a.

that to provide legal certainty, fairness, ease and simplicity in the imposition of tax on sales/supplies of gold jewellery, gold bullion, non-solid gold jewellery, gemstones and/or other similar stones, as well as services related to gold jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones, performed by gold jewellery manufacturers, gold jewellery merchants and/or gold bullion entrepreneurs, it is necessary to stipulate the provisions on the collection or withholding of income tax and/or collection of value added tax on sales/supplies of gold jewellery, gold bullion, non-solid gold jewellery, gemstones and/or other similar stones and services related to gold jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones, performed by gold jewellery manufacturers, gold jewellery merchants and/or gold bullion entrepreneurs;

b.

that the provisions under the Minister of Finance Regulation Number 34/PMK.010/2017 concerning the Collection of Article 22 Income Tax in Respect of Payments for Supplies of Goods and Activities in the Import Sector or Business in Other Sectors as amended several times, last amended by the Minister of Finance Regulation Number 41/PMK.010/2022 concerning the Second Amendment to the Minister of Finance Regulation Number 34/PMK.010/2017 concerning the Collection of Article 22 Income Tax in Respect of Payments for Supplies of Goods and Activities in the Import Sector or Business in Other Sectors, in respect of domestic sales of gold bullion and the Minister of Finance Regulation Number 30/PMK.03/2014 concerning Value Added Tax on Supplies of Gold Jewellery needs to be replaced to accommodate the needs referred to in letter a;

c.

that based on the considerations referred to in letter a and letter b as well as to implement the provisions under Article 44E paragraph (2) subparagraph f of Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law No. 7 of 2021 concerning the Harmonisation of Tax Regulations, Article 21 paragraph (8), Article 22 paragraph (2) and Article 23 paragraph (2) of Law Number 7 of 1983 concerning Income Tax as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations and Article 16G letter i Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Regulations Taxation, it is necessary to enact a Minister of Finance Regulation concerning Income Tax and/or Value Added Tax on Sales/Supplies of Gold Jewellery, Gold Bullion, Non-Solid Gold Jewellery, Gemstones and/or Other Similar Stones as Well as Services Related to Gold Jewellery, Gold Bullion, Non-Solid Gold Jewellery and/or Gemstones and/or Other Similar Stones Performed by Gold Jewellery Manufacturers, Gold Jewellery Merchants and/or Gold Bullion Entrepreneurs;

 

 

 

 

1.

Article 17 paragraph (3) of the 1945 Constitution of the Republic of Indonesia;

2.

Law Number 6 of 1983 concerning General Provisions and Tax Procedures (State Gazette of the Republic of Indonesia of 1983 Number 49, Supplement to the State Gazette of the Republic of Indonesia Number 3262) as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations (State Gazette of the Republic of Indonesia of 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

3.

Law Number 7 of 1983 concerning Income Tax (State Gazette of the Republic of Indonesia of 1983 Number 49, Supplement to the State Gazette of the Republic of Indonesia Number 3263) as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations (State Gazette of the Republic of Indonesia of 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

4.

Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (State Gazette of the Republic of Indonesia of 1983 Number 51, Supplement to the State Gazette of the Republic of Indonesia Number 3264) as amended several times, last amended by as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (State Gazette of the Republic of Indonesia of 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

5.

Law Number 39 of 2008 concerning State Ministries (State Gazette of the Republic of Indonesia of 2008 Number 166, Supplement to the State Gazette of the Republic of Indonesia Number 4916);

6.

Government Regulation Number 49 of 2022 concerning Value Added Tax Exempt and Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods Non-Collected on Imports and/or Supplies of Certain Taxable Goods and/or Supplies of Certain Taxable Services and/or Utilisation of Certain Taxable Services from Outside the Customs Territory (State Gazette of the Republic of Indonesia of 2022 Number 225, Supplement to the State Gazette of the Republic of Indonesia Number 6833);

7.

Presidential Regulation Number 57 of 2020 concerning the Ministry of Finance (State Gazette of the Republic of Indonesia of 2020 Number 98);

8.

Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (Official Gazette of the Republic of Indonesia of 2021 Number 1031) as amended by the Minister of Finance Regulation Number 141/PMK.01/2022 concerning the Amendment to the Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (Official Gazette of the Republic of Indonesia of 2022 Number 954);

 

 

 

 

MINISTER OF FINANCE REGULATION CONCERNING INCOME TAX AND/OR VALUE ADDED TAX ON SALES/SUPPLIES OF GOLD JEWELLERY, GOLD BULLION, NON-SOLID GOLD JEWELLERY, GEMSTONES AND/OR OTHER SIMILAR STONES AS WELL AS SERVICES RELATED TO GOLD JEWELLERY, GOLD BULLION, NON-SOLID GOLD JEWELLERY AND/OR GEMSTONES AND/OR OTHER SIMILAR STONES PERFORMED BY GOLD JEWELLERY MANUFACTURERS, GOLD JEWELLERY MERCHANTS AND/OR GOLD BULLION ENTREPRENEURS.

 

 

 

 

 

Referred to herein this Ministerial Regulation:

1.

Income Tax Law is Law Number 7 of 1983 concerning Income Tax as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

2.

Value Added Tax Law is Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

3.

Income Tax is income tax stipulated under the Income Tax Law.

4.

Value Added Tax is value added tax stipulated under the Value Added Tax Law.

5.

Taxable Goods are goods subject to tax pursuant to the Value Added Tax Law.

6.

Taxable Services are services subject to tax pursuant to the Value Added Tax Law.

7.

Entrepreneur is any individual or entity in whatever form that in the course of business or work produces goods, imports goods, exports goods, conducts trading business, utilises intangible goods from outside the customs territory, conducts service business or utilises services from outside the customs territory.

8.

Taxable Person is an Entrepreneur supplying Taxable Goods and/or Taxable Services pursuant to the Value Added Law.

9.

Gold Jewellery is jewellery in whatever form made partly or wholly of gold, including that equipped with gemstones and/or other materials attached to or contained in the said gold jewellery.

10.

Producing is the activity of processing through the process of changing the shape and/or nature of an item from its original form to a new item or having a new utility or the activity of processing natural resources, including ordering other individuals or entities to conduct the activity.

11.

Gold Jewellery Manufacturers are Entrepreneurs that Produce Gold Jewellery and purchase and sell Gold Jewellery and/or supply services related to Gold Jewellery.

12.

Gold Jewellery Merchants are Entrepreneurs that purchase and sell Gold Jewellery and/or supply services related to Gold Jewellery.

13.

14.

Withholding Agent is a Taxpayer subject to the obligation to withhold tax pursuant to statutory provisions in the field of Income Tax.

15.

Income Tax Collecting Agent is a Taxpayer subject to the obligation to collect tax pursuant to statutory provisions in the field of Income Tax.

16.

Article 21 Income Tax is Income Tax on income in respect of work, services or activities in whatever name and form received or accrued by resident individual Taxpayers stipulated under Article 21 of the Income Tax Law.

17.

Article 22 Income Tax is Income Tax in respect of payments for supplies of goods, activities in the import sector or businesses in other sectors and sales of goods classified as very luxurious stipulated under Article 22 of the Income Tax Law.

18.

Article 23 Income Tax is Income Tax on income paid, apportioned to be paid or whose payment is due to a resident Taxpayer or a permanent establishment stipulated under Article 23 of the Income Tax Law.

19.

Certificate is a letter issued by the head of the tax office explaining that a Taxpayer fulfils the criteria as a Taxpayer with a certain gross turnover stipulated under Government Regulation concerning adjustments to the regulation in the field of Income Tax.

20.

Unified Periodic Income Tax Return is a periodic tax return used by Withholding Agents or Income Tax Collecting Agents to file the obligation to withhold and/or collect Income Tax, remit the withholding and/or collection of Income Tax and/or self-remittance of several types of Income Tax in 1 (one) Taxable Period pursuant to statutory provisions in the field of taxation.

21.

End Consumers are buyers of goods and/or service recipients that directly consume the purchased or received goods and/or services and do not use or utilise the said purchased or received goods and/or services for business.

22.

Tax Invoice is a tax collection receipt prepared by Taxable Persons supplying Taxable Goods or supplying Taxable Services.

23.

Selling Price is the value in money, including all costs requested or should be requested by the seller due to a supply of Taxable Goods, excluding Value Added Tax collected pursuant to the Value Added Tax Law and discounts included in the Tax Invoice.

24.

Consideration is the value in money, including all costs charged or which should be charged by an Entrepreneur due to supplies of Taxable Services, exports of Taxable Services or exports of Intangible Taxable Goods but excluding Value Added Tax that is collected pursuant to the Value Added Tax Law and discounts listed in the Tax Invoice or the value in money that is paid or should be paid by the service recipient due to utilisation of Taxable Services and/or by the beneficiary of Intangible Taxable Goods due to utilisation of Intangible Taxable Goods from outside the customs territory within the customs territory.

