RR No. 1-2015: Further amends RR Nos. 2-98 and 3-98, as last amended by RR Nos. 5-2008, 5-2011 and 8-2012, relative to “De Minimis Benefits”

Key points

1. Amended income tax rule. Section 2.78.1(A)(3)(k) of RR No. 2-98 now covers benefits received through a collective bargaining agreement (CBA) and productivity incentive schemes.
2. Amended fringe benefit rule. Section 2.33(C)(k) of RR No. 3-98 lists the same CBA and productivity incentive benefits as not subject to Fringe Benefit Tax.
3. Ceiling. The exemption applies when the total annual monetary value from both the CBA and productivity incentive schemes combined does not exceed ten thousand pesos (Php 10,000.00) per employee per taxable year.

Who is affected

• Employees receiving CBA and productivity incentive benefits
• Employers

Deadlines and effectivity

• Effective immediately upon publication