What are Digital Stamps?

Stamp duty is a tax on documents. Documents that are subject to stamp duty include: (i) documents prepared as a tool to explain a civil incident; and (ii) documents used as evidence in court.

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

Stamps in other forms are stamps manufactured using a franking machine, computerised system, printing technology and digital stamp printer. However, a handful of people are unfamiliar with the digital stamps.

Digital stamps are a type of stamps in other forms recently stipulated under the Minister of Finance Regulation No. 78 of 2024 concerning the Implementing Provisions on Stamp Duty (MoF Reg. 78/2024). As such, what are digital stamps?

Digital stamps are stamps in the form of labels used by affixture on documents using a digital stamp printer. Digital stamps are used for stamp duty collection by stamp duty collecting agents.

Stamp duty collecting agents are parties required to collect stamp duty payable on certain documents from liable parties, remit stamp duty into the state treasury and file the collection and remittance of stamp duty to the Directorate General of Taxes (DGT).

.Stamp duty collecting agents are determined by the Director General of Taxes. The Director General of Taxes may determine taxpayers as stamp duty collecting agents ex officio or based on application. Examples of stamp duty collecting agents include banks. Please see What Are Stamp Duty Collecting Agents?

This implies that digital stamps cannot be used by the general public. This is because digital stamps are used by stamp duty collecting agents on certain documents. Referring to Article 62 paragraph (1) subparagraph c of MoF Reg. 78/2024, digital stamps are used for the following three documents:

1. documents of securities transactions, including documents of futures contract transactions, in whatever name and form;

2. certificates, statement letters or other similar letters as well as the copies thereof, in handwritten or printed form;

3. handwritten or printed documents stating an amount of money with a nominal value exceeding IDR5 million, which: (i) state the receipt of money; and (ii) contain an acknowledgment that the debt has been fully or partially settled or taken into account.

Pursuant to the provisions, stamp duty collecting agents may use digital stamps after obtaining a permit. The permit to manufacture the stamp is granted by the Head of the Tax Office (Kantor Pelayanan Pajak/KPP in Indonesian) where the stamp duty collecting agents are registered.

However, collection agents do not need to apply to obtain the permit to manufacture digital stamps. This is because the permit to manufacture digital stamps are granted automatically to taxpayers that have been determined as stamp duty collecting agents.

The permit to manufacture digital stamps is also granted by issuing the permit to manufacture stamps in other forms. The letter to manufacture digital stamps is valid insofar as the taxpayer is of stamp duty collecting agent status.

In contrast with franked stamps and computerised stamps, digital stamps are affixed through a digital stamps system without a prior deposit.

A digital stamp system is a series of electronic devices and procedures in an integrated system or application owned by the DGT. The digital stamps system functions to manufacture, distribute and affix digital stamps.

Please note that digital stamps are different from franked stamps. One of the differences is that franked stamps are affixed using a franking machine. In addition, taxpayers may use franked stamps insofar as they have a franking machine.

Another difference is that taxpayers that have obtained the permit to manufacture franked stamps are required to conduct the deposit into the state treasury before manufacturing franked stamps. The deposit amounts to IDR15 million or multiples thereof. (rig)