Gold Purchases at Bullion Banks Are Tax-Free for Transactions Under IDR 10 Million
JAKARTA. Starting August 1, 2025, the government will officially implement a new regulation regarding the imposition of Income Tax Article (ITA) 22 on gold bullion transactions. Individuals purchasing gold at Bullion Banks will not be subject to ITA 22 at a rate of 0.25%, provided that the transaction value does not exceed IDR 10 million.
“Transactions up to IDR 10 million are exempt. And this takes effect starting tomorrow (August 1),” said Director General of Taxes Bimo Wijayanto during a media briefing in Jakarta on Thursday evening (July 31, 2025), as quoted by cnbcindonesia.com.
This provision is regulated under Minister of Finance Regulation (PMK) Number 51 of 2025 and PMK Number 52 of 2025, which were issued on July 25, 2025, and came into effect the following day.
Preventing Overlapping Rules
The background for issuing this regulation is the alignment of tax policy with developments in the bullion industry, as outlined in Law Number 4 of 2023 on the Strengthening and Development of the Financial Sector (P2SK Law). Bullion-related business activities include the storage, financing, trading, and custodianship of gold by financial service institutions (LJK).
Previously, the imposition of Income Tax Article (ITA) 22 on gold transactions often led to overlapping tax collection. For example, a seller might withhold tax at a rate of 0.25%, while the bullion financial institution (LJK Bullion) acting as the buyer would also withhold tax at 1.5% on the same transaction. This situation was considered burdensome for both business operators and consumers.
Details of Regulations PMK 51 and 52 of 2025
Under PMK 51/2025, the government designates Bullion Financial Institutions (LJK Bullion) as the withholding agents for Income Tax Article (ITA) 22 on the purchase of gold bullion. It sets a 0.25% rate for imported gold bullion. However, sales of gold to LJK Bullion by end consumers valued at up to IDR 10 million are exempt from tax withholding.
Meanwhile, PMK 52/2025 regulates taxation on gold trading. Under this regulation, the sale of gold jewelry or bullion is not subject to ITA 22 if conducted by or under the following conditions:
- A business selling to end consumers
- Taxpayers under the Final Income Tax scheme for MSMEs
- Taxpayers holding a Certificate of Exemption (SKB) for ITA 22
- Sales to Bank Indonesia
- Transactions on digital gold physical markets
- Sales to LJK Bullion
Thus, the new regulation confirms that purchases of gold bullion by the public (end consumers) from Bullion Banks are not subject to ITA 22 withholding.
However, if the sale of gold to LJK Bullion exceeds IDR 10 million, a 0.25% ITA 22 tax still applies. (KEN)
