General Instruction: Try to answer first without looking on your notes to test your mental

retention and ability. If you already reached your capacity, you can check your notes at
your own discretion. After completion, and since submission IS ADJUSTED on Monday,
November 23, 11:59 pm, you can recheck your answers with your notes, to self-identify
points to improve.

Part I. Identify whether or not the following are subject to final tax-fringe benefits tax (FBT,
Not FBT):

a. Fringe benefit required by the nature of or necessary to trade, business of the employer
b. Fringe benefit for the convenience or advantage of the employer
c. Fringe benefit given to rank and file employees d. Housing privilege of the AFP
e. Housing units situated inside or adjacent to business or factory (located within 30 meters from the
perimeter of the business)
f. Temporary housing for an employee who stays in the housing unit for 3 months or less
g. Representation and entertainment allowances which are fixed in amount and regularly received by
employee
h. Use by employee of aircraft (including helicopters) owned and maintained by the employer
i. Cost of economy and business class airplane ticket for foreign travel
j. De minimis benefits
k. Educational assistance granted to employees’ dependents through competitive scheme under
scholarship program of the company
l. Cost of premiums borne by the employer for the group insurance of his employees
m. Contributions of employer for the benefit of the employee under SSS and GSIS laws
n. Contributions of the employer for the benefit of the employees to retirement, insurance and
hospitalization benefit plan.

Part II. Problem: compute and double rule your final answer.
1. What are the forms used in filing Fringe Benefit Tax?
2. When to file? Due dates?
3. Summary on procedure of filing.

Part III. Problem: compute and double rule your final answer.
1. Eath Baysic, single mother with 7 dependent children, is an above minimum wage earner with
total basic salary for the year of P220,000. Other income during the year were: overtime pay,
P60,000; Holiday Pay, P15,000; Hazard Pay,P24,000; and Night Shift differential pay, P28,000.
If amounts were already net of mandatory contributions to SSS, Philhealth and Pag-ibig,.
a) How much is the personal and additional exemption?
b) How much is the taxable income?
c) How much is the taxable Fringe Benefit?
d) How much is the income tax due?

2. Ms. A, a minimum wage earner with total basic salary for the year inclusive of 13 th month pay
P130,000 (10,000 per month). Other income during the year were: overtime pay, P90,000;
Commission income from B Corporation P20,000; and Night Shift differential pay, P80,000. If
amounts were already net of mandatory contributions to SSS, Philhealth and Pag-ibig,.
a) How much is the taxable income?
b) How much is the income tax due?
c) How much is the taxable Fringe Benefit?
d) How much is the Fringe Benefit Tax?
3. As a means of promoting the health , goodwill, and efficiency of his employees, employer A gave
rank and file employee Rank Floss the following fringe benefits in 2019: a. Monetized unused
leave credits of 15 days P 9,000 b. Rice Subsidy 24,000 c. Uniform and clothing allowance 8,000
d. Achievement award for length of service in the form of tangible property 15,000 e. Gifts given
during Christmas and major anniversary celebrations 10,000 f. 13th month pay 18,000
a) The amount of taxable fringe benefits is?
b) The employer’s deductions for the benefits given ?

4. Uly retired from Commission on Audit, Regional Office I on December 1, 2019. As a

consequence of his retirement he received the following:
Monthly Salary (January to November) P30,000
Monthly Personnel and Economic Relief and Allowance (reimbursement) 2,000
13th month pay 30,000
Cash gift 5,000
Retirement Pay 750,000
Terminal Leave 120,000
Longevity Pay 30,000
Rice and Allowance per month 2,500
Clothing Allowance 8,000
Loyalty Award 20,000

a) How much is the de minimis benefit?

b) Taxable Income
c) Tax Due

5. Ameri Canu is a Nigerian employed in international Corp., a Petroleum Service Contractor

received compensation income of P4,310,000 from 2019. Inclusive of P400,000 Fringe Benefits.
a) How much is Income Tax Due
b) How much is Fringe Benefit Tax?

6. Kori Yanu is a Japanese employed in International Corp., He was assigned in America for 183
days and stayed in the Philippines for the rest of the year for Calendar year 2019. He received
compensation income in the Philippines amounting to P4,310,000 and P3,000,000 outside the
Philippines. He also received the following in the Philippines:

 Condominium with fair market value per Real Property Tax Declaration of P5,100,000
and a zonal value of P6,000,000.
 Electricity (LUECO) – P 80,000
 Water ( LUWAD) - 50,000
 Personal Body Guard, 100,000
 Company car with cost of 1,200,000
a) How much is Income Tax Due?
b) How much is the Taxable Fringe Benefit?
c) How much is Fringe Benefit Tax Due?

7. A company gave fringe benefits to the following employees in 2019:

Rank and file employees P100,000
Managerial and Supervisory Employees, Resident Citizens P900,000
Special Aliens P 150,000
 a) How much is the deductible expense of the company?
b) How much is the Fringe Benefit Tax Due?

8. A, a sole proprietor, had the following results of operations in five years:

Year 1 Net operating loss (P500, 000)
Year 2 Net operating income 200,000
Year 3 Net operating loss ( 100, 000)
Year 4 Net operating income 150,000
Year 5 Net operating income 300,000

Taxable Income for Year 1,2,3,4,5

9. Mr. A, an executive of a company, owed his employer P10, 000. For a job well done, his
employer condoned his indebted ticket for travel abroad worth P10,000, and travel expenses of
P20, 000. How much is the Fringe Benefit Tax?

10. Ace Sues, a Computer Specialist, has accepted the following supervisory salary package of
P160,000/ month from her employer Apple Computer Inc. He received the following additional
compensation for the year:
 Accomodation at the employer’s residential House,together with Ace Sues’ 3 kids and wife. The
house which si adjacent to the work assignment premises of Sues, has Zonal Value of
P5,000,000 and Market Value of P6,000,000
 Farm House, located at La Union was given as a quota bonus during the first quarter with Zonal
Value of P3,000,000 and Market Value of P2,000,000
 A loan to purchase a vehicle costing of P2,500,000 was given on March 1, 2019 with
accompanying promissory note of P2% annual interest.
 A driver and house maid, with P2,000 and P4,000 bi monthly salary.
 Balisin Island lifetime membership of P2,000,000
 Reimbursement of Cost and Living expenses of P100,000 per month.
 All-in paid seminar on Wuhan China, with airfare costing P15,000; accomodation of P30,000 for
6 days; and travel allowance of P70,000
 •Premiums for Sun life Insurance VUL, of P10,000 per month.
 Laptop computer costing P200,000 (this is the only one provided to Robyn this year and is used
solely for work purposes)
 Payment of childcare fees for her children at a childcare premise located on her employer’s
premises P10,000 semi-annually
 A loan of P350,000 on 1 April 2019. She used the loan to pay off her home loan (300,000) and
the remaining P50,000 to purchase shares. The interest charged by the employer on the loan is
one per cent (1%) per annum, and Sues makes re-payments every six months.

a) How much is Income Tax Due?

b) How much is the Taxable Fringe Benefit?
c) How much is Fringe Benefit Tax Due?