De Minimis are minimal monetary benefits given by employers to their employees. Although these benefits are not government-mandated, any such benefits given to employees will be considered tax-exempt up to a certain amount.
For a benefit to be considered a De Minimis benefit and enjoy tax-exempt status, they will need to fall under very specific classifications. BIR Revenue Regulation 10-2008 has determined that only the following items and their corresponding amounts can be considered De Minimis benefits:
Note: Every employee has a tax-free limit ₱82,000 per year, which includes the 13th month bonus and other benefits. If an employee’s 13th month pay and other benefits do not total ₱82,000 per year, employers can go above the prescribed amounts for De Minimis and still be considered tax-free. If the amounts total above ₱82,000 per year, any excess will be added to taxable income. Please also note that De Minimis benefits are different from Tax Shields. Tax Shields are used to lower an employee’s taxable income, while De Minimis benefits are tax free from the start.