RR 4-2025

Revenue Regulations No. 4-2025, issued January 30, 2025, further amends the "De Minimis" benefits provisions of RR No. 2-98, specifically Section 2.78.1 on withholding of income tax on compensation income (as last amended by RR No. 11-2018). As amended, the uniform and clothing allowance treated as a facility/privilege of relatively small value is one not exceeding ₱7,000 per annum, and employee achievement awards (e.g., for length of service or safety achievement) in cash, gift certificate, or tangible personal property qualify when their annual monetary value does not exceed ₱10,000 and they are received under an established written plan that does not discriminate in favor of highly paid employees. The clothing allowance increase is pursuant to Republic Act No. 11975, the Fiscal Year 2024 General Appropriations Act.