Wednesday, November 02, 2005

‘De Minimis’ and Other Tax-Exempt Fringe Benefits


By Atty. Juris Bernadette M. Tomboc

I. Introduction

A general concern by employees as well as employers nowadays due to the spiraling prices of commodities is how to legally save on taxes paid by employees on their compensation income in order to increase their take-home pay. This paper summarizes the statutory provisions, rules and regulations, and some recent illustrative rulings on ‘de minimis’ and other tax-exempt fringe benefits in order to be able to assist both employers and employees in choosing and implementing compensation income tax avoidance strategies.

Section 2.33 (C) of Revenue Regulations No. 3-98 as amended exempts the following fringe benefits from tax:

(a) Fringe benefits which are authorized and exempted from income tax under the Code or under any special law;

(b) Contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans;

(c) Benefits given to the rank and file, whether granted under a collective bargaining agreement or not;

(d) ‘De minimis’ benefits as defined in the Regulations;

(e) If the grant of fringe benefits to the employee is required by the nature of or necessary to the trade, business or profession of the employer; or

(f) If the grant of fringe benefits is for the convenience of the employer.

II. ‘De Minimis’ Benefits in General

‘De minimis’ benefits that are exempt from the fringe benefits tax are in general limited to facilities or privileges offered by an employer which are of relatively small value and are furnished merely as a means of promoting employee’s health, goodwill, contentment, or efficiency. (Revenue Regulations No. 10-2000, amending Revenue Regulations Nos. 2-98 and 3-98, as last amended by Revenue Regulations No. 8-2000)

The following are classified as ‘de minimis’ benefits under Revenue Regulations 10-2000 issued by the Bureau of Internal Revenue and therefore not subject to income tax as well as withholding tax on compensation income of both managerial and rank and file employees:

(a) Monetized unused vacation leave credits of private 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 P125.00 per month;

(c) Rice subsidy of P1,000.00 or one (1) sack of 50-kg. rice per month amounting to not more than P1,000.00;

(d) Uniform and clothing allowance not exceeding P3,000 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 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 on special circumstances, e.g., on account of illness, marriage, birth of baby, etc., and

(j) Daily meal allowances not exceeding twenty five percent (25%) of the basic minimum wage for overtime work (Revenue Regulations No. 10-2000).

The amount of ‘de minimis’ benefits that are within the above-enumerated threshold limits prescribed under Revenue Regulations No. 10-2000 shall not be included in the P30,000.00 ceiling of “other benefits’ under Section 32 (B) (7) (e) of Republic Act No. 8424, otherwise known as the National Internal Revenue Code of 1997 or the “Tax Code” (Revenue Regulations No. 8-2000, amending Revenue Regulations Nos. 2-98 and 3-98).

If an employer pays employees more than the threshold limits prescribed under Revenue Regulations No. 10-2000, the excess shall still not be taxable to the employee receiving the benefits as long as they are within the P30,000.00 ceiling on total “other benefits” received by the employee during the year. Any excess of the foregoing benefits over the said P30,000.00 ceiling will be taxable to the employee.

The “other benefits” referred to in Section 32 (B) (7) (e) of the Tax Code include gross benefits received by employees such as productivity incentives and Christmas bonus. It likewise includes the 14th month pay, if any, and benefits in excess of the limits prescribed on ‘de minimis’ benefits under Revenue Regulations No. 10-2000.

The employer may deduct as expense any amount given as benefits to employees whether classified as de minimis benefits or fringe benefits (Revenue Regulations No. 8-2000).

III. Some Recent Illustrative Rulings on ‘De Minimis’ and Other Exempt Fringe Benefits

A. Christmas Cash Gift

A P5,000.00 extra cash gift given to employees during Christmas in addition to the P5,000.00 basic cash gift also given during Christmas, or a total of P10,000.00, are ‘de minimis’ fringe benefits and therefore tax exempt (BIR Ruling No. DA-266-2004 [May 17, 2004] issued to the Office of the Ombudsman).

