These are non-cash benefits which employee may enjoy from the employer. Benefits in kind are quantified by the prescribed rules and included into taxable income of an employee.  They are quantified in the following rules:

  1. a)Provision of Premises/Housing to an employee:                                                        

Benefit in kind related to premises/housing is taken as the lower of the Market Value Rent of the premises and the higher of the following:

  • 15% of the employee’s total annual income and
  • The expenditure claimed as deduction by the employer in respect of the premises.


If an employee contributes to part of rent paid on premises, the amount of quantified benefit will be reduced by the amount of rent paid by the employee.

  1. b)Provision of Motor vehicle to an employee:

The quantifications for Benefits in kind from a motor vehicle are based on engine size and age of a vehicle provided. The following annual amounts are applied:

Engine size

Engine size up to 5 years old  (TSHS)

Greater than 5 years old (TSHS)

Not exceeding 1000cc



Above 1000cc not exceeding 2000cc



Above 2000cc not exceeding 3000cc



Above 3000cc




The Motor vehicle benefit is not applicable where the employer does not claim deduction in respect of the ownership, maintenance or operation of the vehicle

  1. c)Provision of loan to an employee

When an employer provides a loan to an employee and the loan is at the interest rate below statutory rate, the amount of benefit in kind is taken as the difference of the following:

  1. The amount of interest that would have been paid if the interest on loan would be charged at statutory rate, and
  2. The amount of interest paid on the loan at the rate provided.


Where an employer provides a loan whose term is less than twelve months and the aggregate amount of the loan and similar loans outstanding at any time during the previous twelve-month period do not exceed three months’ basic salary of an employee, then the amount of benefit in kind is nil.

  1. d)Other benefits in kind

The market value will apply in determining other benefits in kind.