The term “de minimis benefits” which are exempt from the FBT shall, in general, be limited to 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.
The following shall be considered as de minimis benefits not subject to withholding tax on compensation of both managerial and rank and file employees:
(a) Monetized unused vacation leave credits of private employees not exceeding ten days during the year;
(b) Monetized value of vacation and sick leave credits paid to government officials and employees;
(c) Medical cash allowance to dependents of employees not exceeding Php 750 per employee per semester or Php 125 per month;
(d) Rice subsidy of Php 1,500.00 or one sack of 50-kg rice per month amounting to not more than Php 1,500.00;
(e) Uniforms and clothing allowance not exceeding Php 5,000.00 per annum
(f) Actual yearly medical benefits, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations not exceeding Php 10,000 per annum;
(g) Laundry allowance not exceeding Php 300 per month;
(h) Employees achievement awards, e.g. for length of service or safety achievement, which must be in the form of tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding Php 10,000 received by the employee under an established written plan which does discriminate in favor of highly paid employees;
(i) Gifts given during Christmas and major anniversary celebrations not exceeding Php 5,000.00 per employee per annum;
(j) Daily meal allowance for overtime work and night / graveyard shift not exceeding 25% of the basic minimum wage on a per region basis.
All other benefits given by employers which are not included in the above enumeration shall not be considered as “de minimis” benefits, and hence, shall be subject to income tax as well as withholding tax on compensation income.
The following shall be considered as de minimis benefits not subject to withholding tax on compensation of both managerial and rank and file employees:
(a) Monetized unused vacation leave credits of private employees not exceeding ten days during the year;
(b) Monetized value of vacation and sick leave credits paid to government officials and employees;
(c) Medical cash allowance to dependents of employees not exceeding Php 750 per employee per semester or Php 125 per month;
(d) Rice subsidy of Php 1,500.00 or one sack of 50-kg rice per month amounting to not more than Php 1,500.00;
(e) Uniforms and clothing allowance not exceeding Php 5,000.00 per annum
(f) Actual yearly medical benefits, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations not exceeding Php 10,000 per annum;
(g) Laundry allowance not exceeding Php 300 per month;
(h) Employees achievement awards, e.g. for length of service or safety achievement, which must be in the form of tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding Php 10,000 received by the employee under an established written plan which does discriminate in favor of highly paid employees;
(i) Gifts given during Christmas and major anniversary celebrations not exceeding Php 5,000.00 per employee per annum;
(j) Daily meal allowance for overtime work and night / graveyard shift not exceeding 25% of the basic minimum wage on a per region basis.
All other benefits given by employers which are not included in the above enumeration shall not be considered as “de minimis” benefits, and hence, shall be subject to income tax as well as withholding tax on compensation income.