What Are Stamping Machines and Printed Stamp Duties?

STAMP duty is not only settled using adhesive stamps. More broadly, stamp duty may also be settled using stamp duties in other forms stipulated by the Minister of Finance.

Stamp duties in other forms include stamp duties manufactured using digital stamping machines, computerised systems, printing technology and other systems or technologies. However, it seems that many people are unfamiliar with stamp duties in other forms.

Stamp duties manufactured using a digital stamping machine seem to be less familiar than adhesive stamps. As such, what exactly are stamping machines and printed stamp duties?

Definitions
Referring to Article 1 number 1 of the Director General of Taxes Regulation No. PER - 17/PJ/2008, a stamping machine refers to one of the means of settling stamp duty using other means, used to affix the stamp duty paid franking.

There are 2 types of stamping machines, namely manual and digital stamping machines. Article 1 number 2 of PER-17/PJ/2008 outlines that a manual stamping machine is a stamping machine whose deposit is recredited by opening and installing a tin seal.

However, in line with the technology, manual stamping machines are no longer used and replaced by digital stamping machines. This is because manual stamping machines are considered not to provide adequate security guarantees for state revenues.

The replacement is affirmed by Article 5 of PER-17/PJ/2008 which states that manual stamping machines may only be used for 2 years from 29 April 2008. This implies that manual stamping machines could last be used in April 2010 and were subsequently replaced by digital stamping machines.

Article 1 number 3 of PER-17/PJ/2008 defines a digital stamping machine as a stamping machine whose deposit is recredited electronically, i.e. no human intervention is required, such as the stamping machine deposit code recrediting (DCR) system or other systems.

Deposit code recrediting (DCR) refers to a method of deposit recrediting using a deposit code application. Referring to Article 1 number 4 of the Director General of Taxes Regulation Number PER - 66/PJ/2010, a deposit code application is:

“An application installed on the server belonging to the distributor of the digital stamping machine placed at the Head Office of the Directorate General of Taxes which functions as the issuer of the deposit code of the digital stamping machine after obtaining information on the results of deposit payment verification from the e-Meterai application.”

On the other hand, the e-Meterai application is an application installed on the DGT’s server that serves the registration of digital stamping machines, deposit payment verification and the filing of stamp duty, accessible through the DGT intranet portal.

Further, a deposit code refers to the code required to recredit the deposit of a digital stamping machine. Self-deposit refers to the deposit of stamp duty in advance by a taxpayer.

Pursuant to Article 1 of the Director General of Taxes Decree No. KEP - 122b/PJ./2000, the settlement of stamp duty using stamping machines is only allowed to document issuers performing stamping of a daily minimum average of 50 documents.

However, referring to Article 2 of PER - 66/PJ/2010, taxpayers intending to settle stamp duty using digital stamping machines must apply for a permit to the Head of the Tax Office where the taxpayers are registered.

In addition, taxpayers intending to use digital stamping machines to affix the stamp duty paid franking must remit a deposit of IDR15 million or multiples thereof, using a Tax Payment Slip (Surat Setoran Pajak, hereinafter referred to SSP) to the state treasury through tax payment offices.

Tax payment offices refer to post offices and/or state-owned banks or local-owned banks or other places of payment designated by the minister of finance as the recipient of payment or remittance of taxes.

Further, Article 10 of PER - 66/PJ/2010 outlines the format of stamp duties manufactured using digital stamping machines which at least include elements, such as the logo and inscription of the DGT, the logo and/or inscription of the taxpayer implementing the stamp duty paid franking using a digital stamping machine.

In addition, there is the inscription PRINTED STAMP DUTY, the Stamp Duty rate, date, month and year of the stamp duty paid franking using a digital stamping machine, machine number and unique code. The stamp duty manufactured by the digital stamping machine is red.

Further provisions can be seen in the Stamp Duty Law, MoF Decree No. 133b/KMK.04/2000, Director General of Taxes Regulation No. KEP - 122b/PJ./ 2000, Director General of Taxes Regulation No. PER - 17/PJ/2008, Director General of Taxes Regulation No.PER - 66/PJ/2010, Director General of Taxes Regulation No.PER-01/PJ/2021 and the DGT Circular No. 01/PJ/2021.

Conclusion
In essence, a stamping duty machine is one of the means of settling stamp duty using other means, sed to affix the stamp duty paid franking. Currently, only digital stamping machines are used.

A digital stamping machine is a stamping machine whose deposit is recredited using an electronic system, where no human intervention is required. For example, stamping machines with the deposit code recrediting (DCR) system or other similar systems.

Printed stamp duty refers to an inscription that must be listed in a stamp duty manufactured using a digital stamping machine. Therefore, the red stamp duties manufactured by digital stamping machines are often referred to as printed stamp duties.

Printed stamp duties are commonly used by taxpayers that in the course of their activities or work, produce numerous agreement letters. Printed stamp duties are commonly used by companies, including the banking, financial or insurance industries, such as for cheques, giro fund transfer forms and insurance policies.