CBA benefits and productivity incentives up to P10,000 (Revenue Regulations No. 1-2015, January 5, 2015)

The list of tax-exempt de minimis benefits has been expanded to include the following:

(k)Benefits received by an employee by virtue of a Collective Bargaining Agreement (CBA) and productivity incentive schemes provided the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed ten thousand pesos (P10,000.00) per employee per taxable year.

For this purpose, RR 2-98 (Withholding Tax Regulations) and RR 3-98 (Fringe Benefits Tax Regulations) have been amended.

The productivity incentives that can be tax-exempt under this regulation is in addition to the bonuses and productivity incentives that can be exempt within the P30,000 threshold under Section (B)(7)(e) of the Tax Code.

The regulation will take effect immediately upon publication.