Airlangga Asks MoF to Prepare VAT and Income Tax Rules on Gold ETFs

JAKARTA, DDTCNews - The government is preparing tax policy to accommodate electronic gold receipt (EGR) transactions.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, deems that special attention for the VAT and Article 22 Income Tax treatment of EGR as the underlying asset of exchange-traded funds (ETFs) for gold is required.

"We have just spoken with the Deputy Minister of Finance [Juda Agung] and the Director General [of Taxes, Bimo Wijayanto] regarding the VAT and Article 22 Income Tax treatment of EGR transactions. The hope is that this can be placed on an equal footing with other transactions," he claimed on Monday (10/8/2026).

Please note that an EGR is proof of gold ownership in electronic form, issued on the basis of the underlying physical gold holding.

Meanwhile, a gold ETF refers to a mutual fund product whose units are traded on the stock exchange with gold as the underlying asset. As such, the ETF is designed to track movements in the gold price.

"A gold ETF not only adds to investment choices but also enhances liquidity. An EGR is a security that can be recorded as a security within the portfolio of a gold ETF," said Airlangga.

He expressed hope that the introduction of EGRs and gold ETFs would connect the various parties in the capital market, ranging from investment managers, custodian banks, bullion banks, and dealers, through to the stock exchange.

Moreover, he believes the introduction of gold ETFs also allows insurance companies to invest in gold-based assets. To date, insurance companies have not been able to invest stated capital in gold.(rig)