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    De Minimis Benefits

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    The document defines "de minimis benefits" as certain minor benefits provided to employees that are exempt from income tax. It lists 11 specific benefits considered de minimis, including unused vacation leave cashouts up to 10 days per year, medical allowances up to P10,000 annually, and gifts up to P5,000 annually. Collective bargaining benefits and productivity incentives are also de minimis as long as the combined annual value does not exceed P10,000 per employee. Any benefits exceeding these limits or benefits not on the list are considered taxable.

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    De Minimis Benefits

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    The document defines "de minimis benefits" as certain minor benefits provided to employees that are exempt from income tax. It lists 11 specific benefits considered de minimis, including unused vacation leave cashouts up to 10 days per year, medical allowances up to P10,000 annually, and gifts up to P5,000 annually. Collective bargaining benefits and productivity incentives are also de minimis as long as the combined annual value does not exceed P10,000 per employee. Any benefits exceeding these limits or benefits not on the list are considered taxable.

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    The document defines "de minimis benefits" as certain minor benefits provided to employees that are exempt from income tax. It lists 11 specific benefits considered de minimis, including unused vacation leave cashouts up to 10 days per year, medical allowances up to P10,000 annually, and gifts up to P5,000 annually. Collective bargaining benefits and productivity incentives are also de minimis as long as the combined annual value does not exceed P10,000 per employee. Any benefits exceeding these limits or benefits not on the list are considered taxable.

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    Download as docx, pdf, or txt
    51 views2 pages

    De Minimis Benefits

    Uploaded by

    infp xad
    The document defines "de minimis benefits" as certain minor benefits provided to employees that are exempt from income tax. It lists 11 specific benefits considered de minimis, including unused vacation leave cashouts up to 10 days per year, medical allowances up to P10,000 annually, and gifts up to P5,000 annually. Collective bargaining benefits and productivity incentives are also de minimis as long as the combined annual value does not exceed P10,000 per employee. Any benefits exceeding these limits or benefits not on the list are considered taxable.

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    However, the term "de minimis benefits" was restricted under RR5-2011 and RR11-2018

    to mean only the following:

    1. Monetized unused vacation leave credits of private employees not exceeding 10 days
    during the year.
    2. Monetized unused vacation and sick leave credits paid to government officials and
    employees.
    3. Medical cash allowance to dependents of employees not exceeding P1.500 DEZE
    per employee per semester, or P250 per month.
    4. Rice subsidy not exceeding P2.000 or 1 sack of 50-kg rice per month Alexa
    amounting to not more than P2,000.
    5. Uniform and clothing allowance not exceeding P6.000 per annum (RR11- 2018)
    6. 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 per annum
    7. Laundry allowance not exceeding P300 per month8. Employee achievement award,
    e.g. for length of service or safety achievement, which must be in the form of tangible
    property other than cash or gift certificates, with an annual monetary value not
    exceeding P10,000 Solute received by the employee under an established written plan
    which does not discriminate in favor of highly paid employees.
    9. Gifts given during Christmas and major anniversary celebrations not Moves
    exceeding P5,000 per employee per annum (i.e., Christmas gift and Mestives
    anniversary gifts)
    10. Daily meal allowance for overtime work and night or graveyard shift not and
    exceeding 25% of the basic minimum wage on a per region basis fixable overtime meal.
    11. Benefits received by an employee by virtue of a collective bargaining agreement
    (CBA) and productivity incentive schemes provided that the total annual monetary value
    received from both CBA and productivity incentive schemes combined do not exceed
    P10,000 per employee per taxable year.
    Note that only CBA benefits and productivity incentives amounting to P10,000 or less is
    de minimis. If the amount exceeds P10,000, the entire amount is a taxable "other
    benefits."
    Taxable de minimis benefits
    1. Excess de minimis over their regulatory limits
    2. Other benefits of relatively small value that are not included in the list of minimis
    benefits

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