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NRC Formula 2:
GMV = MV + FBT
RA
NRA-ETB
NRA-NETB 25%
SAE 15%
KINDS OF FRINGE BENEFITS
HIM HEV - HELF MV IN GENERAL HOUSEHOLD PERSONNEL ETC.
1. Household personnel, such as maid, driver and others
2. Interest on loan at less than market rate - If the FB is granted in money, the amount 1. Salaries for household help, personal driver
3. Membership fees thereof. of the employee, etc.
4. Housing - If the FB is in property other than money: 2. Payment for homeowners association
5. Expense account a. Ownership is transferred - FMV or ZV, whichever dues, garbage dues, etc.
6. Vehicle is higher.
7. Holiday and vacation expenses b. Ownership is not transferred depreciation
8. Educational assistance value.
9. Life or health insurance and other non-life insurance
premiums in excess of what the law allows
10. Foreign Travel
MV = Rent x 50% MV = Acquisition Cost (AC) x 2.5% MV = (FMV vs. ZV w/c ever is higher) Cost
- Employer assigns its residential property for use of its - Employer purchases a residential property and to the employee
employee: transfer ownership to the employee:
MV = FMV vs. ZV w/c ever is higher x 2.5% MV = AC vs. ZV w/c ever is higher
1. Expenses incurred by the employee related to work, but - Employer purchases the motor vehicle in the - Employer shoulders only a portion of the
not receipted in the name of employer, which are name of the employee: acquisition cost of the motor vehicle:
reimbursed by his employer
2. Personal expenses of the employee MV = AC MV = Amount shouldered
- Employer purchases a car on installment in the - Employer owns and maintains a fleet of
name of the employee: motor vehicle for use of the business and
MV = AC/5 yrs. employees:
MV = (AC/5 yrs.) x 50%
- Employer rents/leases a motor vehicle for use of Holiday and vacation expenses of the employee borne GR: Educational assistance to employee is taxable.
employee: by the employer shall be treated as taxable fringe EXCEPTION:
benefits. 1. The education or study is directly
MV = Rental payments x 50% connected with the employers business;
2. There is a written contract that the
employee is under obligation to remain in
the employer for a certain period of time.
IS EDUCATIONAL ASSISTANCE EXTENDED TO DEPENDENTS OF GR: Taxable Not subject to FBT if the purpose is to attend
THE EMPLOYEE SUBJECT TO FBT? Exception: business meetings and conventions.
1. SSS or GSIS Contributions It will cover the following:
GR: Yes 2. Group insurance of employees 1. Inland travel expenses
2. Lodging cost up to $300 per day
EXCEPTION: Assistance was provided through a competitive 3. Economy and business class airplane
scheme under the scholarship program of the company. ticket
4. If first class airplane ticket, 70% of the cost