Module 5 – Part 2
FRINGE BENEFIT TAX
Prepared by: Mrs. Nelia I. Tomas, CPA, LPT
Learning Objectives
After completing the lesson, the students will be able to
1. Understand the nature of fringe benefits.
2. Appreciate the convenience of the employer rule and hybrid expense
3. Distinguish exempt benefit, partially exempt, and fully taxable fringe benefits
4. Understand the scope of the final fringe benefit tax
5. Determine the characteristics of fringe benefits tax
6. Understand the procedures of fringe benefit tax computation
7. Comprehend the general rules on monetary value
8. Comprehend the monetary value rules as applied to actual scenarios
9. Master the procedures for the computation of the fringe benefit tax
FRINGE BENEFITS
Under labor laws, fringe benefits pertain to all other benefits or incentives of
employees other than the basic pay. The basic pay is the fixed regular salary of
wages of employees every payroll period.
Under the NIRC, the term "fringe benefit" was defined to pertain to goods,
services or other benefits furnished by the employer to the employees.
FRINGE BENEFITS
Tax treatments of fringe benefits
Under current tax rules, items of fringe benefits in the strict sense are treated
differently depending on their nature:
For example:
a. Fringe benefits that are fixed every payroll period are considered regular
compensation.
b. Fringe benefits that are variable and performance-based are considered
supplemental compensation.
c. Fringe benefits in the form of incentives are considered 13th month pay and
other benefits.
d. Fringe benefits furnished for the employer's convenience or necessity are
exempt from income tax.
FRINGE BENEFIT TAX
SCOPE OF THE FRINGE BENEFIT TAX
The fringe benefit tax covers only the taxable fringe benefits of managerial or
supervisory employees.
GENERAL CATEGORIES OF FRINGE BENEFITS SUBJECT TO
FINAL TAX
1. Management perquisite benefits
2. Employee personal expenses shouldered by the employer
3. Taxable de minimis benefits
a. Excess de minimis over their limits
b. Benefits not included in the de minimis list
GENERAL CATEGORIES OF FRINGE BENEFITS SUBJECT
TO FINAL TAX
Management perquisite benefits
Perquisite benefits, also called "management perks" are highly privileged
incentives given only to a special group of employees. These benefits are non-
performance based and are given as incentives to management employees.
Perquisite benefits are not considered as compensation income, but as fringe
benefits subject to fringe benefit tax.
The BIR maintains the view that performance-based benefits are compensation
income while benefits in the nature of incentive or perks are fringe benefits.
Employee personal expenses
When an expense takes the nature of an employee personal expense or
expenditure and is paid or assumed by the employer in default of a proximate
business necessity, it is deemed a fringe benefit in its entirety even if the
expense is receipted in the name of the employer.
GENERAL CATEGORIES OF FRINGE BENEFITS SUBJECT
TO FINAL TAX
Hybrid expenses
When the employer incurs expenses which is purported partly for business and
partly for employee's incentive, only 50% of the expense representing the
employee incentive is subject to the fringe benefit tax.
The following are hybrid expenses under RR3-1998:
1. Housing benefits in the form of rental accommodation -When an
employer leases a residential unit for the use of the employee and the
business the rental expense is deemed half business expense and half
fringe benefit to the employee.
2. Allowing an employee free use of business property - When the
employer allows its employee to use business properties, the rental value
or depreciation value of the business property aver the period of usage is
deemed half business expense and half fringe benefit to the employee.
GENERAL CATEGORIES OF FRINGE BENEFITS SUBJECT
TO FINAL TAX
Exempt fringe benefits
The following fringe benefits are exempt from the fringe benefit tax:
1. Fringe benefits which are authorized and exempted from tax under special
laws
2. Benefits required by the nature of, or necessary to the trade, business or
profession of the employer
3. Benefit given for the convenience or advantage of the employer
4. Contributions of the employer for the benefit of the employee to retirement,
insurance and hospitalization benefit plans
5. Benefit given to rank and file employees whether or not granted under a
collective bargaining agreement
The taxable fringe benefits of rank and file employees are exempt
from fringe benefit tax, but are subject to regular income tax as part of
compensation income.
