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# Fringe Benefit Tax This document outlines rules for fringe benefits, specifying which are subject to fringe benefit tax and how to calculate the taxable amount. **Exclusions from Gross Income:** * **Business income:** Subject to special laws, not included in gross income. * **Exclusions:** Inco...

# Fringe Benefit Tax This document outlines rules for fringe benefits, specifying which are subject to fringe benefit tax and how to calculate the taxable amount. **Exclusions from Gross Income:** * **Business income:** Subject to special laws, not included in gross income. * **Exclusions:** Income not subject to regular tax, capital gains, worker's compensation for injuries/sickness, damages received. **Fringe Benefits:** * **Generally subject to tax:** Fringe benefits are always subject to fringe benefit tax. * **Managerial/Supervisory employees:** Subject to fringe benefit tax. * **Personal expenses:** Personal expenses of employees shouldered by the employer are considered fringe benefits. **Calculating Monetary Value:** * **Real property:** Annual depreciation value is presumed to be 10% of the property value. * **Cash benefits:** The cash paid is the monetary value. * **Kind benefits:** The monetary value of benefits given in kind is 100% of the property value. * **Free usage:** The monetary value of benefits in the form of free usage is 50% of rental/depreciation value. * **Transferred property:** If property is transferred to the employee's name, the benefit is fully taxable. * **Employee benefits:** The monetary values of employee benefits, in form of expenses paid by the employer are equal to the fair value. * **Employee housing:** When an employee leases a house and lot as their residence, the benefit is 50% of the rental value. **Taxable Fringe Benefits:** * **Excessive benefits:** The taxable benefit is the excess of de minimis benefits over PhP90,000. * **Half subject to tax:** Half of the benefits necessary for the employer's business are subject to fringe benefit tax. **Exempt Fringe Benefits:** * **Employer convenience:** Benefits provided by the employer for their convenience are exempt. **Educational assistance:** * **Employee bond:** Educational assistance is exempt if the study is related to the taxpayer's trade or business and accompanied by an employee bond.