iDEA Requests T&C Stamp Duty not to be imposed on digital platforms
6/20/2022
The Indonesian E-Commerce Association (iDEA) proposes that the terms and conditions (T&C) documents on digital platforms, including electronic commerce ( e-commerce ), be excluded from the proposed imposition as an object of stamp duty. (BM) and should be subject to a 0% rate.
This was conveyed by the Deputy Chairperson of iDEA Budi Primawan, in the webinar "Public Discussion: Assessing the Potential for the Implementation of the Relaxation of Stamp Duty Policy on Electronic Documents in the form of Terms and Conditions on Digital Platforms", last week.
The proposal was made by iDEA in response to the government's plan to apply a stamp duty of Rp. 10,000 for T&C documents on various digital platforms in the country. One of them is when a user registers on a digital platform. Its application is the implementation of Article 3, paragraph (2), Law Number 10 of 2020 concerning Stamp Duty (UU 10/2020).
"If it is still applied, the T&C stamp duty will be burdensome, especially if it is charged to the user. Because, T&C notifications are not only when users register. When there is a change in the T&C from the platform manager, will the user also be subject to stamp duty again? This must also be clarified so that it is not too burdensome,” said Budi.
He also said, based on a survey of 226 members themed "Readiness of iDEA Members towards the Implementation of Stamp Duty Policy on Impact T&C Documents for Digital Economy Business Actors and Their Ecosystems", there were three conclusions and top recommendations were submitted.
First, exclude T&C documents as one of the stamp duty objects on digital platforms. Second, setting a 0% tariff for T&C documents. Third, limiting the scope of T&C imposed with a stamp duty on documents on digital platforms stating the amount of money with a nominal value above the threshold of IDR 5 million.
He explained, based on the survey, 63.2% of iDEA members recommended the exclusion of T&C documents as one of the BM objects and 52.6% asked for a 0% tariff for T&C documents on digital platforms.
According to Budi, iDEA proposes that stamp duty does not need to be applied to T&C documents on digital platforms because it cites Article 6 paragraph (3) of Law 10/2020, namely for the implementation of government programs T&C documents can be subject to a 0 (zero) rate.
Still Prepared
The Head of Sub-Directorate of VAT Regulation on Trade, Services and Other Indirect Taxes, Directorate General of Taxes, Ministry of Finance, Bonarsius Sipayung said, the electronic system for paying stamp duty and electronic stamping of T&C documents in e-commerce is still being prepared.
"This does not happen immediately, we are currently testing it. Therefore, we will not be able to implement this until the system is settled ," said Bonarsius.
Regarding the imposition of a 0% tariff for stamp duty on T&C based on article 6, paragraph (3), Law 10/2020, he conveyed, the documents referred to are subject to stamp duty at different fixed rates in order to implement government programs and support the implementation of monetary policy and, or the financial sector.
