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2nd Statement - Employee Achievement Awards, E.g., For Length of Service, or Safety

Statements 1 and 2 in the document are both true. De minimis benefits up to ₱2,000 per month for rice subsidy and up to ₱10,000 annually for employee achievement awards are exempt from income tax. Amounts of de minimis benefits within the prescribed ceilings are exempt from income tax and not considered in determining the ₱90,000 ceiling for other excluded benefits. Any excess of de minimis benefits over the ceilings would be considered part of other taxable benefits.

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Klarish Jay Beguina
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137 views3 pages

2nd Statement - Employee Achievement Awards, E.g., For Length of Service, or Safety

Statements 1 and 2 in the document are both true. De minimis benefits up to ₱2,000 per month for rice subsidy and up to ₱10,000 annually for employee achievement awards are exempt from income tax. Amounts of de minimis benefits within the prescribed ceilings are exempt from income tax and not considered in determining the ₱90,000 ceiling for other excluded benefits. Any excess of de minimis benefits over the ceilings would be considered part of other taxable benefits.

Uploaded by

Klarish Jay Beguina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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43. 1st Statement - Rice subsidy of two thousand pesos (₱2,000) or one sack of 50 kg.

rice per
month amounting to not more than two thousand pesos is an exempt de minimis benefit.
2nd Statement - Employee achievement awards, e.g., for length of service, or safety
achievement, which must be in the form of a tangible personal property other than cash or gift
certificate, with an annual monetary value not exceeding ten thousand pesos received by an
employee under an established written plan which does not discriminate in favor of highly paid
employees is an exempt de minimis benefit.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

44. The amount of de minimis benefits conforming to the ceiling of de minimis benefits shall be:
a. Exempt from income tax, regardless of the rank of the employee
b. Not be considered in determining the ₱90,000 ceiling of other benefits excluded from
the gross income under the Code, as amended.
c. Both “a” and “b”
d. Neither “a” nor “b”

45. The excess of the de minimis benefits over their respective ceilings prescribed under the
regulations shall be
a. Considered as part of other benefits subject to tax only on the excess over the ₱90,000
ceiling.
b. Not be considered in determining the ₱82,000 ceiling of other benefits excluded from
the gross income under the Code, as amended.
c. Both “a” and “b”
d. Neither “a” nor “b’
46. Minimum Wage Earners (MWEs) receiving “other benefits” exceeding the ₱90,000 limit
shall be
a. Taxable on the excess benefits only
b. Taxable on the excess benefits as well as his salaries, wages and allowances, just like
an employee receiving compensation income beyond the statutory minimum wage.
c. Exempt from income tax
d. None of the above

47. The amount of ₱90,000 under “other benefits” which are excluded from gross income shall
I. Not be applicable to self-employed individuals.
II. Not be applicable to income generated from the conduct of trade or business.
III. Shall be applicable to all types of income
a. I only c. I, II and III
b. I and II only d. None of the above

48. “Other Benefits” under revenue regulations include


I. Christmas bonus
II. Productivity incentive bonus
III. Loyalty awards
IV. Gifts in cash or in kind and other benefits of similar nature actually received by officials
and employees of both government and private offices
a. I only c. I, II and III
b. I and III only d. I, II, III and IV

49. Which of the following statements regarding thirteenth (13th) month pay is correct?
a. Thirteenth (13th) month pay and other benefits received by officials and employees of
public and private entities are exempt from income tax and creditable withholding tax on
compensation, provided that the total exclusion shall not exceed ₱90,000.
b. The excess of de minimis benefits over the ceiling would form part of an individual's
gross income only if the total excess benefits including bonuses exceeds ₱90,000 and
would be subject to income tax and applicable final withholding taxes.
c. Statements “a” and “b” are correct
d. Neither statement “a” nor “b’” is correct
50. Pedro, single, is a minimum wage earner of EDT Manufacturing Corporation. In addition to
his basic minimum wage of ₱144,000 for 2020 taxable year, he also received the following
benefits:
 Holiday pay, ₱25,000
 Overtime pay, 12,000
 Night shift differential, 19,000
The income subject to tax should be:
a. ₱56,000 c. ₱200,000
b. ₱31,000 d. nil

51. Pedro, single, is a minimum wage earner of EDT Manufacturing Corporation. In addition to
his basic minimum wage of ₱144,000 for 2020, he also received the following benefits:
 De minimis, ₱60,000 (₱20,000 over the ceiling)
 13th month pay and other benefits, ₱122,000
Pedro's income tax due should be:
a. ₱20,000 c. ₱52,000
b. ₱32,000 d. 0

52. Pedro, senior citizen, is a minimum wage earner of EDT Manufacturing Corporation. Pedro
is also engaged in trading various consumer products every weekend. He derived profit there
from amounting to ₱500,000 for 2020 taxable year. In addition to his basic minimum wage of
₱144,000 for 2020 taxable year, he likewise received the following additional benefits from his
employer:
 De minimis, ₱40,000 (all within the ceiling)
 13th month pay and other benefits, ₱35,000
Pedro’s taxable income should be:
a. ₱644,000 c. ₱500,000
b. ₱594,000 d. ₱350,000

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