Question 1 Question 7

The actual value of benefits realized by the Half of the benefits that are necessary to the trade of
managerial or supervisory employee is referred to as the employer's business are subject to fringe benefit
the tax.
 Selected: a. monetary value. This  True
answer is correct.  Selected: False This answer is
 b. grossed-up monetary value. correct.
 c. fair value. 1/1
 d. annual depreciation value. Question 8
1/1 Which is not part of de minimis benefits?
Question 2  a. Clothing allowance
Lebak bought a car worth P800,000 and registered it  b. Actual medical benefits
in the name of its supervisory employee. It was  Selected: c. 13th month pay This
agreed that the same will be used partially for the
business of Lebak. Compute the monetary value. answer is correct.
 a. P 400,000  d. Monetized unused vacation leave credits
1/1
 Selected: b. P 800,000 This answer is Question 9
correct. An employee expense receipted in the name of the
 c. P0 employer is considered a business expense of the
 d. P 80,000 employer.
1/1  True
Question 3  Selected: False This answer is
The fringe benefit tax by nature is a
correct.
b. final tax. 1/1
Question 10
Question 4 The tax base of the fringe benefit tax is the grossed-
Which is a correct statement? up monetary value of the fringe benefit.
d. The personal expenses of managerial or  Selected: True This answer is
supervisory employee shouldered by the employer correct.
 False
are subject to fringe benefit tax. 1/1
1/1 Question 11
Question 5 The fringe benefit tax is a creditable withholding tax
Which of these items is subject to fringe benefit tax? presumed to have been withheld at source by the
 a. Compensation income of rank-and-file employer from the fringe benefits of supervisory or
employees managerial employees.
 b. Fringe benefits of rank-and-file  True
employees  Selected: False This answer is
 Selected: c. Fringe benefits of correct.
1/1
managerial or supervisory employees This
Question 12
answer is correct. The monetary value of benefit from loans at less than
 d. Compensation income of managerial or market rate shall be the difference between 12% and
supervisory employees the actual rate charged.
1/1
 Selected: True This answer is
Question 6
Rank and file employees may be subject to the fringe correct.
benefit tax.  False
 True 1/1
Question 13
 Selected: False This answer is
Which of the following phrases is not an exemption
correct. criterion for purposes of the fringe benefit tax?
1/1
c. In furtherance of employee goodwill  b. P329,412
 c. P94,118
1/1  Selected: d. P0 This answer is
correct.
Question 14 1/1
Lodging costs on foreign travel is a taxable fringe Question 20
benefit regardless of amount. 30% of first-class tickets in foreign travel is taxable
Selected: False This answer is fringe benefit.
correct.  Selected: True This answer is
1/1 correct.
Question 15  False
The expenses of family members of the employee 1/1
shouldered by the employer constitute taxable fringe Question 21
benefit in full. Select the answer which more accurately completes
 Selected: True This answer is the statement. The taxable fringe benefit of a
supervisory employee is
correct.
1/1  Selected: a. subject to fringe benefit
Question 16 tax. This answer is correct.
Dexter acquired a car for P1,200,000 and transferred
ownership to its supervisory employee for P400,000.  b. subject to regular income tax as
The car shall be used partly in the employer's compensation income.
business. Compute the monetary value.  c. the total of 13th month pay and other
benefits not exceeding P90,000.
 Selected: a. P 800,000 This answer is  d. the total of 13th month pay and other
correct. benefits exceeding P90,000.
1/1 1/1
Question 17 Question 22
Delta Corporation bought a condominium unit for In 2023, Delta Corporation bought a condominium
P6,000,000. The fair market value of the property per unit on installment for the use of its executive. The
Tax Declaration is P6,800,000 while the zonal value acquisition cost inclusive of 12% interest is
is P6,500,000. It was transferred in the name of P6,720,000. The fair market value of the property per
Pedro, one of its executives, for a lower consideration Tax Declaration is P6,800,000 while the zonal value
amounting to P5,800,000. How much is the fringe is P6,500,000. How much is the annual fringe benefit
benefit tax? tax?
 Selected: a. P538,462 This answer is  Selected: a. P 80,769 This answer is
correct. correct.
1/1  b. P0
Question 18  c. P 76,471
The personal expenses of employees shouldered by  d. P70,588
the employer are fringe benefits. 1/1
 Selected: True This answer is Question 23
As part of its employee benefits plan, Malaybay
correct.
Realty Corporation acquired a piece of residential lot
 False
worth P2,000,000 for its Director of Finance and
1/1 constructed upon it a house at a cost of P4,000,000.
Question 19 Ownership of the house and lot was turned over to
Delta Corporation bought a condominium unit for the director upon completion of the construction.
