Tax Update: Minister of Finance Regulation Number 66 of 2023 regarding the Income Tax Treatment of Compensation or Remuneration Received or Obtained in the Form of Benefits In-Kind.
The Ministry of Finance has issued Minister of Finance Regulation Number 66 of 2023 (PMK 66), which is effective as of July 1, 2023. PMK 66 regulates the treatment of Income Tax on compensation or remuneration related to work or services in the form of benefits in-kind. The issuance of PMK 66 is to provide legal certainty and fairness in the treatment of Income Tax, as well as to implement adjustments to previous regulations. The substance regulated in PMK 66 includes cost imposition, the exemption from the Income Tax object, and procedures for the assessment and calculation of compensation or remuneration in the form of benefits in-kind.