THE HOLIDAYS and gift-giving season may be over for some but it seems it is just getting started as far as our tax officials are concerned.
As a belated gift to the hardworking employees making their contributions to the economic growth of our country, the Secretary of Finance, upon recommendation by the Commissioner of Internal Revenue, issued Revenue Regulations (RR) No. 1-2015 dated 5 January 2015. The RR expands the list of tax-exempt benefits to include those benefits received by an employee by virtue of collective bargaining agreements (CBAs) and productivity incentive schemes to the extent of P10,000 per employee per taxable year. De minimis benefits are facilities and privileges of relatively small value and provided by an employer to employees merely as a means to promote their health, good will, contentment, or efficiency. These benefits are exempt from withholding tax on compensation (WTC) and fringe benefits tax (FBT).
Jan 072015