CHAPTER 11 FRINGE BENEFIT TAX
TRUE OR FALSE
1. Rank and file employees may be subject to fringe benefit tax.
2. Fringe benefits are always subject to fringe benefit tax. 3. The personal expenses of employees shouldered by the employer are fringe benefits.
4. Managerial or supervisory employees are subject to fringe benefit tax.
5. The tax base of the fringe benefit tax is grossed-up monetary value of the fringe benefit.
6. The fringe benefit tax is a creditable withholding tax presumed to have been withheld at source by the employer from the fringe benefits of supervisory or managerial employees.
7. The taxable fringe benefit subject to the fringe benefit tax is the excess of the de minimis benefit over P90,000.
8. Half of the benefits that are necessary to the trade of the employer's business are subject to fringe benefit tax. 9. Benefits in the form of properties transferred to the name of the employee are subject to fringe benefit tax in full. 10. Benefits provided by the employer for his convenience are exempt from fringe benefit tax.
TRUE OR FALSE 2
1. The annual depreciation value of a real property is presumed to be 10% of the value of property.
2. The monetary value of benefits given in cash is the cash paid.
3. The monetary value of benefits given in kind is 100% of the value of the property given.
4. The monetary value of fringe benefits in the form of free usage of property is 50% of the rental or depreciation value of the
property.
5. Employee benefits are employee expense by nature that are paid by the employer.
6. The annual depreciation value of a movable property is 20% of the
value of the property.
7. When title over property is transferred, monetary value is the fair value of the property given.
8. When the employer leases a house and lot as the usual residence of the supervisory or managerial employee, the monetary value of the benefits is 50% of the rental payments.
9. Educational assistance to the employee is exempt from fringe benefit tax if there is an employee bond and the study is related to the trade or business of the taxpayer.
10. Aircraft including helicopters are considered for the business use and not subject to fringe benefit tax.
11. The monetary value of the benefit from loans at less than market rate shall be the difference between 12% and the actual rate charged.
12. Lodging costs on foreign travel is a taxable fringe benefit regardless of amount.
13. 30% of first-class tickets in foreign travel is taxable fringe benefit
14. The expenses of family members of the employee shouldered by the employer constitute taxable fringe benefit in full.
15. An employee expense receipted in the name of the employer is considered a business expense of the employer
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