Fringe benefits provided directly or indirectly to physical persons in cash or in-kind are subject to TOFB at a rate of 20% of the gross value of the benefits. The value of the fringe benefit is the fair market value inclusive of all taxes. The following benefit will be considered fringe benefits:
- a vehicle of any kind;
- food;
- a house or housing;
- utilities;
- loan less than market rate of interest;
- discount on the sale of goods;
- educational assistance not related to the work of the employee;
- life and health insurance premium unless the same benefit is provided to each employee regardless of employment or job classification;
- the un-reasonable and un-necessary expense to the business of the employer;
- contribution to social security funds in excess of the levels provided in law;
- pension plan in excess of 10% of the employees’ monthly salary exclusive fringe benefits;
- expenses on entertainment, amusement, or recreation which is not part of an employment relationship.
Source: https://bun-associates.com/wp-content/uploads/2018/07/BA-Tax-Practice-eBrochure.pdf
