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3Fringe Benefit (RR 3-98)

Means any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee (except rank and file) such as, but not except limited to, the following: (1) Housing; (2) Expense account; (3) Vehicle of any kind; (4) Household personnel, such as maid, driver and others; (5) Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted; (6) Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations; (7) Expenses for foreign travel; (8) Holiday and vacation expenses; (9) Educational assistance to the employee or his dependents; and (10) Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows.
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De Minimis Benefits

5RR. No. 5-2011 dated March 16, 2011

Amending RR Nos. 2-98 and 3-98, as last amended by RR No. 5235Minimis 2008, with respect to De Minimis benefits
Considers the monetized value of vacation and sick leave credits paid to government official employees as de minimis benefits Clarifies that all other benefits given by employers which are not included in the enumeration of what are de minimis benefits shall not be considered de minimis, hence, shall be subject to income tax as well as withholding tax on compensation income (or FBT for a non-rank & file employee RMC 20-2011). Issuance was published on March 18, 2001 and shall take effect 15 days thereafter or on April 1, 2011.

5RR. No. 5-2011 dated March 16, 2011

Amending RR Nos. 2-98 and 3-98, as last amended by RR No. 5235Minimis 2008, with respect to De Minimis benefits
Issuance was published on March 18, 2001 and shall take effect 15 days thereafter or on April 1, 2011. Shall apply to all income earned starting the year 2011.

REVISED LIST OF BENEFITS RR 2-98

Exempt from Fringe Benefit Tax (FBT) Limited to facilities or privileges (such as entertainment, Christmas party and other cases similar thereto; medical and dental services; or the socalled courtesy discount on purchases)

RR 3-98
Monetized unused vacation leave credits of employees not exceeding ten (10) days during the year;

RR 10-00
Monetized unused vacation leave credits of private employees not exceeding ten (10) days during the year and the monetized value of leave credits paid to government officials and employees

RR 5-08

RR 5-11
Monetized unused vacation leave credits of private employees not exceeding ten (10) days during the year;

Monetized value of vacation and sick leave credits paid to government officials and employees;
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REVISED LIST OF BENEFITS RR 2-98 RR 3-98

Medical cash allowance to dependents of employees not exceeding P750 per semester or P125 per month; Rice subsidy of P350 per month granted by an employer to his employees;

RR 10-00
Medical cash allowance to dependents of employees not exceeding P750 per semester or P125 per month; Rice subsidy of P1,000.00 or one (1) sack of 50kg. rice per month amounting to not more than P1,000.00 Uniform and clothing allowance not exceeding P3,000.00 per annum

RR 5-08

RR 5-11
Medical cash allowance to dependents of employees, not exceeding P750 per employee per semester or P125 per month;

Rice subsidy of P1,500.00 or one (1) sack of 50kg. rice per month amounting to not more than P1,500.00 Uniform and clothing allowance not exceeding P4,000.00 per annum

Rice subsidy of P1,500 or one (1) sack of 50kg. Rice per month amounting to not more than P1,500; Uniform and clothing allowance not exceeding P5,000 per annum; (RR 8-2012)
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Uniforms given to employees by the employer

REVISED LIST OF BENEFITS RR 2-98 RR 3-98

Medical benefits given to the employees by the employer;

RR 10-00
Actual yearly medical benefits not exceeding P10,000.00 per annum

RR 5-08

RR 5-11
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; Laundry allowance not exceeding P300.00 per month;
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Laundry allowance of P150.00 per month;

Laundry allowance not exceeding P300.00 per month

REVISED LIST OF BENEFITS RR 2-98 RR 3-98

Employee 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 an annual monetary value not exceeding one-half (1/2) month of the basic salary of the employee receiving the award under an established written plan which does not discriminate in favor of highly paid employees;

RR 10-00
Employee 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 an annual monetary value not exceeding P10,000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees

RR 5-08

RR 5-11
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 an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;

REVISED LIST OF BENEFITS RR 2-98 RR 3-98

Christmas and major anniversary celebrations for employees and their guests;

RR 10-00
Gifts given during Christmas and major anniversary celebrations not exceeding P5,000.00 per employee per annum Daily meal allowance for overtime work not exceeding twenty five percent (25%) of the basic minimum wage

RR 5-08

RR 5-11
Gifts given during Christmas and major anniversary celebrations not exceeding P5,000.00 per employee per annum; Daily meal allowance for overtime work and night/graveyard shift not exceeding twenty-five percent (25%) of the basic minimum wage on a per region basis
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REVISED LIST OF BENEFITS RR 2-98 RR 3-98

Company picnics and sports tournaments in the Philippines and are participated exclusively by employees; Flowers, fruits, books or similar items given to employees under special circumstances, e.g. on account of illness, marriage, birth of a baby, etc. Flowers, fruits, books, or similar items given to employees under special circumstances e.g. on account of illness, marriage, birth of a baby, etc. -deleted-

RR 10-00

RR 5-08

RR 5-11

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Benefits
If included in the De Minimis list

Rank and File

Managers and Supervisors

Tax-free

Tax-free

If not in the list or amount is in excess of Part of gross income threshold & 30k subject to income tax ceiling

Considered as Fringe Benefit subject to Fringe Benefit Tax payable by employer

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8Revenue Regulations 8-2000 The amount of "de minimis' benefits conforming to the ceiling herein prescribed shall not be considered in determining the P30,000 ceiling of "other benefits" (of section 32(B)(7)(E) of the NIRC) However, if the employer pays more than the ceiling, the excess shall be taxable to the employee receiving the benefits only if such excess is beyond the P30,000.00 ceiling. Any amount given by the employer as benefits to its employees, whether classified as de minimis benefits or fringe benefits, shall constitute as deductible expense upon such employer.
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27RMC No. 27-2011

Revocation of BIR Ruling Nos. 002-99, DA-184-04, DA-569-04 and DA-08706

Only the mandatory/compulsory SSS, GSIS, PHIC and HDMF contributions of concerned employees are excluded from gross income Voluntary contributions in excess of what the law requires forms part of the gross income of the taxpayer and hence, is subject to income tax

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27RMC No. 27-2011

Revocation of BIR Ruling Nos. 002-99, DA-184-04, DA-569-04 and DA-08706

Only the mandatory/compulsory SSS, GSIS, PHIC and HDMF contributions of concerned employees are excluded from gross income Voluntary contributions in excess of what the law requires forms part of the gross income of the taxpayer and hence, is subject to income tax

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BIR Ruling

Medical Allowance Without Actual Substantiation Not Considered De Minimis" Benefits ( BIR RULING NO. 019-02)

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