Indonesia Introduces New Stamp Duty Law

The Government of Indonesia recently passed a new Stamp Duty Law (Law No. 10 of 2020 on Stamp Duty), which came into effect on January 1, 2021. The new Stamp Duty Law revokes Law No. 13 of 1985 on Stamp Duty (“Law 13/1985”).  

The Stamp Duty Law regulates stamp duty, the one-time tax on certain documents. As of January 1, 2021, the government officially enforces a stamp duty of ten thousand rupiah. However, there is a one-year transitional period during which stamp duty of three thousand rupiah and six thousand rupiah are still valid in certain conditions.

Enactment of the new Stamp Duty Law is hoped to improve the efficiency and legal certainty surrounding the use of stamp duty, and in turn help improve the Indonesian economy. One of the key changes under the new law is the introduction of electronic stamp duty.