De Minimis Benefits

“De minimis” benefits, such as:

  1. Monetized unused vacation leave credits not exceeding ten (10) days during the year;
  2. Medical cash allowance to dependents of employees not exceeding seven hundred fifty pesos (P750) per employee per semester, or one hundred twenty five pesos (P125) per month;
  3. Rice subsidy of one thousand five hundred pesos (P1,500) or one (1) sack of 50-kg. rice per month amounting to not more than one thousand five hundred pesos (P1,500);
  4. Uniforms and clothing allowance not exceeding five thousand pesos (P5,000) per annum;
  5. Actual medical benefits not exceeding ten thousand pesos (P10,000) per annum;
  6. Laundry allowance not exceeding three hundred pesos (P300) per month;
  7. Employee 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 an annual monetary value not exceeding ten thousand pesos (P10,000) received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
  8. Gifts given during Christmas and major anniversary celebrations not exceeding five thousand pesos (P5,000) per employee per annum;
  9. Flowers, fruits and books or similar items given to employees under certain circumstances, e.g., on account of illness, marriage, birth of baby, etc.;
  10. Daily meal allowance for overtime work and night or graveyard shift not exceeding twenty five percent (25%) of the basic minimum wage; and
  11. Benefits received by an employee by virtue of a CBA and productivity incentive schemes not exceeding P 10,000 per employee per taxable year.

 

Computation of tax base for compensation type of income only

Computation of tax base for compensation type of income only    
Gross compensation income   Pxxx
Less:    
Personal and additional exemptions Pxxx  
Health and/or hospitalization insurance xxx xxx
Taxable compensation income   Pxxx

I would like to invite you to join my Facebook exclusive groups of aspiring CPA for my upcoming project “CPA DREAM ACADEMY ” or sign up for flashcards free http://eepurl.com/coJBmf

CPA Mentor,

JONATHAN RUIZ CPA, MIB

 

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About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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