10 Questions
What is the condition for the education of an employee to be considered a legitimate business expense?
The education is connected with the employer's business and the employee is obligated to remain in the employ of the employer for a certain period of time
What is the maximum amount of lodging cost that can be considered a legitimate business expense for foreign travel?
$300/day
What is the percentage of the cost of a first-class ticket that can be considered a legitimate business expense for foreign travel?
30%
What type of insurance contribution is considered a legitimate business expense?
Contribution to a group insurance of the employees
What is the condition for an employer's payment for an employee's education to be considered a legitimate business expense?
The education is provided through a competitive scheme under a scholarship program of the employer
What type of fees are not considered legitimate business expenses?
Social and Athletic Club Fees
What happens to the interest on loans if the interest rate is less than the market rate?
The difference between the market rate and the interest rate is considered a legitimate business expense
What type of travel expenses are not considered legitimate business expenses?
Travel expenses for the employee's family
What type of expenses are considered legitimate business expenses?
Association dues
What is the condition for the cost of insurance borne by the employer to be considered a legitimate business expense?
The contribution is pursuant to existing law
This quiz covers the taxation of fringe benefits, including the calculation of the tax rate and tax base. It also explains the exceptions to the general rule, such as motor vehicles bought by the employer on installment.
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