6. De minimis benefits within their legal limits
GENERAL CATEGORIES OF FRINGE BENEFITS SUBJECT
TO FINAL TAX
Necessity or convenience of the employer rule
If an expense is necessitated by the nature of the trade, business, business or
profession of the employer, or is furnished principally for the employer’s
convenience or advantage, it is an ordinary business expense. The personal
advantage of the employee is merely incidental to the expense. These fringe
benefits are not viewed as taxable fringe benefits under the NIRC.
Examples of exempt benefits under this rule:
1. Scholarship program for an employee to study and acquire competence for future use
of the business
2. Car incentives to medical doctors so they will be available for duty anytime
3. Free transportation services to employees working at distant facilities
4. Mobile phone allowance to corporate secretaries who are required to handle off duty
client inquiries
5. Sleeping quarters to field engineers and staffs working on remote facilities
6. Helicopters assigned to fishing employees for locating schools of fish offshore or to
mining engineers for mineral exploration purposes.
GENERAL CATEGORIES OF FRINGE BENEFITS SUBJECT
TO FINAL TAX
Necessity or convenience of the employer rule
Examples of exempt benefits under this rule:
7. Personal aircraft to a chief executive officer managing business affiliates and
subsidiaries spread across different countries
8. Car incentive to a travelling company salesman
9. Sleeping quarters near the camp furnished to military personnel so they will be
available for duty at any time of insurgency
10. Housing units for an employee and his family near the employer's place of business to
ensure the employee's availability anytime when the employer needs him.
THE FRINGE BENEFIT TAX
The fringe benefit tax is a final tax imposed on the fringe benefit furnished, granted or paid
by the employer to the employee, except rank and file employees, whether such employer
is an individual, a professional partnership or a corporation, regardless of whether the
corporation is taxable or not, or the government and its instrumentalities.
For the purposes of the fringe benefit tax, fringe benefit means any good, service or other
benefits furnished or granted in cash or in kind by the employer to individual employees
(except rank and file employees) such as, but not limited to the following:
1. Housing benefits
2. Expense account
3. Vehicles of any kind
4. Household personnel, such as maid, driver or others
5. Interest, for the difference between the market rate (12%) and the actual interest
granted
6. Membership fees, dues and other expenses borne by the employer for the employee
in social and athletic clubs or other similar organizations
7. Expense for foreign travel
8. Holiday and vacation expenses
9. Educational assistance to the employee or his dependents
10. Life or health and other non-life insurance premiums or similar accounts in excess of
what the law allows
CHARACTERISTICS OF THE FRINGE BENEFIT TAX
1. Final tax
The fringe benefit tax is a final tax which is withheld by the employer at source.
Thus, the employee need not report the fringe benefits in his income tax return.
2. Tax upon the fringe benefits of managerial or supervisory employees
The fringe benefit tax is not a tax to the employer. It is a tax upon the fringe
benefit realized by the managerial or supervisory employee, It is a tax to the
employee; hence, it applies regardless of the identity of the employer. Therefore, it
applies even if the employer is a sole proprietor, partnership, corporation whether
taxable or exempt, or the government.
3. Paid by the employer
As a final tax, the tax is presumed withheld at source and remitted by the
employer to the government.
CHARACTERISTICS OF THE FRINGE BENEFIT TAX
4. Grossed-up tax
The monetary value or the amount of fringe benefit realized or taken home by
the employee is effectively net of the final tax which is to be withheld at source,
Hence, the monetary value is first grossed-up by the complement percentage of the
applicable fringe benefit tax rate before the fringe benefit tax rate is applied.
5. Due quarterly
The fringe benefit tax is due for remittance quarterly based on the accounting
period (fiscal or calendar) selected by the employer. The monetary value of each
taxable fringe benefit is determined and reported quarterly through BIR Form 1603Q.
The quarterly fringe benefit tax is due on or before the last day of the
month following the quarter in which withholding was made.
PROCEDURES IN COMPUTING THE FRINGE BENEFIT TAX
1. Determine the monetary value.
Monetary value refers to the taxable amount of benefits taken home or
realized by the managerial or supervisory employee. The monetary value is
presumed net of the final tax.
2. Determine the gross-up rate and fringe benefit tax rate applicable for
the taxpayer.
The gross up rate is the complement of the fringe benefit tax rate. If the fringe
benefit tax rate is 35%, the gross-up rate is (100% less 35%) or 65%. If the fringe
benefit tax rate is 25%, the gross-up rate is 75%.
3. Determine the grossed-up monetary value by dividing the monetary
value by the gross-up rate.
