This intrigued the Tax Extension Team to immediately socialize Minister of Finance Regulation (PMK) Number 48 of 2023 concerning Income Tax and/or Value Added Tax on the Sale/Delivery of Gold Jewelry, Gold Bars, Jewelry made entirely of non-gold, gemstones and / or other similar stones, as well as services related to gold jewelry, gold bars, jewelry made entirely of non-gold materials, and / or gemstones and / or other similar stones, carried out by gold jewelry manufacturers, gold jewelry traders, and/or Gold Bar Entrepreneurs. Regional Office of DGT Central Java II and all tax offices under it held outreach to all gold and non-gold jewelry traders on Monday (22/5).
Director of Counseling, Services and Public Relations of the Directorate General of Taxes Dwi Astuti revealed that PMK-48/2023 provides justice to gold jewelery business actors. Previously, the setting for the imposition of Value Added Tax (VAT) was only imposed on gold jewelry traders who solely sold gold jewelry. The definition of a gold jewelery trader is then expanded to include entrepreneurs who carry out gold jewelery buying and selling activities and/or providing services related to gold jewelery, so as not to limit the scope of the gold trader’s business.
The expansion of this definition creates a level playing field because all business actors, particularly gold traders, are required to become Taxable Entrepreneurs (PKP). “The tariff reduction is intended as a tool to encourage all business actors in the gold jewelery industry to enter the system so as to create a level playing field in all layers of the gold jewelery industry ecosystem,” Dwi said in his official statement, Monday (1/5).
From the Income Tax (PPh) side, the aspect of justice is reflected in the expansion of the appointment of Article 22 PPh collectors to become Corporate and Individual Taxpayers. Previously, tax collectors were only corporate taxpayers, even though many gold jewelery business actors were individual taxpayers.
The aspect of legal certainty regarding the imposition of VAT is reflected in certain amounts where input tax cannot be credited. Prior to the entry into force of this PMK, the rules for imposing VAT in PMK 30/PMK.03/2014 used the Basic Tax Imposition (DPP) of Other Values whose input tax cannot be credited. Meanwhile, the Law on the Harmonization of Tax Regulations (UU HPP) stipulates that the input tax on submissions for which the VAT is charged using DPP other values can be credited.
The aspect of convenience and simplicity in terms of VAT can be seen in the application of a certain amount of DPP. Gold jewelery traders are not burdened with administering input taxes. Other items that are usually sold in gold jewelry shops but are not made of gold are given the same VAT treatment. Gold jewelery traders do not need to sort and apply different tax rules for each item sold.
A certain VAT rate of 0% of the selling price is specifically given for submission by PKP Gold Jewelry Traders to Gold Jewelry Manufacturers. This VAT rate has decreased because previously for these activities VAT was payable by 10% multiplied by the DPP in the form of another value of 20% of the selling or replacement price.
This regulation stipulates that gold traders who do not have a complete tax invoice for the acquisition of gold that is handed over to the final consumer must collect VAT of 1.65%. However, if the gold trader’s PKP has a complete tax invoice, the VAT collected is only 1.1%.
The aspect of convenience and simplicity from the point of view of income tax can be seen from the administrative burden and tax compliance burden (compliance cost) that can be reduced by gold jewelry traders because gold jewelry sales to end consumers are no longer subject to Article 22 Income Tax. Article 22 Income Tax is collected at 0.25 % of the selling price of gold jewelery and/or the selling price of gold bars. PPh Article 22 is not final and can be calculated as payment of income tax for the current year. There is a reduction in Article 22 PPh rates on the sale of gold bars by 0.2% from the previous rate of 0.45% of the selling price.
PMK Number 48 of 2023 is a derivative regulation of the HPP Law and came into effect on May 1, 2023. In this PMK, the Minister of Finance appoints other parties to collect, deposit, and/or report PPh on the sale of gold jewelry and gold bars.
The other parties referred to are gold jewelery entrepreneurs and/or gold bullion entrepreneurs, as domestic tax subjects who are directly involved in transactions which include gold jewelery manufacturers and gold jewelery traders.
The definition of gold jewelry is jewelry in any form whose material is partly or wholly made of gold, including those equipped with gemstones and/or other materials attached to or contained in the said gold jewelry.
While the definition of Gold Jewelry Manufacturing is an entrepreneur who produces gold jewelry and conducts gold jewelry buying and selling activities and/or providing services related to gold jewelry. Final consumers are buyers of goods and/or service recipients who directly consume the goods and/or services purchased or received and do not use or utilize the goods and/or services purchased or received for business activities.