Summary
RR No. 4-2025 further amends the de minimis benefits provisions of RR No. 2-98, as amended. It raises the clothing allowance pursuant to RA No. 11975 and also covers employees’ achievement awards.
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Key points
- Provision amended. Section 2.78.1 of RR No. 2-98, as last amended by RR No. 11-2018, is amended under the item on facilities and privileges of relatively small value.
- Uniform and clothing allowance. The allowance must not exceed ₱ 7,000 per annum.
- Employee achievement awards. Awards such as those for length of service or safety achievement may be in cash, gift certificate or tangible personal property. The annual monetary value must not exceed ₱ 10,000.
- Condition on awards. The award must be received under an established written plan that does not discriminate in favor of highly paid employees.
Who is affected
- Employees receiving clothing allowance or achievement awards
Deadlines and effectivity
- Issued January 30, 2025
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.