[TOPIC 21] DE MINIMIS BENEFITS | Tax Treatments for Amounts exceeding Statutory Limits
10.6 هزار بار بازدید -
4 سال پیش
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De Minimis are benefits of
De Minimis are benefits of small or insignificant value, and are generally exempted from income tax and withholding tax on compensation. According to Revenue Regulation 11- 2018, there are only 11 items which are classified as non-taxable fringe benefits. These, among others, include rice allowance, laundry allowance, medical benefits, Christmas and anniversary gifts, monetized unused vacation and sick leave allowance, and productivity incentives.
As a rule, de minimis benefits are non-taxable to the extent of a maximum limit or threshold prescribed by the law. Any excess of de minimis benefits over thei statutory limits are subject to P 90,000 threshold. For your reference, the following items are considered as De Minimis Benefits under Revenue Regulations No. 11 - 2018:
1. Monetized unused vacation leave credits of private employees not exceeding 10 days during the year;
2. Monetized value of vacation and sick leave credits paid to government officials and employees;
3. Medical cash allowance to dependents of employees not exceeding P 1,500.00 per employee per semester or P250.00 per month;
4. Rice subsidy of P 2,000 or one (1) sack of 50-kilogram rice per month amounting to not more than P 2,000;
5. Uniform and clothing allowance not exceeding P 6,000 per annum;
6. Actual yearly medical benefits not exceeding P 10,000 per annum;
7. Laundry allowance not exceeding P 300 per month;
8. Employees achievement awards which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P 10,000 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 exceeding P 5,000 per employee per annum;
10. Daily meal allowance for overtime work not exceeding twenty-five percent (25%) of the basic minimum wage.
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 ten thousand pesos (P10,000.00) per employee per taxable year.
For illustration and sample computation, please watch this video.
As a rule, de minimis benefits are non-taxable to the extent of a maximum limit or threshold prescribed by the law. Any excess of de minimis benefits over thei statutory limits are subject to P 90,000 threshold. For your reference, the following items are considered as De Minimis Benefits under Revenue Regulations No. 11 - 2018:
1. Monetized unused vacation leave credits of private employees not exceeding 10 days during the year;
2. Monetized value of vacation and sick leave credits paid to government officials and employees;
3. Medical cash allowance to dependents of employees not exceeding P 1,500.00 per employee per semester or P250.00 per month;
4. Rice subsidy of P 2,000 or one (1) sack of 50-kilogram rice per month amounting to not more than P 2,000;
5. Uniform and clothing allowance not exceeding P 6,000 per annum;
6. Actual yearly medical benefits not exceeding P 10,000 per annum;
7. Laundry allowance not exceeding P 300 per month;
8. Employees achievement awards which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P 10,000 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 exceeding P 5,000 per employee per annum;
10. Daily meal allowance for overtime work not exceeding twenty-five percent (25%) of the basic minimum wage.
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 ten thousand pesos (P10,000.00) per employee per taxable year.
For illustration and sample computation, please watch this video.
4 سال پیش
در تاریخ 1399/07/07 منتشر شده
است.
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