Amendments on De Minimis Benefits Tax Exemption

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BIR REVENUE REGULATIONS NO. 5-2008: Amendments on De Minimis Benefits Tax Exemption

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Title Source: Supreme Court: Amendments on De Minimis Benefits Tax Exemption

Law: Bir Revenue Regulations No. 5-2008

Decision Date: Apr 17, 2008

Revenue Regulations No. 5-2008 amends previous regulations to clarify that "de minimis" benefits, such as a rice subsidy of P1,500 and a uniform allowance of up to P4,000, are exempt from income tax and fringe benefit tax for employees, effective from 2008.

Law Summary

Specific Exemption of Fringe Benefits from Fringe Benefit Tax

Amends Section 2.33(C) of RR No. 3-98 as amended by RR No. 10-2000.
Defines "de minimis" benefits as those of relatively small value offered by employers primarily to promote employee health, goodwill, contentment, or efficiency.
Confirms that rice subsidy up to P1,500.00 or one sack of rice per month and uniform/clothing allowances up to P4,000.00 per annum are exempt from fringe benefit tax.

Scope of Application

The tax exemptions for the stated "de minimis" benefits apply to income earned beginning in the year 2008.

Repealing Clause

All existing rules, regulations, or parts inconsistent with these amendments are revoked, repealed, or modified accordingly.

Effectivity of Regulations

The regulations take effect fifteen (15) days after publication in any newspaper of general circulation.
Promulgated on April 17, 2008, by the Secretary of Finance and recommended by the Commissioner of Internal Revenue.

END