Excel Professional Services, Inc.: Cpa Review

Excel Professional Services, Inc.
Management Firm of Professional Review and Training Center (PRTC)

(LUZON) Manila 87339344 * Calamba City, Laguna * Dasmariñas City, Cavite * Lipa City,
Batangas (0917) 8852769 * (VISAYAS) Bacolod City (034) 4346214 * Cebu City (032)
2537900 loc. 218 (MINDANAO) Cagayan De Oro (0917) 7081465 * Davao City (082) 2250049
TAXATION
CPA REVIEW
3106 FRINGE BENEFITS AND DE MINIMIS BENEFITS C. NARANJO/ A. SIAPIAN/ V. GUDANI

OCT 2021
CLASSIFICATION OF EMPLOYEES
1. Other than rank and file employees (Managerial employees) are ones who are vested with powers
or prerogatives to lay down and execute management policies and/or hire, suspend, lay-off, recall,
discharge, assign or discipline employees
2. Supervisory employees are those who, in the interest of the employer, effectively recommend
such managerial actions or the exercise of such authority is not merely routinary or clerical in
nature but requires the use of independent judgment
3. Rank-and-File employees are employees who are holding neither managerial nor supervisory
position
FRINGE BENEFITS
Fringe benefits means any good, service or other benefit furnished or granted in cash or in kind by an
employer to an individual employee who is occupying a managerial employee (not rank and file
employees).
General Rule: Fringe benefits given to persons holding managerial positions are subject to FBT
Exceptions: The following benefits are EXEMPT from fringe benefit tax
1. Convenience of the employer
2. Advantage of the employer
3. Necessary in trade
4. Required by the nature of the trade
5. Authorized and exempted from tax under special laws
6. Benefits given to rank-and-file employees
7. Contributions of employer to retirement, insurance and hospitalization benefit plans
8. De minimis benefits
FRINGE BENEFITS TAX
1. FBT is a final tax
2. FBT is imposed on the grossed-up monetary value of fringe benefit furnished, granted or paid by
an employer to an employee who is holding a managerial or supervisory position. The GUMV
represents the whole amount of income realized by the employee which includes the net amount of
money or net monetary value of property which has been received plus the amount of FBT thereon
otherwise due from the employee but paid by the employer for and in behalf of his employee
3. The FBT is imposed regardless of whether employer is individual, professional partnership or a
corporation or the employer is the government of the Philippines or one of its instrumentalities
4. Exemption from FBT shall not mean exemption from any other taxes (e.g. EWT)
TREATMENT OF FRINGE BENEFITS
Class of employee Holding Managerial Position Rank and File
Fringe benefits when received Fringe benefits Additional Compensation
Tax implication (subject to) Fringe benefits tax Withholding tax on Compensation
Classification of tax Final tax Creditable withholding tax
Nature Not part of gross income Gross income (compensation)
COMPUTATION
Types of Taxpayers who received the RC, NRC, RA, NRAE, NRANETB
fringe benefit Special Aliens
Fringe benefit xxx xxx
Multiply by 100% or 50%* 100% or 50%*
Monetary value of fringe benefit Xxx Xxx
Divide by gross-up rate 65% 75%
Gross-up monetary value of fringe benefit Xxx Xxx
Multiply by FBT rate 35% 25%
Fringe benefit tax xxx xxx
VALUATION OF TAXABLE FRINGE BENEFITS
1. If granted in money or is directly paid by the employer - the value is the amount of granted or paid for
2. If furnished by the taxpayer in property other than money and ownership is transferred to the employee
- the value of the fringe benefit shall be the fair market value of the property transferred
3. If furnished by the taxpayer in property other than money without transfer of ownership - the value of
the fringe benefit is equal to the depreciation value of the property.
- Personal property- depreciable life of 5 years (20%)
- Real property - depreciable life of 20 years (5%)
NOTE: If the employer and employee both benefitted, 50% is subject to FBT.
Benefits given to managerial/supervisory employees subject to FBT (final tax)
1. Housing Benefits
LEASED PROPERTY
 If the employer leases a residential property for the use of his employee and the said
