GROUP 5

FM3
Belderol, Peter Joseph
Cruz, JohnRev
Pacion, John Matthew
Pareja, Paolo
Pichay, Durickson
Ramos, Janjac
San Buenaventura, Vince
 Exercise 1: DETERMINE IF THE BENEFIT IS
SUBJECT TO FBT, BASIC TAX, or NONTAXABLE

1. NT 6. FBT

2. NT 7. FBT

3. BT 8. BT
4. FBT 9. FBT
5. FBT 10. FBT
 Problem 1: Creations, Inc. paid a Nissan Terra valued at
P1.8 Million for the use of one of its executives

1. Grossed-up monetary value of the vehicle: Php 2,769,230.77

sol. GMV = P1.8M / 65%

2. Fringe Benefit Tax: Php 969,230.77

sol. FBT = GMV x 35%

3. Explain your answer by relating it to the tax provision on Fringe Benefit:

The Nissan Terra is a vehicle provided by the company for the use of one of
their executives. It is considered to be a special form of benefit in addition to the
said executive's salary. A benefit such as the vehicle provided for the use of the
company's executive is subjected to FBT amounting to the 35% of the Gross
Monetary Value of the said benefit.
 TRUE OR FALSE

1. T 6. T

2. F 7. T

3. T 8. F
4. T 9. T
5. T 10. T
 RECOLETOS VALUE IN RELATION TO FRINGE BENEFIT TAX

Whether we become the employers who run our own businesses

in the future or may still be employed and focusing on our careers,
we all have the freedom to choose our path. The freedom that we
will enjoy in life are similar to the Fringe Benefit Tax that we will
enjoy to receive and also give depending on the path that we chose.

With the freedom, also comes the truth. No matter what we

choose, as long as we are true to ourselves, we will live a happy
and contented life.