BIKs, for example cars, housing, education, home leave and reimbursement of an employee’s Indonesian tax liability provided by the employer, are typically not assessable in the hands of the employee. This also applies to BIKs which are required for the execution of a job, for example protective clothing, uniforms, transportation costs to and from the place of work and accommodation for ship crews and the likes, and the cost of providing BIKs in remote areas.

However, BIKs are taxable in the hands of the employee if they are provided by:

• Mining companies and production sharing contractors which are subject to tax under the old tax laws, (i.e., pre- 1984 income tax laws);
• Representative offices of offshore companies which do not constitute taxpayers;
• Final-taxed companies; and
• Deemed-profit companies.