
Originally Posted by
treasurejunkie
Bro please make very sure you verify your facts before you pass on judgment to others. Ang representation allowance is actually the benefit of the employee also known as "tax shield". For example ang tax is 30% withholding kung ang sweldo nimo P100,000 (gross) then ang net take home pay nimo is P70,000 because of the 30% withholding tax. Pero kung P50,000 lang imo sweldo and the P50,000 is representation (total gross is still P100,000) then you are only taxed 30% of P50,000 kay ang other P50,000 is remitted as receipts or representation. That means you get a net of P35,000 (P50,000 less P15,000 from the 30% withholding tax) plus the P50,000 from representation (receipts) for a total of P85,000. P85,000 is definitely better than receiving P70,000.
I'm just grateful some companies go the extra mile to give more benefits to their employees. So if you're not familiar with the benefits scheme please keep your prejudices to yourself before you rain on someone else's parade.