How to report Mutual Fund in Personal Annual Income Tax Report
Mutual Fund is Not Tax Object
In investing, naturally you as investors want to get a higher return when selling a product compared to the value when you bought it. The good news is, the return that you get from selling your mutual fund is not included as tax objects. Almost all mutual funds that are currently available in the market are in the form of Collective Investment Contract. As stated in Act no 36 year 2008 chapter 4 article 31, profit from Collective Investment Contract is excluded from tax object.
So, do we need to report it in Annual Income Tax Report? The answer is, yes, it’s still need to be reported. But how do we do it? Here is the explanation.
Reporting Mutual Fund in Personal Annual Income Tax Report
Personal annual income tax report consists of 3 sections which are: Income, Asset, and Debt. For mutual fund, you only need to report it in Income and Asset section.
1. Reporting Mutual Fund in Income Section
In this section, you only need to report the actual return you get from the redemption and switching transactions during the previous year. The value of the profit is being included in the income section, but don’t worry because it is excluded from tax object.
2. Reporting Mutual Fund in Asset Section
In this section, you need to input the buying value of that mutual fund during that year. Buying value is different compared to market value. Market value change every bourse day depending on Net Asset Value/Unit at that moment. Buying value is the capital value that you use when you buy that product. You need to input the buying value while reporting the annual income tax report and use the code 036 which is the tax code for mutual fund assets.
For example, in February 2020 Andy bought a mutual fund worth for IDR 5 million with Net Asset Value/unit of IDR 5.000, it means that Andi has 1.000 unit. In November 2020, he sold 500 unit with Net Asset Value/Unit at that time is IDR 6.000. So he got profit IDR 500.000. At the end of December 2020, Andy still possess 500 unit of mutual fund which he bought on February.
In reporting personal annual income tax report, Andy will report:
- IDR 500.000 for the Income section that is excluded from tax object.
- IDR 2.500.000 for the Asset section with tax code 036.
After understanding how to report, how about getting the data? Of course, it is difficult to record and count all transactions that were made throughout the previous year. Don’t worry Moduers because this report is already available on your Moduit dashboard. Open your Moduit application or using a browser at www.moduit.id, then download the report.
The display in the Moduit Application:
The display in the Moduit Dashboard using a browser:
The report contains two sheets: Income and Assets. You only need to report the final value (in yellow highlight), both to the Income and Assets Sections.
So, are you ready to report your annual tax, Moduers?