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    De Minimis Benefits

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    anne
    The document summarizes Revenue Regulation No. 8-2012 which provides amendments to previous regulations regarding "De Minimis Benefits" given by employers to employees that are considered tax exempt. Some key amendments include an increased annual limit of P5,000 for uniforms provided by employers and clarification that certain allowances that are part of monthly compensation are not considered taxable fringe benefits. The regulation also lists 9 specific benefits that are considered "De Minimis" and not subject to income or withholding tax, such as medical cash allowances, rice subsidies, and uniforms within certain limits.

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    De Minimis Benefits

    Uploaded by

    anne
    884 views3 pages
    The document summarizes Revenue Regulation No. 8-2012 which provides amendments to previous regulations regarding "De Minimis Benefits" given by employers to employees that are considered tax exempt. Some key amendments include an increased annual limit of P5,000 for uniforms provided by employers and clarification that certain allowances that are part of monthly compensation are not considered taxable fringe benefits. The regulation also lists 9 specific benefits that are considered "De Minimis" and not subject to income or withholding tax, such as medical cash allowances, rice subsidies, and uniforms within certain limits.

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    De Minimis

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    The document summarizes Revenue Regulation No. 8-2012 which provides amendments to previous regulations regarding "De Minimis Benefits" given by employers to employees that are considered tax exempt. Some key amendments include an increased annual limit of P5,000 for uniforms provided by employers and clarification that certain allowances that are part of monthly compensation are not considered taxable fringe benefits. The regulation also lists 9 specific benefits that are considered "De Minimis" and not subject to income or withholding tax, such as medical cash allowances, rice subsidies, and uniforms within certain limits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    884 views3 pages

    De Minimis Benefits

    Uploaded by

    anne
    The document summarizes Revenue Regulation No. 8-2012 which provides amendments to previous regulations regarding "De Minimis Benefits" given by employers to employees that are considered tax exempt. Some key amendments include an increased annual limit of P5,000 for uniforms provided by employers and clarification that certain allowances that are part of monthly compensation are not considered taxable fringe benefits. The regulation also lists 9 specific benefits that are considered "De Minimis" and not subject to income or withholding tax, such as medical cash allowances, rice subsidies, and uniforms within certain limits.

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    "De Minimis Benefits" as per Revenue regulation No.

    8-2012

    The Bureau of Internal Revenue has issued Revenue Regulation No.


    8-2012 for further amendments to Revenue Regulations Nos. 2-98
    and 3-98, as last amended by Revenue Regulation Nos. 5-2008 and
    5-2011, with respect to De Minimis Benefits which took effect last
    January 1, 2012.
    In this regulation, an amendment of Uniforms given to employees by the
    employer not exceeding P5,000 per annum (previously not exceeding
    P4,000 per annum) is effective January 1, 2012.
    De Minimis Benefits are facilities or privileges furnished
    or offered by an employer to his employees that are
    of relatively small value and are offered or furnished by the employer
    merely as a means of

    promoting the health, goodwill,

    contentment, or efficiency of his employees.


    In fact, the following shall be considered De Minimis benefits not
    subject

    to

    income

    tax

    and

    withholding tax of

    both

    managerial and rank and file employees:


    1. Monetized

    unused

    vacation

    leave

    credits of employees not exceeding 10 days during the


    year and the monetized value of leave credits paid to
    government officials and employees.
    2. Medical cash allowance to dependents of employees not
    exceeding P750 per semester or P125 a month.
    3. Rice subsidy of not more than P1,500 per month or 1
    sack (50 kg.) rice per month.

    4. Uniforms given

    to

    employees

    by

    the

    employer

    not

    exceeding P5,000 per annum (RR 8-2012 effective January 1,


    2012).
    5. Actual

    medical

    benefits given to employees by the

    employer not exceeding P10,000 per annum.


    6. Laundry allowance not exceeding P300 per month.
    7. Employees achievement awards (e. g. for length of
    service or safety achievement, which must be in the form of a
    tangible personal property other than cash or gift certificate
    with

    and

    annual

    monetary

    value not

    exceeding

    P10,000 under an established written plan which does not


    discriminate in favour of highly paid employees).
    8. Gifts given during Christmas and major anniversary
    celebrations not

    exceeding P5,000 per

    employee

    per

    annum. (deleted: amounts provided to guests).


    9. Daily meal allowance for overtime work not exceeding
    25% of daily basic minimum wage.

    The amount of de minimis benefits conforming to the ceiling


    herein

    shall

    not

    be

    considered

    in

    determining

    the P30,000 ceiling of other benefits excluded from the gross


    income under Section 32 (7) of the Code.

    Allowances which are fixed in amounts and are


    regularly received by the employee as part of his monthly
    compensation income shall not be treated as taxable
    fringe benefit but as compensation income.

    The Minimum

    Wage

    Earner receiving other benefits

    exceeding the P30,000 limit shall be taxable on the excess


    benefit, as well as on his salaries, wages and allowances,

    just like an employee receiving compensation income beyond


    the Statutory Minimum Wage.

    Minimum Wage Earner receiving other income, such as


    income from the conduct of trade, business, or practice of
    profession, except income subject to final tax, in addition to
    compensation income, are not exempt from income tax on
    the entire income earned during the taxable year.

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