Title II — TAX ON INCOME
(9) Educational assistance to the employee or his dependents; and
(10) Life or health insurance and other non-life insurance premiums or
similar amounts in excess of what the law allows.
(C)
Fringe Benefits Not Taxable. — The following fringe benefits are not
taxable under this Section:
(1) Fringe benefits which are authorized and exempted from tax under
special laws;
(2) Contributions of the employer for the benefit of the employee to
retirement, insurance and hospitalization benefit plans;
(3) Benefits given to the rank and file employees, whether granted under
a collective bargaining agreement or not; and
(4) De minimis benefits as defined in the rules and regulations to be
promulgated by the Secretary of Finance, upon recommendation of
the Commissioner.
The Secretary of Finance is hereby authorized to promulgate, upon
recommendation of the Commissioner, such rules and regulations as are
necessary to carry out efficiently and fairly the provisions of this Section, taking
into account the peculiar nature and special need of the trade, business or
profession of the employer.
CHAPTER VII. ALLOWABLE DEDUCTIONS
SEC. 34. Deductions from Gross Income.23 — Except for taxpayers earning
compensation income arising from personal services rendered under an
employer-employee relationship where no deductions shall be allowed under
this Section, in computing taxable income subject to income tax under Sections
24(A); 25(A); 26; 27(A), (B) and (C); and 28(A)(1), there shall be allowed the
following deductions from gross income:
(A)
Expenses. —
(1) Ordinary and Necessary Trade, Business or Professional Expenses. —
(a) In General. — There shall be allowed as deduction from gross
income all the ordinary and necessary expenses paid or incurred
during the taxable year in carrying on or which are directly
attributable to, the development, management, operation and/
or conduct of the trade, business or exercise of a profession,
including:
23
As amended by Section 11 of the TRAIN Law. Subsection (M) (Premium Payments on Health
and/or Hospitalization Insurance of an Individual Taxpayer) was removed.
44
Isla Lipana & Co., the Philippine member firm of the PwC network
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