What does the term 'DE MINIMIS' mean?
Emelino T Maestro.com
0922-8010922 and 02-4393918
The following shall be considered as "de minimis" benefits not subject to income tax, hence, not subject to withholding tax on compensation income of both managerial and rank and file employees:
(a) Monetized unused vacation leave credits of employees not exceeding ten (10) days during the year and the monetized value of leave credits paid to government officials and employees;
(b) Medical cash allowance to dependents of employees not exceeding P750.00 per employee per semester or P125 per month;
(c) Rice subsidy of P2,000.00 or one (1) sack of 50-kg. rice per month amounting to not more than P2,000.00;
(d) Uniforms and clothing allowance not exceeding P4,000.00 per annum;
(e) Actual yearly medical benefits not exceeding P10,000.00 per annum;
(f) Laundry allowance not exceeding P300.00 per month;
(g) Employees achievement awards, e.g., for length of service or safety
achievement, which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
(h) Gifts given during Christmas and major anniversary celebrations not exceeding P5,000.00 per employee per annum;
(i) Flowers, fruits, books, or similar items given to employees under special circumstances, e.g., on account of illness, marriage, birth of a baby, etc.; and
(j) Daily meal allowance for overtime work not exceeding twenty five percent (25%) of the basic minimum wage.
Let ETM help/assist you to maximise these De Minimis.
For example, If Manuel Pangilinan, PLDT Tycoon, has a daily compensation of P1,000,000 and a janitor from his Office is receiving P500 a day, and the PLDT management decided to give item a to both of them. Then, Manny would receive P10,000,000 while his janitor would receive P5,000. Your question is whether the P10,000,000 de minimis benefit of Manny is taxable or not. The answer would be revealed to you if you would ask for it via email 09989793922@MaestroTaxation.org
You're invited to grace the following important events of your lives, viz;
IMPORTANT TOPIC
eLetter of Authority, Letter Notice & Subpoena Duces Tecum
RELEVANT DATES "Aug 14-15, 2014, Luxent Hotel, QC"
For special rates, please call Juliet
IMPORTANT TOPIC
Tax Mapping, Benchmarking & Oplan Kandado
RELEVANT DATES "Aug 18 & 19, 2014, RCBC Plaza, Makati"
For special rates, please call Juliet
IMPORTANT TOPIC
Tax Accounting Course for VAT-reg. Small & Medium Enterprisess
RELEVANT DATES "Aug 21-22, 2014, Luxent Hotel, QC"
For special rates, please call Juliet
IMPORTANT TOPIC
Estate Planning/Wealth Protection
RELEVANT DATES "Aug 25, 27 & 29, 2017, Luxent Hotel, QC"
P30,000 plus 12%VAT/pax
IMPORTANT TOPIC
Tax Accounting Course for VAT-reg. Small & Medium Enterprises
RELEVANT DATES "Sep 25-26, 2014, SEDA, Davao City"
For special rates, please call Juliet
RELEVANT WARNING...
DISAPPOINTING/DISGUSTING TO SEE/LEARN THAT THE PRIORITY OF SOME OF THE MEMBERS OF A CPA ORGANISATION IS TO GET A PICTURE-OPPORTUNITY WITH BIR OFFICIALS HAVING QUESTIONABLE CHARACTER/BEHAVIOUR. Meaning, these CPAs have also a selfish and an unhealthy motive/character/behaviour so beware and be aware who are these CPAs. Don't associate yourselves with them. LEARN THE TAX CODE. TRUST BUT VERIFY.
www.Facebook.com/Kataxpayer
0989793922@MaestroTaxation.Org
02-9216107
Emelino T Maestro.com
0922-8010922 and 02-4393918
The following shall be considered as "de minimis" benefits not subject to income tax, hence, not subject to withholding tax on compensation income of both managerial and rank and file employees:
(a) Monetized unused vacation leave credits of employees not exceeding ten (10) days during the year and the monetized value of leave credits paid to government officials and employees;
(b) Medical cash allowance to dependents of employees not exceeding P750.00 per employee per semester or P125 per month;
(c) Rice subsidy of P2,000.00 or one (1) sack of 50-kg. rice per month amounting to not more than P2,000.00;
(d) Uniforms and clothing allowance not exceeding P4,000.00 per annum;
(e) Actual yearly medical benefits not exceeding P10,000.00 per annum;
(f) Laundry allowance not exceeding P300.00 per month;
(g) Employees achievement awards, e.g., for length of service or safety
achievement, which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000.00 received by the employee under an established written plan which does not discriminate in favor of highly paid employees;
(h) Gifts given during Christmas and major anniversary celebrations not exceeding P5,000.00 per employee per annum;
(i) Flowers, fruits, books, or similar items given to employees under special circumstances, e.g., on account of illness, marriage, birth of a baby, etc.; and
(j) Daily meal allowance for overtime work not exceeding twenty five percent (25%) of the basic minimum wage.
Let ETM help/assist you to maximise these De Minimis.
For example, If Manuel Pangilinan, PLDT Tycoon, has a daily compensation of P1,000,000 and a janitor from his Office is receiving P500 a day, and the PLDT management decided to give item a to both of them. Then, Manny would receive P10,000,000 while his janitor would receive P5,000. Your question is whether the P10,000,000 de minimis benefit of Manny is taxable or not. The answer would be revealed to you if you would ask for it via email 09989793922@MaestroTaxation.org
You're invited to grace the following important events of your lives, viz;
IMPORTANT TOPIC
eLetter of Authority, Letter Notice & Subpoena Duces Tecum
RELEVANT DATES "Aug 14-15, 2014, Luxent Hotel, QC"
For special rates, please call Juliet
IMPORTANT TOPIC
Tax Mapping, Benchmarking & Oplan Kandado
RELEVANT DATES "Aug 18 & 19, 2014, RCBC Plaza, Makati"
For special rates, please call Juliet
IMPORTANT TOPIC
Tax Accounting Course for VAT-reg. Small & Medium Enterprisess
RELEVANT DATES "Aug 21-22, 2014, Luxent Hotel, QC"
For special rates, please call Juliet
IMPORTANT TOPIC
Estate Planning/Wealth Protection
RELEVANT DATES "Aug 25, 27 & 29, 2017, Luxent Hotel, QC"
P30,000 plus 12%VAT/pax
IMPORTANT TOPIC
Tax Accounting Course for VAT-reg. Small & Medium Enterprises
RELEVANT DATES "Sep 25-26, 2014, SEDA, Davao City"
For special rates, please call Juliet
RELEVANT WARNING...
DISAPPOINTING/DISGUSTING TO SEE/LEARN THAT THE PRIORITY OF SOME OF THE MEMBERS OF A CPA ORGANISATION IS TO GET A PICTURE-OPPORTUNITY WITH BIR OFFICIALS HAVING QUESTIONABLE CHARACTER/BEHAVIOUR. Meaning, these CPAs have also a selfish and an unhealthy motive/character/behaviour so beware and be aware who are these CPAs. Don't associate yourselves with them. LEARN THE TAX CODE. TRUST BUT VERIFY.
www.Facebook.com/Kataxpayer
0989793922@MaestroTaxation.Org
02-9216107
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