25.

Input VAT is Value Added Tax that should have been paid by a Taxable Person due to an acquisition of Taxable Goods and/or acquisition of Taxable Services and/or utilisation of Taxable Goods from outside the Customs Territory and/or utilisation of Taxable Service from outside the Customs Territory and/or imports of Taxable Goods.

26.

Other Parties are other parties stipulated under Article 32A of the Law stipulating general provisions and tax procedures.

27.

Minister is the minister who administers governmental affairs in the field of state finances.

 

 

 

 

 

 

(1)

The Minister appoints Other Parties to collect, remit and/or file Income Tax on sales of:

 

a.

Gold Jewellery; and/or

 

b.

gold bullion.

(2)

Other Parties referred to in paragraph (1) are Gold Jewellery Entrepreneurs and/or gold bullion Entrepreneurs, as tax residents directly involved in the transactions.

(3)

Gold Jewellery Entrepreneurs referred to in paragraph (2) include:

 

a.

Gold Jewellery Manufacturers; and

 

b.

Gold Jewellery Merchants.

(4)

Income Tax referred to in paragraph (1) is Article 22 Income Tax.

(5)

Article 22 Income Tax levy referred to in paragraph (4) amounts to 0.25% (zero point twenty-five per cent) of the Selling Price of Gold Jewellery and/or Selling Price of gold bullion.

 

 

 

 

(1)

Sales referred to in Article 2 paragraph (1) include:

 

a.

supplies of Gold Jewellery produced by Gold Jewellery Manufacturers to Gold Jewellery Entrepreneurs ordering Gold Jewellery, with specifications, raw materials, semi-finished goods and/or indirect materials for the Gold Jewellery, either partially or wholly, provided or supplied by Gold Jewellery Entrepreneurs ordering the Gold Jewellery; and

 

b.

supplies of raw materials in the form of:

 

 

1.

Gold Jewellery; and/or

 

 

2.

gold bullion,

 

 

from Gold Jewellery Entrepreneurs ordering the Gold Jewellery to Gold Jewellery Manufacturers, intended to Produce Gold Jewellery.

(2)

For Gold Jewellery Entrepreneurs that also sell:

 

a.

non-solid gold jewellery; and/or

 

b.

gemstones and/or other similar stones,

 

the said sales are subject to Article 22 Income Tax collection referred to in Article 2 paragraph (4).

(3)

Article 22 Income Tax referred to in paragraph (2) is also collected if:

 

a.

non-solid gold jewellery; and/or

 

b.

gemstones and/or other similar stones,

 

are supplied as raw materials from Gold Jewellery Entrepreneurs ordering Gold Jewellery to Gold Jewellery Manufacturers intended to Produce Gold Jewellery.

(4)

Sales of gold bullion referred to in Article 2 paragraph (1) subparagraph b are included in sales of gold bullion where gold ownership is recorded digitally.

 

 

 

 

(1)

Article 22 Income Tax referred to in Article 2 paragraph (4), is payable and collected upon the sales.

(2)

Article 22 Income Tax collection referred to in paragraph (1) is not final and can be taken into account as Income Tax payment in the current year for the Taxpayers subject to the collection.

 

 

 

 

(1)

Article 22 Income Tax referred to in Article 2 paragraph (4) is not collected on sales of Gold Jewellery or gold bullion referred to in Article 2 paragraph (1) as well as the sales referred to in Article 3 paragraph (2), by Gold Jewellery Entrepreneurs and/or gold bullion Entrepreneurs to:

 

a.

End Consumers;

 

b.

Taxpayers subject to final Income Tax pursuant to statutory provisions in the field of taxation stipulating Income Tax on business income received or accrued by Taxpayers that have a certain gross turnover and have held and submitted a photocopy of the Certificate whose validity has been confirmed in the information system of the Directorate General of Taxes; or

 

c.

Taxpayers that hold Article 22 Income Tax exemption certificates pursuant to statutory provisions in the field of taxation stipulating the exemption from the withholding and/or collection of Income Tax by other parties.