property is the usual place of residence of the employee, the value of the benefit shall be
the amount of rental paid thereon by the employer, as evidenced by the lease contract. The
monetary value of the fringe benefit shall be fifty per cent (50%) of the value of the benefit.
FREE USE
 If the employer owns a residential property and the same is assigned for the use of his
employee as his usual place of residence, the annual value of the benefit shall be five per
cent (5%) of the market value of the land and improvement (zonal or assessed) whichever
is higher. The monetary value of the fringe benefit shall be fifty per cent (50%) of the value
of the benefit. Formula: MV = [5% (FMV or ZONAL VALUE] X 50%
 If the employer purchases a residential property on installment basis and allows his
employee to use the same as his usual place of residence, the annual value of the benefit
shall be five per cent (5%) of the acquisition cost, exclusive of interest. The monetary value
of fringe benefit shall be fifty per cent (50%) of the value of the benefit.
TRANSFER OF OWNERSHIP
 If the employer purchases a residential property and transfers ownership thereof in the
name of the employee, the value of the benefit shall be the employer's acquisition cost or
zonal value or Assessor’s FMV, whichever is higher. The monetary value of the fringe
benefit shall be the entire value of the benefit.
 If the employer purchases a residential property and transfers ownership thereof to his
employee for the latter's residential use, at a price less than the employer's acquisition cost,
the value of the benefit shall be the difference between the fair market value (BIR and
Assessor), whichever is higher, and the cost to the employee. The monetary value of the
fringe benefit shall be the entire value of the benefit.
Exceptions:
1. Housing benefits provided to military officials of the Armed Forces of the Philippines
consisting of officials of the Philippine Army, Philippine Navy and Philippine Air Force
2. Housing unit which is within or adjacent to the premises of a business or factory. Adjacent
means within 50 meters of the perimeter of the business premises of the employer.
3. Temporary housing for an employee who stays in a housing unit for three months or less.
Illustration 1:
ABC Corp owns a condominium unit acquired in 2020 for Php 5 Million. Zonal value is Php 5
Million and Assessor’s valuation is Php 3 Million. The Company allowed its General Manager to
use the facility beginning January 1. Compute the quarterly fringe benefits tax assuming the GM is
an RC and NRANETB:
RC, NRC, RA, NRA, SA NRANETB
Fringe benefit
% of Benefit
Monetary value of the fringe benefit
Divide by rate
Grossed-up monetary value of FB
Multiply by rate
Fringe benefits tax (Annual)
Quarterly
Illustration 2:
ABC Corp pays its General Manager’s monthly rent in the amount of Php 20,000. Compute the
quarterly fringe benefits tax assuming the GM is an RC and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
Illustration 3:
ABC Corp purchased a house and lot for Php 3 Million but registered the property under the name
of its General Manager. Zonal value at time of purchase is Php 5 Million while FMV as
determined by Local Assessor is only Php 2 Million. Compute the quarterly fringe benefits tax
assuming the GM is an RC and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
2. Expense account
Expenses of the employees that are paid for the employer are taxable fringe benefit:
a. expenses of reimbursement type including utilities
b. Credit card payments paid by employer
c. personal expenses (groceries etc.) even if receipted in the name of the employer
Notes:
 Not subject to FBT when the expenditures are duly receipted for and in the name of the
employer and the expenditures do not partake the nature of a personal expense attributable
to the employee.
 Representation and transportation allowances which are fixed in amounts and are regular
received by the employees are taxable compensation
Illustration: The newly appointed General Manager of ABC Corp. incurred the following monthly
expenses which were paid for by the Company:
Electricity bill – Php 20,000

