1. The following food and/or beverage and their ingredients provided to all of employees[1]:
- Food and/or beverages provided by the employer at the workplace;
- Food and/or beverage voucher for employees who due the nature of their work cannot take advantage of the provision of food and/or beverage at the workplace, including employees in the marketing department, transportation department, and other external services.
- Food and/or beverage ingredients for all employees with a certain value threshold to be determined by a Minister of Finance (“MoF”) regulation.
2. Benefit in kind provided in designated areas[2] including facilities, infrastructure and/or facilities at the workplace for employees and their families in the form of housing, health services, education, place of worship, transportation and sports (but excluding golf, power boating, horse racing, gliding or motorsports). To be tax exempt, the provision of these benefits in kind must be made at the business location of the employer that has been determined as designated area by the Director General of Tax (“DGT”). To be a designated area, it must have the potential for economic development but lacks economic infrastructure and difficult to be reached by public transportation so that investors must bear relatively high risks and a long pay-back period. Designated areas include areas of seawater that have a depth of more than 50 meters where the seabed has mineral reserves, and remote areas. The procedures for granting tax exemption on benefits in kind provided in designated areas will be determined by a MoF regulation.
3. Benefit in kind that must be provided by employer for the execution of work[3] related to the requirements concerning the security, health and/or safety of employees as required by the relevant Ministries or Agencies pursuant to statutory provisions, including:
- Uniforms;
- Work safety equipment;
- Employee shuttle service;
- Lodging for crew members and/or
- Benefits in kind received within the framework of handling endemic, pandemic or a national disaster.
4. Benefit in kind sourced or funded by State Government / Regional Government / village budget.
5. Benefit in kind of certain types and/or thresholds [4] having regard to:
- the type and/or value of the received benefit in kind; and/or
- the eligibility criteria for the recipient of the benefit in kind
The certain type and/or value threshold of these benefits in kind and the eligibility criteria of the recipient thereof will be determined by a MoF regulation.
[1] Article 25 of GR-55
[2] Article 26 of GR-55
[3] Article 27 of GR-55
[4] Article 28 of GR-55