Practice question
An employee receives qualifying benefits of P80,000 from one employer and P30,000 from another during the year. No other amount or exclusion applies. She claims two full P90,000 ceilings merely because two payrolls paid her. What is correct?
- Every payroll creates a new annual statutory ceiling
- The subparagraph’s total ceiling is P90,000; the combined P110,000 leaves P20,000 above it
- Every amount is taxable without any exclusion
- Only the larger employer’s benefits exist
- The benefits become professional income
Legal references
- RA 10963, Sections 5 and 9, individual tax rules and NIRC Section 32(B)(7)(e): https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
Answer this question in flashcards to review your response and continue practicing.