Latest Gold Tax Rate, Here Are The Details

YOGYAKARTA Gold tax is a tax imposed on buyers or sellers of precious metals both in the form of bars and jewelry. This means that in the process of buying and selling gold there is a tax that must be paid. Then what is the gold tax rate that must be paid by the public when buying and selling gold?

Currently, the Directorate General of Taxes (DGT) of the Ministry of Finance has reorganized the imposition of Income Tax (PPh) and Value Added Tax (VAT) on the sale or delivery of gold bars, jewelry, and related services.

The rearrangement is contained in the Regulation of the Minister of Finance (PMK) No. 48 of 2023 concerning PPh and/or VAT on Sales or Submission of Gold Jewelry, Gold Batangan, Jewelry with All Materials Not From Gold, Stone Permata and/or Other Similar Stones, as well as Services Related to Gold Jewelry, Gold Batangan, Jewelry with All Materials Not From Gold, and/or Stone Permata and/or Other Similar Stones, carried out by Gold Jewelry Manufacturers, Gold Jewelry Traders, and/or Gold Batangan Entrepreneurs.

This arrangement aims to make it easier for the community and provide legal certainty, simplicity, and provide a reduction in tariffs. In the latest regulations, the Government reduces tax levies from 0.45 percent to 0.25 percent. This rule itself is in effect as of May 1, 2023.

Director of Counseling, Services and Public Relations of DGT, Dwi Astuti explained, gold bullion entrepreneurs are required to collect Article 22 of PPh of 0.25 percent of the selling price. However, this collection is excluded for selling gold bullion to final consumers, taxpayers who are subject to the final PPh cfm. In PP-55/2022 (ex PP-23/2018), taxpayers who have SKB collection of PPh, Bank Indonesia, or sales made through the physical digital gold market as stipulated in terms of commodity futures trading.

The following summarizes the latest mechanism for the imposition of gold taxes and related services.

Taxable Entrepreneurs (PKP), gold jewelery manufacturers, are required to collect 1.1 percent of the selling price for handover to other jewelry gold manufacturers and jewelry gold traders. Meanwhile, for the delivery of consumers, the end of the VAT charged is 1.65 percent of the selling price.

For PKP, gold jewelery players are required to collect VAT of 1.1 percent of the selling price if PKP has a tax invoice on the import of gold jewelery. However, the levy is only 1.65 percent if PKP does not have it.

Gold bullion used for the benefit of state foreign exchange reserves is not subject to VAT as stated in Law no. 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP). In addition, VAT exemption is also imposed on gold bullion that meets the criteria as regulated in PP-49/2022.

However, gold bullion entrepreneurs must collect Article 22 PPh of 0.25% from the selling price (down from the original 0.45%).

The gold bullion ruler is required to collect Article 22 PPh of 0.25% of the selling price, except for the sale of gold bullion to final consumers, taxpayers who are subject to final income tax, and taxpayers who have a free certificate (SKB) for collecting income tax.

Rating exceptions also apply to Bank Indonesia (BI) or sellers in the physical digital gold market in accordance with commodity futures trading rules. This PPh Article 22 is not final and can be taken into account as PPh payments in the current year.

Granula gold is the basic ingredient used to make gold bullion. The government does not impose VAT levies on gold in this type. This was done to encourage downstream gold activities for growth in Indonesia, which is now the largest gold supply country in the world.

In addition to the gold tax rate, visit VOI.ID for other interesting information.