Adopted: 05 January 2015
Date Filed: 14 January 2015
Pursuant to Section 4 and 244 in relation to Section 33 of the Tax Code of 1997, these Regulations are hereby promulgated to further amend Revenue Regulations (RR) No. 2-98, as last amended by RR Nos. 5-2008, 5-2011 and 8-2012, with respect to "De Minimis" benefits which are exempt from income tax on compensation as well as from fringe benefit tax.

SECTION 1. Section 2.78.1 (A) (3) of RR 2-98, as last amended by RR 8-2012, is hereby further amended to read as follows:

"Sec. 2.78.1. Withholding Tax on Compensation Income.-

(A) ...

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(3) Facilities and privileges of relatively small value. -

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(k) Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive schemes provided that the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed ten thousand pesos (Php10,000.00) per employee per taxable year;

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SECTION 2. Section 2.33 (c) of RR 3-98, as last amended by RR 8-2012, is hereby further amended to read as follows:

"Sec. 2.33. Special Treatment of Fringe Benefit Tax. -

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(C) Fringe Benefits Not Subject to Fringe Benefit Tax. -

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(k) Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity incentive schemes provided that the total annual monetary value received from both CBA and productivity incentive schemes combined, do not exceed ten thousand pesos (Php10,000.00) per employee per taxable year;

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SECTION 3. Repealing Clause. - All existing rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of these Regulations are hereby modified, amended or revoked accordingly.

SECTION 4. Effectivity. - These Regulations shall take effect immediately upon publication.


(SGD) CESAR V. PURISIMA
Secretary of Finance

Recommending Approval:

(SGD) KIM S. JACINTO-HENARES
Commissioner of Internal Revenue