RR No. 29-2025 — Further amends the "De Minimis" benefits provisions of Revenue Regulations (RR) No. 2-98, as amended, increasing the ceiling of non-taxable benefits (Date Posted: December 22, 2025)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

BAGONG Bringing In Revenues for Nation-Building PILIPINAS

OCT 272025

REVENUE REGULATIONS NO.0 2 9_ - 2 0 2 5

SUBJECT Further Amending the De Minimis" Benefits Provisions of Revenue Regulations (RR) No. 2-98, as Amended, Increasing the Ceiling of Non-

Taxable Benefits TO All Internal Revenue OfficialsEmployees and Others Concerned

Pursuant to Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997, these regulations are hereby promulgated to further amend RR No. 2-98. as last amended by RR No. 004- 2025, 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 of RR No.2-98,as amended by RR No.004-2025,is hereby further amended to read as follows:

"SECTION 2.78.1. Withholding of Income Tax on Compensation Income.

(A) Compensation Income Defined. -- xxx

XXX XXX XXX

3 Facilities and privileges of relatively small value.-xxx

(a) Monetized unused vacation leave credits of private employees not exceeding

twelve (12) days during the year;

(b) Monetized value of vacation and sick leave credits paid to government officials

and employees; AMI U DEC 2 2 2025 RRD (c) Medical cash allowance to dependents of employees not exceeding P2,000.00 per

TE WNO CW 3 TREVENH RMANTR IIV a (d) Rice subsidy of P2,500.00 or one (1) sack of 50 kg. rice per month amounting to (e) Uniform and clothing allowance not exceeding P8,000.00 per annum: not more than P2.500.00: employee per semester or P333.00 per month:

(f) Actual medical assistance, e.g., medical allowance to cover medical and healthcare

needs. annual medical/executive check-up, maternity assistance, and routine consultations not exceeding P12,000.00 per annum:

(g) Laundry allowance not exceeding P400.00 per month:

BIR National Office Bldg.,Senator Miriam Defensor-Santiago Avenue, Diliman Quezon City Trunkline: 8981-7000 ; 8929-7676 Website:www.bir.gov.ph

(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 P12.000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;

(i) Gifts given during Christmas and major anniversary celebrations not exceeding

P6,000.00 per employee per annum;

(j) Daily meal allowance for overtime work and night/graveyard shift not exceeding thirty percent (30%) of the basic minimum wage on a per region basis; and

k) Benefits received by an employee by virtue of a collective bargaining agreement

value received from both CBA and productivity incentive schemes combined do (CBA) and productivity incentive scheme provided that the total annual monetary

not exceed twelve thousand pesos (12,000.00) per employee per taxable year.

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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.

its publication in the Official Gazette or in the BIR Official Website, whichever comes first. SECTION3.EFFECTIVITY.-These Regulations shall take effect after fifteen(15days following

RALPH RECTO Secretary of Finance NOV 18 2025

Recommending Approval:

vA I,JR Issioner of Internal Revenue

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BUREAUOFINTERNALREVENUI F CORDSMANAGEMENTDIVISION

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DEC 2 2 2025

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