RR No. 5-2008: Further amends Revenue Regulations (RR) Nos. 2-98 and 3-98, as last amended by RR No. 10-2000, with respect to “De Minimis Benefits”

Key points

1. Covered de minimis benefits. A rice subsidy of P 1,500.00, or one (1) sack of 50 kg. rice per month worth not more than P 1,500.00, is a de minimis benefit. So is a uniform and clothing allowance not exceeding P 4,000.00 per annum.
2. Tax treatment. These benefits are not subject to fringe benefit tax (Section 2.33(C) of RR No. 3-98), Income Tax or withholding tax on compensation income. This covers both managerial and rank and file employees (Section 2.78.1(A)(3)(c) and (d) of RR No. 2-98).

Who is affected

• Managerial employees
• Rank and file employees

Deadlines and effectivity

• Applies to income earned starting the year 2008