As of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences totaling P3,000,000, of which P1,000,000 relates to current items. PNR Co. also had deductible temporary differences totaling P1,500,000, of which P250,000 relates to current items. Pre-tax financial income for the year was P20,000,000. The income tax rate is30%. How much should PNR Co. report as income tax payable on December 31, 2019?

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.