May I ask what is the treatment for fringe benefits given to an officer or director of a corp. who is also an employee of the company but without managerial or supervisory title? Will they be considered a rank and file? Or subject to withholding tax on compensation and fringe benefit tax? How about if the President of the company? TIA.
Hello po. Yes, if the company gives fringe benefits to their employees. Again, the fringe benefit tax is not a tax on any company like the PEZA; it is a tax on the employee (managerial or supervisory) for receiving fringe benefits (as an additional remuneration to them). It's just that the PEZA or any company as the employer has the responsibility to withhold taxes on compensation, hence the responsibility on withholding and remitting the tax is on the employer, and not on the employee.
@@JisrylRaz_ftt Sir, Follow up question. Is there particular documentation/proof needed to justify that the fringe benefits was necessary for the business or for the convenience of the employer for it to be exempted from fringe benefit tax? (e.g. Housing allowance) Thanks po.
Catridge company owns a fleet of Motor vehicles In 2018 cars which was acquired at a cost of 800,000 was allowed to be used by the general manager . During the year it's book value amount to 775,000 how much will be the fringe benefit tax thereon?
Good day Sir! Tanong ko lang po kung taxable fringe benefits po ba ito or hindi po. UAP Company owns a condominium unit in The Residence which is near the factory and the plant's administrative building. To make it convenient to its executive, it allowed the latter to use the said property as his residence. The zonal value of the property is P32,000,000 while its fair market value as shown inits current Real Property Tax Declaration amounts to P25,000,000. How much is the fringe benefits tax? Salamat po ng marami
Eto po yung value ng fringe benefits given in money's worth. Halimbawa, kung ang binigay po is money or cash, then yung face value po mismo ng cash ang monetary value.
Hi po Miss Arlea. Our law specifically provides that, "the term 'fringe benefit' means any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee xxxx Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted." In the problem I gave in the video, I specifically mentioned the HYPOTHETICAL prevailing market interest. Thus, 10%. I particularly gave the 10% as the prevailing market rate in the problem, kasi in reality naman market interest rates are volatile, kaya nga "prevailing" market rate ang basis kasi nagbabago sya over time. And, our Tax Code does not specifically impose na 12% ang prevailing rate, instead it only uses the wordings "market rate" (as I have mentioned above). In fact, the prevailing market interest rate now is even lower than 10% if you will refer to BSP memorandum of 2013 which provides 6% as the prevailing market interest rate for loans (BSP Memo No. 799, s. 2013). Hence, I would say, it is not appropriate to use the 12% rate as a benchmark especially kung given naman sa problem na 10% ang prevailing market rate. However, in the absence of such specific provision in any problem, the 12% legal rate shall be used, and I think that is what you meant which is actually correct. In such case, the 12% will be used IF and ONLY IF not given in the problem. Again, that 12% presumption is based on the legal rate po as used by the BIR for all interests accruing to them (see Revenue Regulation 21-2018), not really the prevailing market rate as what the law intends. However, again as I have mentioned above, since given naman po ang prevailing market rate as per problem, then that will be used. I hope my answer resolves this. :)
Allowable clothing allowance per year is 6,000 lang po. So if monthly po yan, multiply nyo po ng 12 months tapos yung amount na yun e less mo dun yung 6k. Yung excess is kasama dun sa 90k limit
Thank you for your video discussions sir! May I ask , for instance, an employee(faculty) received an educational grant from the government. Considered as taxable po ba yon?
Hello po pwede po patulong dito? The employer company gave the following cash benefit to the following: Supervisory employees: ₱195,000 Rank & File employees: ₱68,000 How much is the monetary value of fringe benefits? Thank you po 😊
Good morning sir, i know im late hope you answer my question. There are some treatment in "only usufructuary right was granted" where they multiply 5% for the annual value of the benefit to find the monetary value ng house. Is it still the answer still the same??
Hi sir patulong po what if Cartridge company is just leasing the car that is being use for personal purposes and it's paying monthly rental is 10,000. What is the fringe benefit tax po? Thankyou po hope masagot niyo po
![[TOPIC 21] DE MINIMIS BENEFITS | Tax Treatments for Amounts exceeding Statutory Limits](http://i.ytimg.com/vi/OKC_q8tIdAU/mqdefault.jpg)
![[TOPIC 21] DE MINIMIS BENEFITS | Tax Treatments for Amounts exceeding Statutory Limits](/img/tr.png)
Wow ang galing po sir, very informative! Laking tulong po videos nyo about sa income tax sir lalo online classes pa. Keep it up po sir!
Thank you po 😊😊😍
Hi sir 2 days nako ga martahon sa imong videos hahahah thank you so much sir 😀
Thank you Van hahaa
Thanks for the very Informative Video Sir. I'll truly appreciate your efforts. God bless you always.
Welcome po
May I ask what is the treatment for fringe benefits given to an officer or director of a corp. who is also an employee of the company but without managerial or supervisory title? Will they be considered a rank and file? Or subject to withholding tax on compensation and fringe benefit tax? How about if the President of the company? TIA.
ff
Sir, I would like to ask, does PEZA registered enterprise liable of paying Fringe Benefit tax? Thank You.
