Fringe Benefits Tax Flashcards
Which of the following benefits of L, an accounting staff of Blue Corp., will be subject to 35% FBT?
a. Rental value of quarters furnished to L
b. Meals furnished by Blue Corp.
c. Housing benefits
d. None of the choices
d.
L is an accounting staff (i.e. a rank-and-file employee); only managerial and supervisory employees are subject to FBT.
This pertains to goods, services, or other benefit furnished in cash or in kind by an employee to an individual other than a rank-and-file employee.
a. Supplemental compensation
b. Variable compensation
c. Fringe benefit
d. De minimis benefit
c.
G, an employee who holds a supervisory position in Pharma Corp., is given a Toyota Vios as a fringe benefit by his employer. In what instance can the car be exempt from Fringe Benefit Tax?
a. If G uses the car for his personal use
b. If G uses the car so he can travel to different parts of the Philippines
c. If G uses the car to travel to the various factories of Pharma Corp. in connection with his duties
d. None of the choices
c.
This choice falls under the necessity/convenience of the employer rule
Which of the following housing benefits is subject to fringe benefits tax?
a. Housing provided to H, a supervisor of L Corp.
b. Housing provided to Lt. Gen. Shepherd, Commander of Philippine Army
c. Housing provided to L, a supervisor of K Corp. (L stayed only for 2 months)
d. Housing provided to M, a manager of P Corp. in La Union (M is a resident of Davao, and in order for him not to be late at work, the house is within 20 meters of P Corp.)
a.
A, a manager of Shadow Corp., is a member of Baguio Tennis Club, in which Shadow paid its membership fees. To what extent is this employee benefit taxable?
a. 5%
b. Full
c. 20%
d. Exempt Fringe Benefit
b.
J is a supervisory employee of F Corp. Her duties involve going to the various plants of F Corp. in order to inspect and monitor their processes. During the year, J was given the following benefits (paid by F Corp.):
- Salaries of 5 housekeepers (P8,000 per housekeeper)
- Personal driver to drive J to the various plants: P25,000
In addition to this, J also attended a 7-day business convention in Ohio, USA. The following details are provided:
* First-class plane ticket: P40,000
* Lodging cost amounting to $4,200 per day.
J, however, failed to furnish documentary evidence in relation to the business convention.
Which of the following benefits is exempt from tax?
a. Salary of household helpers
b. Driver
c. Lodging costs
d. First-class plane ticket
b.
This is a necessity/convenience of employer.
Which of the following benefits are not subject to fringe benefit tax?
a. Benefits given to rank and file employee?
b. Housing benefit
c. Vehicle
d. Educational assistance to dependents of manager/supervisor
a.
The following educational assistance is given to the following managerial employees of L Corp.
- J, Chief Financial Officer: P350,000 tuition fees for him to study at ADMU. J will take up Masters in Education.
- F, Controller: P500,000 tuition fees for him to study at NU. F will take up a Master’s Degree in Accountancy, and a contract between F and L Corp. states that F is to stay at the company for 15 years, which they agreed upon.
Which of the following fringe benefits is exempt?
a. J
b. F
c. Both J and F
d. None of the choices
b.
L, a NRA-NETB managerial employee of F Corp., received a holiday expense to Bahamas for P200,000 during the year. How much is the Fringe Benefits Tax?
a. P50,000
b. P66,667
c. P107,692
d. L is exempt
b.
P200,000/75%*25%=P66,667
NRA-NETB Fringe Benefit Tax Rate is 25%.
