Benefits In Kind (BIK) – What do you need to know?

What is the definition of BIK?

• BIK (benefit in kind) are benefits provided by the employer to the employee in form of services, vehicles, and lodging. These benefits are considered as income to the employees.
• BIK are non-monetary benefits. This means that these benefits cannot be converted to cash when they are given to the employee.
• The benefit also cannot be sold or exchanged for cash because it is stated in the employee’s contract or due to the nature of the benefit itself.

Which benefits in kind are taxable and tax-free BIK?

Taxable BIK

• Motorcar and other related benefits
• Petrol
• Driver
• Household furnishings, apparatus and appliances
• Other Assets
• Other Benefits

Tax-free BIK

• Dental benefits
• Child-care benefits (child-care centers provided by the employer to employees)
• Food and drink that provided free of charge
• Free transportation between pick-up points or home and place of work Insurance premiums
• Discounted prices for business products and services

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