Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 5-2008)
The regulation further amends previous Revenue Regulations with respect to "De Minimis" benefits exempt from income tax on compensation as well as from fringe benefit tax.
A rice subsidy of P1,500.00 or one (1) sack of 50 kg. rice per month amounting to not more than P1,500.00 is considered a de minimis benefit exempt from income tax and fringe benefit tax.
The uniform and clothing allowance must not exceed P4,000.00 per annum to qualify as a de minimis benefit.
RR No. 5-2008 is promulgated pursuant to Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997.
De minimis benefits are facilities or privileges furnished or offered by an employer to employees that are of relatively small value and are meant to promote the health, goodwill, contentment, or efficiency of employees.
No, de minimis benefits are exempt from withholding tax on compensation income for both managerial and rank and file employees.
No, de minimis benefits are exempt from the fringe benefit tax.
The benefits provided in RR No. 5-2008 apply to income earned starting the year 2008.
Yes, all existing rules and regulations or parts inconsistent with these regulations are revoked, repealed, or modified accordingly.
The regulations took effect fifteen (15) days after its publication in a newspaper of general circulation.