IRTAX 005

One of the following statements is incorrect regarding fringe benefits tax

• Deductible expense by the employee

• Imposed on the employer.

• Deductible expense by the employer

• Deductible expense by the employer

Basic rules on fringe benefits tax, except

• The fringe benefit tax is a tax imposed on the managerial or supervisory employee

• Fringe benefits given to rank and file employees are not subject to fringe benefit tax

• Fringe benefits given to a supervisory or managerial employee are subject to fringe benefit tax.

• De minimis benefits whether given to rank and file employee or to a supervisory or managerial employee are not subject to fringe benefit tax.

Which statement is wrong? The fringe benefit tax is

• Imposed on the rank-and-file employee if the amount of the benefit exceeds the ceiling allowed by the tax code.

• Imposed on the employer.

• Withheld at source.

• Deductible by the employer

Facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of his employees.

• De minimis benefit

• Fringe benefit

• Fringe benefit tax

• Grossed-up monetary value.

The following concepts denotes exemption from the fringe benefits tax, except

• Welfare and benefit of the employees

• Convenience of the employer

• Necessity to the business or trade of employer

• De minimis benefits

Regarding the amount on which the fringe benefit tax rate is applied, which statement is wrong? The FBT is applied on.

• The monetary value of the fringe benefit.

• The grossed-up monetary value of the fringe benefit.

• The amount deductible by the employer from gross income.

• Both amounts of the fringe benefit and the fringe benefit tax

Which of the following statements is correct?

• Fringe benefits may be given to managerial, supervisory, and rank and file employees.

• Fringe benefits may be given to managerial, supervisory, and rank and file employees.

• Fringe benefit given to employees is exempt from fringe benefit tax.

• If the fringe benefits are taxable, the tax will be paid by the employer

Daily meal allowance for overtime work is a de minimis benefit if not exceeding what percent of the basic minimum wage?

• 25%

• 10%

• 15%

• 20%

The following are considered as de minimis benefits granted to each employee except,

• Monetized unused sick leave credits of private employees not exceeding 10 days during the year.

• Monetized unused vacation leave credits of private employees not exceeding 10 days during the year.

• Monetized value of vacation leave credits paid to government officials and employees.

• Monetized value of sick leave credits paid to government officials and employees.

The following fringe benefits are not subject to fringe benefit tax, except

• If given for the convenience or advantage of a managerial/supervisory employee.

• If required by the nature of or necessary to the trade, business, or profession of the employer.

• Contribution of the employer for the benefit of the employee to retirement, insurance, and hospitalization benefit plans

• Benefits given to rank and file employees.