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Friday, March 29, 2024

Relax rules on fringe benefit tax, BIR asked

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Senator Win Gatchalian has called on the Bureau of Internal Revenue to be more liberal in applying certain rules on fringe benefits tax during the enhanced community quarantine.

He said this will encourage Micro Small and Medium Enterprises (MSMEs) in giving additional benefits to their employees so they can stock up on necessities while they stay indoors.

These benefits, he said, can come in the form of allowances, grocery items, or any financial assistance equivalent to one month pay.

The lawmaker said although fringe benefits or any perks given to rank and file employees are not subject to fringe benefit tax, the tax code requires employers to pay 35% fringe benefit tax on the benefits given to managerial and supervisory employees.

Gatchalian said that MSMEs might think twice in giving additional benefits to all of their employees given the hefty fringe benefit tax. Macon Ramos-Araneta

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