De Minimis Benefits are tax exempt. These benefits were outlined and defined by the Bureau of Internal Revenue (BIR) in the issuance of Revenue Regulation No. 3-98 and several amendments since its adoption such as RR No 8-2000, RR No. 15-2011, RR No. 8-2012, RR No. 1-2015 and the latest issuance as of this writing is RR No. 3-2015.
There are several sites discussing the topic and even the BIR per se. But how much really is the maximum amount of the benefits if we convert these into peso amount on a monthly or yearly basis?
The table below will give you a guide on the peso amount assuming a Minimum Wage Earner located in NCR or a daily wage of P454.00.
But then gain in the application of de minimis benefits, its important to note the stated limits. Further, it is also important to consider policies created by the company such as (1) Sick & Vacation Leave (SLVL) and (2) Health policy covered by an HMO. Lastly, it is important as well to finally consider if a company is under a CBA agreement.
Bottom line, De Minimis Benefits were created as employees privileges and these are relatively small in value and non-taxable.
Last last week, I was reading the latest issuance of the BIR’s Revenue Regualtions (RR) No. 3-2010. And this is all about an additional taxpayers requirement. Yep yep, the new regulation is requiring all taxpayers to submit a “Statement of Management Responsibility” using, let me repeat, using the BIR required format. Wow, and mind you blog readers, the said Statement of Management Responsibility is for Bureau of Internal Revenue purposes only and is different from the Statement of Management Responsibility required by the Securities and Exchange Commission (SEC).
Anyhow, please take note, again… again…again, please carefully note that BIR will not accept or receive your income tax returns, together with the Audited Financial Statements, unless the said statement is duly signed by required officials of the company or the business owners per se. Oh by the way, this requirement is effective na on the April 15, 2010 filing. Okay, so, this means that 2009 audited financial statements will now include this requirement. Business people, partners, business enthusiast, business minded one, this is for you to take note.
Huh! seems the BIR is now so so serious in their drive to collect taxes? Well and good, hoping that the monies yes tax collections will be used to ()^^%^*&))*&%^%^%$#$ hahahahaha.
Hmmmmm… nevertheless, here is the link to the RR and the required format of the Statement of Management Responsibility for your reference and information.