How to Prepare Tax-Exempt Dividend Realisation Report on DJP Online

The government through the Job Creation Law and the derivative regulations relaxes a number of tax regulations, including the exclusion of dividends as an income tax object, both for individual taxpayers and corporate taxpayers.

Procedures for the exclusion from income tax on dividends or other income are stipulated under the Minister of Finance Regulation No. 18/2021. According to the MoF Reg., 4 types of income may be excluded from taxable objects.

The 4 types of income include domestically-sourced dividends, foreign-sourced dividends, after-tax income from overseas permanent establishments (PEs) and foreign-sourced income not through PEs.

A number of criteria and requirements must be fulfiled to obtain the incentive, including the received dividends must be invested within the territory of the Republic of Indonesia for a certain period and an investment realisation report must be prepared.

On another note, taxpayers eligible for the exclusion from Income Tax objects must submit an investment realisation report electronically through certain channels determined by the DGT, except for corporate taxpayers that receive domestically-sourced dividends (unconditionally).

DDTCNews will outline how to prepare an investment realisation report on DJP Online for domestically-sourced dividends. First, visit the DJP Online webpage. Complete the Taxpayer Identification Number (TIN), password and security code. Next, click Login.

On the DJP Online main menu, please select the Profil (Profile) menu and click Aktivasi Fitur Layanan (Service Feature Activation). Afterwards, tick the eReporting Investasi (Investment eReporting) column and click Ubah Fitur Layanan (Change Service Features). Afterwards, select the Layanan (Service) menu.

Next, click the eReporting Investasi (Investment eReporting) column. Later, you will see the name of the taxpayer, TIN, residential address and mobile phone number. Please click Lapor (Report). You are required to fill in the two main fields of reporting.

The first column of reporting is the dividend or other income statement. Please click Tambah (Add). Subsequently, you will be directed to fill in data, such as the type of income, income provider, the number of distributed dividends and so forth. Afterwards, click Tambah (Add).

Next, you will fill in the second column of reporting, namely the investment report. Please click Tambah (Add). Similar to the previous column, fill in the requested information, such as investment date, investment form and so forth. Afterwards, click Tambah (Add).

Next, click Submit. Please note that the realisation report is periodically reported no later than the end of the third month for individual taxpayers or the end of the fourth month for taxpayers after the tax year ends.

Further, the investment realisation report is submitted until the third year from the tax year the dividends or other income are received or accrued. The process is completed. We hope the information is useful.