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Tax Alert

Update on Non-taxable De Minimis Benefits

(Revenue Regulations (RR) No. 004-2025 issued on January 30, 2025)

This Tax Alert is issued to inform all concerned on the updates on “De Minimis” benefits (uniform and clothing, and employee achievement awards) 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.

Sec. 2.78.1 (A) of RR No. 02-98 is amended as follows:

The Regulations shall take effect after 15 days following its publication in the Official Gazette or in the BIR official website, whichever comes first. These Regulations are posted on BIR website on January 30, 2025.

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