6,000,000. The fair market value of the property per 40% of the value of the house and lot will be
Tax Declaration is P6,800,000 while the zonal value deducted from the director's salary over a period of
is P6,500,000. It was transferred in the name of five years. What is the monetary value of the fringe
Pedro, one of its executives, for a lower consideration benefit?
amounting to P7,000,000. How much is the fringe  a. P 6,000,000
benefit tax?  b. P1,600,000
 a. P470,588
  c. P2,400,000 An employer pays the P10,000 monthly residential
 Selected: d. P 3,600,000 This answer rental of his managerial employee. Compute the
quarterly monetary value.
is correct.  a. P10,000
1/1
Question 24  b. P15,000
The de minimis benefits not exceeding their
thresholds are
 Selected: a. exempt from income
1/1
tax. This answer is correct. Which is not a characteristic of the fringe benefit tax?
1/1 d. Imposed upon the monetary value of benefit
Question 25 1/1
Benefits provided by the employer for his Question 31
convenience are exempt from fringe benefit tax. In 2023, Omega Corporation purchased a motor
 Selected: True This answer is vehicle for the use of its executive. It was registered
correct. under the name of the executive although it was
 False agreed that it shall be used partly for the benefit of
1/1 the company. The cost of the vehicle was P1,400,000.
Question 26 The amount of fringe benefit tax is
In 2023, a domestic corporation paid for the quarterly  Selected: a. P753,846 This answer is
rental of a residential house of its branch manager, correct.
Mr. Juan Dela Cruz, amounting to P156,000. Assume  b. P658,824
there is no transfer of ownership. What is the  c. nil
monetary value of the benefit?  d. P329,411
 a. P120,000 1/1
 Selected: b. P78,000 This answer is Question 32
correct. The taxable fringe benefit subject to the fringe benefit
 c. P156,000 tax is the excess of the de minimis benefits over
 d. P42,000 P90,000.
1/1  Selected: False This answer is
Question 27 correct.
In 2023, Delta Corporation bought a condominium 1/1
unit on installment for the use of its executive. The Question 33
acquisition cost inclusive of 12% interest is During 2022 taxable year, First Metro Pacific was
P6,720,000. The fair market value of the property per able to persuade Francis to join the company as its
Tax Declaration is P6,800,000 while the zonal value Asst. Vice-President for Finance which included a car
is P6,500,000. Assume the ownership will be plan worth P3,000,000 in its compensation package.
transferred to the executive, how much is the fringe First Metro purchased the vehicle and registered the
benefit tax? same in favor of Francis. Assuming further that
 a. P3,058,524 Francis is a non-resident alien not engage in trade or
 Selected: b. P 3,500,000 business, how much, is the fringe benefit tax?
 c. P0  a. P1,411,765
 d. P 6,500,000  b. P1,615,385
1/1  c. P529,412
Question 28  Selected: d. P1,000,000 This answer
Fringe benefits are always subject to fringe benefit is correct.
tax. Selected: False This answer is 1/1
correct. Question 34
1/1 Who is subject to the fringe benefit tax?
Question 29 b. Managerial or supervisory employees

Question 35
In 2023, a domestic corporation paid for the quarterly  c. P120,000
rental of a residential house of its branch manager,  d. P78,000
Mr. Juan Dela Cruz, amounting to P156,000. Assume 1/1
there is no transfer of ownership. What is the Question 40
grossed-up monetary value of the benefit? Benefits in the form of properties transferred to the
 b. P156,000 name of the employee are subject to fringe benefit tax
 c. P78,000 in full.
 Selected: d. P120,000 This answer is  Selected: True
correct.
1/1
Question 36
Lebak bought a car worth P800,000 and registered it
in the name of its supervisory employee. It was
agreed that the same will be used partially for the
business of Lebak. What is the fringe benefit tax
assuming the employee is a non-resident alien not
engaged in trade or business?
 a. P 133,333
 b. P 188,235
 Selected: c. P 266,667 This answer is
correct.
 d. P376,471
1/1
Question 37
Managerial/supervisory employees are subject to
fringe benefit tax on certain items of fringe benefits
they receive.
 Selected: True This answer is
correct.
 False
1/1
Question 38
Celebes, Inc., owns a residential property it acquired
for P2,000,000. It transferred ownership thereto to its
managerial employee for P1,200,000 when its fair
value was P3,000,000. What is the monetary value of
the benefit?
 a. P 800,000
 Selected: b. P 1,800,000 This answer
is correct.
 c. P 3,000,000
 d. P 2,000,000
1/1
Question 39
In 2023, a domestic corporation paid for the quarterly
rental of a residential house of its branch manager,
Mr. Juan Dela Cruz, amounting to P156,000. Assume
there is no transfer of ownership. How much is the
fringe benefit tax for the month?
 Selected: a. P42,000 This answer is
correct.
 b. P156,000