What are the different types of benefits?

Benefits from employment can be divided into three categories

Benefits-in-kind

Benefits-in-kind are benefits provided by or on behalf of your employer that cannot be converted into money. This means that when the benefit is provided to the employee, that benefit cannot be sold, assigned or exchanged for cash either because of the employment contract or due to the nature of the benefit itself. For example, if a driver employed by an employer is provided for the private use of an employee, this will be a benefit-in-kind taxable on the employee. A company car is also a common type of benefit-in-kind.

For more information on which benefits-in-kind are tax exempt see here.

Value of Living Accommodation (VOLA)

VOLA is living accommodation benefit provided for the employee by or on behalf of the employer. It is a type of benefit-in-kind.

For information on how to calculate the value of living accommodation see.

Perquisites

Perquisites are benefits in cash or in kind which can be converted into money, received by an employee from his employer or from third parties in respect of having or exercising an employment. In the example above, if the driver is hired directly by the employee and the employer reimburses the employee for the cost of employing the driver, then this will be a perquisite taxable on the employee. A travelling allowance is also a common type of perquisite.

For more information on which perquisites are tax exempt see here.