Water – Php 5,000
Internet – Php 5,000
Groceries – Php 20,000
Credit card payments – Php 10,000
Compute the quarterly fringe benefits tax assuming the GM is an RC and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
3. Vehicle of any kind

TRANSFER OF OWNERSHIP
 If the employer purchases the motor vehicle in the name of the employee, the value of the
benefit is the acquisition cost thereof. The monetary value of the fringe benefit shall be the
entire value of the benefit, regardless of whether the motor vehicle is used by the employee
partly for his personal purpose and partly for the benefit of his employer.
 If the employer provides the employee with cash for the purchase of a motor vehicle, the
ownership of which is placed in the name of the employee, the value of the benefits shall be
the amount of cash received by the employee. The monetary value of the fringe benefit
shall be the entire value of the benefit regardless of whether the motor vehicle is used by
the employee partly for his personal purpose and partly for the benefit of his employer,
unless the same was subjected to a withholding tax as compensation income.
 If the employer purchases the car on installment basis, the ownership of which is placed in
the name of the employee, the value of the benefit shall be the acquisition cost exclusive of
interest, divided by five (5) years. The monetary value of the fringe benefit shall be the
entire value of the benefit regardless of whether the motor vehicle is used by the employee
partly for his personal purpose and partly for the benefit of his employer.
 If the employer shoulders a portion of the amount of the purchase price of a motor vehicle
the ownership of which is placed in the name of the employee, the value of the benefit shall
be the amount shouldered by the employer. The monetary value of the fringe benefit shall
be the entire value of the benefit regardless of whether the motor vehicle is used by the
employee partly for his personal purpose and partly for the benefit of his employer.
FREE USE
 If the employer owns and maintains a fleet of motor vehicles for the use of the business and
the employees, the value of the benefit shall be the acquisition cost of all the motor vehicles
not normally used for sales, freight, delivery service and other non-personal used divided
by five (5) years. The monetary value of the fringe benefit shall be fifty per cent (50%) of
the value of the benefit. Formula: MV = [(A)/5] X 50%
LEASED PROPERTY
 If the employer leases and maintains a fleet of motor vehicles for the use of the business
and the employees, the value of the benefit shall be the amount of rental payments for
motor vehicles not normally used for sales, freight, delivery, service and other non-personal
use. The monetary value of the fringe benefit shall be fifty per cent (50%) of the value of
the benefit.
Notes:
o The rules in housing benefits apply herein.
o Aircraft or helicopter owned and maintained by the employer – are treated as for business
purpose only and hence not subject to fringe benefit tax.
o Yacht, whether owned or leased by the employer is considered not for business purpose
(by nature for pleasure), and hence taxable fringe benefit. For purposes of determining the
depreciation value of the yacht, it is assumed to have a life of 20 years.
Illustration 1:
ABC Corp owns a fleet of motor vehicles. The Company allowed its General Manager to use the
newest and most expensive motor vehicle costing Php 5 Million which was purchased in 2019. The
GM began using the car on January 1, 2021. Compute the 1st quarter fringe benefits tax assuming
the GM is an RC and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
Illustration 2:
ABC Corp. rented a motor vehicle for use by its General Manager. Monthly rent is Php 20,000.
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
Illustration 3:
ABC Corp purchased a brand-new Sports Utility Vehicle for Php 5 Million but registered the
property under the name of its General Manager. Compute the quarterly fringe benefits tax
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
4. Household personnel
If shouldered by the employer, the following personal expenses shall be taxable fringe benefit:
a. Salaries of household help
b. Personal driver of the employee
c. Similar expenses as payment for homeowner’s association duties, garbage dues, etc.
Illustration:
The General Manager of ABC Corp. employs Inday as a kasambahay and is paid Php 20,000 /
month while Nicanor is the designated personal driver and is being paid Php 10,000 / month.
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
5. Interest on loans at less than market rate or at 0% rate.

If the employer lends money to his employee free of interest or at a rate lower than twelve per cent
(12%), such interest foregone by the employer or the difference of the interest assumed by the
employee and the rate of twelve per cent (12%) shall be treated as a taxable fringe benefit.
Illustration:
The General Manager applied for Php 1 Million loan with its employer ABC Corp. Since the GM
is an officer of the Company, the interest rate imposed is 2%. Compute the quarterly fringe
benefits tax assuming the GM is an RC and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
6. Membership fees, dues, and other expenses borne by the employer for the employee in social
and athletic clubs or other similar organizations
Illustration 1:
The General Manager of ABC Corp. applied for membership at XD Fitness Gym. ABC Corp. pays
the monthly fee of Php 5,000. Compute the quarterly fringe benefits tax assuming the GM is an RC
and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
Illustration 2:
ABC Corp. owns 1 club share at Wacky Wack Golf and Country Club. ABC Corp. allowed its
General Manager to hold business and pleasure by playing at the Golf Club. The GM plays twice a
month with ABC Corp. paying green fees of Php 5,000 per game. Compute the quarterly fringe
benefits tax assuming the GM is an RC and NRANETB:
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
7. Expense for foreign business travel

