"De Minimis Benefits" as per Revenue regulation No.

8-2012

The Bureau of Internal Revenue has issued Revenue Regulation No.

8-2012 for further amendments to Revenue Regulations Nos. 2-98
and 3-98, as last amended by Revenue Regulation Nos. 5-2008 and
5-2011, with respect to De Minimis Benefits which took effect last
January 1, 2012.
In this regulation, an amendment of Uniforms given to employees by the
employer not exceeding P5,000 per annum (previously not exceeding
P4,000 per annum) is effective January 1, 2012.
De Minimis Benefits are 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.

In fact, the following shall be considered De Minimis benefits not
subject

to

income

tax

and

withholding tax of

both

managerial and rank and file employees:

1. Monetized

unused

vacation

leave

credits of employees not exceeding 10 days during the

year and the monetized value of leave credits paid to
government officials and employees.
2. Medical cash allowance to dependents of employees not
exceeding P750 per semester or P125 a month.
3. Rice subsidy of not more than P1,500 per month or 1
sack (50 kg.) rice per month.

4. Uniforms given

to

employees

by

the

employer

not

exceeding P5,000 per annum (RR 8-2012 effective January 1,

2012).
5. Actual

medical

benefits given to employees by the

employer not exceeding P10,000 per annum.

6. Laundry allowance not exceeding P300 per month.
7. Employees achievement awards (e. g. for length of
service or safety achievement, which must be in the form of a
tangible personal property other than cash or gift certificate
with

and

annual

monetary

value not

exceeding

P10,000 under an established written plan which does not

discriminate in favour of highly paid employees).
8. Gifts given during Christmas and major anniversary
celebrations not

exceeding P5,000 per

employee

per

annum. (deleted: amounts provided to guests).

9. Daily meal allowance for overtime work not exceeding
25% of daily basic minimum wage.

The amount of de minimis benefits conforming to the ceiling

herein

shall

not

be

considered

in

determining

the P30,000 ceiling of other benefits excluded from the gross

income under Section 32 (7) of the Code.

Allowances which are fixed in amounts and are

regularly received by the employee as part of his monthly
compensation income shall not be treated as taxable
fringe benefit but as compensation income.

The Minimum

Wage

Earner receiving other benefits

exceeding the P30,000 limit shall be taxable on the excess

benefit, as well as on his salaries, wages and allowances,

just like an employee receiving compensation income beyond

the Statutory Minimum Wage.

Minimum Wage Earner receiving other income, such as

income from the conduct of trade, business, or practice of
profession, except income subject to final tax, in addition to
compensation income, are not exempt from income tax on
the entire income earned during the taxable year.