[Identification] De Minimis Benefits

Question 1

Monetized unused vacation leave credits of private employees

Answer 1

Not exceeding 10 days

Question 2

Monetized unused vacation and sick leave credits paid to government officials and employees

Answer 2

No limit

Question 3

Medical cash allowance to dependents of employees

Answer 3

1. Not exceeding P1,500 per employee PER semester; or
2. P250 per month

Question 4

Rice subsidy

Answer 4

1. Not to exceed P1,500; or
2. 1 sack of 50 kg rice per month amounting to not more than P2,000

Question 5

Medical cash allowance to dependents of employees

Answer 5

1. Not exceeding P1,500 per employee per semester; or
2. P250 per month

Question 6

Uniform and clothing allowance

Answer 6

Not exceeding P6,000 per annum

Question 7

Actual medical assistance

Answer 7

Not exceeding P10,000 per annum

Question 8

Laundry allowance

Answer 8

Not exceeding P300 per month

Question 9

Employee achievement award (in the form of tangible property other than cash or gift certificates)

Answer 9

Not exceeding P10,000

Question 10

Gifts given during Christmas and major anniversary celebrations

Answer 10

Not exceeding P5,000 per employee per annum

Question 11

Productivity incentive bonus & benefits

Answer 11

Limit of Php10,000

If amount exceeds Php10,000, entire amount is part of computation of 13th Month Pay and Other Benefits

Question 12

J, an employee of Osborne Corp., received the following benefits for the year:

Cash medical assistance to J’s children: Php7,000
Rice subsidy: P36,000 (given in 50-kilogram sacks per month)
Osborne Corp. Anniversary gift (Cash) = P15,000
13th month pay: P75,000

How much 13th month pay and other benefits will be taxed?

Answer 12

Php11,000

13th month pay = P75,000
Add: Cash medical assistance = (P7,000 - P3,000 annual limit) P4,000
Rice subsidy = (P36,000 - P24,000 annual limit) P12,000
Cash gift (anniversary/xmas) = (P15,000 - P5,000 limit) P10,000
Less: Limit P90,000
Total P11,000