Professional Documents
Culture Documents
commercial presentation purposes partially or in its entirety without EXPRESSED permission from
the Author Atty. Priscilla Valer or HRManagement & Business Solutions Inc.
Effectivity:
15 days following its publication in at least 2
newspapers of general circulation
Published on 14 February 2015 in Philippine Star and
Manila Bulletin
Salient Amendments:
Increase tax exempt ceiling of 13th month pay and
other benefits from P30,000 to P82,000.
President will adjust the ceiling every 3 years based on
CPI.
Comparison:
Old Section 32 (B)(7)(e)
"xxx
xxx
"(iv) Other benefits such as productivity incentives
and Christmas bonus: Provided, further, That the
ceiling of Thirty thousand pesos (P30,000) may be
increased through rules and regulations issued by the
Secretary of Finance, upon recommendation of the
Commissioner, after considering, among others, the
effect on the same of the inflation rate at the end of
the taxable year.
Basic salary
Other allowances
Productivity bonus
Discretionary bonus
Longevity pay
De minimis benefits
conforming to the ceiling set
under RR 5-11
13th month pay and other
benefits (regardless of
amount) received on account
of involuntary separation (BIR
Ruling No. 135-14)
e) Uniform and Clothing allowance not exceeding P5,000 per annum (as amended by RR 812);
f)
Actual medical assistance, e.g., medical allowance to cover medical and healthcare
needs, annual medical/executive check-up, maternity assistance, and routine
consultations, not exceeding P10,000.00 per annum;
Gifts given during Christmas and major anniversary celebrations not exceeding P5,000
per employee per annum;
j)
Daily meal allowance for overtime work and night/graveyard shift not exceeding twentyfive percent (25%) of the basic minimum wage on a per region basis;
"All other benefits given by employers which are not included in the above enumeration
shall not be considered as "de minimis" benefits, and hence, shall be subject to income tax
as well as withholding tax on compensation income."
MANILA OFFICE
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CEBU OFFICE
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Hong Kong
Telephone: +632.555.9555
Email: romulo@romulo.com
Website: www.romulo.com