Fringe benefits refer to goods, services, or other benefits furnished or granted by an employer in
cash or in kind, in addition to basic salaries, to managerial or supervisory employees such
as, but not limited to the following:
"Rank and file employees" means all employees who are holding neither managerial nor
supervisory position.
Next is the Items of Fringe Benefits subject to Tax
The following items of fringe benefits received by a supervisor or managerial employee shall be subject
to fringe benefit tax.
So before that ano ba ang supervisory or managerial employee?
Supervisory are those who effectively recommend such managerial actions if the exercise of
such authority is not merely clerical in nature but requires the use of independent judgement.
Managerial employee refers to those who are given powers to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
discipline employees.
As you can see, these 10 are subject to fringe benefit tax. So sa madaling salita employee ang
nakinabang
1. Example ang business is manufacturing then malayo sa kabihasnan or nasa liblib ang building then ang
mga employee is taga malayo pa hhen nag pagawa ang employer ng house para sa employee para hindi
sila mahihirapan.
2. Expense payment fringe benefits include the reimbursement or payment of: car expenses, such as
registration and insurance. car parking (if you do not provide the car parking facilities)
3. When you provide a vehicle to an employee for the employee's personal use, the employee is
generally required to treat the value of that use as a taxable fringe benefit.
4.Sila yung nag babayad sa mga katulong or driver.
5. If you make a loan to an employee and either no interest is payable on the loan or interest is
payable at a rate lower than the official interest rate, it's a taxable fringe benefit
6.
7. Business related like convention abroad.
8. Meron kayong benefit na every year to can go to other country for free na sagot ng company.
9. Ito yung program which the employee will benefit in which an employer pays for his/her
educational expenses, provides tuition reductions or scholarship grants to an employee’s spouse or
dependent children.
10. Example sa philhealth ang contribution na need lang is 300, sabi ni employer ginawa niyang 500 para
pag nag kasakit is malaki ang makuha so may sobra na 200 sa 500 diba so yun ang fringe benefit.
Tandaan lang na in excess of what the law allows.
Take note lang na one reason why fringe benefits are granted by the employer to the employee is to
provide incentive to encourage employee’s productivity and loyalty to the employer. It could be in form
of vehicle to be used for business meetings and personal travels, or personal benefits like providing for
house maids and family drivers like what I’ve said earlier.
We are done with the ten subject for taxable fringe benefits given by the employer to the employee
who is either a managerial employee or supervisory employee. Benefits of similar nature are also
subject to fringe benefits tax in the Philippines but does not necessarily mean every benefit is taxable.
The following benefits are not subject to fringe benefits tax.
1. For instance, separation benefits which are given to employees who are involuntarily
separated from work are not subject to FBT.This reservation gives due respect to the other
provisions of tax and other special laws tending to provide non-taxable benefits. This applies to those
benefits that may have been existing as of the effectivity of the fringe benefit tax in the Philippines.
2. This one describes the nature of fringe benefits, one that is beneficial to the employee. As such,
benefits that are required by the nature of business, or necessary to the conduct of trade or business is
not taxable because they tend to work for the business and not for the managerial or supervisory
employee.
3. This are benefits of relatively small values provided by the employer to the employee for their general
welfare.
4. Dito sinasabi na nag provide nga ang employer for employee but which would be more beneficial to
the employer than to the employee. Eh diba nga ang fringe benefit is employee ang nakikinabang not
employer.
https://taxacctgcenter.ph/6-benefits-exempt-from-fringe-benefits-tax-in-philippines/
o "De minimis" benefits refer to 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
