Revenue Regulations No. 4-2025

This Revenue Regulation issued on January 30, 2025 further amends the “De Minimis” benefits provisions of Revenue Regulations (RR) No. 2-98, as amended, increasing the Clothing Allowance pursuant to Republic Act No. 11975, the Fiscal Year 2024 General Appropriations Act, and Employees Achievement Awards.

Section 2.78.1 of RR No. 92-98, as last amended by RR No. 11-2018, is further amended to read as follows:

“SECTION 2.78.1. Withholding of Income Tax on Compensation Income.–

(A) Compensation Income Defined. – xxx

xxx                                       xxx                                     xxx

(3) Facilities and privileges of relatively small value. – xxx

xxx                                       xxx                                     xxx

(e) Uniform and clothing allowance not exceeding P 7,000 per annum;

                  xxx                                xxx                              xxx

(h) Employee’s achievement awards, e.g., for length of service or safety achievement, in any form, whether in cash, gift certificate or any tangible personal property, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees.

xxx                                 xxx                      xxx”