Fringe Benefits

Question 1

___means any good, service or other benefit furnished or granted by an employer in cash or in kind, IN ADDITION to basic salaries, to an individual

Answer 1

Fringe Benefit

Question 2

Subject for FBT?:
Rank and file employees?
Non Rank and file employees?

Answer 2

Rank and file employees - subject to withholding tax on compensation

Non Rank and file employees - Subject to Fringe Benefits Tax

Question 3

Fringe Benefit Tax Rate?

Answer 3

Effective Jan 1 2018.
Resident or Citizen - TR 35%, GrossUpRate65%

NRA-NETB-TR25%, GUR75%

It is paid by the employer, therefore, cosidered as FINAL TAX. So yung binibigay sa employee ay net of FBT na

*the fringe benefit and the ralated FBT are BOTH allowable deductions for the Enployer’s taxable income computation

Question 4

Fringe Benefits Subject to FBT:
10
HEVHIMEHEL

Answer 4

1. Housing
2. Expense Acct
3. Vehicle - Any Kind
4. Household Personnel
5. Interest on Loan at less than market rate (12%)
6. Membership Fees, dues and other expenses
7. Expenses for foreign travel
8. Holiday and Vacation expenses
9. Educational Assistance
10. Life or Health insurance and other non life insurance premiums

Question 5

Fringe Benefits NOT Subject to FBT:
6

Answer 5

1. Exempted under Tax Code
2. Contributions of employer for the benefit of employee to retirement, insurance, hospitalizations
3. Benefits given to rank and file
4. De minimis benefits
5. Benefits necessary for company trade, business or profession of employer
6. Benefits for the convinience or advantage of employer

Question 6

Monetary Value and Exemptions from FBT

Answer 6

1. NO Transfer of ownership - 50% of the VALUE OF THE BENEFIT
2. WITH Transfer of ownership - MV is equal to Value of the benefit or 100%

Question 7

Please Review Monetary Value of Housing Privilige
Pg. 206

Answer 7

1. Basta tandaan lang yung 50% & 100% rule sa Monetary Value ng benefit
2. Then ang challenge lang dito is yung Value Of the Benefit (VOB) para sa
   a. LEASES - VOB=Rental Paid
   b. OWNS by Employer pero pinapagamit sa employee - VOB=5% of FMV
   c. PURCHASED By Employer pinapagamit sa employee - VOB=5% of Acquisition Cost exclusive of interest

Then the rest, pag may Transfer of Ownership, buong FMV na yung VOB.

Question 8

Please review Monetary Value for Vehicles pg. 208

Answer 8

1. Basta tandaan lang yung 50% & 100% rule sa Monetary Value ng benefit
2. Then ang challenge lang dito is yung Value Of the Benefit (VOB) para sa
   a. Vehicle OWNS BY EMPLOYER for use of employee - VOB=Acquisition costs NOT NORMALLY USED for business devided by 5years!
   b. OWNS by Employer pero pinapagamit sa employee - VOB=5% of FMV
   c. LEASES vehicles pinapagamit sa employee - VOB=Rental payments of NOT NORMALLY USED FOR BUSINESS

Then the rest, pag may Transfer of Ownership, buong AC, Cash Received by employee na yung VOB.