The term “DE MINIMIS” benefits which are exempt from the fringe benefit tax shall, in general, be limited to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment or efficiency of his employees.
Examples of De Minimis Benefits Not Subject to the FBT
a. Monetized unused vacation leave credits of employees not exceeding 10 days during the year;
b. Medical cash allowance to dependents of employees not exceeding P750.00 per semester or P125 a month;
c. Rice subsidy of P1,500.00 or one (1) sack of 50 kilos rice per month amounting to not more than P1,500.00; (RR No. 5-2008)
d. Uniform and clothing allowance not exceeding P4,000.00 per annum;
e. Medical benefits given to the employees by the employer;
f. Employee achievement awards, e.g for length of service or safety achievement, which must be in form of a tangible personal property other the cash or gift certificate, with an annual monetary value not exceeding one-half (1/2) month of the basic salary of the employee receiving the award under an established written plan which does not discriminate in favor of highly paid employees;
g. Christmas and major anniversary celebrations for employees and their guests.
Examples of De Minimis Benefits Not Subject to the FBT
a. Monetized unused vacation leave credits of employees not exceeding 10 days during the year;
b. Medical cash allowance to dependents of employees not exceeding P750.00 per semester or P125 a month;
c. Rice subsidy of P1,500.00 or one (1) sack of 50 kilos rice per month amounting to not more than P1,500.00; (RR No. 5-2008)
d. Uniform and clothing allowance not exceeding P4,000.00 per annum;
e. Medical benefits given to the employees by the employer;
f. Employee achievement awards, e.g for length of service or safety achievement, which must be in form of a tangible personal property other the cash or gift certificate, with an annual monetary value not exceeding one-half (1/2) month of the basic salary of the employee receiving the award under an established written plan which does not discriminate in favor of highly paid employees;
g. Christmas and major anniversary celebrations for employees and their guests.
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