What are Impressed Stamps?

THE development of information technology is highly dynamic and encourages transformation in various sectors, including the form of documents. Documents that were formerly print-based and required substantial amount of paper are now becoming paperless because they are electronic.

Responding to these changes, the government deems that it is necessary to expand the definition of documents constituting stamp objects, thereby, it does not only cover the form of paper. Moreover, there is an urgency to extensify stamp duty on electronic documents to maximise the potential.

For this reason, the government has officially promulgated Law No. 10/2020 concerning Stamp Duty (Stamp Duty Law). The Stamp Duty Law has been in force since 1 January 2020. The entry of force of the Stamp Duty Law also repeals Law No. 13/1985 which was in force for 35 years.

In connection with the entry of force of the new Stamp Duty Law, the government has also released a number of derivative regulations, such as MoF Reg. 133/2021, MoF Reg. 134/2021 and MoF Reg. 151/2021. In the development, the three regulations have been repealed and replaced with MoF Reg. 78/2024.

Through MoF Reg. 78/2024, the government simplifies regulations related to the implementation of stamp duty. The simplification is conducted by consolidating the provisions on the implementation of stamp duty into one regulation. The scope stipulated under MoF Reg. 78/2024, among others, includes impressed stamps.

Definitions

As such, what are impressed stamps? Impressed stamps are a type of stamps in other forms. Impressed stamps are stamps in the form of labels used by affixture on documents using printing technology.

Similar to stamps in other forms, impressed stamps cannot be used by any person. Impressed stamps are used for stamp duty collection by stamp duty collecting agents.

Stamp duty collecting agents are the parties required to collect stamp duty payable on certain documents from the 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. Taxpayers may be determined as stamp duty collecting agents ex officio or based on an application. Examples of stamp duty collecting agents include banks. Check out What Are Stamp duty Collecting Agents?

This implies that impressed stamps cannot be used by the general public. This is because impressed stamps are used by stamp duty collecting agents on certain documents. Referring to Article 34 paragraph (2) of MoF Reg. 78/2024, impressed stamps are only used for the collection of stamp duty on securities in the form of cheques and bank giro credits.

To manufacture impressed stamps, a stamp duty collecting agent needs to apply for a permit to manufacture impressed stamps. The permit is submitted to the Head of the Tax Office (Kantor Pelayanan Pajak/KPP in Indonesian) where the collecting agent is registered.

Stamp duty collecting agents may apply for a permit to manufacture impressed stamps if they conduct a printing business and have received the operational permit in the field of security document printing from the Coordinating Board for Counterfeit Money Eradication (Badan Koordinasi Pemberantasan Rupiah Palsu/Botasupal in Indonesian).

The application for the permit must be attached with 2 documents. First, the form of an impressed stamp that fulfils the required elements.

The form of an impressed stamp to be manufactured must have four elements including: (i) the inscription "IMPRESSED STAMP"; (ii) the Ministry of Finance logo; (iii) figures indicating the stamp duty rate; and (iv) the name of the taxpayer holding the permit.

Second, a copy of the operational permit document in the field of printing security documents from Botasupal. However, the MoF Reg. 78/2024 does not attach an example of the form of an impressed stamp.

As an illustration, an example of the impressed stamp format was listed in the Appendix of the Director General of Taxes Circular Letter No. SE - 04/PJ.5/2001. 

The following is an example:

The form of the stamps will be printed (not attached) on the cheques and bank giro credits. However, the sample format of the impressed stamp format is undoubtedly no longer relevant because the provisions on the elements that must be contained in an impressed stamp have also changed. (rig)