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    SPBUS Notes

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    Maisie Zabala
    This document discusses taxation policies for fringe benefits in the Philippines. It outlines that fringe benefits are taxed at 35% of the grossed up monetary value, with some exemptions. For non-resident aliens, fringe benefits are taxed at 25%. It also clarifies that only the portion of fringe benefits that are not required by or convenient for the employer's business are subject to taxation. Valuation of fringe benefits depends on whether they are provided as money, property where ownership is transferred, or property where ownership is not transferred.

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    SPBUS Notes

    Uploaded by

    Maisie Zabala
    45 views1 page
    This document discusses taxation policies for fringe benefits in the Philippines. It outlines that fringe benefits are taxed at 35% of the grossed up monetary value, with some exemptions. For non-resident aliens, fringe benefits are taxed at 25%. It also clarifies that only the portion of fringe benefits that are not required by or convenient for the employer's business are subject to taxation. Valuation of fringe benefits depends on whether they are provided as money, property where ownership is transferred, or property where ownership is not transferred.

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    This document discusses taxation policies for fringe benefits in the Philippines. It outlines that fringe benefits are taxed at 35% of the grossed up monetary value, with some exemptions. For non-resident aliens, fringe benefits are taxed at 25%. It also clarifies that only the portion of fringe benefits that are not required by or convenient for the employer's business are subject to taxation. Valuation of fringe benefits depends on whether they are provided as money, property where ownership is transferred, or property where ownership is not transferred.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views1 page

    SPBUS Notes

    Uploaded by

    Maisie Zabala
    This document discusses taxation policies for fringe benefits in the Philippines. It outlines that fringe benefits are taxed at 35% of the grossed up monetary value, with some exemptions. For non-resident aliens, fringe benefits are taxed at 25%. It also clarifies that only the portion of fringe benefits that are not required by or convenient for the employer's business are subject to taxation. Valuation of fringe benefits depends on whether they are provided as money, property where ownership is transferred, or property where ownership is not transferred.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 1

    SPBUS

    1. Housing Privilege
    Fringe Benefit Taxes
     Sec 33, NIRC: 35% of grossed up monetary value
    - final tax; withheld and paid by employer on a quarterly basis

     Grossed up monetary value:


    (Actual monetary value/65%) 35%
    35% is based on the highest rate in the tax bracket. So when the
    tax bracket changes again, so does the FBT
     EXEMPTION from 35%, but subject to compensation income
    under Sec24:
    1. given to rank and file
    2. required by nature of, or necessary to trade and business
    of employer
    3. granted for the convenience of the employer

    RR 3-98
    Fringe Benefits of Non Resident Aliens NETB
    Tax rate: 25%
    Divisor: 75%

    Taxation of fringe benefit received by: ----- REMOVED BY TRAIN


    (1) an alien individual employed by regional or area headquarters
    of a multinational company or by regional operating headquarters
    of a multinational company;
    (2) an alien individual employed by an offshore banking unit of a
    foreign bank established in the Philippines;
    (3) an alien individual employed by a foreign service contractor or
    by a foreign service subcontractor engaged in petroleum
    operations in the Philippines; and
    (4) any of their Filipino individual employees who are employed
    and occupying the same position as those occupied or held by the
    alien employees
    Tax rate: 25%
    Divisor: 75%

    the Tax Code allows for the cases where only a portion (i.e. less than
    100 per cent) of the fringe benefit is subject to the fringe benefit
    tax is clearly stated in Section 33 (a) of R.A. 8424 which stipulates
    that fringe benefits which are "required by the nature of, or
    necessary to the trade, business or profession of the employer, or
    when the fringe benefit is for the convenience or advantage of the
    employer" are not subject to the fringe benefit tax.
     Thus, in cases where the fringe benefits entail joint benefits to
    the employer and employee, the portion which shall be subject
    to the fringe benefits tax and the guidelines for the valuation
    of fringe benefits are defined under these rules and regulation

    VALUATION
    Unless otherwise provided in these regulations, the valuation of
    fringe benefits shall be as follows:
    (1) If the fringe benefit is granted in money, or is directly paid for by
    the employer, then the value is the amount granted or paid for.


    (2) If the fringe benefit is granted or furnished by the employer in


    property other than money and ownership is transferred to the
    employee, then the value of the fringe benefit shall be equal to the
    fair market value of the property as determined in accordance with
    Sec. 6 (E) of the Code (Authority of the Commissioner to Prescribe
    Real Property Values).

    (3) If the fringe benefit is granted or furnished by the employer in


    property other than money but ownership is not transferred to the
    employee, the value of the fringe benefit is equal to the
    depreciation value of the property

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