Taxation 1 Latest Complete Solution Guide With Answers Graded A+.
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Course
TAX.
Institution
TAX.
Fringe Benefit - correct answer ...any good, service, or other benefit furnished or granted by an employer, in cash or in kind, in addition to basic salaries, to an individual employee.
Fringe Benefit Tax - correct answer ...
Fringe Benefit - correct answer ...any good, service, or other benefit furnished or
granted by an employer, in cash or in kind, in addition to basic salaries, to an individual employee.
Fringe Benefit Tax - correct answer ...monetary burden imposed by the sovereignty
on any good or service, or other benefit furnished or granted by an employer , in cash or in kind, in
addition to basic salaries to an individual employee other than a rank and file employees.
FBT Concept summary - correct answer 1. Taxable amount is the grossed-up
monetary value of the fringe benefit granted/furnished.
2. The FBT is 32% of GUMV of benefit.
3. The GUMV is the benefit expense of the employer which is also the income of the employee.
4. FBT is the income tax on income earned by the employee.
5. The liability of the employer is to withhold the corresponding income tax from the fringe benefit
earned by the employee.
6. FB income tax is a final tax on gross taxable income.
Valuation of Fringe Benefit - correct answer Rule 1
Condition: If FB is granted in money, or is directly paid for by the employer
Valuation: The value is the amount granted or paid for,
Rule 2
Condition: If the FB is granted or furnished by the employer in property other than money and
ownership is transferred to the employee
Valuation: The value of the FB shall be equal to the Fair Market Value of the property
Rule 3
Condition: If the FB is granted as in Condition 2 but ownership is not transferred to the employee
Valuation: The value of FB is equal to the depreciated value of the property
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