Question & AnswerQ&A (BIR Revenue Regulations No. 1-2015)
The regulation further amends Revenue Regulations Nos. 2-98 and 3-98 regarding "De Minimis Benefits" which are exempt from income tax on compensation and fringe benefit tax.
The total annual monetary value received from both CBA and productivity incentive schemes combined should not exceed ten thousand pesos (Php10,000.00) per employee per taxable year to be exempt.
Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997 provide the basis.
Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive schemes with a combined value not exceeding Php10,000.00 annually.
Revenue Regulations No. 2-98 and No. 3-98, as last amended by Revenue Regulations Nos. 5-2008, 5-2011, and 8-2012.
The regulations took effect immediately upon publication on January 14, 2015.
All inconsistent existing rules, regulations, and other issuances or parts thereof are modified, amended, or revoked accordingly.
Yes. It provides exemptions for certain benefits from both income tax on compensation and fringe benefit tax.
It states that benefits received by an employee under a CBA and productivity incentive schemes are exempt from withholding tax on compensation income, provided the total value does not exceed Php10,000 annually per employee.
Benefits received by employees under a CBA and productivity incentive schemes with a combined annual monetary value not exceeding Php10,000 are not subject to fringe benefit tax.