SURABAYA - Office facilities received by high level employees will be one of the benefits in kind and/or enjoyment that are subject to Income Tax. This policy was taken to create justice.

Sri Mulyani said that usually company officials will receive fringe benefits or a number of benefits that are far greater than other employees. Sri Mulyani also emphasized that this does not mean that all office facilities will be taxed under this rule. This is because there will be a limit to the value of in-kind goods subjected to tax.

"The background to this adjustment is because compensation in kind and/or enjoyments that are not tax objects tends to be enjoyed by high level employees (directors, managers and commissioners). This creates injustice if only certain groups receive rewards in the form of in-kind and/or enjoyments," wrote the report on our state budget, Kaleidoscope 2022, quoted (27/01/23).

Provisions for in kind taxes are regulated in Law Number 7/2021 concerning Harmonization of Tax Regulations (HPP), which is also contained in the derivative regulation PP Number 55/2022 which details the tax income cluster of the HPP Law.

In this regulation, what meant by in kind is other rewards in the form of goods, other than money, checks, savings balances, electronic money or digital wallet balances.

Provisions for deducting/collecting tax income for in kind will become effective when a minister of finance regulation is issued which serves as a guideline for policy implementation.

There are 3 aspects that will be regulated in more detail regarding taxes on in-kind and/or enjoyments. The first setting concerns exemptions from tax income objects for in-kind and/or benefits.

Second, regarding certain value limits or certain limitations of in-kind and/or enjoyments that are excluded from tax income objects.

Finally, provisions regarding procedures for evaluating and calculating reimbursement or compensation in kind and/or benefits will be detailed in a ministerial regulation.