Both employers and employees must understand the tax treatment of non-cash benefits and perks, commonly known as “benefits in kind.” This guide offers a comprehensive overview of these benefits, including company cars and housing allowances. 

By reading this guide, you can gain valuable insights to make informed financial decisions and ensure compliance with tax regulations.

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What are the Benefits in Kind?

Regulation 66 of 2023 (MoF 66/2023) regulates benefits-in-kind (BIK) for taxation in Indonesia, replacing MoF 167/2018 as of July 1, 2023. The recent regulation outlines two categories of benefits-in-kind:

• Compensation-in-kind: non-cash compensation like meals and uniforms.
• Compensation is provided through facilities such as housing, vehicles, and medical services.
  

The regulation outlines the types of taxable BIK in Indonesia and the conditions for exclusion. It also specifies the methods for taxation and valuation.