Benefits-in-kind (BIK) are intangible benefits that are not convertible into money, even though they may have monetary value. The benefits are provided to the entitled employee, and that they cannot be sold, assigned or exchanged for cash either because of the employment contract or due to the nature of the benefits.
Cost of the asset that is provided as benefit / amenity
= Annual value of the benefit
Prescribed average life span of the asset
The value of BIK based on the formula method provided to the employee by the employer can be abated if the BIK is:
Prescribed value method
As a concession, the prescribed value method can be used as an alternative to determine the value of the BIK provided by the employer to his employee.
The value of BIK based on the prescribed value method provided to the employee by the employer can be abated if the BIK is:
The prescribed average life span and prescribed values of BIK are specified and tabulated in appendix 1 and appendix 2 of the Public Ruling No. 11/2019, respectively.
If you need further clarification, please do not hesitate to contact our tax team.
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