However, since the ceiling for gifts given during Christmas and major anniversary celebrations is fixed at P5,000.00, the excess over the P5,000.00 ceiling amount of the ‘de minimis’ fringe benefits shall be considered as “other benefits” under Section 32 (B) (7) (e) (iv) of the Tax Code (BIR Ruling No. DA-266-2004).

Thus, the excess of the gifts over the ‘de minimis’ ceiling shall still be exempt provided that it, together with the total amount of other benefits, shall not exceed P30,000.00 (BIR Ruling No. DA-266-2004).

B. Housing or Living Quarters

Fringe benefits means any good, service or other benefit furnished or granted by an employer to an employee except rank and file employees in cash or in kind, in addition to basic salaries, such as housing.

Section 33 (a) of the Tax Code stipulates that fringe benefits which are “required by the nature of or necessary to the trade, business or profession of the employer or when the fringe benefit is for the convenience or advantage of the employer” are not subject to the fringe benefit tax.

If the living quarters are furnished to an employee for the convenience of the employer, the value thereof need not be included as part of compensation subject to withholding. Section 2.33 (B) (1) (g) of Revenue Regulations No. 3-98 implementing Section 33 of the Tax Code provides:

“(g) A housing unit which is situated inside or adjacent to the premises of a business/factory shall not be considered as a taxable fringe benefit. A housing unit is considered adjacent to the premises of the business if it is located within the maximum of fifty (50) meters from the perimeter of the business premises.”

If the fringe benefit is for the convenience or advantage of the employer, it may neither be included as part of compensation income of the employees subject to withholding nor be subject to the fringe benefit tax under Section 33 of the Tax Code.

A housing unit shall be considered to be for the convenience or advantage of the employer if the same is within fifty meters from the perimeter of the business premises and the employees are required to be on-call due to the nature of the employer’s business operation. (BIR Ruling No. DA-635-04 [December 15, 2004] issued to Foreign Holiday Philippines, Inc. See also BIR Ruling No. DA-241-04 [May 7, 2004] issued to Sohbi Koghei (Phils.), Inc.)

C. Life or Health Insurance

Section 2.33 (B) of Revenue Regulations No. 3-98 implementing Section 33 (C) of the Tax Code provides that premiums borne by an employer for its employees’ group insurance shall be considered as non-taxable fringe benefits, viz.:

“In general, except as otherwise provided under these Regulations, for purposes of this Section, the term “fringe benefit” means any good, service or other benefit furnished or granted by an employer in cash or in kind, in addition to basic salaries, to an individual employee (except rank and file employees as defined in these Regulations) such as, but not limited to the following: xxx xxx xxx

(10) Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows.”

For this purpose, the guidelines for valuation of specific types of fringe benefits and the determination of the monetary value of the fringe benefits are given below. xxx xxx xxx

(10) Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows — The cost of life or health insurance and other non-life insurance premiums borne by the employer for his employee shall be treated as taxable fringe benefit, except the following:

(a) contributions of the employer for the benefit of the employee, pursuant to the provisions of existing law, such as under the Social Security System (SSS), (R.A. No. 8282, as amended) or under the Government Service Insurance System (GSIS) (R.A. No. 8291), or similar contributions arising from the provisions of any other existing law; and

(b) the cost of premiums borne by the employer for the group insurance of his employees.”

Hence, based on the foregoing, the premiums borne by an employer under a Grepalife Group Plan for its employees constitute a non-taxable fringe benefit. (BIR Ruling No. DA-432-2004 [August 11, 2004] issued to SGV & Co. on behalf of Great Pacific Life Assurance Corporation citing BIR Ruling No. DA-126-2003 [April 21, 2003]. See also BIR Ruling No. DA-139-2005 issued to V. C. Mamalateo & Associates on behalf of Philippine American Life and General Assurance Company.)

D. Meal and Food Allowance

Meal and food benefits granted through meal and food vouchers, although not intended to be used for overtime work may be considered as ‘de minimis’ benefits and therefore exempt from income tax provided that such meal benefits shall not exceed twenty-five percent (25%) of the daily minimum wage. (BIR Ruling No. 023-2002 [June 21, 2002] issued to Sodexho Pass, Inc.)