Hello po. Yes, if the company gives fringe benefits to their employees. Again, the fringe benefit tax is not a tax on any company like the PEZA; it is a tax on the employee (managerial or supervisory) for receiving fringe benefits (as an additional remuneration to them). It's just that the PEZA or any company as the employer has the responsibility to withhold taxes on compensation, hence the responsibility on withholding and remitting the tax is on the employer, and not on the employee.
@@JisrylRaz_ftt Sir, Follow up question. Is there particular documentation/proof needed to justify that the fringe benefits was necessary for the business or for the convenience of the employer for it to be exempted from fringe benefit tax? (e.g. Housing allowance) Thanks po.
Hi idol. Waiting for vat/opt po. All the way from parañaque uwuu 😂
LOL Hi Son!
Catridge company owns a fleet of Motor vehicles In 2018 cars which was acquired at a cost of 800,000 was allowed to be used by the general manager . During the year it's book value amount to 775,000 how much will be the fringe benefit tax thereon?
41,730.77
@@JisrylRaz_ftt maraming salamat po
Welcome :)
Sir may I clarify why 5% is computed between zonal and fair mrket value?
Good day Sir! Tanong ko lang po kung taxable fringe benefits po ba ito or hindi po.
UAP Company owns a condominium unit in The Residence which is near the factory and the plant's administrative building. To make it convenient to its executive, it allowed the latter to use the said property as his residence. The zonal value of the property is P32,000,000 while its fair market value as shown inits current Real Property Tax Declaration amounts to P25,000,000. How much is the fringe benefits tax?
Salamat po ng marami
Galing sir!!!
Thanksss. :)
Hello po sir pa explain nga po ung monetary value
Na explain po sa video po
Eto po yung value ng fringe benefits given in money's worth. Halimbawa, kung ang binigay po is money or cash, then yung face value po mismo ng cash ang monetary value.
Thankyou po
Hello sir, very informative. However on FBT loan
100,000*10%*6/12 months= 5,000 not 3,000 po and prevailing market rate for interest/benchmark is 12%.
Hi po Miss Arlea. Our law specifically provides that,
"the term 'fringe benefit' means any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee xxxx Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted."
In the problem I gave in the video, I specifically mentioned the HYPOTHETICAL prevailing market interest. Thus, 10%.
I particularly gave the 10% as the prevailing market rate in the problem, kasi in reality naman market interest rates are volatile, kaya nga "prevailing" market rate ang basis kasi nagbabago sya over time. And, our Tax Code does not specifically impose na 12% ang prevailing rate, instead it only uses the wordings "market rate" (as I have mentioned above). In fact, the prevailing market interest rate now is even lower than 10% if you will refer to BSP memorandum of 2013 which provides 6% as the prevailing market interest rate for loans (BSP Memo No. 799, s. 2013). Hence, I would say, it is not appropriate to use the 12% rate as a benchmark especially kung given naman sa problem na 10% ang prevailing market rate.
However, in the absence of such specific provision in any problem, the 12% legal rate shall be used, and I think that is what you meant which is actually correct. In such case, the 12% will be used IF and ONLY IF not given in the problem. Again, that 12% presumption is based on the legal rate po as used by the BIR for all interests accruing to them (see Revenue Regulation 21-2018), not really the prevailing market rate as what the law intends.
However, again as I have mentioned above, since given naman po ang prevailing market rate as per problem, then that will be used.
I hope my answer resolves this. :)
And, yes po. I have mistakenly put 3,000 instead of 5,000. But then, I stand with the 10%, not 12%.
Good eve po sir...pano po ang computation ng fringe benefits sa motor vehicle with fair market value is 2,000,000.00?thanks po...
Just divide it by 65% then multiplied by 35%.
@@JisrylRaz_ftt sir, how about if ang clothing allowance is 5,000 per month?
Allowable clothing allowance per year is 6,000 lang po. So if monthly po yan, multiply nyo po ng 12 months tapos yung amount na yun e less mo dun yung 6k. Yung excess is kasama dun sa 90k limit
Thank you for your video discussions sir! May I ask , for instance, an employee(faculty) received an educational grant from the government. Considered as taxable po ba yon?
Is the employee a government employee? Is the educational grant given the employer - which is the government agency itself?
Hello po pwede po patulong dito?
The employer company gave the following cash benefit to the following:
Supervisory employees: ₱195,000
Rank & File employees: ₱68,000
How much is the monetary value of fringe benefits?
Thank you po 😊
P 195,000
Thank you po ❤️
Good morning sir, i know im late hope you answer my question.
There are some treatment in "only usufructuary right was granted" where they multiply 5% for the annual value of the benefit to find the monetary value ng house. Is it still the answer still the same??
Ano po yung 5%?
Hi sir patulong po what if Cartridge company is just leasing the car that is being use for personal purposes and it's paying monthly rental is 10,000. What is the fringe benefit tax po? Thankyou po hope masagot niyo po
half lang po yung monetary value. (10,000/2)/65% x 35%
@@JisrylRaz_ftt bakit po half lng?