Starting August 1, 2025, the Indonesian government officially enforces a new rule concerning Income Tax (PPh) Article 22 on gold bar transactions through PMK Numbers 51 and 52 of 2025. This regulation aims to simplify tax collection in the gold sector and provide legal certainty, especially for businesses in the bullion field.

What Is a Bullion Bank?

A bullion bank is a financial service institution licensed by the Financial Services Authority (OJK) that engages in activities related to gold bars with a minimum purity of 99.9%. Its activities include buying and selling, storing, and financing gold bars. Examples include Bank Syariah Indonesia and Pegadaian, which have obtained bullion business licenses.

Key Changes in PMK 51/2025

Previously, there was double tax collection in transactions between gold suppliers and bullion banks. The supplier collected 0.25% PPh Article 22, while the bullion bank also collected 1.5%, resulting in a double tax burden for businesses.

Now, under the new rules:

• Suppliers no longer collect PPh Article 22
• Bullion banks are the sole party authorized to collect PPh Article 22 at a rate of 0.25% of the purchase price (excluding VAT)
• This income tax can be credited by suppliers in their annual tax reporting

Gold Bar Import Provisions

The new regulation also expands the scope of PPh Article 22 for import activities:

• A 0.25% rate applies to the import value, with or without an Importer Identification Number (API)

There are no longer any exemptions for gold imported for making export jewelry