In rendering such an opinion, the Bureau of Internal Revenue explained that Revenue Regulations No. 8-2000 and 10-2000 are merely illustrative and non-exclusive in the enumeration of what are considered as ‘de minimis’ benefits (BIR Ruling No. 081-03).

Any facility or privilege offered by an employer to his employees that is of relatively small value and furnished merely as a means of promoting the health, goodwill, contentment, or efficiency of employees may be considered as ‘de minimis’ benefits (BIR Ruling No. 081-03).

The meal and food vouchers pass the test of convenience on the part of the employer and the promotion of the health, goodwill, contentment, or efficiency of employees. The voucher system provides documentary support and ensures that the meal or food allowance given to employees is actually used for purchasing food and meals (BIR Ruling No. 081-2003).

Meal cash allowances are subject to standards set for ‘de minimis’ thresholds for fringe benefits under Revenue Regulations 3-98 as amended by Revenue Regulations No. 8-2000 and 10-2000. They are also subject to the tests of convenience of the employer and promotion of employees’ health, goodwill, contentment, or efficiency under Section 2.78.1 (A) (2) and (3) of Revenue Regulations No. 2-98 as amended by Revenue Regulations Nos. 8-2000 and 10-2000 (BIR Ruling No. 081-2003).

Meal and food benefits granted, although not to be used for overtime work may still be added to the enumeration of ‘de minimis’ fringe benefits. However, in terms of ‘de minimis’ threshold for regular meal and food benefit the ceiling for benefits of similar nature under Revenue Regulations No. 8-2000 should be applied. Such being the case, meal and food benefits not exceeding twenty-five percent (25%) of the daily minimum wage may be considered a ‘de minimis’ meal benefit and therefore tax-exempt (BIR Ruling No. DA-205-2005 [April 21, 2005] issued to Capt. Orlando C. Alovera c/o Philippine Coast Guard citing BIR Ruling No. 23-2002 [June 21, 2002]; BIR Ruling No. DA-168-2004 [April 5, 2004] issued to Philippines Samsung Electronics Corporation).

The excess of meal and food allowance given over the ‘de minimis’ ceiling shall still be tax exempt provided that it, together with the total amount of other benefits, shall not exceed P30,000.00 (BIR Ruling No. DA-264-2004 issued to Petron Corporation).

E. Medical Benefits

In general, fringe benefits granted to rank and file employees, including medical benefits, are exempt from the fringe benefits tax under the Tax Code. (BIR Ruling No. DA-078-2004 citing Section 33 (C) (3) of the Tax Code and BIR Ruling No. 057-1998 [May 21, 1998])

With respect to supervisory and managerial employees, the portion of medical benefits not exceeding P10,000.00 may be considered as a ‘de minimis’ benefit and therefore tax-exempt. The excess over P10,000.00 shall be considered as “other benefits” and still be exempt provided that the total together with the amount of other benefits shall not exceed P30,000.00 per annum. (BIR Ruling No. DA-078-2004 [February 20, 2004] citing Section 32 (B) (7) (e) (iv) of the Tax Code, issued to Lacson & Lacson Insurance Brokers, Inc.)

Thus, actual yearly medical benefits not exceeding P10,000.00 per annum shall be considered as a ‘de minimis’ benefits not subject to income tax as well as withholding tax on compensation income of both managerial and rank and file employees (BIR Ruling No. 081-03 citing Section 1 (A) (3) (e) of Revenue Regulations No. 10-2000).

Medical benefits provided to employees by companies to be tax-exempt must likewise comply with the tests of convenience of the employer and promotion of employees’ health, goodwill, contentment, or efficiency. (BIR Ruling No. DA-078-04, citing Sec. 2.78.1 (A) (2) and (3) of Revenue Regulations No. 2-98, as amended by Revenue Regulations Nos. 8-2000 and 10-2000)

In addition, the following conditions must concur:

(a) The amount given to the employee must be for his own medical expenses for a given taxable year;

(b) The amount actually given and actually spent for medical reasons shall not exceed P10,000.00 in any given calendar year. The term “actual” connotes something that exists in fact or existing in reality as distinct or contrasted with something that is potential, possible or a mere expectancy;

(c) The employee must fully substantiate with official receipts in his name the medical allowance so granted on or before the annualization of withholding taxes in any given calendar year (BIR Ruling No. 081-2003 citing BIR Ruling No. 019-2002 [May 9, 2002]).