4. Determine the fringe benefit tax by multiplying the fringe benefit tax
rate to L the grossed-up monetary value.
RULES ON VALUATION OF FRINGE BENEFITS
1. Benefits paid in cash
When benefit is given in cash or paid for in cash, the monetary value
is the amount paid for in cash.
2. Benefits paid in kind
When benefit is given in kind, the monetary value is the fair value of the thing
given unless its book value is higher. Book value is the cost less any provision for
depreciation for depreciable properties.
Simply stated, the monetary value is the fair value or the book value of the thing given,
whichever is higher,
When ownership over the property is transferred to the employee, the monetary value
is the entire fair value of the property even if the proper is partially used in the business
of the employer.
RULES ON VALUATION OF FRINGE BENEFITS
3. Benefits that are furnished
When the benefit is given in the form of free use of the employer's property,
the monetary value is 50% of the rental value of the property. If the property has no
available rental value, the depreciation value is used.
For purposes of the depreciation value, the presumptive useful lives of the property
are:
a. 20 years for real properties.
Hence, the depreciation value is computed as 1/20 or 5% of the property.
b. 5 years for movable properties.
Hence, the depreciation value is computed as 1/5 or 20% of the value of the property.
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Taxable Housing Benefits
1. Employer leases a residential property for the use of his employee and the said
property is the usual residence of the employee.
Monetary Value = 50% of the benefit
Illustration
A sole proprietorship business leases a residential house and lot for the use of his
business manager for P20,000/month.
The monetary value shall be:
Quarterly value = (P20,000 x 3 months) = P 60,000
Quarterly monetary value = P 60,000 x 50% = P 30,000
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Taxable Housing Benefits
2. Employer owns a residential property and assigns the same for the use of his
employee as his usual place of residence; the annual value of the benefit is 5% of
whichever is higher of the zonal or assessed value of the land and improvement.
Monetary value = 50% of the annual value of the benefit
Illustration
Chamberly Inc., allowed one of its unused realty investment costing P3,500,000 with
zonal value of P4,000,000 and assessed value of P3,000,000 to be used by its vice
president.
The monetary value shall be determined as follows:
Annual depreciation value = P4,000,000 x 5% P 200,000
Quarterly value = P200,000 / 4 quarters P 50,000
Quarterly value monetary = P50,000 x 50% P 25,000
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Taxable Housing Benefits
3. The employer purchases a residential property on installment basis and allows his
employee to use the same as his usual place of residence; the annual value is 5% or
1/20 of the acquisition cost, exclusive of interest.
Monetary Value = 50% of the annual value of the benefit
Illustration
Cotabato Corporation purchased a residential property for the use of its manager. The
property is payable over 11 annual installments of P200,000 including interests but have a
cash price of P2,000,000. For accounting purposes, Cotabato Corporation opted to
capitalize the interest and recorded the P2,000,000 contract price as acquisition cost of
the property.
The monetary value shall be determined as fallows:
Annual depreciation value = P2,000,000 x 5% P 100,000
Quarterly value = P100,000 / 4 quarters P 25,000
Quarterly monetary value = P25,000 x 50% P 12,500
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Taxable Housing Benefits
4. Purchase by the employer of residential property and transfer of ownership in the
name of the employee, the value of the benefit is whichever is higher of the
acquisition cost or zonal value
Monetary value = 100% of the value of the benefit
Illustration
A non-profit corporation bought a residential dwelling for P5,000,000 and transferred
ownership to its president. The property has P3,000,000 zonal value.
Since there is transfer of ownership, the monetary value is the entire P5,000,000, the
higher of book value (i.e. cost in this case) and zonal value.
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Taxable Housing Benefits
5. Purchase by employer of property and transfer of title to employee for less than
adequate consideration, the value is (fair market value or zonal value, whichever is
higher) less consideration paid by employee.
Monetary value = 100% of the value of the benefit
Illustration
Denzy, a professional practitioner, transferred his residential property in the name of his
managerial employee for P2,000,000. The property has fair value per tax declaration of
P3,400,000 and P5,000,000 zonal value.
Since there is a transfer of ownership (i.e. title), the monetary value is P3,000,000
computed as P5,000,000 fair value less the P2,000,000 consideration paid.
