tax shields...

[TholitzReloaded]

So how should employer shield their employees from taxes? will just declaring say a ceiling of 20k monthly salary then everything else will be in the form of receipts as part of company expense, just so that employees will have minimal tax anyway receipts are already tax by way of VAT. So will this work? Need your expert opinion on this.

[skybison]

Nuong nasa telco pa ako dati, me certain position ka para magka "TAX SHIELD" which is 30% of your salary. So magiging "allowance" yun, kaya kami ng mga officemates ko hingi ng hingi ng mga OR, lalo na sa pagkain (every quarter ata ang pagpasa). Hahaha!

Pero according to my sources, hindi na raw nila eto pinapractice at dini-discourage na ng SGV yun ganitong practice.

*ts, try to explore yun nabanggit the "double book", hehe same tayo case ngayon employer/employee. Naalaala ko minsan sa management meeting namin na nisuggest nun accountant namin etong double book. Kaso dumudugo ilong ko kaya wala akong interes makinig. Lmao

[_Qwerty_]

the only legal way is thru maximizing the de minimis benefit (exempt from fringe benefit tax)..

What are De Minimis benefits?
The term “De Minimis” benefits which are exempt from the fringe benefit tax shall, in general, be limited to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of his employees. The following are considered as “de minimis” benefits granted to each employee as updated by Revenue Regulation (RR) 5-2011:
(a) Monetized unused vacation leave credits of private employees not exceeding 10 days during the year
(b) Monetized value of vacation and sick leave credits paid to government officials and employees;
(c) Medical cash allowance to dependents of employees not exceeding P750.00 per employee per semester or P125 per month;
(d) Rice subsidy of P1,500.00 or one (1) sack of 50-kg rice per month amounting to not more than P1,500.00;
(e) Uniforms and clothing allowance not exceeding P4,000 per annum;
(f) Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum;
(g) Laundry allowance not exceeding P300 per month;
(h) Employees 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 P10,000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
(i) Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum; and
(j) Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the basic minimum wage on a per region basis.

[Ry_Tower]

the only legal way is thru maximizing the de minimis benefit (exempt from fringe benefit tax)..

^ maliit lang but it's better than nothing.

[crazy_boy]

mahirap yung mga salary na converted to allowance. kasi kung lilipat ka na sa ibang company, lalabas na maliit lang yung basic pay mo.

[_Qwerty_]

kung i ma maximize yan.. hindi na din maliit yan..

a. 10 days per year (kung 500 per day) this is 5T
c. Medical cash allowance, 125 per month x 12 = 1,500 per year
d. rice 1,500 per month x 12 = 18T
e. uniform 4T
f. medical assistance 10T
g. laundry 3,600
h. achievement award 10T
i. gift 5T
j. daily meal = 25% of basic.. 500 x .25 = 125 x 22 = 2,750 a month x 12 = 33T

So ang total lahat nyan eh over 90T na.. tax free..

^ maliit lang but it's better than nothing.

[TholitzReloaded]

Nuong nasa telco pa ako dati, me certain position ka para magka "TAX SHIELD" which is 30% of your salary. So magiging "allowance" yun, kaya kami ng mga officemates ko hingi ng hingi ng mga OR, lalo na sa pagkain (every quarter ata ang pagpasa). Hahaha!

Pero according to my sources, hindi na raw nila eto pinapractice at dini-discourage na ng SGV yun ganitong practice.

*ts, try to explore yun nabanggit the "double book", hehe same tayo case ngayon employer/employee. Naalaala ko minsan sa management meeting namin na nisuggest nun accountant namin etong double book. Kaso dumudugo ilong ko kaya wala akong interes makinig. Lmao

What's a double book? Are you saying the company has to accounts one hidden from BIR and the other one is Declared? Kindly clarify. Thanks.

[skybison]

What's a double book? Are you saying the company has to accounts one hidden from BIR and the other one is Declared? Kindly clarify. Thanks.

Parang ganun, hindi ko na pinakinggan paano yun diskarte dun kasi accounting-bobo ako. Nosebleed sa mga terminologies...