Wawan Setiyo Hartono
Senior Advisor
[email protected]
TaxPrime Newsletter: MoFR-66/2023 or PMK 66/2023
The Minister of Finance Regulation No. 66 of 2023 (MoFR 66/2023, effective from 1 July 2023, complements significant transformation of benefit and/or in-kind tax treatment as firstly mandated in the Harmonization of Tax Regulations (HPP Law). The HPP Law revolutionized taxation of BIK by making BIK-related expenses deductible for employers and taxable for employees. MoFR 66/2023, eagerly awaited for almost 2 (two) years since the foundation of BIK tax treatment in HPP Law enacted in 29 October 2021, provides detailed guidelines for BIK taxation. This newsletter delves into the implications of these changes for both employers and employees, aiming to elucidate the complexities and guide stakeholders through the transition.
