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    Fringe Benefits Scenarios

    Uploaded by

    Katherine Borja
    The document contains 4 scenarios calculating fringe benefit tax in the Philippines. 1. For a condominium unit bought for an executive, the fringe benefit tax is P90,461.54. If ownership is transferred to the executive, the tax is P3,618,461.54. 2. For a condominium unit transferred to an executive for lower consideration, the fringe benefit tax is P538,461.54. 3. For a vehicle worth P1,400,000 provided to an executive, the fringe benefit tax is P753,846.15. 4. For a P3,000,000 car in an executive's compensation package, the fringe benefit tax

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    Fringe Benefits Scenarios

    Uploaded by

    Katherine Borja
    161 views2 pages
    The document contains 4 scenarios calculating fringe benefit tax in the Philippines. 1. For a condominium unit bought for an executive, the fringe benefit tax is P90,461.54. If ownership is transferred to the executive, the tax is P3,618,461.54. 2. For a condominium unit transferred to an executive for lower consideration, the fringe benefit tax is P538,461.54. 3. For a vehicle worth P1,400,000 provided to an executive, the fringe benefit tax is P753,846.15. 4. For a P3,000,000 car in an executive's compensation package, the fringe benefit tax

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    The document contains 4 scenarios calculating fringe benefit tax in the Philippines. 1. For a condominium unit bought for an executive, the fringe benefit tax is P90,461.54. If ownership is transferred to the executive, the tax is P3,618,461.54. 2. For a condominium unit transferred to an executive for lower consideration, the fringe benefit tax is P538,461.54. 3. For a vehicle worth P1,400,000 provided to an executive, the fringe benefit tax is P753,846.15. 4. For a P3,000,000 car in an executive's compensation package, the fringe benefit tax

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    161 views2 pages

    Fringe Benefits Scenarios

    Uploaded by

    Katherine Borja
    The document contains 4 scenarios calculating fringe benefit tax in the Philippines. 1. For a condominium unit bought for an executive, the fringe benefit tax is P90,461.54. If ownership is transferred to the executive, the tax is P3,618,461.54. 2. For a condominium unit transferred to an executive for lower consideration, the fringe benefit tax is P538,461.54. 3. For a vehicle worth P1,400,000 provided to an executive, the fringe benefit tax is P753,846.15. 4. For a P3,000,000 car in an executive's compensation package, the fringe benefit tax

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    © All Rights Reserved
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    of 2

    BM1804

    NAME: DATE: SCORE:

    Fringe Benefits Taxes (4 items x 10 points)


    Compute for the fringe benefits tax due in the following scenarios.

    1. In 2018, Delta Corporation bought a condominium unit on installment for the use of its executive. The acquisition cost
    inclusive of 12% interest is P6,720,000. The fair market value of the property per tax declaration is P6,800,000 while the
    zonal value is P6,500,000.

    a. How much is the fringe benefits tax?

    Acquisition Cost P 6,720,000.00


    Annual Value of benefit (6,720,000 x 5%) 336,000.00
    Annual monetary benefit (336,000 x 50%) 168,000.00

    GMV value of fringe benefit (168,000 ÷ 65%) 258,461.54


    Fringe Benefit Tax (258,461.54 x 35%) P 90,461.54

    b. Assuming that the ownership over the property will be transferred to the executive, how much is the fringe
    benefits tax?

    Acquisition Cost P 6,720,000.00


    Zonal value 6,500,000.00
    Higher of two (2) values 6,720,000.00
    Monetary Value of the benefit (6,720,000 x 100%) 6,720,000.00

    GMV value of fringe benefit (6,720,000÷ 65%) 10,338,461.54


    Fringe Benefit Tax (10,338,461.54 x 35%) P 3,618,461.54

    2. Delata Corporation bought a condominium unit for P6,000,0000. The fair market value of the property per tax
    declaration is P6,800,000 while the zonal value is P6,500,000. It was transferred in the name of Pedro, one of its
    executives, for a lower consideration amounting to P5,800,000. How much is the fringe benefits tax?

    Real Property Tax Declaration P 6,720,000.00


    Fair Market Value 6,800,000.00
    Higher of two (2) values 6,800,000
    Cost to Pedro 5,800,000
    Monetary Value of the benefit 1,000,000

    GMV value of fringe benefit (1,000,000÷ 65%) 1,538,461.54


    Fringe Benefit Tax (1,538,461.54 x 35%) P 538,461.54

    3. Omega Corporation purchased a motor vehicle worth P1,400,000 for the use of its executive. It was registered under
    the executive’s name despite the agreement that it should be used partly for the company’s benefit. How much is the
    fringe benefits tax?

    Acquisition Cost of motor vehicle P 1,400,000.00


    GMV value of fringe benefit (1,400,000 ÷ 65%) 2,153,846.15
    Fringe Benefit Tax (258,461.54 x 35%) P 753,846.15

    4. First Metro Pacific was able to persuade Francis to join the company as its Assistant Vice President for Finance which
    included a car plan worth P3,000,000 in its compensation package. The company purchased the vehicle and registered
    the same in favor of Francis. Assuming further that Francis is a non-resident alien not engaged in trade or business, how
    much is the fringe benefits tax?

    Acquisition Cost of car P 3,000,000


    GMV value of fringe benefit (3,000,000 ÷ 75%) 4,000,000
    Fringe Benefit Tax (4,000,000 x 25%) P 1,000,000
    Rubric for Grading:
    CRITERIA POINTS
    Complete solution with correct answer 10
    Last two (2) major steps of the solution are incorrect 8
    Half of the solution is correct 6
    First two (2) major steps of the solution are correct 4
    First major step of the solution is correct 2

    06 Task Performance 1 *Property of STI


    Page 1 of 1

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