BIR Issuances – RR No. 4-2025

The BIR further amended the “De Minimis” Benefits Provisions of Revenue Regulations No. 2-98, as Amended, Increasing the Clothing Allowance Pursuant to Republic Act No. 11975, the Fiscal Year 2024 General Appropriations Act, and Employees Achievement Awards

Revenue Regulations No. 004-2025

30 January 2025

 

Pursuant to Sections 4 and 224 in relation to Section 33 of the Tax Code of 1997, these regulations are hereby promulgated to further amend RR Nos. 2-98, as amended, with respect to “De Minimis” benefits which are exempt from income tax on compensation as well as from fringe benefit tax in relation to the implementation of Republic Act No. 11466.

SECTION 1

Section 2.78.1 of RR No. 2-98, as last amended by RR No. 11-2018, is hereby further amended to read as follows:

“SECTION 2.78.1. Withholding of Income Tax on Compensation Income. –

• Compensation Income Defined. – xxx
  xxx               xxx                     xxx

(3) Facilities and privileges of relatively small value.—xxx

xxx               xxx                     xxx

(e ) Uniform and clothing allowance not exceeding ₱7,000 per annum;

xxx        xxx                     xxx

(h) Employee’s achievement awards, e.g. for length of service or safety achievement, in any form, whether in cash, gift certificate or any tangible personal property, with an annual monetary value not exceeding ₱10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees.

xxx        xxx        xxx

SECTION 2 – REPEALING CLAUSE

All existing rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of these Regulations are hereby amended, modified or repealed accordingly.

SECTION 3 – EFFECTIVITY

These Regulations shall take effect after fifteen (15) days following its publication in the Official Gazette or in the BIR Official Website, whichever comes first.

Copy of the RR can be accessed thru the link below.