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Fringe Benefit
-any good, service or other benefit granted in cash
or in kind by an employer to an individual employee in
addition to the basic salary, but not limited to the
following:
1.
Housing
2.
Expense account
3.
Vehicle of any kind
4.
Household expense benefits
5.
Interest on loan at less than market rate
benefit
6.
Membership fees benefit
7.
Expenses for foreign travel benefit
8.
Holiday and vacation expenses
9.
Educational assistance to the employee or his
or her dependents
10.
Premium in excess of life, health, and non-life
insurance benefits
Tax treatment of Fringe Benefit
1.
Rank & File
- fringe benefit shall be included in gross taxable
compensation income subject to scheduler tax
rate
2.
Supervisory or Managerial
- fringe benefit tax shall be subject to fringe
benefit tax
Non- taxable fringe benefits
1.
FB authorized and exempt from tax under
special laws
2.
Benefits for retirement, insurance, and
hospitalization benefit plans
3.
Benefits given to rank and file employee
4.
De minimis benefits
5.
FB granted to the employee, that is required
by the nature of, or necessary to, the trade,
business or profession of the employer
6.
FB given to the employee for the
convenience or advantage of the employer
De minimis Benefits
-facilities and privileges of relatively small value
1.
2.
Expense account
MV = 100% x Expenses paid or
incurred
3.
f.
5.
6.
7.
iii.
iv.
v.
9.
MV = 100 % x Educational
Expenses
10.
Premium in excess of life, health, and
non-life insurance benefits
GR: taxable
XPN:
a. Contributions of the employer under SSS