Summary
RMC No. 107-2024 clarifies the taxability of the medical allowance granted to qualified government civilian personnel under Executive Order (EO) No. 64, series of 2024.
Key points
- De minimis benefit. Under Section 2.78.1 (A)(3) of RR No. 2-98, as amended, de minimis benefits are not compensation subject to Income Tax or Withholding Tax. These include actual medical assistance not exceeding ₱10,000.00 per annum. The medical allowance under EO No. 64 falls under this de minimis benefit.
- HMO premiums. The actual premium paid to HMO providers in compliance with EO No. 64 is exempt from Income Tax and Withholding Tax.
- Amounts above ₱10,000.00. Medical allowance above ₱10,000.00, the maximum de minimis amount for medical assistance, counts as part of other benefits subject to the ₱90,000.00 ceiling. Any amount above ₱90,000.00 is subject to Income Tax and Withholding Tax on compensation.
Who is affected
- Qualified government civilian personnel receiving the EO No. 64 medical allowance
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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