RR No. 4-2025 — Further amending the "De Minimis" benefits provisions of RR No. 2-98, as amended, increasing the Clothing Allowance pursuant to RA No. 11975, the Fiscal Year 2024 Genereal Appropriations Act, and Employees Achievement Awards (Date Posted: January 30, 2025)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIPINAS BAgOng JAN 3 0 2025

REVENUE REGULATIONS NO. ! 004-2025

SUBJECT: Further Amending 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

TO All Internal Revenue Officials, Employees 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 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.

further amended to read as follows: SECTION 1. Section 2i78.1 of RR No. 2-98, as Iast amended by RR No. 11-2018, is hereby

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

(A} Compensation Income Defined. - xxx (3) Facilities and pfivileges of relatively small value. - xxx XXX! XXX XXX (SP) BUREA 78EC6RL JAN 30 225 L0610 DS MANAGEMENTDIVISION E2 RFT-at

XXX} XXX XXX SY: DANIELKATLUSAN-AO1 TEME. 1 G:2s

(e) Uniform and ciothing allowance not exceeding P7.000 per annum;

XXX XXX XXX

(h) Employee's. achievement awards, e.g. for Iength of service or safety

achievement, in any form, whether in cash, gift certificate or any tangible Bersonal property, with an annual monetary value not exceeding P10,000 received by the employec under an established written plan which does not discriminate in favor of highly paid employees.

XXX XXX XXX

or parts thereof which are inconsistent with the provisions of these Regulations are hereby SECTION 2. REPEALING CLAUSE. -- All existing rules and regulations and other issuances

. amended, modified or repealed accordingly.

BiR Nationai Office Bldg., Senator Miriam Defensor-Santiaga Avenue, Diliman, Quezon City Trunkllne: 8981-7000 : 8929-7676 Website: www.bir.gov.ph

days following its publication in the Official Gazette or in the BIR Official Website, whichever comes first. SECTION 3. EFFECTIVITY. -- These Regulations shall take effect after fifteen (15)

P Icreta T

Recommending Approval:

Co R0v ssioner of Internal Revenue LUMAG YBUREAU OFINTERNALREVENUE RECORDS MANAGEMENT IVISION

J-5 JAN 30 2025

BY: DANTEL KAHULUGAN LADI'T A TMe r3 9:2Jhu 5113