DE-MINIMIS BENEFITS SIMPLIFIED!!! (De-minimis benefits explained) скачать в хорошем качестве

DE-MINIMIS BENEFITS SIMPLIFIED!!! (De-minimis benefits explained)

JA TAX & ACCOUNTING FIRM 09230207678 Services Offered: 1. Handling BIR Tax Audit 2. Tax Compliance (Filing & Payments) 3. Financial Statement Preparation 4. Financial Statement Audit & Certification 5. Transfer of Real Property: a. Deed of Sale b. Deed of Donation c. Estate Tax JA REAL ESTATE BROKERAGE SERVICES 09177032530 1. WE SELL (Lot, House & Lot, Commercials, Condominiums, All Real Properties) 2. WE BUY ( (Lot, House & Lot, Commercials, Condominiums, All Real Properties) 3. LEASE and RENTAL of Real Property (Commercial/Residential) XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX De minimis benefits = =Extra benepisyo na bukod sa sahod na binibigay ng employer. =are benefits of relatively small values provided by the employers to the employee on top of the basic compensation intended for the general welfare of the employees. Small values therefore considered non-taxable compensation. =Aside from the benefits that we are familiar with, like maternity leaves, thirteenth-month pays, and government contributions there are others that voluntarily being provided by our employers, and this is what we call De Minimis Benefits. =Any amount of de minimis benefits in excess of the threshold can still be exempt as “other benefits,” together with the employees’ 13th month pay, but not to exceed P90,000. UPDATED LIST OF DE MINIMIS BENEFITS NOT SUBJECT TO WITHHOLDING TAX: 1. Monetized unused vacation leave credits to employees not exceeding ten (10) days during the year; 2. Monetized value of vacation and sick leave credits paid to government officials and employees; 3. Medical cash allowance to dependents of employees, not exceeding P1,500 per employee per semester of P250 per month; 4. Rice subsidy of P2,000 or one sack of 50kg rice per month amounting to not more than P2,000; 5. Uniform and clothing allowance not exceeding P6,000 per annum; 6. Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000.00 per annum; 7. Laundry allowance not exceeding P300 per month; 8. Employees achievement awards, e.g. for length of service or safety achievement, which in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees; 9. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum; 10. Daily meal allowance for overtime work not exceeding twenty five percent (25%) of the basic minimum wage; 11. Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and D incentive schemes provided that the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed ten thousand pesos (Php 10,000.00)per employee per taxable year; PROBLEM: Example: Mr. B received a rice allowance of 2,500 and a clothing allowance of 10,000 from his employer. Other benefits are the 13th-month pay of 20,000 and other benefits of 80,000. Provided, Mr. B receives a regular compensation income of 240,000 in a year. Is Mr. B subject to income tax? Rice allowance and clothing are part of the de minimis benefits. There is an excess of 500 and 4,000 in rice allowance and clothing. (500 + 4, 000 + 100, 000) 104,500 total other benefits, which are subject to the threshold of 90, 000 4,500 is the excess beyond the ceiling amount. In any excess would be part of the computation of withholding tax. So, therefore, Mr. B is taxable using the income tax table.