Regulation Update
Securities Transactions are Stamp Duty-Free

Friday, 28 January 2022

Securities Transactions are Stamp Duty-Free

The government provides a stamp duty-free facility for documents related to securities transactions of a certain value. The same facility will also be provided for other documents through Government Regulation (PP) Number 3 of 2022.

In the regulation that took effect on 12 January 2022, there are four documents that get tax-free or stamp duty-free facilities.

Four types of documents are granted exemption from tax or stamp duty, among others, first, Documents on the transfer of rights to land and/or buildings for handling natural disasters.

Second, documents on the transfer of land and/or building rights solely for religious activities or non-commercial social activities. Third, documents related to monetary policy or financial services. Fourth, documents related to international agreements.

1. Documents on the transfer of rights to land and/or buildings for handling natural disasters.

This facility will be provided during an emergency, according to a period determined by the government, depending on the implementation of government programs in natural disaster management.

2. Documents on the transfer of land and/or building rights solely for religious activities.

This facility is provided for transfers in the form of waqf, grants or wills to religious bodies or social organizations. In addition, facilities are also provided for transfers through the purchase process by religious bodies or social agencies.

While the criteria for religious bodies referred to in this regulation are institutions that manage places of worship or organize religious activities. Including zakat recipient institutions or mandatory religious donations.

Then for the criteria of social agencies that can receive facilities, namely legal entities or non-profit institutions that have been authorized by the Ministry of Law and Human Rights, for activities:

  • Nursing home management
  • Care for orphans, abandoned children and children from persons with disabilities
  • Care for persons with disabilities
  • Aid for disaster victims
  • Handling of Remote Area
  • Handling of violence, exploitation and discrimination victims
  • Handling of social disabilities and behavioral deviations

3. Documents related to monetary policy or financial services.

Exemption facilities will be provided for trade confirmation documents for securities on the primary market with a maximum value of IDR 5 million, on the stock exchange with a maximum value of IDR 10 million, on alternative markets with a maximum value of IDR 5 million or through crowdfunding services with a maximum value of IDR 5 million.

Crowdfunding is a securities offering service that is carried out directly, by the issuer to investors, through an open electronic system.

In addition, this facility is also provided for confirmation documents for subscription or redemption of securities transactions, in the form of investment participation units in the form of a collective investment contract, with a maximum value of IDR 10 million, also entitled to the same facility.

4. Documents related to international agreements

The international agreements mentioned are those made by international organizations and their representative officials or representatives of foreign countries and their representative officials. However, this facility is provided for documents that are not included as the subject of Income Tax.

The provisions related to this stamp duty facility are a derivative rule of Law Number 10 of 2020 concerning Stamp Duty.




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