Beruflich Dokumente
Kultur Dokumente
Definition of terms
Fringe benefit – an employee’s benefit supplementing a money wage or salary
Managerial employees – one who is vested with powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign
or discipline employees.
Supervisory employees – those who, in the interest of the employer, effectively recommend
such managerial actions if the exercise of such authority is not merely routinary or clerical in
nature but requires the use of independent judgment
Rank and file employees – all employees who are holding neither managerial nor supervisory
position
Withheld by employer
It shall be treated as a final tax on employee, which shall be withheld and paid by the employer
on a calendar quarterly basis
De minimis benefit
- Small value offer by employer to his employee, means of promoting the health, goodwill,
contentment, or efficiency of his employee
o Example of de minimis benefit
Monetized unused vacation leave credits or private employees
Monetized unused vacation and sick leave credits of government employees
Medical cash allowance to dependents of employees
Rice subsidy
Uniforms and clothing allowance
Actual medical assistance, e.g. medical allowance to cover medical and
healthcare needs, annual medical/executive checkup, maternity assistance, and
routine consultation
Laundry allowance
Employee achievement awards under an established written plan which does
not discriminate in favor of highly paid employees
Gifts given during Christmas and major anniversary celebrations
Daily mean allowance for overtime work
Benefits received by virtue of collective bargaining agreement and productivity
incentive scheme
Remittance of final income taxes withheld on fringe benefits paid to employees other than
rank and file
- Tax Form
BIR Form 1603 – Quarterly remittance Return of final income taxes withheld on fringe
benefits paid to employees other than rank and file
- Who are required to file
Every withholding agent/payor who is either an individual or non-individual required to
deduct and withhold taxes on fringe benefits furnished to employees other than rank and
file subject to final withholding tax
- Documentary requirements
Return previously filed and proof of tax payments, if amended return
- Procedures
o Manual filing
a. Fill up BIR Form 1603 in triplicate copies
b. If there is tax required to be remitted:
1. Proceed to the nearest Authorized Agents Banks of the Revenue District
Office where you are required to register and present the duly
accomplished BIR Form 1603, together with the required attachments and
your payment.
2. In places where there are no AAB’s proceed to the Revenue Collection
Officer
3. Duly Authorized City or Municipal Treasures located within the RDO where
you are required to register and present the duly accomplished BIR Form
1603, together with the required attachments and your payment
c. If there is no tax required to be remitted
Proceed to the RDO where you are required to register and present the duly
accomplished BIR Form 1603, together with the required attachments
d. Deadline
Filing via EFPS: On or before the 15th day of the month following the end of the
calendar quarter
Manual Filing: On or before the 10th day of the month following the end of the
calendar quarter