RR No. 1-2015 — Further amends RR Nos. 2-98 and 3-98, as last amended by RR Nos. 5-2008, 5-2011 and 8-2012, relative to "De Minimis Benefits" (Published in Manila Bulletin on January 6, 2015)

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE RECORDE NG T DVISION JAx D 5 205I+ (D:) A.M. OMea

BUREAU OF INTERNAL REVENUE RECEIVED

January 5, 2015

REVENUE REGULATIONS NO. 1- 3015

SUBJECT Further Amendments to Revenue Regulations Nos.

Respect to "De Minimis Benefits" 2-98 and 3-98, as Last Amended by .Revenue : Regulations Nos. 5-2008, 5-2011 and 8-2012, with

TO Concerned All Internal Revenue Officials and Others

Pursuant to Sections 4 and 244 in relation to Section 33 of the Tax

Revenue Regulations (RR) No, 2-98, as Iast amended by RR Nos. 5-2008, 5- Code of 1997, these Regulations are hereby promulgated to further amend 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

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

"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

:ten thousand pesos (Php 10,000.00)per employee per taxable yeari provided that the total annual monetary value received from both CBA and _productivity incentive schemes combined do not exceed bargaining agreement (CBA) and_productivity incentive schemes

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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 Benefits. --

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C) Fringe Benefits Not Subject to Fringe Benefit Tax.

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bargaining agreement (CBA) and productivity incentive schemes k Benefits received by an emplovee by virtue of a collective

provided that the total annual monetary value received from both CBA and productivity incentive schemes combined.do not exceed ten thousand pesos (Php 10,000.00) per emplovee 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 s shall take effect

immediately upon publication.

0 CESAR V.PURISIMA Secretary of Finance

024666

Recommending Approval: KIM.S.JACN TO-HENARES RECORDS MGT.,DIVISION BUREAU OF INTERNAL REVENUE ID: AM jAK 0 3 20tS Commissiorfer of Internal Revenue 029207 RECEIVEI