Comments on: De Minimis Benefits under the NIRC

By: dovey

dovey — Sat, 13 Feb 2010 14:36:54 +0000

what is the tax rate on the representation allowance of supervisors and managers? pls give brief explanation about allowances for supervisors/managers. what particular expenses are allowed to claim against their allowances? are they obliged to submit receipts for their expenses? what are the types of receipts they’re going to submit to the employer?thanks

By: tenaj

tenaj — Thu, 10 Dec 2009 09:30:18 +0000

what do you mean by the “excess provisions of de minimis benefits will be considered in the P30,000?”.

By: amor

amor — Fri, 04 Dec 2009 10:32:50 +0000

What is the status of the case in the Supreme Court questioning the BIR’s implementation of the Personal Exemptions provisions of RA 9504? I read somewhere that Senators Escudero and Roxas were supposed to file such a case.

Is the BIR correct in saying that the additional personal exemptions are applicable only from July 2008?

By: pia karen

pia karen — Wed, 23 Sep 2009 08:04:12 +0000

Are RATA & PERA taxable?

By: pinoytaxation

pinoytaxation — Mon, 10 Aug 2009 17:04:27 +0000

13th month is based on basic pay, thus, de minimis is not included in the computation…

By: pinoytaxation

pinoytaxation — Mon, 10 Aug 2009 17:02:08 +0000

i agree, sir…de minimis are not part of the P30,000 ceiling, however, excess provisions of de minimis benefits will be considered in the P30,000.

By: deuts

deuts — Mon, 29 Dec 2008 12:25:03 +0000

The 13th month and other benefits are accumulated and compared to the ceiling of P30,000. Any amount in excess are subject to regualar income tax.

By: deuts

deuts — Mon, 29 Dec 2008 12:21:50 +0000

I don’t think it’s de minimis anymore. Please refer to the IRR or RA 9504 as to the meaning of de minimis benefit. Also it’s stated there that the de minimis benefit should not form part of the 30,000 exemption/ceiling.

By: ladygriss

ladygriss — Sun, 28 Dec 2008 06:51:52 +0000

Are the 13th month pay and other benefits separately considered in computing for the excess over 30,000? What if the 13th month pay alone is above 30,000 and the other benefits is less than 30,000? Which one will be taxed? thanks.

By: deuts

deuts — Mon, 08 Dec 2008 05:53:15 +0000

Hi Neci,

This will serve as an update to my earlier post.

According to the Implementing Rules and Regulations of RA 9504, under Section 1, it explicitly defines the meaning and application of de minimis benefits, excerpt as follows:

The amount of ‘de minimis’ benefits conforming to the ceiling herein
prescribed shall not be considered in determining the P30,000.00 ceiling of ‘other
benefits’ excluded from gross income under Section 32(b)(7)(e) of the Code.
Provided that, the excess of the ‘de minimis’ benefits over the ir respective ceilings
prescribed by these regulations shall be considered as part of ‘other benefits’ and the
employee receiving it will be subject to tax only on the excess over the P30,000.00
ceiling. Provided, further, that MWEs receiving ‘other benefits’ exceeding the
P30,000.00 limit shall be taxable on the excess benefits, as well as on his salaries,
wages and allowances, just like an employee receiving compensation income beyond
the SMW.

I hope you already get the idea.