Finance Minister: Laptop, Mobile Phones of Office Facilities Not Subject to Fringe Benefit Tax

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 19 November 2021
Category: News
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Minister of Finance Sri Mulyani Indrawati (Photo by: Documentation of Public Relations of Cabinet Secretariat)

The Government has announced that office facilities obtained from companies, such as laptops and mobile phones, will not be subject to tax, according to Minister of Finance Sri Mulyani Indrawati.

The Minister made the statement responding to the imposition of fringe benefit tax – equipment or facilities provided by companies and not in the form of money – which is regulated in the Harmonized Tax Law (UU HPP).

“If workers receive laptops, then are these taxable? No, it does not work that way. Workers are given fringe benefits in the form of vehicles or meal allowances, which is indeed terrific for certain segments of professional groups,” the Minister said at the Kick-Off Dissemination of UU HPP, Friday (19/11).

The Minister underscored that the imposition of fringe benefit tax aims to make the tax-justice system more equitable for taxpayers so that not all workers who receive office facilities will be subject to the tax as the fringe benefit income will be charged to certain goods and parties.

“Therefore, we will only impose a certain threshold. As for the facilities, I am not sure yet. The CEOs must have a lot of fringe benefits and usually, the amount is very large, we can ask Head of Head of the Indonesian Chamber of Commerce and Industry (Kadin), Mr. Suryadi,” she said.

For the record, there are several facilities that are not classified as income for the recipients, namely the provision of food or drink for all workers, facilities in certain areas, facilities as work requirements, such as work safety equipment or uniforms, facilities originating from the State Budget or Regional Budgets, as well as other facilities with different types and certain limitations. (PR of Ministry of Finance/UN) (RIF/MUR)

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