Income Tax on Gold Sale and Purchase Transactions

Income Tax on Gold Sale and Purchase Transactions

PPN

01 Jul, 2024 13:07 WIB

The trend over the past four months shows an anomaly in gold prices in Indonesia! Antam reported that in mid-February 2024, the cost of gold was still around Rp1,115,000 per gram. This value gradually increased until it touched a price of Rp1,347,000 in mid-April 2024. At its peak, on June 21, 2024, the price of gold in Indonesia reached 1,371,000 per gram (Antam 2024). The details of the increase in gold prices during the first semester of 2024 can be seen in the following graph:

This article will not discuss the causes of the gold price anomaly. However, we will discuss further the taxation aspects of gold sales and purchases.

 

It is known that in 2023, the government updated the rules regarding taxes on precious metal transactions. Through Minister of Finance Regulation No. 48 of 2023, the government updated the rules regarding income tax and value-added tax on the sale of jewelry, gold bars, gemstones, and related services.

 

Object

This regulation stipulates that the object of Income Tax Article 22 on gold sales is the delivery of gold jewelry produced by gold jewelry manufacturers to gold jewelry entrepreneurs. In addition, the object of Income Tax Article 22 is the delivery of raw materials in the form of gold jewelry and gold bars from gold jewelry entrepreneurs who order them from the manufacturer, including the sale of gold bars whose gold ownership records are digitized.

 

Tariff

The provision also stipulates that on the sale of gold bars and gold jewelry, Income Tax Article 22 is payable at 0.25%. The income tax under Article 22 is collected by the gold jewelry and bullion entrepreneurs from the buyer. The collection of Income Tax Article 22 is made at the time of sale and is not final. Thus, the buyer can credit it on the annual income tax return.

 

Exceptions

There are exceptions to the Income Tax Article 22 on gold jewelry and gold bullion sales transactions collection. This is by the definition of Income Tax Article 22 as above, which stipulates that Income Tax Article 22 is levied on delivering gold from gold manufacturers to gold entrepreneurs. Thus, this collection does not apply to end consumers.

 

Second, the exemption from ITA 22 collection on gold sales is also not imposed on taxpayers subject to a final income tax on certain gross turnover. Logically, if taxpayers subject to final income tax on certain gross turnover are levied Income Tax Article 22, then at the end of the year there will be an overpayment of income tax on the transaction.

 

Third, the exemption from ITA 22 collection is also exempt for taxpayers who own a certificate of exemption from ITA 22 collection. In addition, the exemption from the ITA 22 collection is also given to the delivery of gold from gold jewelers and gold bars to Bank Indonesia, as well as the delivery of gold jewelry and gold bars through the digital gold physical market in commodity futures trading.

 

Obligations of Collectors

PMK 48 of 2023 stipulates that collectors, in this case, gold jewelers and gold bullion entrepreneurs, have three obligations in connection with Income Tax Article 22 on gold transactions. First, the collector is obliged to make proof of collection under Income Tax Article 22 and submit it to the party being collected. Second, the collector is obliged to deposit the Income Tax Article 22 that has been collected into the state treasury. Third, the collector is obliged to report the collection in the Unification Periodic Tax Return by the provisions.

 

Example

PT ABC is a gold jewelry manufacturer, and Mr. Edi is a gold trader. Mr. Edi is an employer who employs several employees. Neither PT ABC nor Mr. Edi has a certificate of exemption from income tax under Article 22. During April 2024, PT ABC conducts the following transactions:

  1. Delivery of self-produced gold jewelry to Mr. Edi with a total sales value of Rp1,000,000,000.
  2. Delivery of self-produced gold jewelry to the final consumer of Rp750,000,000.
  3. Delivery of gold jewelry not produced in-house, but obtained from another manufacturer of Rp400,000,000.

 

For transactions described in letter a, PT ABC must collect Income Tax Article 22 from Mr. Edi in the amount of 0.25% of Rp1,000,000,000 or Rp2,500,000. Furthermore, for transactions described in Letter B, PT ABC does not collect Income Tax Article 22 because the delivery is made to the final consumer. For transactions described in letter C, PT ABC must collect Income Tax Article 22 of 0.25% of Rp400,000,000 or Rp1,000,000.

 

This is the explanation of Income Tax Article 22 on the sale of gold jewelry and gold bars. Do not hesitate to contact Ideatax if there are any difficulties.

 

References

Antam. 2024. Harga Emas Hari Ini, 23 Jun 2024. Juni 23. https://www.logammulia.com/id/harga-emas-hari-ini.