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Exempt housing privileges:
1. Military officials of the Armed Forces of the Philippines (AFP), Philippine Air Force
(PAF), Philippine Army, and Philippine Navy on their quarters which are within or
accessible from the military camp so they can be readily available on call to meet the
exigencies of their military service.
2. Housing unit situated or adjacent to the premises of a business or factory (within a
maximum of 50 meters) from the perimeter of the business premises.
The 50-meter rule may be relaxed when upon the basis of health or safety
requirements such as in the case of chemical manufacturing, the housing needs be
located at a farther location.
3. Temporary housing for an employee in a housing unit for 3 months or less ([Link]
exceeding one quarter)
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Expense Account
Expenses incurred by an employee but which are paid by his employer or incurred and
paid by employee but reimbursed or advanced by the employer are taxable fringe þenefits.
The monetary value is the amount paid by the employer.
Properly documented employer expense
When the expense is receipted for and in the name of the employer and the expenditure
does not partake of the nature of a personal expense attributable to the employee, it is not
a taxable fringe benefit because it is a business expense.
Personal expenses of the employee such as groceries for the personal consumption of
employee and/or his family, if paid or reimbursed by the employer, are taxable fringe
benefits whether or not receipted in the name of the employer.
Fixed and regular RATA are treated as part of regular compensation income and are
subject to creditable withholding taxes, not to fringe benefit tax.
Illustration 1
Denver Corporation paid for the following expenses which were liquidated by its
managerial employee:
Water and electricity bill at manager's home P 15,000
Meals and groceries at manager's home 18,000
Bill on business telephone 2,000
Bill on personal phone 1,000
Transportation from office to and from clients 12,000
Transportation from office to and from manager’s home 10,000
Foods and beverages for visiting business clients 8,000
Required: How much is the monetary value of fringe benefits?
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Motor Vehicles of Any Kind
1. Purchase by employer of motor vehicle in the name of the employee
regardless of whether the same is used partially in the business of the
employer.
Monetary value = 100% of the cost of the motor vehicle
2. Cash benefit to employee for the purchase of a vehicle, even if the vehicle
is partly used in the business of the employer
Monetary value = 100% of the cash benefit, except when the
amount is subjected to withholding tax on compensation
3. Purchase of car on installment basis by the employer with ownership
placed in the name of the employee even if the car is used partly for the
employer's business, the benefit is the acquisition cost divided by 5 years
Monetary value = (1/5) or 20% of the acquisition cost
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Motor Vehicles of Any Kind
4. Employer shoulders a portion and is placed fn the name of the employee,
partially used in business
Monetary value = the portion shouldered by the employer
5. Fleet of motor vehicles owned for the use of the business and the
employees, the value of benefit is the cost of all motor vehicles not used
for sales, freight, service, and other non-personal uses divided by 5 years
Monetary value = 50% of he value of benefit
6. Fleet of motor vehicles leased for the use of the business and the
employee, the value of the benefits is the rental payments for motor
vehicles not normally used for sales, freight, delivery, service, and other
non-personal use
Monetary value = 50% of the value of the benefit
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Motor Vehicles of Any Kind
7. Aircrafts including helicopters are deemed solely for business use; hence,
they are not subject to fringe benefit tax.
8. Yachts whether owned and maintained or leased by the employer are
presumed not for business use; hence, taxable as fringe benefits. If owned
or maintained, the value of the benefit is measured as the depreciation
value over 20 years.
Illustration:
Assume a corporation acquired a P10,000,000 yacht for the use of its
executives.
The monetary value shall be determined as:
Annual depreciation value = P10,000,000 / 20 P 500,000
Quarterly monetary value = P500,000/4 P 125,000
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Note on aircrafts and yachts
The high cost of ownership of aircrafts makes it inherently prohibitive or impractical to be
for personal use. Thus, aircrafts are deemed by the regulations as solely for business use;
hence, they are exempt from fringe benefit tax. Yachts, though pricey on other hand,
generally lack any sensible business purpose aside from being for personal pleasure;
hence, its depreciation value is subject to fringe benefit tax in full.
Exceptionally, if the yacht is used solely for the entertainment of guests or prospective
clients, it is not subject to the fringe benefit tax. In this case, the depreciation of the yacht
qualifies as "entertainment, amusement, and recreation expense".
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Household Expenses
Employee expenses borne by the employer for household personnel, salaries of
household help, personal driver of the employee, and other personal expenses such as
homeowners association dues, garbage dues, electricity, and water are taxable fringe
benefits. The monetary value is the amount paid.
