DMB Other Benefits

Kinds of How are they Within Beyond 90K Fringe

DE MINIMIS Employees subjected to tax? the limits the Benefits BENEFIT, FRINGE
BENEFITS, BASIC limits COMPENSATION
TABLE Basic Pay (BP)
Managerial and Compensation Exempte Other benefits Those benefits
Supervisory Income d exceed 90K – which are
employees Tax Due: NIT the same shall considered as
be considered FB shall be
as forming subject to FBT
part of your of 35% based
Compensation on the Gross
subject to NIT Up Monetary
Value
Unless the
benefits are
considered as
Fringe
Benefits 

Rank-and-File Compensation Exempte Other benefits

Tax Due: NIT d not exceeding
90K –
Current rule: Exempted Once you are a
MWE, your statutory
If exceeding Shall be
minimum wage 90K  considered as is forever
exempted. Your forming part DMB within the
limits provided of for by law will
Compensation;
still be exempt Hence, subject from tax.
Assuming you to NIT (shall have DMB in
excess of the be added to limits, yung
your basic)
sobra will form Minimum Wage Statutory Minimum Exempte Other benefits part of your
other benefits Earners Wage = Exempt d not exceeding and the other
benefits together from income tax 90K – with the excess
Exempted

The excess, if
of your DMB, do not still exceed 90K limit, then the same will be exempt. Kung merong excess, yung excess lang ang
taxable. [Tandaan nyo ito kasi bago itong rule]

Kung merong employee benefits, tatandaan din ninyo, the exemptions to the rule, meaning – any benefit that you receive as
an employee, and that benefit is (a) furnished by the employer for the convenience of the employer; or (b) the benefit
extended by the employer to the employee is necessary in the trade or business of the employer, do not apply the table at
all. Meaning, whatever income benefit that the employee received is not considered as income and therefore, not subject to
tax.
DEDUCTIONS TABLE

KINDS OF WHO CAN CLAIM DEDUCTIONS WHAT KIND OF DEDUCTIONS ARE

TAXPAYERS AND WHAT KIND OF INCOME DO ALLOWED?
WE APPLY THE DEDUCTIONS?
RC ✔ (A) subject to NIT ✗ BCD  CIE – no deduction allowed
 SEP/SEI – option to choose –
NRC ✔(A) NIT ✗ BCD o If GR does not exceed 3M
RA ✔(A) NIT ✗ BCD (8%/NIT)
NRAETB ✔(A) NIT  If 8% - no deduction
✗ BCD
 If NIT – deduction
may either be:
 Optional
Standard
Deduction; or
 Itemized
Deductions (Sec.
34)
o If GR exceed 3M – NIT. The
deductions, at the option of
the taxpayer:
 OSD; or
 ID (Sec. 34)
 MIE – same as  (CIE = no
deduction; SEI/SEP = apply )
NRA~ETB ✗ ✗ BCD
(tax is on the gross) Not entitled to any deduction, hence,
rules abovementioned will not apply.
Expn: Special types of
 Aliens (they are
subject to NIT
therefore, deductions
may be allowed)
DC ✔(A) NIT ✗ BCD For income under (A), the deductions
will be either:
 OSD; or
 ID (Sec. 34)
RFC ✔(A) NIT ✗ BC For income under (A), the deductions
will be either:
 OSD; or
 ID (Sec. 34)
NRFC ✗ ✗
(tax is on the gross) (A) and (B) are subject to gross income
tax, hence, not entitled to any deduction

NOTE:
It is only a taxpayer who is engaged in trade or business who is entitled to claim the deductions.
There are only 2 types of deductions under the rules. (1) Optional Standard Deductions; and (2) Itemized deductions under
Sec. 34. Kalimutan nyo si personal exemption, si additional exemption. Hindi na sya applicable.