Revenue Regulation No.

2-98
Issued May 17, 1998 prescribes the regulations to implement Republic Act (RA) No 8!"!
relati#e to the $ithholding on Income sub%ect to the &'panded $ithholding (a' and )inal
$ithholding (a', $ithholding o* Income (a' on +ompensation, $ithholding o* +reditable
,alue- Added (a' and .ther /ercentage (a'es 0aid Regulations 1ill ta2e e**ect on
compensation income paid beginning 3anuary 1,1998 No penalties *or non-compliance 1ith
the ne1 *eatures o* the (a' +ode 1ill apply until May 14, 1998
Revenue Regulation No. 3-98
Issued 3une !, 1998 implements 0ection 55 o* the National Internal Re#enue +ode (NIR+),
as amended by RA No 8!"!, relati#e to the special treatment o* *ringe bene*its granted or
paid by the employer to employees, e'cept ran2 and *ile employees, beginning 3anuary 1,
1998 (he de*inition o* *ringe bene*its as 1ell as the determination o* the amount sub%ect to
the *ringe bene*its ta' are speci*ied in the Regulations
Revenue Regulation No. 8-2000
Issued No#ember "", "666 amends speci*ic pro#isions o* RR No "-98 and RR No 5-98 1ith
respect to the 78e Minimis7 9ene*its, Additional +ompensation Allo1ance (A+A),
Representation and (ransportation Allo1ance (RA(A) and /ersonal &conomic Relie*
Allo1ance (/&RA) 0aid bene*its:allo1ances recei#ed by employees are not considered as
items o* income and, there*ore, are not sub%ect to income ta' and, conse;uently, to the
1ithholding ta' &**ecti#e the (a'able <ear "666, A+A 1ill be classi*ied as part o* the 7.ther
9ene*its7 e'cluded *rom one=s gross compensation income, pro#ided that the total amount o*
such bene*its does not e'ceed / 56,666 Items o* 7de minimis7 bene*its e'empt *rom the
*ringe bene*its ta' are enumerated in the Regulations
Revenue Regulation No. 10-2000
Issued 8ecember "9, "666 amends *urther RR Nos "-98, 5-98 and 8-98 1ith respect to the
e'emption o* moneti>ed lea#e credits o* go#ernment o**icials and employees and the
enumeration o* 7de minimis7 bene*its 1hich are e'empt *rom income ta' on compensation
and *rom *ringe bene*its ta'
Revenue Regulation No. 5-2008
Issued on April "5, "668 *urther amends Re#enue Regulations (RR) Nos "-98 and 5-98, as
last amended by RR No 16-"666, 1ith respect to ?8e Minimis 9ene*its@ Rice subsidy o* /
1,46666 or one (1) sac2 o* 46 2g rice per month amounting to not more than / 1,46666
and uni*orm and clothing allo1ance not e'ceeding / !,66666 per annum are considered as
?de minimis@ bene*its, 1hich are not sub%ect to the *ringe bene*it ta' (per 0ection "55(+) o*
RR No 5-98) and Income (a' as 1ell as 1ithholding ta' on compensation income o* both
managerial and ran2 and *ile employees (per 0ection "781 (A)(5)(c) and (d) o* RR No "-
98) (he bene*its pro#ided in the Regulations shall apply to income earned starting the year
"668