Scribd Logo
Upload

Welcome to Scribd!

  • 86 views

    For The Month.: Answer: The Total Allowable Deduction From Business Income of Lucky Corporation Is 258,923

    Uploaded by

    Aleksa Feliciano
    The document provides examples to calculate fringe benefit tax for different scenarios. It details how to compute fringe benefits provided to employees, including salaries, de minimis benefits, and other fringe benefits. It also provides examples of how to calculate fringe benefit tax for a company paying an employee's rental and allowing an executive to use a company property as a residence. The computations take the monetary value of the fringe benefits, gross it up, and apply the 35% fringe benefit tax rate to determine the tax amount due.

    Copyright:

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

    For The Month.: Answer: The Total Allowable Deduction From Business Income of Lucky Corporation Is 258,923

    Uploaded by

    Aleksa Feliciano
    86 views2 pages
    The document provides examples to calculate fringe benefit tax for different scenarios. It details how to compute fringe benefits provided to employees, including salaries, de minimis benefits, and other fringe benefits. It also provides examples of how to calculate fringe benefit tax for a company paying an employee's rental and allowing an executive to use a company property as a residence. The computations take the monetary value of the fringe benefits, gross it up, and apply the 35% fringe benefit tax rate to determine the tax amount due.

    Original Description:

    Managerial Accounting

    Original Title

    bsba2eve 06act01

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides examples to calculate fringe benefit tax for different scenarios. It details how to compute fringe benefits provided to employees, including salaries, de minimis benefits, and other fringe benefits. It also provides examples of how to calculate fringe benefit tax for a company paying an employee's rental and allowing an executive to use a company property as a residence. The computations take the monetary value of the fringe benefits, gross it up, and apply the 35% fringe benefit tax rate to determine the tax amount due.

    Copyright:

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

    For The Month.: Answer: The Total Allowable Deduction From Business Income of Lucky Corporation Is 258,923

    Uploaded by

    Aleksa Feliciano
    The document provides examples to calculate fringe benefit tax for different scenarios. It details how to compute fringe benefits provided to employees, including salaries, de minimis benefits, and other fringe benefits. It also provides examples of how to calculate fringe benefit tax for a company paying an employee's rental and allowing an executive to use a company property as a residence. The computations take the monetary value of the fringe benefits, gross it up, and apply the 35% fringe benefit tax rate to determine the tax amount due.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    06_ACTIVITY_01

    Income Taxation

    Reyes, Aleksandra F.

    BSBA2EVE

    Fringe Benefits Taxes (5 items x 10 points)

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

    1. During 201A, Alpha Corporation gave the following fringe benefits to its employees:

    Salaries to rank and file employees ₱1,000,000


    Salaries to managerial employees 1,800,000
    De minimis benefits to rank and file employees 54,400
    De minimis benefits to managerial employees 27,2000
    Fringe benefits to rank and file employees 102,000
    Fringe benefits to managerial employees 170,000
    How much is the fringe benefits tax? Answer: the fringe benefits tax is ₱969,230

    For items 2-4. Lucky Corporation paid for the monthly rental of the residential house of its branch
    manager amounting to P204,000.

    2. How much is the fringe benefit expense for the month? Answer: ₱204,000
    3. How much is the fringe benefits tax for the month? Answer:₱54,943 is the fringe benefit tax
    for the month.
    4. How much is the total allowable deduction from business income of Lucky Corporation?
    Answer: The total allowable deduction from business income of Lucky Corporation is ₱258,923
    5. UAP Company owns a condominium unit in The Residences which is near the factory and the
    plant’s administrative building. To make it convenient to its executive, it allowed the latter to
    use the said property as his residence. The zonal value of the property is P32,000,000 while its
    fair market value as shown in its current Real Property Tax Declaration amounts to
    P25,000,000. How much is the fringe benefits tax?Answer: The fringe benefits tax is ₱4,307,692

    Computation:

    1. Monetary value 1,800,000

    Divide by Gross monetary factor 65%

    Grossed up monetary value 2,769,230

    X fringe benefit tax 35%

    Fringe benefit tax 969,230

    2. Expense 204,000

    3. Monetary value (204,000 x 50%) 102,000

    Divide by Gross monetary factor 65%


    Grossed up monetary value 156,923

    X fringe benefit tax 35%

    Fringe benefit tax 54, 923

    4. Expense 204,000

    + Fringe benefit tax 54,923

    Total allowable deduction 258, 923

    5. Fair value 25,000,000

    Zonal value 32,000,000

    Higher of the 2 values 32,000,000

    Value of the benefit (32,000,000 x 5%) 16,000,000

    Monetary value( 16,000,00 x 50%) 18,000,000

    Divide by Gross monetary factor 65%

    Grossed up monetary value 12,307,692

    X fringe benefit tax 35%

    Fringe benefit Tax 4,307, 692

    You might also like