Registration of Stamp Duty Withholding Agents and Procedures for the Collection, Remittance, and Filing

s Rinan Auvi Metally
s Wulan Clara Kartini
By Rinan Auvi Metally, Wulan Clara Kartini
Rinan Auvi Metally
Wulan Clara Kartini
The Ministry of Finance has issued a new regulation concerning the registration of stamp duty withholding agents and procedures for the collection, remittance, and filing. These provisions are outlined under the Minister of Finance Regulation No. 151 of 2021 concerning the Registration of Stamp Duty Withholding Agents and Procedures for the Collection, Remittance, and Filing of Stamp Duties (MoF Reg. 151/2021).
 
This regulation has been issued to implement the provisions under Article 10 paragraph (2) and Article 11 paragraph (5) of Law No. 10 of 2020 concerning Stamp Duties. Pursuant to Article 2 paragraph (1) of MoF Reg. 151/2021, stamp duty payable on certain documents that constitute stamp duty objects is collected by stamp duty withholding agents. These certain documents include four types, as follows:
  1. securities in the form of cheques and giro fund transfer forms;
  2. securities transaction documents, including futures contract transaction documents, in whatever name and form;
  3. certificates, statement letters, or other similar letters, and the copies thereof; and
  4. documents stating an amount of money above IDR5,000,000 and the receipt of said money or containing an acknowledgment that debt has been fully or partially settled or calculated.
As per Article 2 paragraph (3) of MoF Reg. 151/2021, the abovementioned certain documents that are eligible for the exemption from stamp duties facility shall be excluded from stamp duties.
 
Taxpayers may be registered as stamp duty withholding agents if they satisfy two criteria. First, facilitating the issuance of certain documents as referred to in point i above. Second, issuing and/or facilitating the issuance of certain documents as referred to in points ii, iii, and/or iv with a total of more than 1,000 documents in one month.
 
Taxpayers that fulfill the above criteria but have not been registered as stamp duty withholding agents may submit notification letters to be registered as stamp duty withholding agents. The notification letters may be submitted via e-mail, application, or system. The notification letter may be considered by the Director General of Taxes or an appointed official to stipulate the taxpayers as stamp duty withholding agents.
 
The Director General of Taxes or the appointed official shall stipulate the taxpayer as a stamp duty withholding agent by issuing a registration letter as a stamp duty withholding agent. The registration as a stamp duty withholding agent shall come into effect as of the beginning of the following month after the date of the registration letter.
 
The Director General of Taxes or an appointed official may deregister a stamp duty withholding agent in the event that the stamp duty withholding agent does not fulfill the abovementioned criteria for three consecutive months. Deregistration is carried out by issuing a deregistration letter as a stamp duty withholding agent.
 
The deregistration shall take effect as of the beginning of the following month after the date of the deregistration letter. Electronic stamp duties that have not been affixed by a deregistered stamp duty withholding agent are returned to the distributor as an inventory of electronic stamp duties.
 
As per Article 7 of MoF Reg. 151/2021, three obligations are inherent to stamp duty withholding agents. First, collecting stamp duty payable on certain documents from the accountable person. Stamp duties are collected when the documents are received from the stamp duty manufacturer, completed by the party issuing or facilitating the issuance, or submitted to the accountable person.
 
Stamp duties are collected by affixing impressed stamp duties or electronic stamp duties on certain documents. To affix electronic stamp duties, stamp duty withholding agents may request electronic stamp duties from the distributor. The maximum number of requests for electronic stamp duties should not exceed the need for stamp duties in one taxable period in the first two months, as of the time a taxpayer is registered as a stamp duty withholding agent.
 
To affix electronic stamp duties for the next taxable period, stamp duty withholding agents may request electronic stamp duties from the distributor after remitting the stamp duty payable for the previous taxable period as their obligation. If the affixture of electronic stamp duties is not possible due to a failure in the electronic stamp duty system, stamp duty withholding agents remain obliged to collect the stamp duty by preparing the list of documents that cannot be affixed with electronic stamp duties and attaching this list in the periodic stamp duty return.
 
If so requested by the accountable person, a stamp duty withholding agent must provide a written explanation that the stamp duty payable on documents that cannot be affixed with electronic stamp duties has been remitted into the state treasury and filed in the periodic stamp duty return.
 
Second, remitting stamp duties to the state treasury. Stamp duties collected for each taxable period must be remitted no later than the 10th of the following month after the taxable period ends. Remittance is performed using a tax payment slip (Surat Setoran Pajak/SSP) form or billing code with the tax account code 411611.
 
The remittance type code is 900 for collection through the affixture of impressed stamp duties and for collection in which the affixture of electronic stamp duties is not possible. On another note, remittance may also be performed using a billing code with a tax account code of 411611 and a remittance type code of 902 for collection through the affixture of electronic stamp duties.
 
Remittance using a billing code is performed by including the Taxpayer Identification Number (TIN) (Nomor Pokok Wajib Pajak/NPWP) of the electronic stamp duty distributor to the stamp duty withholding agent in the remarks column in the billing code. The remittance is calculated as a deposit for the distributor.
 
Third, filing the collection and remittance of stamp duties to the Directorate General of Taxes (DGT) office. The collection of stamp duty must be reported by filing a periodic stamp duty return to the Directorate General of Taxes office no later than the 20th of the following month after the taxable period ends. The periodic stamp duty tax return is in electronic form and filed through an application or system provided by the DGT. Electronic receipts shall be provided upon the filing of periodic stamp duty returns.
 
In the event that the deadline for remittance and filing is a holiday, the remittance and filing may be performed no later than the next working day. These holidays refer to Saturdays, Sundays, national holidays, days designated as holidays to hold elections, or days designated as national collective leave.
 
Stamp duty withholding agents may voluntarily rectify filed periodic stamp duty returns in the event of miscalculations or securities in the form of cheques and/or giro fund transfer forms on which stamp duties have been collected but not used. Rectification is carried out by placing a mark in the space provided in the periodic stamp duty return which states that the stamp duty withholding agent in question rectifies the periodic stamp duty return. In addition, rectifications may also be performed by issuing a serial number of securities in the form of cheques and/or giro fund transfer forms on which stamp duties have been collected but are not used from the collection list for the rectification of periodic stamp duty returns.
 
Upon the filing of a stamp duty return stating the over-remittance of stamp duties, an application for overbooking or tax refunds that should not otherwise be payable may be submitted. The application is submitted directly, by post with proof of postage, or through a forwarder or courier service company with proof of postage to the Director General of Taxes through the head of the Tax Office (Kantor Pelayanan Pajak/KPP) where the stamp duty withholding agent is registered.
 
Based on the overbooking application, the Director General of Taxes through the head of the KPP where the stamp duty withholding agent is registered conducts a verification. The verification is stated in the report on verification results on the overbooking application.
 
The Director General of Taxes may issue a notice of tax assessment (Surat Ketetapan Pajak/SKP) to the stamp duty withholding agent for the stamp duties that are not or under-collected and not or under-remitted as per prevailing regulations. Stamp duties that are not or under-collected and not or under-remitted are subject to administrative penalties as per statutory provisions in the field of stamp duties.
 
Next, the stamp duty withholding agent shall remit the stamp duty stipulated by the SKP to the state treasury. Remittance of unpaid or underpaid stamp duties as stipulated by the SKP may be deemed as deposits by electronic stamp duty distributors to stamp duty withholding agents. Promulgated on 27 October 2021, this ministerial regulation has come into effect thereafter.