Law Summary
Amendments to Fringe Benefit Tax Exemptions Concerning De Minimis Benefits
- Further amends Section 2.33 (c) of RR No. 3-98, as last amended by RR 8-2012, relating to the special treatment of fringe benefit tax.
- Clarifies that benefits under CBAs and productivity incentive schemes are exempt from fringe benefit tax.
- The exemption applies only if the combined annual value of such benefits does not exceed Php10,000 per employee per taxable year.
Scope and Application of the Amendments
- Applies to benefits granted to employees under CBAs and productivity incentive schemes.
- Ensures these benefits remain exempt from both income tax on compensation and fringe benefit tax within the specified monetary limit.
Repealing Clause
- All existing rules, regulations, and issuances inconsistent with these amendments are modified, amended, or revoked to the extent of the inconsistency.
Effectivity Clause
- These regulations took effect immediately upon their publication.
Legal and Administrative Authorities Involved
- Promulgated pursuant to Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997.
- Issued by the Secretary of Finance and the Commissioner of Internal Revenue.
Key Legal Concepts
- De minimis benefits refer to non-monetary benefits or trivial benefits of small value granted to employees.
- Collective Bargaining Agreement (CBA) benefits and productivity incentive schemes are specifically included in the scope of de minimis benefits.
- The threshold for exemption from income tax and fringe benefit tax on such benefits set at Php10,000 per year per employee.