Reasonable expenses for foreign travel connected to business are exempted from FBT.
Subject to FBT Exempt from FBT
First class airplane ticket – 30% of the cost Plane ticket is economy or business class
Traveling expense paid by the employer for Expenses for inland travel, food, expenses
the travel of the family members of the shall not exceed US$300 or less per day.
employee
Lodging cost in a hotel or similar places
Without documentary evidence of connection With documentary evidence of actual
with business occurrences of meetings or conventions
Illustration:
The General Manager of ABC Corp. was sent to attend a convention in the U.S. and represent the
Company in the conference. ABC Corp paid for the first-class ticket amounting to Php 50,000.00
and gave him a per diem of Php 10,000.00 daily for five days. Exchange rate is $1 : Php 50.
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
8. Holiday and vacation expense

If incurred by the employees and shouldered by the employer, this constitute taxable fringe benefit.
Illustration:
The General Manager of ABC Corp. went to Disneyland for a vacation. ABC Corp paid for the
economy ticket amounting to Php 50,000.00 and gave him a per diem of Php 10,000.00 daily. He
stayed there for five days. Exchange rate is $1 : Php 50. Compute the quarterly fringe benefits tax
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
9. Educational assistance granted by employer to

1. the employee – generally, taxable as a fringe benefit
Exception:
a. the education or study involved is directly connected with the employer’s trade, business or
profession; and
b. there is written contract that the employee is under an obligation to remain in the employ of
the employer for a period of time mutually agreed upon (Service Return e.g. 1:2 or 1 year
of study is equal to 2 years of stay in the Company). Note: if the employee resigned, he
may be required to pay all expenses paid for by the Company.
2. the dependents of employees – generally, taxable as a fringe benefit
Exception: When the assistance is granted through competitive scheme under a scholarship
program of the company
10. Life and Health insurance and other non-life insurance premium or similar amounts in
excess of what the law allows
Exception:
a. contributions of the employer for the benefit of the employee pursuant to the provision of
existing laws, i.e.: SSS, GSIS, PhilHealth; etc
b. the cost of premium by the employer for the group insurance of its employees
NOTE: If above benefits are given to Rank and File employees, the benefits are treated as ADDITIONAL
COMPENSATION subject to withholding tax on compensation
DEDUCTIBLE AMOUNT OF FRINGE BENEFITS
General Rule: Deductible amount is grossed up monetary value (taxable fringe benefits and fringe benefit
tax)
Exception: Deductible amount is fringe benefit tax paid if fringe benefit tax is based on the depreciation
value, zonal value or assessed value
RECORDING IN THE BOOKS OF ACCOUNTS (RR-03-1998, Sec. 2.33 (D))
1. As a general rule, the amount of taxable fringe benefit and the fringe benefits tax shall constitute
allowable deductions from gross income of the employer.
Illustration 1:
During the year 2020, XYZ Corporation paid for the quarterly rental of a residential house of its branch
manager, Nicanor, amounting to Php 65,000.
Discussion Questions:
 How much is the fringe benefits tax?
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
 What entry should appear in the Books of XYZ if paid in cash or if accrued?
If paid in cash (FBT) If accrued (FBT)
2. If the basis for fringe benefit is the depreciable value or FMV per tax declaration or Zonal Value of a
certain property:
2.1 Only the actual fringe benefit paid shall constitute a deductible expense from the employer
Note: The value of the fringe benefit shall not be deductible and shall be presumed to have been
tacked on or actually claimed as depreciation expense by the employer.
Illustration 2:
XYZ corporation owns a condo unit. In 2020, said corporation furnished and granted the said property
for the residential use to Nicanor, its Assistant Vice-President.
 ZV as determined by the CIR P 10Million* (higher amount)

