Scribd Logo
Upload

Welcome to Scribd!

  • 1K views

    Taxable and Nontaxable

    Uploaded by

    Khym Jie Purisima
    Here are the answers: 1. False. Some allowances may be taxable. 2. True. The annual limit for clothing allowance is P5,000. 3. True. Allowances are considered part of taxable income. 4. True. All monetized leave credits are non-taxable. 5. True. Some bonuses or allowances have tax-exempt limits. 6. False. Not all benefits of gov't officials and employees are non-taxable. 7. False. Taxes are not added in deductions. 8. True. 13th month pay may be fully or partially taxed depending on amount. 9. True. If deduction is 0,

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Taxable and Nontaxable

    Uploaded by

    Khym Jie Purisima
    1K views11 pages
    Here are the answers: 1. False. Some allowances may be taxable. 2. True. The annual limit for clothing allowance is P5,000. 3. True. Allowances are considered part of taxable income. 4. True. All monetized leave credits are non-taxable. 5. True. Some bonuses or allowances have tax-exempt limits. 6. False. Not all benefits of gov't officials and employees are non-taxable. 7. False. Taxes are not added in deductions. 8. True. 13th month pay may be fully or partially taxed depending on amount. 9. True. If deduction is 0,

    Original Title

    (11)_Taxable_and_nontaxable.pptx

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Here are the answers: 1. False. Some allowances may be taxable. 2. True. The annual limit for clothing allowance is P5,000. 3. True. Allowances are considered part of taxable income. 4. True. All monetized leave credits are non-taxable. 5. True. Some bonuses or allowances have tax-exempt limits. 6. False. Not all benefits of gov't officials and employees are non-taxable. 7. False. Taxes are not added in deductions. 8. True. 13th month pay may be fully or partially taxed depending on amount. 9. True. If deduction is 0,

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views11 pages

    Taxable and Nontaxable

    Uploaded by

    Khym Jie Purisima
    Here are the answers: 1. False. Some allowances may be taxable. 2. True. The annual limit for clothing allowance is P5,000. 3. True. Allowances are considered part of taxable income. 4. True. All monetized leave credits are non-taxable. 5. True. Some bonuses or allowances have tax-exempt limits. 6. False. Not all benefits of gov't officials and employees are non-taxable. 7. False. Taxes are not added in deductions. 8. True. 13th month pay may be fully or partially taxed depending on amount. 9. True. If deduction is 0,

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 11

    Business

    Mathematics
    Salaries and Wages (Taxable and
    Nontaxable Benefits)
    Taxable Benefits
    O A benefit is taxable if there is a need to pay a
    portion of that benefit as income tax, which is
    usually withheld or deducted from the basic
    salary.

    Based on the new Tax Law signed in early


    2015, cash benefits such as 13th month pay
    (on top of the basic salary) which exceed
    PHP82,000 are taxable.
    •For the following cash compensations, any amount in
    excess of PHP82,000.00 is taxable.

    PERA PHP24,000.00

    13th month pay PHP42,000.00

    Productivity Enhanced PHP5, 000


    Incentive
    PBB PHP15,000

    This means that the taxable amount is:


    (24,000 + 42,000 + 5,000 + 15,000) – 82,000
    = PHP 4,000
    Nontaxable Benefits
    O Tax Exempt De Minimis Benefits to Employees

    Monetized unused vacation leave credits of private


    employees not exceeding 10 days during the year.

    Monetized value of vacation and sick leave credits paid to


    government officials and employees.

    Medical cash allowance to dependents of employees, not


    exceeding Php 750 per semester or Php 125 per month.
    Nontaxable Benefits
    O Tax Exempt De Minimis Benefits to Employees

    Rice subsidy of PHP1,500 or one 50-kilogram sack of rice


    per month amounting to not more than PHP 1,500.

    Uniform and clothing allowance not exceeding PHP5,000


    per annum

    Actual medical assistance, e.g. medical allowance to cover


    medical and healthcare needs, annual/executive check-
    up, maternity assistance, and routine consultations, not
    exceeding Php 10,000 per annum.
    Nontaxable Benefits
    O Tax Exempt De Minimis Benefits to Employees

    Laundry allowance not exceeding PHP300 per month.

    Employees achievement awards, e.g. for length of


    service or safety achievement, which must be in form
    of tangible personal property other than cash or gift
    certificate, with an annual monetary value not
    exceeding PHP10,000 received by an employee
    received by the employee under an established
    written plan which does not discriminate in favor of
    highly paid employees.
    Nontaxable Benefits
    O Tax Exempt De Minimis Benefits to Employees

    Gifts (may be in cash or in kind) given to employees during


    Christmas and major anniversary celebrations not
    exceeding PHP 5,000 per employee per annum.

    Daily meal allowance for overtime work and


    night/graveyard shift not exceeding 25% of the basic
    minimum wage on a per region basis.
    Nontaxable Benefits
    O Tax Exempt De Minimis Benefits to Employees

    Benefits received by an employee by virtue of a collective


    bargaining agreement (CBA) and productivity incentive
    schemes provided that the total monetary value received
    from both CBA and productivity incentive schemes
    combined do not exceed PHP10,000 per employee per
    taxable year.
    The following are non-taxable:
    Rice Allowance
    (up to a maximum amount of PHP1,500  12 = PHP18,000 per
    year is non-taxable)
    Clothing Allowance
    Monetized Leave Credits
    Signing Bonus
    (Only PHP10,000 is nontaxable, the excess of PHP5,000 will
    be added to the taxable income since this is given by virtue of
    CBA.)
    Grocery Allowance – this amount was given as part of the
    Christmas gift so this is non-taxable.

    (source: http://taxacctgcenter.org/tax-exempt-de-minimis-benefits-to-employees/)
    Taxable Benefits
    O Withholding Tax
    O Philhealth
    O PAG-IBIG/SSS Loan
    O Charges/miscellaneous
    O SSS Premium
    O PAG-IBIG
    O Retirement fund
    Identify if each statement is Taxable or
    Nontaxable
    1. All allowances are non-taxable.
    2. If the monthly clothing allowance is P400.00, then the
    taxable amount for clothing allowance is P1,200..
    3. Allowances are considered part of earnings.
    4. Non-taxable benefits includes all monetized leave credits.
    5. Some bonuses or allowances are non-taxable.
    6. All benefits of government officials and employees are non-
    taxable.
    7. Taxes are added in the deduction.
    8. 13th month pay may or may not be taxed.
    9. If the deduction is 0, then it follows that gross earning is
    taxable.
    10. There is a possibility that a certain employee will be
    exempted from tax even if he/she receives some benefits.

    You might also like