The DGT Still Reviewing the Urgency of Issuing a Circular Letter on Benefit in Kind

Thursday, 26 October 2023

The DGT Still Reviewing the Urgency of Issuing a Circular Letter on Benefit in Kind

JAKARTA. Directorate General of Taxes (DGT) admits that the implementation of provision on Benefit in Kind (BiK) or fringe benefits as regulated in the Minister of Finance Regulation (PMK) Number 66 Year 2023 is still being reviewed. 

According to Director General of Taxes Suryo Utomo, if there is a different opinion in implementing provision on BiK or fringe benefits between taxpayers and tax officials, then, a more detailed explanation is needed.

The explanation in the form of a Circular Letter is addressed to tax officials so that when implementing the provisions on BiK or fringe benefits enjoyment, they have the same perspective.

"If there is a need for an explanation so that our friends and taxpayers have equality, we will issue an SE (Circular Letter)," said Suryo Utomo, on Wednesday (26/10) during his presentation of the October 2023 edition of APBNKita (State Budget). 

However, if it turns out that there is no need for further explanation regarding the implementation of the provisions on BiK, then there is no need to issue an SE. For information, the new BiK provisions will take effect from 1 July 2023.

Read: Effective on 1 July 2023, Tax Provision on Benefit in Kind Finally Released 

Meanwhile, BiK in PMK 66 Number 2023 is defined as compensation in the form of goods other than money whose ownership is transferred from the provider (company) to the recipient (employee).

Meanwhile, a fringe benefit is a reward in the form of the right to use a facility/service originating from the assets of the provider or third party.

In principle, in the regulation regarding BiK, it is explained that every provision on BiK and/or fringe benefit is an income tax object apart from BiKs and/or enjoyment which is exempted from the income tax object. (ASP)


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