 FMV per Tax Declaration 8Million
 How much is the quarterly fringe benefits tax?
Fringe benefit
% of Benefit
Divide by rate
Multiply by rate
Fringe benefits tax
2.2. However, if the aforesaid ZV or FMV is greater the cost subject to depreciation, the excess
amount shall be allowed as a deduction from the employer’s gross income as fringe benefit expense
Illustration 3:
Assume the same facts in the Illustration 2 except that cost of the condo unit is Php 7Million and it has
remaining estimated useful life of 15 years in 2020.
 How much is the quarterly fringe benefits tax?
Divide by rate
Multiply by rate
Fringe benefits tax
DEADLINE OF FILING OF RETURN (BIR FORM 1603Q)

The fringe benefit tax withheld by the employer shall be remitted to BIR before the last day of the month
following the close of the taxable quarter.
Period Deadline
1st Quarter April 30
2nd Quarter July 31
3rd Quarter October 31
4th Quarter January 31
DE MINIMIS BENEFITS
In general, de minimis benefits are limited 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.
1. Monetized unused vacation leave credits of private employees – not exceeding 10 days during the year
Notes:
 Kinds of Leave benefits (private or government):
o Vacation leave (VL) – absence due to personal reason
o Sick leave (SL) – absence in case of illness or in some cases a member of the family
o Forced/mandatory leave
o Special Privilege Leave - to mark personal milestones or attend filial or domestic
responsibilities
o Rehabilitation Leave (job-related injury)
o Maternity leaves – 105 days for childbirth regardless of the mode of delivery plus
15 days if solo parent; 60 days for miscarriage and emergency termination of
pregnancy. Both with option to additional extension of 30 days without pay.
o Special leave for women – maximum of 2 months following surgery caused by
gynecological disorders
o Solo Parent / Paternity Leave – 7 days
o Victims of violence against women and children (VAWC) – 10 days
o Study Leave
o Terminal Leave – leave prior to retirement or voluntary separation
o Special Emergency Leave – absence in case of natural calamity and disaster
 The number of leave credits may depend on the Company but should not be lower than
what is prescribed under the law. Under the Labor Code, an employee who has rendered at
least 1 year of service is entitled to five (5) days service incentive leave (SIL). The SIL may
be vacation or sick leave and is replenished yearly.
Illustration 1: ABC Corp.’s employment benefit policy included 20 leave credits (10 days for VL and
10 days SL). The Company allows cash conversion in case of non-utilization. By December, Nicanor,
an employee availed to monetize the leave credits. Nicanor’s daily wage rate is Php 1,000.
1. How much is the de minimis benefit?
Answer:
2. What is the treatment of the 10 day SL?
Answer:
Answer:
2. What is the treatment of the 5 days excess VL?
Answer:
Answer:
Answer:
Answer:
2. Monetized unused vacation and sick leave credits paid to government officials and employees
Notes:
 Monetization of leave credits in the government is exempt under EO. 291 (Sept. 27, 2000)
 In general, appointive officials and employees of the government whether permanent,
temporary, or casual who render work during the prescribed office hours are entitled to 15
days VL and 15 days SL
 Leave credits of elective officials are covered by RA 7160
 Leave credits of the members of the Judiciary and Chairmen and Commissioners of
Constitutional Commissions, Officials and employees in the Foreign Service, Faculty
Members of state universities and colleges are covered by special laws
 Officers and employees in the Career and non-career service, whether permanent,
provisional, temporary or casual, who have accumulated at least fifteen (15) days vacation
leave shall be allowed to monetize a maximum of ten (10) working days vacation
leave/service credits.
 Monetization can be availed of only once a year
 If an officer or employee does not avail of the privilege of monetizing his vacation
leave/service credits in a year, it shall be deemed included in his accumulated leave credits.
 A government employee who availed of the maximum 10 days vacation leave/service
credits can still avail the 5 days forced leave
 Formulas in computing the Money Value of the Monetized Leave:
o Monthly salary x no. of days to be monetized x Constant Factor* .0478087 OR
o Monthly salary ÷ 20.916667** x no. of days monetized
*CSC MC No. 14 series of 1999; ** 251 days in a year / 12 months
Illustration 1: Nicanor is a government employee. He has accumulated a total number of 15 days

vacation leave in a year. By December, he applied for the monetization of the leave credits. Nicanor’s
monthly salary is Php 50,000.
1. How much will Nicanor receive assuming he is allowed to monetize only 10 days VL?
Answer:
Answer:
Illustration 2: During an emergency, Nicanor, a government employee, is in dire need of money

