(NAR) VOL. 19 NO. 2 / APRIL - JUNE 2008
"Sec. 2.78.1 Withholding of Income Tax on Compensation Income.SECTION 2. Section 2.33(C) of RR 3-98, as last amended by RR 10-2000, is hereby further amended to read as follows:
(A) xxx xxx xxx
(1) xxx xxx xxxxxx xxx xxx
(3) Facilities and privileges of relatively small value. -xxx xxx xxx
The following shall be considered as "de minimis" benefits not subject to in come tax as well as withholding tax on compensation income of both manage rial and rank and file employees:
(a) xxx xxx xxxxxx xxx xxx
(c) Rice subsidy of P1,500.00 or one (1) sack of 50 kg. rice per month amount ing to not more than P1,500,00;
(d) Uniform and Clothing allowance not exceeding P4,00Q.00 per annum; xxx xxx xxx"
"Sec. 2.33. Special Treatment of Fringe Benefits.
(A) Imposition of Fringe Benefits Tax - xxx xxxxxx xxx xxx
(B) Definition of Fringe Benefit- xxx xxxxxx xxx xxx
(C) Fringe Benefits Not Subjectto Fringe Benefit Tax- In general, thefringe benefit tax shall not be imposed on the following fringe benefits:xxx xxx xxx
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 such as the following:
(a) xxx xxx xxxxxx xxx xxx
(c) Rice subsidy of P1,500.00 or one (1) sack of 50 kg, rice per month amounting to not more than P1,500.00;
(d) Uniform and Clothing allowance not exceeding P4,000.00 per annum;