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A new stamp duty law came into effect in Indonesia on 1 January 2021 through Law No. 10 of 2020 on Stamp Duty (New Stamp Duty Law).
The new law includes detailed provisions on stamp duty obligations and includes several new stamp duty objects.
We have summarised the noteworthy changes under the New Stamp Duty Law here.
- The stamp duty value for any document has changed from the two old rates of IDR3,000 and IDR6,000 to become a single flat rate of IDR10,000.
- Currently circulating stamp duties (IDR3,000 and IDR 6,000) can still be used until 31 December 2021, provided that a total stamp value of at least IDR 9,000 is used for each document (multiple stamps can be used).
- The new law introduces a new form of electronic stamp duty for electronic documents. The new electronic stamp will contain unique codes and specific descriptions. The use of electronic stamp duty will be regulated in a new Minister of Finance Regulation.
- Several new documents now require stamp duty under the New Stamp Duty Law, among others:
- securities transaction documents, including securities trading confirmations. However, the Directorate General of Taxation has clarified on its website that an implementing regulation will be issued on securities trading confirmations;
- auction documents;
- any document mentioning a value exceeding IDR5 million, which may take the form of a receipt of payment or acknowledgement of a debt payment or settlement, whether entirely or partially; and
- other documents to be stipulated in a government regulation.
We note that failing to affix stamp duty does not affect the validity or legality of an agreement. However, stamp duty must be affixed before a document can be admitted in court as evidence. Any missing stamp duty can later be added to a document at any Indonesian post office, in a process known locally as Nazegelen.