The Ministry of Finance (Ministry of Finance) is currently working on regulations for tax derivatives to be imposed on property in kind or property/enjoyments provided by employers to employees. When will it be finished?
Finance ministry director-general of taxes, Suryo Utomo, said that the derivative regulations would soon be formulated in the form of a regulation of the finance minister (PMK). This is a derivative of the government regulation (PP) number 55 of 2022 on the adjustment of regulations in the field of income tax which regulates that in kind the tax is not collected.
“Collection of taxes (in kind) is carried out by the employer. Considering that the PP has just been issued, the PMK has not been issued, we are currently studying this PMK. We will put more detailed arrangements regarding the transition to PMK, how will he organize it,” Suryo said in a media briefing at the office, Central Jakarta, on Tuesday (10/1/2023).
There are at least five in-kind reliefs that the government exempts from income tax. Firstfood, groceries, drinks and/or beverages for all officers.
“We are trying to detail what kind of food and drinks we will exclude, what is clear is what is provided in the workplace. Then what kind of food can be obtained or reimbursed by employees who do not work in the office,” Suryo explained.
Second, in kind and/or enjoyment disbursed in certain areas determined by the General Directorate of Taxation of the Ministry of Finance. The particular area in question is economically potential, but in terms of access and living necessities it is lacking, i.e. remote areas.
“Residences that include housing, health services, education, worship, transportation, sports will also be arranged as entertainment in some areas,” he said.
Specialty sports that are exempt from income tax do not include golfing facilities or services, motor boat racing, horse racing, motor boating, gliding, paragliding and motor sports.
“Playing golf is not for making money. This is just one example. We will define it slowly (in PMK),” Suryo said.
The benefits in kind excluded continue on the next page.
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