Interest on Loan at Less than Market Rate
The interest forgone by the employer representing the difference between 12% and the
actual interest charged is a taxable fringe benefit.
Illustration
Europa Cooperative lent its chief executive officer P1,000,000 at a minimal 3% annual
interest rate. The monetary value shall be computed as follows:
Annual monetary value = (12% - 3%) x P1,000,000 P 90,000
Quarterly monetary values = P 90,000/4 P 22,500
Membership fees, dues, and other expenses borne by the employer for his
employees in social and athletic clubs or other similar organizations constitute
taxable fringe benefits. The monetary value is the amount paid.
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Expenses for Foreign Travel
Reasonable business expenses for foreign travel for attending business meetings and
conventions are exempt, such as the following:
1. Inland travel expenses such as food, beverage and local transportation costs
2. Lodging costs in hotel or similar establishment amounting to an average of $300/day
or less.
3. Economy and business class airplane tickets
4. 70% of the cost of first-class ticket
Substantiation requirement
The above rules apply if the expenses were supported by documentations proving the
actual occurrences of the meeting or convention; otherwise, they shall be subject to fringe
benefit tax.
- Business meetings must be supported by an official communication from business associates abroad
indicating the purpose of the meeting.
- Business conventions must be supported by an official invitation or communication from the host
organization or entity abroad.
Expenses for the family members of the employee shouldered by the employer are
taxable fringe benefits in full.
Illustration 2
MIG, Inc. allowed its VP Finance, Mr. Lasuna, to attend a convention abroad with the
privilege to bring his wife. The expenses of the foreign travel were:
Mr. Lasuna Mrs. Lasuna Total
First class plane ticket P 70,000 P 70,000 P 140,000
Lodging cost* 91,000 91,000 182,000
Foods & inland transportation 50,000 50,000 100,000
P 211,000 P 211,000 P 422,000
The applicable exchange rate is P52:$1; P52 x $350 x 5 days each to Mr. and Mrs. Lasuna.
Required: How much is the monetary value of fringe benefits?
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Holiday and Vacation Expenses
Holiday and vacation expenses are taxable fringe benefits if shouldered by the employer.
The monetary value is the amount paid or shouldered by the employer.
Educational Assistance to the Employee or his Dependents
Educational assistance to the employee is generally taxable except when it is incurred for
the convenience or furtherance of the employers business, such as:
1. the education or study is directly connected with the employer’s trade, business or
profession; and
2. there is a written contract (i.e., employee bond) that the employee is under obligation
to remain at the employ of the employer for a period of time they mutually agreed
upon.
Educational assistance granted to dependents of the employee is generally taxable
except when the assistance was provided through a competitive scheme under a
scholarship program of the company.
SPECIAL GUIDELINES ON MONETARY VALUE
DETERMINATION
Life or health insurance and other non-life insurance premiums or
similar amounts in excess of what the law allows
These are taxable fringe benefits except the following insurance or premium contributions
allowed or required by law:
1. Contributions of the employer for the benefit of the employee pursuant to the
provisions of existing law such as contributions to SSS, GSIS, PhilHealth and HDMF
2. Cost of premium for group insurance of employees
Illustration 3
Queensdale Company made the following insurance premium payments during a calendar
quarter:
- P30,000 premium for the life insurance of the Chief Executive Officer (CEO) with
Queensdale Company as the beneficiary of the policy
- P20,000 premium for the life insurance of the Company Chief Operating Officer (COO)
with his wife as the beneficiary
- PI 5,000 insurance premium of the personal car of the company manager
- P40.000 premium for group insurance of employees
- P80,000 premium share in SSS, PhilHealth, and Pag-lbig dues of employees
- P10,000 fire insurance premium for the company building quarterly
Required: How much is the quarterly monetary value of fringe benefits?
FRINGE BENEFIT TAX RATES
The fringe benefit tax rates are as follows:
Employees
Year Residents or citizens* Non-resident aliens
1998 34%
1999 33%
25%
2000 to 2017 32%
2018 and thereafter 35%
*Includes resident citizens, non-resident citizens, and resident aliens
GROSSED-UP MONETARY VALUE
The basis of the fringe benefit tax is the grossed-up monetary value of the fringe benefit.
