1. What is fringe benefit?

Fringe benefits are benefits that companies provide to their employees in

addition to their regular pay. Some fringe benefits are available to all
employees of a company, while others are only available to senior
executives. Some benefits are given to compensate employees for work-
related expenses, while others are given to ensure that employees are
satisfied with their jobs. Employers use fringe benefits to help them
recruit, motivate, and retain high-quality employees in any case.
2. What are examples of fringe benefits?
As given example by NIRC Section 33 B: (1) Housing; (2) Expense
account; (3) Vehicle of any kind; (4) Household personnel, such as
maid, driver and others; (5) Interest on loan at less than market rate to
the extent of the difference between the market rate and actual rate
granted; (6) Membership fees, dues and other expenses borne by the
employer for the employee in social and athletic clubs or other similar
organizations; (7) Expenses for foreign travel; (8) Holiday and vacation
expenses; (9) Educational assistance to the employee or his dependents;
and (10) Life or health insurance and other non-life insurance premiums
or similar amounts in excess of what the law allows.
3. How do you compute for the gross-up monetary value of fringe
benefit?
You can compute for the Grossed-Up Monetary Value of the fringe
benefit by dividing the actual monetary value by sixty-five percent
(65%). With that, you can then compute for fringe benefits tax by
multiplying the amount you get to thirty-five percent (35%).
4. What is the fringe benefit tax rate for the different individual
taxpayer?
The fringe tax rate for employees that are citizen, resident alien, and
non-resident aliens engaged in trade or business within the Philippines is
thirty-five percent (35%). While the rate benefit tax for employees that
are non-resident alien not engaged in the trade or business within the
Philippines is twenty-five percent (25%).