Reporting US Stock Income in SPT: Complete and Easy Guide for Investors
Taxpayers need to understand their obligation to report income from foreign stock investments, such as those from the United States (US), in the Annual Tax Notification (SPT). This particularly applies if the profits are not reinvested domestically.
Law Number 7 of 2021 on the Harmonisation of Tax Regulations (UU HPP) in Article 4 paragraph (1) letter g of Chapter III explicitly states that dividends are objects of Income Tax (PPh). Consequently, dividends must be reported in the Annual SPT.
The Directorate General of Taxes (DJP) of the Ministry of Finance, through its Coretaxpedia page, emphasises that foreign dividends that do not meet investment requirements must also be reported in the Annual SPT.
“Such foreign dividends must be reported in Appendix 2 Section C Foreign Income,” states the DJP explanation, quoted on Saturday (25/4/2026).
In Appendix 2 Section C Foreign Income, taxpayers fill in the total dividend income received over one year. This data can be obtained from the Stock Dividend Listing issued by securities companies.
On the other hand, there is an exception. Article 4 paragraph (3) letter f of UU HPP states that dividends are excluded from PPh objects if reinvested in Indonesia. The government regulates the permitted investment instruments through Minister of Finance Regulation (PMK) No. 18/2021, specifically in Article 34 and Article 35.
Such investments may include financial market instruments, such as debt securities (including medium-term notes), sukuk, shares, mutual fund participation units, asset-backed securities, real estate investment fund participation units, deposits, savings, current accounts, and futures contracts traded on Indonesian futures exchanges.
Other financial market investment instruments include insurance products linked to investments, financing companies, pension funds, or venture capital that have obtained approval from the Financial Services Authority.
In addition to investments in financial markets, there are also options for investments outside financial markets, including infrastructure investments through government-business partnerships, real sector investments based on government priorities, property investments in the form of land and/or buildings, and direct investments in Indonesian companies.
Other investment options include precious metals in the form of gold bars or plates, partnerships with investment management institutions, use to support other business activities in the form of loans to micro and small enterprises in Indonesia, and other forms of non-financial market investments that are valid under applicable laws and regulations.
Article 36 paragraph (1) of PMK 18/2021 confirms that such investments must be realised no later than the end of the third month for individual Taxpayers (WP), or the end of the fourth month for corporate WP, after the tax year ends.
Although income from foreign dividends reinvested in Indonesia is not subject to tax, it is important to remember that Taxpayers must still report their Gross Income in the Annual SPT, specifically in Appendix 2 Section B.