(2)

Article 22 Income Tax referred to in Article 2 paragraph (4) is not collected on sales of gold bullion referred to in Article 2 paragraph (1) subparagraph b, by Gold Jewellery Entrepreneurs and/or gold bullion Entrepreneurs:

 

a.

to Bank Indonesia; or

 

b.

through digital gold physicals market stipulated under statutory provisions stipulating commodity futures trading.

(3)

Exclusion from Article 22 Income Tax collection referred to in paragraph (1) subparagraph a and paragraph (2), is implemented without an withholding tax exemption certificate.

 

 

 

 

Other Parties referred to in Article 2 paragraph (1) must:

a.

prepare Article 22 withholding tax receipts and submit them to the party subject to the collection;

b.

remit Article 22 Income Tax that has been collected to the state treasury; and

c.

file it in Unified Periodic Income Tax Returns,

 

 

 

 

Examples in respect of Article 22 Income Tax collection referred to in Article 2 paragraph (4) are listed in the Appendix which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

(1)

Income in the form of remuneration in respect of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones constitutes an Income Tax Object.

(2)

Services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in paragraph (1) in the form of:

 

a.

modification services;

 

b.

repair services;

 

c.

plating services;

 

d.

gilding services;

 

e.

cleaning services; and

 

f.

other services which constitute other names of the services referred to in subparagraph a to subparagraph e.

(3)

The remuneration in respect of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in paragraph (1) received or accrued by:

 

a.

resident individual Taxpayers, shall be subject to Article 21 Withholding Tax; or

 

b.

resident corporate Taxpayers and permanent establishments, shall be subject to Article 23 Withholding Tax.

(4)

Income Tax referred to in paragraph (3) is withheld by the party paying the remuneration that constitutes an Withholding Agent.

(5)

The withholding of:

 

a.

Article 21 Income Tax referred to in paragraph (3) subparagraph a; or

 

b.

Article 23 Income Tax referred to in paragraph (3) subparagraph b,

(6)

The remunerations in respect of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in paragraph (3) are all remunerations in the form of commissions or other similar payments in whatever name and form paid by the service user.

(7)

If the remuneration in respect of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in paragraph (6) is given in kind and/or fringe benefits, Income Tax referred to in paragraph (5) is withheld pursuant to statutory provisions in the field of taxation.

(8)

If the in-kind referred to in paragraph (7) is given in kind in the form of:

 

a.

Gold Jewellery referred to in Article 2 paragraph (1) subparagraph a;

 

b.

gold bullion referred to in Article 2 paragraph (1) subparagraph b;

 

c.

non-solid gold jewellery referred to in Article 3 paragraph (2) subparagraph a; and/or

 

d.

gemstones and/or other similar stones referred to in Article 3 paragraph (2) subparagraph b,

 

the said supplies of Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones are not subject to Article 22 Income Tax collection referred to in Article 2 paragraph (4).

 

 

 

 

Income Tax on the remuneration in respect of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 8 paragraph (3), is not withheld if the Taxpayers receiving or accruing the remuneration for the services:

a.

constitute Taxpayers subject to final Income Tax pursuant to statutory provisions in the field of taxation stipulating Income Tax on the business income received or accrued by Taxpayers that have a certain gross turnover and have held and submitted a photocopy of the Certificate whose validity has been confirmed in the information system of the Directorate General of Taxes; and/or

b.

hold Article 21 Income Tax and/or Article 23 withholding tax exemption certificates pursuant to statutory provisions in the field of taxation stipulating the exemption from the withholding and/or collection of Income Tax by other parties.

 

 

 

 

Withholding Agents referred to in Article 8 paragraph (4) must:

a.

prepare withholding tax receipts and submit them to the party subject to the collection;

b.

remit Income Tax that has been collected to the state treasury; and

c.

file it in:

 

1.

periodic Article 21 Income Tax and/or Article 26 Income Tax Returns, for Article 21 Withholding Tax; or

 

2.

Unified Periodic Income Tax Returns, for Article 23 withholding tax,

pursuant to statutory provisions in the field of taxation.

 

 

 

 

Examples of:

a.

