(3) ITX - CHAPTER 11 (S1))

Rank and file employees may be subject to fringe benefit tax.

• F

• T

Answer explanation

*can be subj. to RIT under compensation income

Fringe benefits are always subject to fringe benefit tax.

• F

• T

The personal expenses of employees shouldered by the employer are fringe benefits.

• F

• T

Managerial or supervisory employees are subject to fringe benefit tax.

• T

• F

The tax base of the fringe benefit tax is the grossed-up monetary value of the fringe benefit.

• F

• T

The fringe benefit tax is a creditable withholding tax presumed to have been withheld at source by the employer from the fringe benefits of supervisory or managerial employees.

• T

• F

Answer explanation

*final tax

The taxable fringe benefit subject to the fringe benefit tax is the excess of the de minimis benefits over P90,000.

• F

• T

Half of the benefits that are necessary to the trade of the employer's business are subject to fringe benefit tax.

• T

• F

Answer explanation

*100% exempt

Benefits in the form of properties transferred to the name of the employee are subject to fringe benefit tax in full.

• T

• F

Benefits provided by the employer for his convenience are exempt from fringe benefit tax.

• F

• T