 that pertain
collectors, subject to further regulation under a
to the implementation of binding international
ministerial regulation.
agreements based on statutory regulations in
Stamp duty payable on documents is paid using a the field of international agreements or based
stamp duty or tax payment slip. The stamp duty may on the principle of reciprocity.
take the form of adhesive stamp, electronic stamp, or
Further provisions regarding the granting of the
stamp in other forms as stipulated by the minister.
exemptions from stamp duty facility shall be further
Anyone who produces stamp duties in other forms
regulated based on government regulations. Further,
must obtain a permit. Stamp duty payable will expire
Law No. 10/2020 stipulates a maximum imprisonment
after a period of five years from the time it becomes
of seven years and a maximum fine of IDR 500 million
payable.
against anyone who forges or counterfeits stamps
In addition, this regulation stipulates postdated duty or illegally produces stamps using original stamps,
stamp. Postdated duty stamp is applied for documents including producing electronic stamps and other
for which the stamp duty is not or underpaid and/or forms of stamp.
documents used as evidence in court. Parties obliged
to pay stamp duty through postdated duty stamp are
those liable to stamp duty.
Taxation Cluster in Job Creation Law
Further, Law No. 10/2020 stipulates prohibitions for
the competent authority. First, receiving, considering, The government officially enacted Law No. 11 of 2020
or keeping documents for which the stamp duty are concerning Job Creation (Job Creation Law) on 2
not or underpaid. Second, attaching documents for November 2020. Consisting of 1,187 pages in total, the
which the stamp duty is not or underpaid on other regulation contains 15 Chapters and 186 Articles. The
related documents. taxation cluster is included in Part Seven of Chapter VI
Ease of Doing Business. The taxation cluster includes
Third, preparing copies, carbon copies, duplicates, or amendments to four tax laws as stipulated in Article
excerpts of documents for which the stamp duty is 111, Article 112, Article 113, and article 114.
not or underpaid. Fourth, providing information or
(i) Income Tax Law
notes on documents for which the stamp duty is not or
underpaid. If the competent authority violates these
Article 111 contains changes to several provisions
prohibitions, they shall be subject to administrative
under Law No. 7 of 1983 concerning Income Tax
penalties as per statutory regulations.
as amended by Law No. 36 of 2008 concerning the
Stamp duty payable may be granted with the Fourth Amendment to Law No. 7 of 1983 concerning
exemption from stamp duty facility, either temporarily Income Tax (Income Tax Law). Articles of Income Tax
or permanently. The exemption facility is granted for Law amended in Job Creation Law include Article 2
four items as follows: concerning the stipulation of resident or non-resident
taxpayers, Article 4 concerning tax objects, and Article
(i) documents referred to in Article 3 which state 26 concerning Income Tax for non-resident taxpayers
the transfer of rights to land and/or buildings (Subjek Pajak Luar Negeri/SPLN).
in the context of accelerating the process of
handling and restoring the socio-economic In further detail, Article 111 of Job Creation Law
conditions of a region from a natural disaster revises the provisions under Article 2 paragraph (3),
designated as a natural disaster thereof; paragraph (4), and paragraph (5) of Income Tax Law.
The important points of changes can be found in Article
(ii) documents referred to in Article 3 which state 2 paragraph (4) of Income Tax Law which regulates
the transfer of rights to land and/or buildings SPLN. Article 2 paragraph (4) of Income Tax Law as
used to carry out activities that are solely amended by Article 111 of Job Creation Law adds
religious and/or social and are not commercial; a new type of SPLN, i.e Indonesian Citizens (Warga
Negara Indonesia/WNI) who are abroad for more
(iii) documents referred to in Article 3 in the
than 183 within a year and meet the requirements of
framework of encouraging or implementing