Article 21 Income Tax or Article 23 withholding tax referred to in Article 8 paragraph (3); and

b.

the Income Tax treatment of the remuneration for services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones are given in kind and/or fringe benefits referred to in Article 8 paragraph (7),

are listed in the Appendix which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

CHAPTER III
VALUE ADDED TAX ON SUPPLIES OF GOLD JEWELLERY, GOLD BULLION, NON-SOLID GOLD JEWELLERY, GEMSTONES AND/OR OTHER SIMILAR STONES AND/OR SERVICES RELATED TO GOLD JEWELLERY, GOLD BULLION, NON-SOLID GOLD JEWELLERY AND/OR GEMSTONES AND/OR OTHER SIMILAR STONES, PERFORMED BY GOLD JEWELLERY MANUFACTURERS AND/OR GOLD JEWELLERY MERCHANTS
 

(1)

Value Added Tax is imposed on supplies of:

 

a.

Gold Jewellery; and/or

 

b.

services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones,

 

performed by Gold Jewellery Manufacturers and Gold Jewellery Merchants.

(2)

Services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in paragraph (1) are in the form of:

 

a.

modification services;

 

b.

repair services;

 

c.

plating services;

 

d.

gilding services;

 

e.

cleaning services; and

 

f.

other services which constitute other names of the services referred to in subparagraph a to subparagraph e.

 

 

 

 

(1)

Gold Jewellery Manufacturers and Gold Jewellery Merchants referred to in Article 12 paragraph (1) must report their businesses to be registered as Taxable Persons.

(2)

The obligation to report their businesses to be registered as Taxable Persons referred to in paragraph (1) remains valid for Gold Jewellery Manufacturers and Gold Jewellery Merchants that fulfil the criteria for small-scale Entrepreneurs stipulated under statutory provisions in the field of taxation.

 

 

 

 

(1)

The following Taxable Persons :

 

a.

Gold Jewellery Manufacturers; and

 

b.

Gold Jewellery Merchants,

 

referred to in Article 12 paragraph (1) that conduct certain businesses in the form of supplies of Gold Jewellery and/or services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones, must collect and remit Value Added Tax payable on supplies of Gold Jewellery and/or services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones, at a certain amount.

(2)

Supplies of Gold Jewellery referred to in paragraph (1) include:

 

a.

supplies of Gold Jewellery produced by Gold Jewellery Manufacturer Taxable Persons to Gold Jewellery Entrepreneurs ordering Gold Jewellery, with specifications, raw materials, semi-finished goods and/or indirect materials for the Gold Jewellery, either partially or wholly, provided or supplied by Gold Jewellery Entrepreneurs ordering the Gold Jewellery; and

 

b.

supplies of raw materials in the form of Gold Jewellery from Gold Jewellery Manufacturer Taxable Persons or Gold Jewellery Merchant Taxable Persons ordering Gold Jewellery to Gold Jewellery Manufacturers, intended to produce Gold Jewellery.

(3)

The certain amount for supplies of Gold Jewellery oleh Taxable Persons Gold Jewellery Manufacturers referred to in paragraph (1) subparagraph a is:

 

a.

10% (ten per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Selling Price, for supplies of self-produced Gold Jewellery to:

 

 

1.

other Gold Jewellery Manufacturers; and/or

 

 

2.

Gold Jewellery Merchants;

 

b.

15% (fifteen per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Selling Price, for supplies of self-produced Gold Jewellery to End Consumers.

(4)

The certain amount for supplies of Gold Jewellery by Taxable Persons Gold Jewellery Merchants referred to in paragraph (1) subparagraph b is:

 

a.

10% (ten per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Selling Price, for supplies of Gold Jewellery to:

 

 

1.

other Gold Jewellery Merchants; and/or

 

 

2.

End Consumers,

 

 

if the Gold Jewellery Merchant Taxable Persons have Tax Invoices for the acquisition of the said Gold Jewellery and/or certain documents equivalent to Tax Invoices for imports of the said Gold Jewellery;

 

b.

15% (fifteen per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Selling Price, for supplies of Gold Jewellery to End Consumers.

 

 

1.

other Gold Jewellery Merchants; and/or

 

 

2.

End Consumers,

 

 

if the Gold Jewellery Merchant Taxable Persons do not have Tax Invoices for the acquisition of the said Gold Jewellery and/or certain documents equivalent to Tax Invoices for imports of the said Gold Jewellery;

 

c.

0% (zero per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Selling Price, for supplies of Gold Jewellery to Gold Jewellery Manufacturers.

(5)

The certain amount for supplies of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones by Taxable Persons Gold Jewellery Manufacturers referred to in paragraph (1) subparagraph a and Gold Jewellery Merchant Taxable Persons referred to in paragraph (1) subparagraph b is 10% (ten per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Consideration.

