Department of Finance
The Department of Finance issued Revenue Regulations (RR) No. 04-2025, dated 30 January 2025, to further amend the “De Minimis” benefits provisions of RR No. 2-98, as amended.
RR No. 4-2025 introduces key amendments to RR No. 2-98, specifically to Section 2.78.1, as follows:
1. Uniform and Clothing Allowance – The amendment provides that the annual uniform and clothing allowance, which shall not be subject to withholding tax, has been increased to Php7,000.00 per annum.
2. Employee Achievement Awards – The amendment recognizes that achievement awards may be in any form, whether in cash, gift certificate or any tangible personal property. However, the amount of achievement awards not subject to withholding tax should still not exceed an annual monetary value of Php10,000.00.
(RGM & Co. Note: The RR was published in the BIR Website on 30 January 2025)
Here is the link to the full text of the issuance: RR No. 04-2025.