The grossed-up monetary value is the monetary value of benefits divided by the
appropriate grossed-up rate for the employee. The grossed-up monetary value is inclusive
of the fringe benefit tax.
The following are the grossed-up rate:
Employees
Year Residents or citizens* Non-resident aliens
1998 66%
1999 67%
25%
2000 to 2017 68%
2018 and thereafter 65%
*Includes resident citizens, non-resident citizens, and resident aliens
Illustrations with solutions
1. In the last quarter of 2019, Alexander, a resident Filipino supervisory employee was
given P13,000 worth of groceries for personal use. How much is the fringe benefit tax?
Solution:
Monetary value P13,000
Divide by: Gross-up rate 65%
Grossed-up monetary value P20,000
Multiply by: Fringe benefit tax rate 35%
Fringe benefit tax P 7,000
2. On January 2014, Cyberspace Company purchased a P3,000,000 car and designated
it for the personal use of its non-resident alien executive. How much is the fringe
benefit tax?
Solution:
Monetary value (P3,000,000/5) x 50% P 300,000
Quarterly monetary value (P300,000/4) P 75,000
Fringe benefit tax (P75,000 x 25%)/75% P 25,000
ACCOUNTING ENTRIES
Accounting entries shall be classified as follows:
1. Taxable benefits paid for in cash or in kind
2. Taxable benefits which do not involve payment of cash or transfer of
property
3. Exempt benefits paid for in cash or in kind
4. Exempt benefits which do not involve payment of cash or transfer of
property
Benefits paid for in cash or in kind
Taxpayers shall record fringe benefits paid for in cash or in kind in their books
as follows:
Fringe benefit expense (monetary value) xxx
Fringe benefit tax expense xxx
Cash/Tax basis of property given xxx
Fringe benefit tax payable xxx
ACCOUNTING ENTRIES
Benefits which do not involve payment ofcash or properties
Taxpayers shall record fringe benefits without outflow of cash or properties in
their books as follows:
Fringe benefit expense (monetary value) xxx
Fringe benefit tax payable xxx
Exempt benefits paid for in cash or in kind
The taxpayer shall record exempt fringe benefits paid in cash or in kind as
follows:
Fringe benefit expense (monetary value) xxx
Cash/Property given xxx
Tax Treatment of the Total Fringe Benefit Expense
The total fringe benefit expense including the fringe benefit tax expense is a
deductible expense of the employer against his gross income in the
computation of his taxable income. It must be noted that a deductible fringe
benefit expense exists only when the benefit is paid in cash or in kind. The
expense is measured at the actual cost or tax basis ofconsideration given as
fringe benefits.
Questions to Ponder
1. Enumerate the components of taxable compensation income.
2. Discuss the general categories of fringe benefits.
3. Discuss the two tax treatments of fringe benefits.
4. What types of employee benefits are subject to the fringe benefit tax?
5. Discuss the 50% rule on hybrid expenses.
6. What are the two exceptions to the 50% rule?
7. Enumerate the fringe benefits exempt from the fringe benefits tax.
8. Enumerate and discuss the characteristics of the fringe benefit tax.
9. Enumerate the procedures in computing the fringe benefit tax.
10. Discuss the general rules on monetary value.
11. List the fringe benefit tax rates and grossed-up rates for each type of taxpayer.
12. Discuss the accounting entries to record the fringe benefit expense and the benefit tax
expense.
Required Readings
Chapters 11, pp.362 – 381:
Banggawan, Rex B. 2019. INCOME TAXATION LAWS, PRINCIPLES, AND
APPLICATIONS. Real Excellence Publishing., Pasay Default Barangay,
Pasay City, Philippines.
Learning Activities
Chapters 11, pp.382 – 392:
Banggawan, Rex B. 2019. INCOME TAXATION LAWS, PRINCIPLES, AND
APPLICATIONS. Real Excellence Publishing., Pasay Default Barangay,
Pasay City, Philippines.
References
Chapters 11, pp.362 – 381:
Banggawan, Rex B. 2019. INCOME TAXATION LAWS, PRINCIPLES, AND
APPLICATIONS. Real Excellence Publishing., Pasay Default Barangay,
Pasay City, Philippines.
Appendix: Course Materials Evaluation
Adopted: BEST PRACTICES AND SAMPLE QUESTIONS FOR COURSE EVALUATION SURVEYS. Retrieved from
[Link]