(6)

Tax Invoices referred to in paragraph (4) subparagraph a and subparagraph b are Tax Invoices that fulfil the provisions stipulated under Article 13 paragraph (5) of the Value Added Tax Law.

(7)

Certain documents equivalent to Tax Invoices referred to in paragraph (4) subparagraph a and subparagraph b are certain documents equivalent to Tax Invoices that fulfil the provisions stipulated under Article 13 paragraph (6) of the Value Added Tax Law.

(8)

In the event of supplies of Gold Jewellery by Gold Jewellery Merchant Taxable Persons for Gold Jewellery acquired by the head office or branches of the said Taxable Persons , the supplies to:

 

a.

other Gold Jewellery Merchants that do not constitute the head office or branches of the said Taxable Persons ; and/or

 

b.

End Consumers,

 

are subject to Value Added Tax at a certain amount referred to in paragraph (4) subparagraph a or subparagraph b.

(9)

Tax Invoices and/or certain documents equivalent to Tax Invoices referred to in paragraph (4) subparagraph a and subparagraph b for supplies of Gold Jewellery referred to in paragraph (8) are:

 

a.

Tax Invoices for the acquisition of Gold Jewellery from other Taxable Persons ; and/or

 

b.

certain documents equivalent to Tax Invoices,

 

before the supplies from the head office to branches or vice versa and/or supplies between branches.

 

 

 

 

(1)

If Gold Jewellery Manufacturer Taxable Persons and Gold Jewellery Merchant Taxable Persons referred to in Article 14 paragraph (1) also supply:

 

a.

non-solid gold jewellery; and/or

 

b.

gemstones and/or other similar stones,

 

the said Taxable Persons must collect and remit Value Added Tax payable on the supplies of non-solid gold jewellery and/or gemstones and/or other similar stones, at a certain amount.

(2)

The certain amount referred to in paragraph (1) is 10% (ten per cent) of the Value Added Tax rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law multiplied by the Selling Price.

(3)

Value Added Tax referred to in paragraph (1) is also collected if the:

 

a.

non-solid gold jewellery; and/or

 

b.

gemstones and/or other similar stones,

 

are supplied as raw materials from Gold Jewellery Manufacturer Taxable Persons and Gold Jewellery Merchant Taxable Persons ordering Gold Jewellery to Gold Jewellery Manufacturers intended to Produce Gold Jewellery.

 

 

 

 

(1)

For supplies of Gold Jewellery and/or services related Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 14 paragraph (1) as well as non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 15 paragraph (1), Taxable Persons must:

 

a.

prepare Tax Invoices;

 

b.

remit Value Added Tax that has been collected to the state treasury; and

 

c.

file it in periodic Value Added Tax returns,

(2)

Tax Invoices referred to in paragraph (1) subparagraph a are Tax Invoices pursuant to the provisions stipulated under Article 13 paragraph (5) of the Value Added Tax Law.

(3)

Excluded from the provisions referred to in paragraph (2), for supplies of Gold Jewellery and/or services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 14 paragraph (1) as well as non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 15 paragraph (1), for the End Consumers, Taxable Persons may prepare Tax Invoices without including the information on the identity of the buyer as well as the name and signature of the seller pursuant to the provisions stipulated under Article 13 paragraph (5a) of the Value Added Tax Law.

 

 

 

 

(1)

If Gold Jewellery Merchant Taxable Persons should use the certain amount referred to in Article 14 paragraph (4) subparagraph b, but collect Value Added Tax without using the certain amount referred to in Article 14 paragraph (4) subparagraph b which results in the amount of Value Added being lower than the amount of Value Added Tax that should be calculated using the said certain amount, the said Gold Jewellery Merchant Taxable Persons must adjust the amount of Value Added Tax that should be collected at a certain amount referred to in Article 14 paragraph (4) subparagraph b.

(2)

The adjustment to the amount of Value Added Tax that should be collected referred to in paragraph (1):

 

a.

for supplies of Gold Jewellery whose Tax Invoices are prepared pursuant to the provisions under Article 13 paragraph (5) of the Value Added Tax Law, must be performed by amending or replacing the Tax Invoices pursuant to statutory provisions in the field of taxation; and/or

 

b.

for supplies of Gold Jewellery whose Tax Invoices are prepared pursuant to the provisions under Article 13 paragraph (5a) of the Value Added Tax Law, must be performed by consolidating and filing in the periodic Value Added Tax returns in the taxable period the Tax Invoices concerned are filed in the column used to file domestic supplies with retail Tax Invoices.

