智通财经网·2025-11-07 00:49Core Viewpoint - The new tax policy announced by the Ministry of Finance and the State Administration of Taxation on November 1, 2025, introduces a classification management system that distinguishes between investment and non-investment uses of gold, replacing a policy that has been in place for over 20 years. This change is expected to reshape the industry landscape by affecting value distribution along the supply chain and accelerating compliance processes [1]. Summary by Relevant Sections New Policy Changes - The new policy differentiates between investment and non-investment uses, applying different tax rules to each category [2][3]. - Under the old policy, there was no distinction in tax management based on usage, and all intermediaries were exempt from input VAT regardless of the number of transactions [2]. - For investment purposes, member units retain the old policy benefits when purchasing gold from exchanges, but they can only issue ordinary invoices for secondary sales, limiting input tax deductions for buyers [2][3]. - Non-investment purposes will see a general increase in tax costs, with the input tax deduction rate dropping from 13% to 6% [2][3]. Financial Implications - The new policy results in a significant tax burden increase for non-investment gold, with the tax rate changing from 13% to 6% for input VAT, impacting overall costs for businesses and consumers [4][5]. - The tax burden changes under the new policy indicate a 6.5% increase in tax costs for non-investment gold transactions [4]. Market Reactions - The implementation of the new policy has led to increased prices for gold jewelry, with major brands like Chow Tai Fook and Lao Feng Xiang raising prices by over 5% [6]. - Some merchants have paused sales in certain channels to assess the impact of the new policy, particularly concerning gold recycling and internal investment flows [6][7]. - A price war may emerge as some merchants attempt to adjust to the new tax landscape, although this effect is expected to diminish over time [7]. Long-term Industry Outlook - The new tax policy is anticipated to promote healthy industry development, with long-term growth benefits expected for the overall market [9]. - The concentration of investment gold business channels is likely to increase significantly, as member units will have a notable price advantage over other channels [9][10]. - Non-investment gold sectors will face higher tax burdens, potentially reducing short-term demand but allowing companies with strong product or brand advantages to gain market share [9][10].