Fringe Benefits

Read this in conjunction with this article. This list is not exclusive.

1.) Housing

2.) Expense accounts

3.) Vehicle of any kind

4.) Household personnel (maid, driver, etc.)

5.) Interest on loans at less than the market rate (12%) to the extent of the difference between the market rate and the interest rate the employee assumed

6.) Membership fees, dues and other expenses paid by the employer for the employee in social and athletic clubs and organizations

7.) Expenses for foreign travel

8.) Educational assistance to the employee or his dependents

9.) Life or health insurance and other non-life insurance premiums or similar amounts greater than what is allowed by law

The following fringe benefits aren't subject to fringe benefits tax:

1.) Contributions of the employer for the employee's benefit in retirement, insurance and hospitalization plans

2.) Benefits given to rank-and-file employees

3.) De minimis benefits as may be defined by the Finance Secretary

4.) Fringe benefits exempted under special laws

5.) Those required by the nature of, or necessary to, the employer's business, trade or profession

6.) Fringe benefits for the employer's advantage or convenience (they must exist within the employer's premises and the employee is required to accept them as a condition for his employment)

These housing benefits are non-taxable:

1.) Housing benefits granted to officers of the armed forces (but not the ordinary men in uniform)

2.) Those granted to employees whose housing units are located inside or next to (maximum of 50 meters) the business premises

3.) Housing benefits granted to employees on a temporary basis for up to 3 months

Expenses for foreign travel (see above) are not taxable within certain limits. These are:

1.) Inland travel expenses

2.) Lodging in a hotel or similar establishment at an average cost of US$300 per day

3.) 70% of the cost of first class, but full exemption for economy or business-class airline tickets

These educational assistance fringe benefits are non-taxable:

1.) An educational grant where the study is directly connected to the employer's business, trade or profession and there is a written contract where the employee is obliged to remain for employment  for an agreed period of time

2.) Educational assistance granted to the employee's dependents under the company's scholarship program