(3)

If Gold Jewellery Merchant Taxable Persons do not adjust the amount of Value Added Tax that should be collected by consolidating and filing in the periodic Value Added Tax returns referred to in paragraph (2) subparagraph b, the said adjustments may be performed by the Directorate General of Taxes upon an audit pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

If Gold Jewellery Merchant Taxable Persons should use the certain amount referred to in Article 14 paragraph (4) subparagraph a, but collect Value Added Tax without using the certain amount referred to in Article 14 paragraph (4) subparagraph a resulting in the amount of Value Added Tax being greater than the amount of Value Added Tax that should be calculated using the said certain amount, the said Gold Jewellery Merchant Taxable Persons may adjust the amount of Value Added Tax that should be collected at a certain amount referred to in Article 14 paragraph (4) subparagraph a.

(2)

The amount of Value Added Tax that should be collected referred to in paragraph (1) may only be adjusted for supplies of Gold Jewellery whose Tax Invoices are prepared pursuant to the provisions under Article 13 paragraph (5) of the Value Added Tax Law, namely by amending or replacing Tax Invoices pursuant to statutory provisions in the field of taxation.

(3)

For supplies of Gold Jewellery whose Tax Invoices are prepared pursuant to the provisions under Article 13 paragraph (5a) of the Value Added Tax Law and the amount of collected Value Added Tax is greater than the amount of Value Added Tax that should be calculated using the certain amount referred to in paragraph (1):

 

a.

the Gold Jewellery Merchant Taxable Persons are not permitted to adjust the amount of Value Added Tax that should be collected by amending or replacing Tax Invoices prepared pursuant to the provisions under Article 13 paragraph (5a) of the Value Added Tax Law; and

 

b.

the party subject to Value Added Tax collection may apply for a refund of the Value Added Tax overcollection which should not be otherwise payable pursuant to statutory provisions in the field of taxation.

 

 

 

 

If Gold Jewellery Manufacturer Taxable Persons and Gold Jewellery Merchant Taxable Persons that supply:

a.

Gold Jewellery and/or services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 14 paragraph (1); and/or

b.

non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 15 paragraph (1),

also supply other Taxable Goods and/or other Taxable Services, Value Added Tax payable on supplies of other Taxable Goods and/or other Taxable Services is collected pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

The Value Added Tax Treatment for supplies of gold bullion is applied:

 

a.

for foreign exchange reserve purposes; and

 

b.

other than for foreign exchange reserve purposes.

(2)

The Value Added Tax Treatment referred to in paragraph (1) subparagraph a is not subject to Value Added Tax stipulated under the Value Added Tax Law.

(3)

The Value Added Tax Treatment referred to in paragraph (1) subparagraph b is implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

Input VAT related to supplies subject to Value Added Tax payable at a certain amount referred to in Article 14 paragraph (1) and/or Article 15 paragraph (1), is non-creditable.

(2)

If in a taxable period, Taxable Persons referred to in Article 14 paragraph (1) and Article 15 paragraph (1), perform:

 

a.

supplies subject to Value Added Tax payable and Input VAT relating to the said supplies is creditable; and

 

b.

supplies subject to Value Added Tax payable and Input VAT relating to the said supplies is non-creditable and/or supplies not subject to Value Added Tax payable,

 

creditable Input VAT is determined pursuant to the provisions stipulated under Article 9 paragraph (5) and paragraph (6) of the Value Added Tax Law.

 

 

 

 

(1)

If Gold Jewellery Manufacturers and Gold Jewellery Merchants that have been newly registered as Taxable Persons constitute Entrepreneurs that should be registered as Taxable Persons referred to in Article 13 paragraph (1), the said Taxable Persons are not allowed to use the certain amount referred to in:

 

a.

Article 14 paragraph (3) or paragraph (4) for supplies of Gold Jewellery;

 

b.

Article 14 paragraph (5) for supplies of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones; and

 

c.

Article 15 paragraph (2) on supplies of non-solid gold jewellery and/or gemstones and/or other similar stones,

 

before being registered as Taxable Persons that should be subject to Value Added Tax collection.

(2)

Supplies before being registered as Taxable Persons that should be subject to Value Added Tax collection referred to in paragraph (1) are subject to Value Added Tax collection using the rates stipulated under Article 7 paragraph (1) of the Value Added Tax Law.

