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.