Indonesia’s Ministry of Finance (“MoF”) recently released regulation No. 66 Year 2023 (“PMK 66”) which came into effect on July 1, 2023, outlining the specific benefits in kind (“BIK”) that fall within certain thresholds that are exempt from income tax.
BIK refers to compensation provided by employers to employees for work or services in the form of goods or facilities other than money. Facilities can be either directly from the employer or from a third party, which is rented and/or paid for by the employer. Money includes cheques, savings, e-money or e-wallet balances.
Previously, Government Regulation No. 55 Year 2022 clarified how to treat the changes in either to companies or employees on how BIK is generally taxable, and the employers are obliged to withheld it.
Download the summary of BIK that are exempt from income tax now.
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