How to Pay Stamp Duty and Post-Dated Stamping

Stamp duty is a type of tax that must be paid by parties with an interest to undertake legal actions. Stamp duty differs from other types of taxes in general in that it is not imposed on a person, but is only imposed if a person chooses to be a party liable to stamp duty because of the person’s interests.

Pursuant to the provisions under Article 1 numbers 1 and 2 of Law No. 10 of 2020 concerning Stamp Duty (Stamp Duty Law), stamp duty is a tax imposed on documents. The said documents include written materials or writings, in the form of handwriting, printing or electronic, which may be used as evidence or information.

This implies that all parties with an interest in such documents, are obliged to pay the tax imposed on them on such documents. However, a question arises, how to pay stamp duty payable?

Payment of Stamp Duty Payable

Referring to the provisions under Article 12 of the Stamp Duty Law, stamp duty payable on documents may be paid in two ways, namely using stamping or tax payment slips.

Stamp duty may be paid using a tax payment slip if the payment of stamp duty using a stamp duty is considered inefficient or even impossible due to certain circumstances.

These certain circumstances include when the documents are used as evidence in court. Generally, a substantial number of documents will be used as evidence in court, thereby, payments using stamping are ineffective.

The stamp duty on such documents may be paid using tax payment slips through the payment of post-dated stamp duty mechanism. Payment using this method is intended as an alternative to provide convenience in the payment of stamp duty.

Conversely, for payment using stamping, the stamping may be in the form of adhesive stamps, electronic stamping or stamping in other forms stipulated by the minister of finance. The manufacture of stamping in other forms requires a permit from the competent authority prior to use.

Further provisions on the payment of stamp duty payable will be regulated in a ministerial regulation. On the other hand, the procurement, management and sales of the abovementioned stamping are regulated by or based on a government regulation.

Post-Dated Stamp Duty

Pursuant to the provisions under Article 1 number 6, post-dated stamp duty refers to a stamp duty that requires approval from an official determined by the minister of finance. Referring to article 17 paragraph (1) of the Stamp Duty Law, post-dated stamp duty is performed for civil documents on which stamp duty is not or underpaid as well as documents used as evidence in the court. 

In principle, the party obliged to pay stamp duty through post-dated stamp duty is the liable party. However, the payment may be performed by the holder of the documents, either as a liable party or a non-liable party.

Furthermore, Article 18 paragraph (1) of the Stamp Duty Law stipulates that stamp duty that must be paid through post-dated stamp duty amounts to the amount of stamp duty payable for civil documents on which stamp duty is not or underpaid plus the administrative penalty. The administrative penalty is imposed at 100% of the amount of stamp duty payable.

The amount to be paid for stamp duty payable on documents used as evidence in court is only the amount of stamp duty payable on documents. For a liable party that does not or underpays stamp duty payable, referring to the provisions under Article 19 paragraph (1) of the Stamp Duty Law, a notice of tax assessment shall be issued.

The stamp duty underpayment in the notice of tax assessment amounts to the unpaid or underpaid stamp duty plus the administrative penalty. The provisions on procedures for the payment of stamp duty through post-dated stamp duty shall be regulated in a minister of finance regulation. (faiz)*