Key Provisions on Implementing Regulations on Stamp Duty Law
13 April 2021

Following our article on “Highlights on The New Stamp Duty Law”, the Government of Republic of Indonesia (“Government”) has enacted implementing regulations to further stipulate the legal framework of the new stamp duty law, that is governed under Law No 10 of 2020 on Stamp Duty (“Stamp Duty Law”).


As of February 2021, these implementing regulations are stipulated under (i) the Ministry of Finance No 4/PMK.03/2021 on Payment of Stamp Duty, General and Specified Characteristic of Seal Stamp Duty (Meterai Tempel), Stamp Duty in Other Forms and Stipulation on Validity of Stamp Duty and Late Stamp Duty Affixation (“MoF Regulation 4/2021”) and (ii) the Directorate General of Tax Regulation No Per-01/PJ/2021 on Procedure on Repayment for Underpaid Amount of Stamp Duty over Documents in the Form of Cheque and Bilyet Giro (“DGoT Regulation 1/2021”), including the Directorate General of Tax Circular Letter No SE-01/PJ/2021 on Implementing Guidelines on Stamp Affixation of Repayment Evidence for Underpaid Stamp Duty (“DoGT Circular Letter 1/2021”).


Key provisions of the above implementing regulations are as follows:


  1. Forms of Stamp Duty and Alternatives to Pay Stamp Duty


PMK 4/2021 provides that stamp duty may be paid by the affixation of stamps or, if the affixation of stamps is impossible or ineffective to be conducted, through a tax payment slip (Surat Setoran Pajak).  In regards to the affixation of the stamps, the Government provides alternatives for the stamp affixation by stipulating several forms of stamps, which includes manual stamp seal (meterai tempel), electronic stamp, and other forms of stamp governed under the applicable laws.


Up till now, however, according to Sri Mulyani, Minister of Finance of the Republic of Indonesia, the Government is still in the midst of preparation for electronic stamping and therefore the electronic stamping cannot be implemented at the moment yet.


Besides manual stamp seal and electronic stamping, the Government also provides other forms of stamps, namely computerized stamp (meterai komputerisasi), digital imprinted seal (mesin teraan meterai digital). Although these forms of stamps have existed before the enactment of Stamp Duty Law, the Government still permits the usage of these forms of stamps, to the extent that the usage of these stamps are consistent with the applicable laws and regulations.


  1. Validation for Stamp Duty Payment


Through PMK 4/2021, the Government stipulates requirements to determine whether or not such stamp duty affixation should be deemed to be valid. These provisions, however, only stipulate requirements for the affixation of stamp duty conducted by using stamp seal or other forms of stamp duty. Some examples of the requirements may include that the stamp duty collector’s (Pemungut Bea Meterai) obligation to own the Stamp Duty Affixation License and the stamp seal used to affix the stamp duty must be in accordance with PMK 4/2021.  


  1. Late Stamp Duty Affixation


Other than those regulated under the Stamp Duty Law, PMK 4/2021 establishes further regulations on late stamp duty affixation. According to PMK 4/2021, late stamp duty affixation can be conducted for (i) documents that must be affixed with stamp duty but has not been affixed by stamp duty and/or the duty has not been properly paid according to the applicable laws; and (ii) documents that are going to be used as evidence in any legal proceedings.


Moreover, please note that specifically for the documents mentioned in no (i) above, besides the obligation to conduct late duty stamp affixation, the party to whom the stamp duty is due and payable must also pay the administrative sanctions. The amount of said administrative sanctions may vary from 100% until 200% of the amount of unpaid stamp duty, which depends on the time the stamp duty of the relevant documents become due and payable.


  1. Underpaid Stamp Duty for Cheque and Bilyet Giro


According to the Stamp Duty Law, within one year since the Stamp Duty Law is entered into force, the public may still use the old form of stamp duty seal with the combination amount of Rp9.000 (nine thousand Rupiah). However, according to DGoT Regulation 1/2021 and DoGT Circular Letter 1/2021, aforementioned transition provisions may not be applicable to cheque and stamp duty that has to be affixed with stamp duty. Instead, the Rp9.000 Rupiah stamp duty will be considered to be underpaid and therefore the remaining Rp1.000 (one thousand Rupiah) will still have to be paid by the party to whom the stamp duty is due and payable. The payment for the remaining Rp1.000 (one thousand Rupiah) can be paid through tax payment slip in accordance with DGoT Regulation 1/2021 and DoGT Circular Letter 1/2021.


The introduction of digital stamps alongside a newly revised stamp duty regime is clear reflection of the governmental changes during the unprecedented times of Covid-19. The updated Stamp Duty Law coupled with its implementing regulations establishes and adjusts the previous stamp duty policies to the current economic, social and information technology conditions that have massively evolved through the past three decades. Continuing to maintain the principles of simplicity, efficiency, justice, legal certainty and utility during extremely difficult times. These much-needed amendments will further ensure the Indonesia’s continuation of evolvement to accommodate the frequency of working from home.


Should there be any queries related to how this specific regulation may affect your business or personal interests please do not hesitate to contact us.

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