Rank and File Employee

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Rank and File Employee – refers to an employee holding neither managerial nor supervisory position as defined under existing provisions of the Labor Code of the Philippines, as amended.

Statutory Minimum Wage Earner

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Statutory Minimum Wage Earner – refers to a worker in the private sector who is paid with a statutory minimum wage, or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where the worker/employee is assigned.

Fringe Benefits

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Fringe Benefits – means any good, service or other benefits furnished or granted in cash or in kind, apart from the basic compensation, by an employer to an individual employee (except rank and file employee as defined herein) such as, but not limited to the following:

1. Housing;

2. Expense account;

3. Vehicle of any kind;

4. Household personnel, such as maid, driver and others;

5. Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted;

6. Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations;

7. Expenses for foreign travel;

8. Holiday and vacation expenses;

9. Education 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.

Non-resident alien not engaged in trade and business (NRANETB)

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Non-resident alien not engaged in trade and business (NRANETB) –refers to a non-resident alien who shall come to the Philippines and stay for an aggregate period of one hundred eighty (180) days or less during any calendar year.

Non-resident alien engaged in trade and business (NRAETB)

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Non-resident alien engaged in trade and business (NRAETB) – refers to a non-resident alien who shall come to the Philippines and stay for an aggregate period of more than one hundred eighty (180) days during any calendar year.

VAT Threshold

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VAT Threshold – refers to the ceiling set to determine VAT registrable taxpayers, currently set at three million (P3,000,000.00) pesos. It is the same threshold to be used to determine the income tax liability of self – employed and/or professionals under Sections 24(A)(2)(b) and 24(A)(2)(c)(2) of the Tax Code, as amended.

Taxable Income

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Taxable Income – refers to the pertinent items of gross income specified in the Code, less deductions, if any, authorized for such types of income by the Code or other special laws.

Professional

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Professional – Person formally certified by a professional body belonging to a specific profession by virtue of having completed a required course of studies and/or practice, whose competence can usually be measured against an established set of standards. It also refers to a person who engages in some art or sport for money, as a means of livelihood, rather than as a hobby. It includes but is not limited to professional entertainers, professional athletes, directors, producers, insurance agents, insurance adjusters, management and technical consultants, bookkeeping agents, and other recipients of professional, promotional and talent fees.

Self-employed

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Self-employed – a sole proprietor or an independent contractor who reports income earned from self-employment. He/She controls who he/she works for, how the work is done and when it is done. It includes professionals whose income is derived purely from the practice of profession and not under an employer – employee relationship.