Jewelry Buyers Have to Show ID Card

EghtesadOnline: Gold buyers should henceforth present national ID cards to able to purchase jewelry from shops, head of the Tehran Gold and Jewelry Union said.

News ID: ۷۵۰۷۷۸

23 August 2020

Ebrahim Mohammadvali said the measure is in line with anti-money laundering measures that was announced a year and half ago but had not been put into effect. He did not say why the rule was put on hold.

According to a TGJU bylaw, the identity of buyers is required for purchases above 150 million rials, the union’s website portal, estjt.ir reported.

“We had communicated a bylaw to jewelry shops almost 18 months ago based on which buyers must present ID cards if their purchase is above 150 million rials. The ID number should be mentioned in the invoice,” he was quoted as saying.

Given the recent rise in gold prices, the decision is likely to affect many buyers. One Emami gold coin is now traded at 105 million rials, according to the TGJU website. The price has grown dramatically over last year. It was worth 40 million rials in August 2019.

Likewise, a person who purchases even 15 grams of 18-carat gold is obliged to show personal identification. One gram of 18-carat gold now sells for 10.3 million rials.

The Paris-based Financial Action Task Force has long called on the government in Tehran to strengthen its legal framework to guard against money laundering.

Asked whether the measure exposes the identity of buyers to the taxman, Mohammadvali said the issue is the purview of the Iranian National Tax Administration.

“INTA is in charge of deciding tax on gold trade… they have not communicated any relevant bylaw yet. The decision [to require buyers to show ID] is for anti-money laundering needs.”

So far INTA has not said anything about tax on jewelry trade. However, it has announced that those who buy gold coins from the Central Bank of Iran should pay tax.

Earlier in the month, it announced tax brackets for buyers of gold coins in the last fiscal year (March 2019-20). Those who bought up to 10 gold coins last year are exempted.

Iranians who purchased between 10-30 coins have to pay 2 million rials ($9) per coin. Owners of 30-50 coins will pay 5.2 million rials for each coin and those with 50-185 coins are obliged to pay 6.5 million rials per coin.

Total purchases that did not exceed 185 coins are not required to file tax returns. But owners of more than 185 coins were required to file tax returns and submit it by August 21.