DE MINIMIS BENEFITS

Monetized unused vacation leave credits of employees not exceeding ten (10) days during the year; (RR No. 5
Monetized value of vacation and sick leave credits paid to government officials and employees; (RR No. 5-20
Medical cash allowance to dependents of employees, not exceeding P750 per employee per semester or P125
Rice subsidy of P1,500 or one (1) sack of 50 kg. rice per month amounting to not more than P1,500; (RR No.
Uniform and Clothing allowance not exceeding P5,000 per annum; (RR No. 8-2012)
Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/exec
Laundry allowance not exceeding P300 per month; (RR No. 5-2011)
Employees achievement awards, e.g., for length of service or safety achievement, which must be in the form o
Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annu
Daily meal allowance for overtime work and night/graveyard shift not exceeding twenty-five percent (25%) o
Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity ince

APPLICATION OF THE DE MINIMIS CONCEPT

1 De minimis benefits (within the limits) are tax exempt.

2 Excess of deminimis + 13th month + allowances + other benefits within P82K limit are tax exempt
Excess of other allowances and benefits in excess of P82K limit are taxable as:
a. Addition to the income tax for rank-and-file
b. Subject to Fringe Benefits Tax for supervisory and managerial employees
during the year; (RR No. 5-2011)
employees; (RR No. 5-2011)
yee per semester or P125 per month; (RR No. 5-2011)
ore than P1,500; (RR No. 5-2011)

eeds, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000.00 per annum;

hich must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exc
00 per employee per annum; (RR No. 5-2011)
enty-five percent (25%) of the basic minimum wage on a per region basis; (RR No. 5-2011)
BA) and productivity incentive schemes provided that the total monetary value received from both CBA and productivity incentiv

are tax exempt

10,000.00 per annum; (RR No. 5-2011)

monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in

nd productivity incentive schemes combined do not exceed P10,000.00 per employee per taxable year. (RR No 1-2015)
does not discriminate in favor of highly paid employees; (RR No. 5-2011)

R No 1-2015)