The Directorate General of Taxes (DGT) has finally released the nominative list format related to the provision of Benefit in Kind (BiK) and/or fringe benefits contained in Office Memo Number ND-14/PJ/PJ.02/2024 as a follow-up to the issuance of Minister of Finance Regulation (PMK) Number 66 of 2023.
As stipulated in Article 2 of PMK Number 66 of 2023, the nominative list must be submitted by the employer or service user as the party that provides the BiK or fringe benefits, together with the submission of the Annual Income Tax Return (SPT).
Read: Effective on 1 July 2023, Tax Provision on Benefit in Kind Finally Released
Nominative List Format
The reimbursement costs or rewards listed in the nominative list are detailed for each type of in-kind or enjoyment and for each recipient. The following is an example of the format of the nominative list of reimbursement costs or compensation in the form of in-kind or fringe benefits:
How to Fill in the Nominative List
The following is how to fill in the nominative list, as stipulated in the Attachment to Office Memo No. ND-14/PJ/PJ.02/2024:
In column (1), fill in the serial number.
Column (2) is filled in with the name of the service provider if the reimbursement or compensation is given in connection with services and the name of the employee if the reimbursement or compensation is given in connection with work.
Column (3) shall be filled in with a Taxpayer Identification Number (TIN) in accordance with the name stated in column (2).
Column (4) shall be filled in with the address as stated in column (2).
Column (5) shall be filled in with:
- Date of transfer of rights for BiK or date of transfer of utilization rights for fringe benefits, in the event that the recipient is a service provider
- Date of transfer of rights for in-kind or date of transfer of utilization rights for fringe benefits, in the event that the recipient is an employee and the in-kind or fringe benefits are irregular; or
- Date of transfer of rights for in-kind or the last date of transfer of part of the right of utilization for fringe benefits, in the event that the recipient is an employee and the reimbursement or compensation is regular in nature.
Column (6) shall be filled in with the phrase ‘natura (BiK) and/or fringe benefits (kenikmatan)’
Column (7) shall be filled in with the value of BiK or fringe benefits as referred to in column (6).
Column (8) shall be filled in with:
- Form of BiK or fringe benefits given. Examples: fringe benefits of car facilities, gifts of foodstuffs;
- Cost account used to record the provision of BiK or fringe benefits in question. Example: salary expense; and The object or non-object status of Income Tax on the BiK or fringe benefits in question. Example: non-object.
Column (9) shall be filled in with withholding income tax value related to reimbursement or compensation in the form of BiK and/or fringe benefits.
Column (10) shall be filled in with the withholding tax receipt number related to reimbursement or compensation in the form of BiK and/or fringe benefits. In the event that the recipient of BiK or fringe benefits is a permanent employee, this section shall be filled in with the withholding slip number of Income Tax Article (ITA) 21 form 1721-A1.
Read: One Year in Effect, Issues Persist with the Implementation of Benefit-in-Kind Provision
Internal Guidance
In fact, the Office Memo No. ND-14/PJ/PJ.02/2024, issued on July 8, 2024, is intended for internal use by the DGT. Nevertheless, the memo is important for taxpayers to observe, as every provision stipulated therein will guide the Tax Authority in assessing taxpayers' compliance related to the preparation of the Nominative List of BiK or fringe benefits.
In addition to confirming the preparation of the Nominative List, this regulation also addresses several other matters, such as the scope of in-kind or fringe benefits related to work or services, the limitations on fringe benefits in the form of vehicle facilities, health, and medical service facilities, education and/or training, as well as price reduction facilities or discounts borne or provided by the employer. (ASP/KEN)