(3)

Input VAT on the acquisition of Taxable Goods and/or Taxable Services, imports of Taxable Goods and utilisation of intangible Taxable Goods and/or utilisation of Taxable Services from outside the customs territory within the customs territory before Entrepreneurs are registered as Taxable Persons referred to in paragraph (2), may be credited by the Taxable Persons.

(4)

Input VAT referred to in paragraph (3) is calculated using guidelines for the calculation of Input VAT crediting stipulated under Article 9 paragraph (9a) of the Value Added Tax Law.

 

 

 

 

Examples concerning:

a.

the application of the certain amount referred to in Article 14 paragraph (3), paragraph (4), paragraph (5) and paragraph (8) as well as Article 15 paragraph (2);

b.

adjustments to the amount of Value Added Tax that should be collected by consolidation and procedures for the filing in periodic Value Added Tax Returns referred to in Article 17 paragraph (2) subparagraph b; and

c.

Value Added Tax collection by Gold Jewellery Manufacturer Taxable Persons and Gold Jewellery Merchants referred to in Article 19,

are listed in the Appendix which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

Supplies of services related to Gold Jewellery, gold bullion, non-solid gold jewellery and/or gemstones and/or other similar stones referred to in Article 8 paragraph (2) by the Taxpayers referred to in Article 8 paragraph (3) subparagraph b performed based on an agreement signed before the enactment of this Ministerial Regulation and payments for the said services performed since the enactment of this Ministerial Regulation, shall be subject to Article 23 withholding tax pursuant to the provisions stipulated under this Ministerial Regulation.

 

 

 

 

To supplies of Taxable Goods and/or Taxable Services stipulated under Minister of Finance Regulation Number 30/PMK.03/2014 concerning Value Added Tax on Supplies of Gold Jewellery for the period between 1 April 2022 to 30 April 2023, the following provisions shall apply:

a.

the Value Added Tax treatment is implemented pursuant to the Minister of Finance Regulation Number 30/PMK.03/2014 concerning Value Added Tax on Supplies of Gold Jewellery, except for the provisions stipulating Value Added Tax rates; and

b.

the rates of Value Added Tax payable shall use the Value Added Tax rates stipulated under Article 7 paragraph (1) subparagraph a of the Value Added Tax Law.

 

 

 

 

Provisions on the criteria for gold bullion other than for foreign exchange reserve purposes for imports and/or supplies subject to Value Added Tax but not collected stated in the elucidation of Article 25 paragraph (1) subparagraph h and paragraph (2) subparagraph g of Government Regulation Number 49 of 2022 concerning Value Added Tax Exempt and Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods Non-Collected on Imports and/or Supplies of Certain Taxable Goods and/or Supplies of Certain Taxable Services and/or Utilisation of Certain Taxable Services from Outside the Customs Territory, shall come into force on 12 December 2022.

 

 

 

 

 

When this Ministerial Regulation comes into force:

a.

Minister of Finance Regulation Number 30/PMK.03/2014 concerning Value Added Tax on Supplies of Gold Jewellery (Official Gazette of the Republic of Indonesia of 2014 Number 198); and

b.

Article 1 paragraph (1) subparagraph k, Article 2 paragraph (1) subparagraph h and Article 3 paragraph subparagraph i of the Minister of Finance Regulation Number 34/PMK.010/2017 concerning the Collection of Article 22 Income Tax in Respect of Payments for Supplies of Goods and Activities in the Import Sector or Business in Other Sectors (Official Gazette of the Republic of Indonesia of 2017 Number 361) as amended several times, last amended by the Minister of Finance Regulation Number 41/PMK.010/2022 concerning the Second Amendment to the Minister of Finance Regulation Number 34/PMK.010/2017 concerning the Collection of Article 22 Income Tax in Respect of Payments for Supplies of Goods and Activities in the Import Sector or Business in Other Sectors (Official Gazette of the Republic of Indonesia of 2022 Number 341),

are revoked and declared invalid.

 

 

 

 

This Ministerial Regulation shall come into force on 1 May 2023.

 

 

 

 

For public cognisance, this Ministerial Regulation shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

 

 

 

Enacted in Jakarta
on 28 April 2023
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
signed
SRI MULYANI INDRAWATI

Promulgated in Jakarta
on 28 April 2023
DIRECTOR GENERAL OF LEGISLATION

MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,
signed
ASEP N. MULYANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2023 NUMBER 358