Income Tax Article 22 Exemption on Gold Bars Extended to Bullion Financial Service Institution
JAKARTA. The government has expanded the Income Tax (ITA) Article 22 exemption facility through Minister of Finance Regulation (PMK) Number 52 of 2025, which amends PMK No. 48 of 2023.
Under this regulation, the sale of gold by entrepreneurs to financial service institutions (LJK) engaged in bullion business activities is now exempt from ITA 22.
This expansion clause is set out in Article 5, paragraph (2) of PMK Number 52 of 2025, which states:
The collection of ITA 22, as referred to in Article 2 paragraph (4), shall also not be carried out on the sale of gold bars as referred to in Article 2 paragraph (1) letter b, by Jewelry Gold Entrepreneurs and/or Gold Bar Entrepreneurs:
a. To Bank Indonesia;
b. Through a digital gold physical market as regulated in the laws and regulations concerning commodity futures trading; or
c. To financial service institutions engaged in bullion business activities that have obtained a license from the Financial Services Authority (OJK).
Previously, the exemption from ITA 22 on gold bars only applied to transfers to Bank Indonesia or sales through the digital gold physical market.
Provisions on the Exemption of ITA 22 for Jewelry Gold
Aside from the new rules, the provisions on Income Tax (ITA) for the sale of gold bars and jewelry remain unchanged. This includes the exemption of ITA 22 on the sale of jewelry gold, which only applies to:
- End consumers;
- Taxpayers subject to final income tax who have obtained and submitted a copy of the exemption certificate (with its authenticity confirmed); or
- Taxpayers holding an exemption certificate from the collection of ITA 22.
Without an Exemption Certificate
The exemption from ITA 22 for the transfer of gold jewelry and gold bars to Bank Indonesia, through the physical gold market, to bullion operators, and to end consumers may be carried out without requiring an exemption certificate.
These provisions take effect starting 1 August 2025. The purpose of this regulatory change is to provide legal certainty, fairness, and administrative ease in the imposition of Income Tax on bullion business activities.
Collection of ITA 22 on Gold
Accordingly, if the sale of gold bars or gold jewelry is made by a gold entrepreneur or manufacturer to parties not entitled to the above exemption facilities, Income Tax Article 22 shall still apply.
1. Other Parties Appointed to Collect ITA 22
In general, the collection of ITA 22 on gold bars and gold jewelry is carried out by other parties appointed by the Minister of Finance. These “other parties” refer to gold jewelry and gold bar entrepreneurs, which include gold jewelry manufacturers and gold jewelry traders.
2. ITA 22 Rates on Gold
The rate of ITA 22 imposed is 0.25% of the selling price of gold jewelry or gold bars.
3. Issuance of Withholding Certificates
For the withholding/collection of ITA 22 on gold, entrepreneurs are required to prepare and provide a withholding certificate to the buyer or the party from whom ITA 22 is withheld.
4. Payment of ITA 22
After withholding the tax, entrepreneurs must remit ITA 22 to the Directorate General of Taxes (DGT) via the State Treasury.
5. Reporting
Entrepreneurs who withhold ITA 22 are also required to report the withholding to the DGT through a Periodic Tax Return (SPT Masa) or a unified periodic tax return for ITA 22.
Conclusion
The government has expanded the scope of the ITA 22 exemption on the sale of gold bars through Minister of Finance Regulation (PMK) Number 52 of 2025. The exemption now applies not only to sales to Bank Indonesia and through the digital gold physical market, but also to sales to financial service institutions engaged in licensed bullion business activities authorized by the Financial Services Authority (OJK).
This provision takes effect on 1 August 2025 and aims to provide legal certainty and administrative ease. However, for sales to other parties outside this scheme, ITA 22 at a rate of 0.25% will still apply, and entrepreneurs are required to withhold, pay, and report the tax accordingly. (ASP/KEN)