hence he applied for monetization of his VL and SL. As a result, Nicanor was able to receive Php
20,000 from monetization of his VL and another Php 20,000 from his SL.
How much is the de minimis benefit?
Answer:
Illustration 3: Nicanor, a government employee, upon reaching the mandatory retirement age, is
applying for his clearance so he can receive his retirement pay including monetized value of his
accumulated leave of 300 days spanning over 30 years of service in the government. After being
cleated of his accountabilities, Nicanor was able to receive Php 300,000 from the conversion of his
accumulated leave (VL and SL).
How much is the de minimis benefit?
Answer:
3. Medical cash allowance to dependents of employees – not exceeding P1,500 per employee per
semester, or P250 per month
4. Rice subsidy – P2,000 or 1 sack of 50-kg rice per month amounting to not more than P2,000.
Exercises: Determine if Taxable or Exempt
Illustration 1: Nicanor, a managerial employee, received the following rice subsidies:
Period Item received Taxable or Exempt
1. January Php 1,000
2. February Php 2,000
3. March Php 3,000
4. April 1 sack 25kg
5. May 1 sack 50 kg
6. June 1 sack 100kg worth 3,000
Illustration 2: What if Nicanor is a rank-and-file employee?

Answer:
5. Uniform and clothing allowance – not exceeding P6,000 per annum
6. Actual Medical Assistance, e.g. medical allowance to cover medical and healthcare needs, annual
medical/executive check-up, maternity assistance, and routine consultations – not exceeding P10,000
per annum
7. Laundry allowance – not exceeding P300 per month
8. Employee achievement award, e.g. for length of service or safety achievement, which must be in
the form of tangible property other than cash or gift certificates, with an annual monetary value
not exceeding P10,000 received by the employee under an established written plan which does not
discriminate in favor of highly paid employees.
Exercises:
In its 30th year anniversary celebration, ABC Corp. honored its employees who had been with the
Company for at least 10 years by giving loyalty awards and tokens of appreciation for their
outstanding services. Determine if tokens are Taxable or Exempt:
Employe Token received Taxable or Exempt
e
1. Nicanor Php 20,000 and plaque worth Php 1,000
2. Inday Php 10,000 and plaque worth Php 1,000
3. Jose Php 5,000 and plaque worth Php 1,000
4. Andres Php 5,000 GC and plaque worth Php
1,000
5. Apol Plaque worth Php 5,000
6. Goyo Cellphone - P10,000 and plaque – P1,000
7. Antonio Laptop Php 20,000
9. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee
per annum (i.e. Christmas gift and anniversary gifts)
10. Daily meal allowance for overtime work and night or graveyard shift not exceeding 25% of the basic
minimum wage on a per region basis (i.e. overtime meal)
11. Productivity incentive bonus and benefits under Collective Bargaining Agreement (CBA) up to
P10,000
Note: If Company has no CBA but nonetheless provided productivity incentive bonus, the amount
given can be reported under the 13th month pay and other benefits
NOTES:
1. De minimis benefits are exempted from:
a. Income tax
b. Withholding tax
c. Fringe benefits tax
2. The above enumeration is an EXCLUSIVE LIST
3. The treatment of De minimis benefit is the same regardless of position
4. The excess de minimis benefits can be carried over to the “Other Benefits” in 13th month pay and other
benefits threshold of Php 90,000.00
END

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3106 FRINGE BENEFITS AND DE MINIMIS BENEFITS C. NARANJO/ A. SIAPIAN/ V. GUDANI

Electricity bill – Php 20,000

3. Vehicle of any kind

5. Interest on loans at less than market rate or at 0% rate.

7. Expense for foreign business travel

8. Holiday and vacation expense

9. Educational assistance granted by employer to

 ZV as determined by the CIR P 10Million* (higher amount)

DEADLINE OF FILING OF RETURN (BIR FORM 1603Q)

Illustration 1: Nicanor is a government employee. He has accumulated a total number of 15 days

Illustration 2: During an emergency, Nicanor, a government employee, is in dire need of money

Illustration 2: What if Nicanor is a rank-and-file employee?

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