2. The 10- day rule app lies only to vacation leaves.

Monetization
o f s i c k l e employees is taxable. (BIR Ruling No. 227-2013, June 20,
2013). leaves of Dr

3. The rice sub sid y and laund ry allowance were

l i k e w i s e a n n u a l i z e d b y 0 5 , , mon th l y l i mi t b y 12. Th e d e mi ni mi s
be n ef i ts wi th in th e li mi ts a re ex e mp t f r om incc N e

Illustration 2
Gi ov a n n i , a go ve rn me nt r ank an d fi le em pl oy e e , re ce iv ed the f ol lo wi ng b en ef it s

Monetized unused vacation leave credits (10 days) P 6,000

Monetized unused sick leav e credits (15 days) 9,000
Uniform allowance 5,000
Laundry allowance 4,800
R e q u i r e d : D e t e r m i n e t h e a m o u n t t o b e in c l u d e d in o th e r b e n e f i t s .

Solution:
Actual Limit Excess
Monetized unused VL P 6,000 exempt P 0
Monetized unused SL 9,000 exempt 0
Uniform allowance 5,000 6,000 0
Laundry allowance 4,800 3, 600 1.200
Taxable de minimis as "other benefits" 1.200

Note: It is clear under RR5-2011 that the vacation leave and sick leave ofgovemment emplo,
are not su bjec t to the 10- da y li mi t ru le.

Illustration 3
Pr of e ssor R ad v i c wa s on e of the Hall of Fame awardees of Youbee U n iv e r si ty . He r
g r a n te d P 25 ,0 0 0 c a s h a s l oy a l t y a wa r d f or h i s 3 0 ye ar s o f ser vi ce . H e wa s a to p
P 1 0 , 0 0 0 Ch r is t m a s g i f t a n d a n a d d i t i o n a l P 1 0 , 0 0 0 g i f t d u r in g th e i n s t i t u i x
Fo und ing Da y Ann iv er sar y. B es id es, h e wa s als o gi ve n f re e lun ch m ea ls with
va lu e of P 15,00 0 du rin g th e sa me yea r.

Required: Compute the total taxable de-minimis benefits as other benefits.

Solution:

Actual Limit Excess

Loyalty or service award P 25, 000 P 0 I' 25,000
Christmas and anniversary gift 20,000 5,000 15,000
Meals 15,000 0 1, 5 . 1 0
Total taxable de minimis as "other benefits"
Note:
1. The li mi t on l oya lty or ser vice award s app lie s onl y if it i s gi ven in ki nd.

m oll'

2. On l y me al s f or ov e r ti me or gr a v e ya r d sh i f ts ar e
c on sid e r ed de min i m , Ot h e r ar e n o l ong e r c on si d e re d d e mi n i mi s.