STAMP DUTY

Legal base

 Law of the Republic of Indonesia No. 13 of 1985 regarding

Stamp Duty
 Stamp duty is one of many taxes imposed in
Indonesia.
 It is imposed on legal documents.
Definition

 Stamp duty is a levied tax on different legal

documents which have different fixed rates.
Some of the stamp duty rates in
Indonesia are the following:
 Values of up to 250,000 rupiah have no stamp
duty
 Values of 250,001-1,000,000 rupiah have a stamp
duty of 3,000 rupiah
 Values of over 1,000,000 have a stamp duty 6,000
rupiah
 According to the Indonesian constitution’s Article 2.1 (1.a) on the law
governing stamp duty, it is often imposed on “contract letters and
other letters made for the purpose of being used as an evidence tool
of private-natured conduct, facts or conditions”.
 Therefore, it is evident that stamp duty is imposed on contracts to
legalize the transactions and for evidence purposes. 
 Stamp duty is not only used for evidentiary requirements
but also remains relevant within the territories of Indonesia.
 For further clarification, Article 5 (c) of the stamp duty law
states that “A stamp duty is due to be paid for a document
made abroad, when it is used in Indonesia.” 
 According to Article 11 (1) of the Indonesian law on stamp duty, if the
duty stamp is not sealed, it does not nullify the transaction; neither
does it make the transaction void.
 However, the law further states that such contracts would not, in case
of any problem, be considered by any government officials.
 In such a situation, a case about the contract cannot be brought before
the judges, court, registrar, notary or any, other public authority.
 Contracts that do not bear the stamp duty levied on them are
unacceptable in Indonesia.
Imposition of Stamp Duty in Indonesia

 Article 2(1.a) of the Stamp Duty Law, states that a stamp duty is imposed to:
“contract letters and other letters made for the purpose of being used as
an evidence tool of private-natured conduct, facts or conditions”
 Documents are charged a stamp duty tax fee of either 3,000 rupiah or 6,000
rupiah. 
 Anyone - Indonesian citizens and foreigners alike - can use
meterai to validate documents. They can also be used for
personal documents, such as promissory notes for personal
loans.
Documents requiring stamp duty include:

 Bank transactions: certificate of deposit purchases, promissory notes, loan and credit agreements
 Financial contracts, for example private loans
 Insurance contracts
 Land transactions
 Letters of agreement
 Licences
 Notarial deeds
 Power of attorney
 Proxies
 Receipts, including tax payments
 Statement letters
Some case
 A contract was entered into by an Indonesian limited liability company
(Perseroan Terbatas or PT) with a BVI company, governed under English law,
and has a dispute resolution clause stating that any dispute over the contract
will be referred to an arbitration organization in Singapore. For one reason and
another, the contract signing will take place in Indonesia.
 In such case, must the contract be signed with an Indonesian stamp duty
(bea materai) seal on it? Is it a ‘yes’ because one of the parties is an
Indonesian entity or since the signing is in Indonesia? Or is it a ‘no’ because it
is governed under the English law?
Please check on

 https://www.linkedin.com/pulse/understanding-indonesian-stamp-duty-bea-materai-theodo
re-amarendra/