The legal basis for the collection of taxes on US stock assets is Fourth Amendment to Law Number 7 Year 1983 regarding Income Tax. It states that any economic gain, whether from Indonesia or abroad, is a taxable object.

Your assets that are taxable objects on Gotrade are:

The assets you own on Gotrade include:

In the application, your cash and stock assets can be seen on the portfolio page.

Image: Amount of money and number of stocks owned on the Gotrade platform

According to the provisions in the Double Taxation Avoidance Agreement (DTAA) or commonly known as the Tax Treaty (an agreement between two countries that determines each country's tax authority over certain income/wealth), users who receive dividends from stocks held on Gotrade will receive 85% of the total dividend.

The remaining 15% of the total dividend is the tax rate paid by the Issuer in the US, and no withholding tax receipt is provided.

Source: US-Indonesia Tax Treaty

Example:

A company distributes $100 in dividends for each share. If a user holds 2 shares before the cumulative date, the user is entitled to receive dividends as follows:

(2 * $100) - 15% = $170

Therefore, the user receives $170 in dividends.

The dividend calculation result, which is 85% of the total dividend, is a taxable object in Indonesia and must be reported in the annual tax return (SPT).

Realized profit/loss is the amount of profit or loss that a user has already gained during transactions on Gotrade. This figure is obtained from the total realized profit minus the total realized loss.

Calculation:

Realized profit/loss = Realized profit - realized loss

Example:

If the balance in realized profit/loss is negative, it means your balance is in a realized loss state.

A realized loss is the loss recognized when an asset is sold at a lower price than its initial purchase price.

Based on Law No. 36 of 2008 (amendment to Law No. 7 of 1983 on Income Tax), capital losses can be used to offset capital gains in the same fiscal year. If capital losses exceed capital gains, the remaining loss can typically be carried forward to offset future capital gains for several years (usually five years).

However, it should be noted that capital losses can only be used to offset capital gains and cannot be used to offset income from other sources, such as employment or business income. Therefore, if your capital losses are greater than your capital gains in the same fiscal year, the remaining loss will not reduce your tax burden from other income sources.

Salaries and other ordinary forms of income are generally subject to different tax treatments and cannot be offset by capital losses (realized losses). This type of income is taxed separately from capital gains, and the rules for deductions and offsets are different.

A tax report is a feature on the Gotrade Indonesia platform that provides a summary of all assets and income that occurred on Gotrade during the selected year.

The tax report display is as follows:

Notes:

Note:

Users must independently seek tax guidance from experts before making any tax-related decisions. The accuracy of data reported in the annual tax return to the Directorate General of Taxes is the user's responsibility, not Gotrade Indonesia's. Therefore, users are expected to independently verify and check the accuracy of the data.

The transactions that occur on Gotrade that you need to report are as follows:

These transaction details are included in the tax report that you can download from the application.

Assets in Gotrade include cash and US stock assets. In the Gotrade tax report, these figures are attached in the ‘Assets’ section.

Steps to report assets in the annual tax return:

An illustration using form SPT 1770 S is as follows:

Image: Asset reporting in DJP online e-filing using SPT 1770 S

Income on Gotrade consists of:

You can include the total income from the Tax Report as 'Other Domestic Income' in the 'Other Income' column (Part A) on the relevant tax form.

An illustration using the SPT 1770 S form is as follows:

Image: Reporting domestic income in DJP online e-filing using SPT 1770 S

As mentioned in Chapter 3, assets include cash and US stock assets. In the Gotrade tax report, these figures are attached in the ‘Assets’ section.

Steps to report assets in the annual tax return:

An illustration using the SPT 1770 S form is as follows:

Gambar: Reporting tax in physical forms of Form 1770S.

Income on Gotrade consists of:

You can include the total income from the Tax Report as “Other Domestic Income” in the "Other Income" column (Part A) of the relevant tax form.

An illustration using the SPT 1770 S form is as follows:

Image: Reporting other domestic income on the physical form.

For Indonesian stocks, net tax is applied at the point of sale of securities, whereas for US stocks held by non-residents, individuals must report their assets/gains/losses like any other source of income.

For tax reporting on the SPT form, you can use the exchange rate at the end of the acquisition year. For example, to report the 2023 tax return in 2024, you can use the exchange rate on December 31, 2023 (1 USD = Rp15,397).

If you have any other questions regarding taxes, you can contact our support team at support@heygotrade.com.