Benefits and Standard Deductions

Taxable benefit

a payment from an employer to an employee that its considered a positive benefit and can be in the form of cash or another type of payment

Gross compensation income

defined as taxable income arising from a employer/employee relationship

Nontaxable benefits

are not taxed or only partially taxed benefits that are completely tax free

Miscellaneous

income derived by foreign government, prizes and awards exempted by law or in sports competition

Standard deduction

the portion of income not subject to tax that can be used to reduce your tax bill, not at taxpayers qualify for the standard deduction

4 statutory obligations

1. social insurance system

2. pag-ibig

3. philhealth contribution

4. personal income tax

Social security system

privatized social insurance program established to protect members and their families against the hazards of disability, sickness, and other factors resulting in loss of income or financial burden

Government service insurance

a social insurance institution that provides a defined benefit scheme under the law

Pag-ibig

also known as HDMF for people ages 18 and above which is automatic as soon as they are hired and start earning a salary

PhilHealth

to ensure all filipinos get access to affordable health care