Forex tax is the same as income tax, the tax is paid according to the income earned, read this article to learn more about forex tax. Before that you can read other articles about forex on the GIC website, you can also follow instagram GIC to find out information about Trading.

How to Calculate Forex Trader Income Tax?

The question is, do Forex traders pay taxes? The answer is yes, Forex traders are just like other workers they pay taxes on their income. For Forex traders, tax regulations have been recorded in Law Number 36 of 2008 concerning Income Tax (PPh). The Law (UU) states in it, that profit (gain) from differences in foreign exchange rates is included in the object of the income article (PPh). Meanwhile, stock trading tax is listed in Government Regulation No. 41 of 1997 concerning Income Tax (PPh) on Income from Stock Sales Transactions on the Stock Exchange.

How forex traders are taxed

The basis for calculating forex tax comes from the profit or gain obtained from the difference or exchange rate difference. For traders, the taxable base has been reduced by non-taxable income of Rp 4,500,000 per month or Rp 54,000,000 per year. Personal taxpayers will be subject to progressive rates as follows:
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  • Income of Rp 0 to Rp 60,000,000 will be subject to a rate of 5%,
  • Income of Rp 60,000,000 to Rp 250,000,000 will be subject to a rate of 15%,
  • Income of Rp 250,000,001 to Rp 500,000,000 will be subject to a rate of 25%,
  • Income of Rp 500,000,000 to 5,000,000,000 will be subject to a rate of 30%
  • Income of Rp 5,000,000,000 and above will be subject to a rate of 35%.

Taxation Laws in Indonesia

The legal basis for tax collection is contained in Article 23 Paragraph (2) of the 1945 Constitution, which states: 'All taxes for state purposes are based on law'. The laws that regulate taxation in Indonesia are:
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  • Law No. 9 of 1994 on General Provisions and Tax Procedures
  • Law No. 10 of 1994 on Income Tax / Law No. 2000
  • Law No. 11 of 1994 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods / Law No. 10 of 2000.
  • Law No. 12 of 1994 on Land and Building Tax (PBB)
  • Law No. 13 of 1985 and PP No. 7 of 1995 on Stamp Duty
The definition of tax is a mandatory contribution from the community to the state treasury, based on the law that regulates it, without receiving direct compensation and used for the public interest, especially to finance government expenditures. There are many types of taxes, for example the types of taxes when viewed from the perspective of tax collectors. Based on this, it can be divided into two types, namely central or state taxes and regional taxes. Central taxes are still divided into 12 types of taxes.

Example of Calculation of PPh 21

The following is the calculation of PPh 21 with the latest PTKP: The calculation of PPh 21 will always be adjusted to the PTKP rate set by the Directorate General of Taxes (DJP). The PTKP is stated in Article 17 Paragraph (1) letter a of the Republic of Indonesia Law (RI) Number 36 of 2008. Namely:
  1. Rp 54,000,000 per year or equivalent to Rp 4,500,000 per month for individual taxpayers.
  2. Rp 4,500,000 per year or equivalent to Rp 375,000 per month additional for married taxpayers (without dependents).
  3. Rp 4,500,000 per year or equivalent to Rp 375,000 per month additional for each blood family member and in-law family in a direct line or adopted child, who is fully dependent, a maximum of 3 (people) for each family.
Adjustment of PTKP rates will result in changes to the calculation method for PPh 21.

Online Tax Reporting System

The online tax reporting system is here to make it easier for people who are quite busy to fulfill their obligations to the State. Because it is done online, tax reporting will certainly be easier and faster, you no longer need to queue and visit the DJP office for tax reporting.

Procedures for Online Tax Reporting

Tax reporting is always and must be done according to the schedule of the DGT, done every year at the beginning of the year by reporting the SPT. Tax reporting is done online by e-Filing, e-Filing is the submission of SPT in real time online via the DGT website. DJP Online is an online tax service provided by the Directorate General of Taxes (DGT) to carry out tax e-Filing services, access personal and corporate PPh e-Forms and also create e-billing For those who are still confused about the procedure for making tax payments, please see below:

1. Prepare NPWP and EFIN

If you are new to using e-Filing, the first step that needs to be taken besides having a Taxpayer Identification Number (NPWP) is to apply for an EFIN tax activation (Electronic Filing Identification Number) to the Tax Service Office (KPP) or you can also come to the Tax Counseling and Consultation Service Office (KP2KP). EFIN tax is an identity number issued by the DGT as one of the requirements for tax reporting. For more complete information, pay attention to the following steps:
  1. Documents that must be prepared to fill out the EFIN form, this file is prepared in original and photocopy form:
    • Letters showing that the person concerned is the one who is taking care of the tax
    • ID card of the administrator (Indonesian citizen) or passport and KITAS/KITAP for the administrator (foreigner)
    • Taxpayer Identification Number (NPWP)/Registered Certificate for the administrator
    • Taxpayer Identification Number (NPWP)/Registered Certificate for corporate taxpayers and active email
  2. For Taxpayers (WP) for branch office bodies:
    • Prepare a letter of appointment of the branch office manager
    • A letter indicating the branch office manager as the manager of the relevant party
    • ID card of the manager (Indonesian citizen) or passport and KITAS/KITAP for the manager (foreign national)
    • Taxpayer Identification Number (NPWP)/Registered Certificate (SKT) of the relevant party
    • Taxpayer Identification Number (NPWP)/Registered Certificate (SKT) of the branch office
  3. Submit the EFIN form directly to the KPP without being represented by anyone. Also attach the required requirements to avoid data shortages.
2. EFIN Activation on DJP Online Site The next step is to activate your corporate tax EFIN on the DJP Online website by following the steps for tax reporting procedures below: To get an EFIN, you can do it online, via WhatsApp number or registered KPP email. Contact information for KPP throughout Indonesia can be seen at this link https://pajak.go.id/unit-kerja. Here's how to get an EFIN.
  • Send a message via WhatsApp or registered KPP email.
  • If sending via email, fill in the email subject with the title "EFIN Request".
  • If sending via WhatsApp, also note the information "EFIN Request" in the top message text on WhatsApp.
  • Next, send your personal data such as name, NPWP, NIK, cellphone number, and active email.
  • Attach documents such as: scan/photo of original KTP, scan/photo of original NPWP, and selfie/selfie photo while holding KTP and NPWP with your face clearly visible.
  • Wait for the KPP officer/admin to reply to the message and send the EFIN to your email or WhatsApp.
  • After receiving a message or email containing the EFIN number, you can use EFIN for tax transaction purposes.
3. Prepare CSV SPT The next or final step, prepare the CSV file, Periodic or Annual Tax Return on e-SPT. If you use the automatic calculation feature for Article 21 Income Tax or VAT on OnlinePajak, you no longer need to create a Periodic Tax Return first on e-SPT. However, you can get the Periodic Tax Return Article 21 Income Tax or VAT that has been filled in automatically. The following is about forex tax, hopefully it can help you to learn more about Forex tax! To understand more about forex tax, you can practice directly by trading on GIC Click here !

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