Apart from being used as jewelry, gold is also known as a form of investment because gold is relatively safe and can maintain its value amidst economic uncertainty and inflation. PMK Number 48 of 2023 regulates Income Tax (PPh) and Value Added Tax (VAT) on the sale and delivery of gold in the form of jewelry or bars carried out by gold entrepreneurs, traders, and manufacturers. PMK Number 48 of 2023 aims to provide legal certainty, justice, convenience, and simplicity in handling taxes related to gold for the public.
Some forms of services related to gold jewelry and/or bars include:
Modification Services
Repair services
Coating Services
Gilding Services
Cleaning Services
and other services.
Income Tax related to Gold
Based on Article 8 of PMK Number 48 of 2023, rewards related to gold-related services are subject to PPh and these rewards must be subject to tax deductions by the party paying the rewards. Domestic individual taxpayers are deducted PPh article 21 and domestic corporate taxpayers are deducted PPh article 23.
VAT on services related to Gold.
Based on Article 14 Paragraph (5) PMK Number 8 of 2023, taxable entrepreneurs who conduct above services, are required to collect VAT of 10% of the VAT tariff regulated in Article 7 paragraph (1) of the VAT Law multiplied by the selling price. Therefore the VAT rate for the services can be calculated as follows:
VAT for services provided related to gold jewelry and/or bars = 1.1% x selling price
TBrights is a tax consultant in Indonesia that is currently an integrated business service which provide comprehensive tax and business services.
By Tommy HO – Managing Partner TBrights