F. Perfect Attendance Incentive

A system comprised of monthly perfect attendance incentives of P200.00 per month from the month of December of the previous year to November of the year in which the award is given to qualified employees every December, quarterly perfect attendance incentive of P600.00 per quarter awarded to qualified employees at the end of every quarter, and annual perfect attendance incentive of P1,000.00 awarded to employees with perfect attendance for one year from December of the previous year up to November of the year in which the award is given to rank and file and supervisory employees may be considered as a ‘de minimis’ benefit (BIR Ruling No. DA-159-2005 [April 14, 2005] issued to Punongbayan & Araullo on behalf of JAE Philippines, Inc.).

In BIR Ruling No. DA-159-2005, the above-described perfect attendance incentive system implemented by JAE Philippines, Inc. was considered as exempt from the fringe benefits tax since it was provided for the purpose of promoting employees’ contentment and efficiency by encouraging them to limit their absences and the values thereof are relatively small. (BIR Ruling No. DA-159-2005)

Thus, considering that the perfect attendance incentive system is a ‘de minimis’ benefit, it is not subject to income tax as well as to withholding tax on income of both managerial and rank and file employees. Further, the said incentives should not be included in the “other benefits” for purposes of applying the P30,000.00 ceiling under Section 32 (B) (7) (e) of the Tax Code (BIR Ruling No. DA-159-2005).

G. Performance Incentive

Monthly performance incentives given to rank and file employees are not subject to the fringe benefits tax if given to rank and file employees pursuant to Section 2.33 (C) (3) of Revenue Regulations No. 3-98, as amended. The following were the amounts of monthly performance incentives in BIR Ruling No. DA-169-2004: P500.00 for engineers, P350.00 for line leaders, P200.00 for operators, P400.00 for staff, and P250.00 for quality control inspectors. (BIR Ruling No. DA-169-2004 [April 6, 2004] issued to Mitsuwa Philippines, Inc.)

In addition, monthly perfect attendance incentives in the amount of P150.00 and annual perfect attendance incentives in the amount of P2,000.00 for one (1) year, P6,000.00 for two (2) years, and P15,000.00 for three (3) years given to rank and file employees were also considered as exempt from the fringe benefits tax pursuant to Section 2.33 (C) (3) of Revenue Regulations No. 3-98 as amended. (BIR Ruling No. DA-169-2004)

The above-described performance and monthly and annual perfect attendance incentives given to supervisory and managerial employees were considered as ‘de minimis’ benefits since they are of relatively small value and offered by the employer merely as a means of promoting its employees’ health, goodwill, contentment, or efficiency. Consequently, they were exempted from the fringe benefits tax (BIR Ruling No. DA-169-2004).

H. Productivity Incentive Bonus

The productivity incentive bonus granted by Lufthansa Technik Philippines, Inc. (“LTP”) to all its employees to encourage them to achieve certain targets set by LTP in order to avoid payment of penalties to customers was considered as “other benefits” under Section 32 (B) (7) (e) of the Tax Code. As such, they need not form part of the employees’ taxable income subject to withholding tax on wages under Section 79 in relation to Section 24 (A) both of the Tax Code. However, such “other benefits” inclusive of the said productivity incentive bonus should not, in the aggregate, exceed P30,000.00 when added to the 13th month pay (BIR Ruling No. DA-026-2005 [January 21, 2005] issued to Lufthansa Technik Philippines, Inc.).

Under the service contract agreement between LTP and its customers, in case LTP incurs a delay in the delivery of services due to its own fault, LTP shall pay the corresponding penalty. The bonus is given to LTP employees subject to the following conditions: (1) achievement of 98 percent maintenance original dispatch reliability and (2) zero technical incidents per week. That –

“Dispatch reliability means the percentage flights which depart without incurring a delay or cancellation (both technically originated). Technical incidents shall mean the following: (1) any new maintenance overrun including AD/CN; (2) any damage to aircraft, engine, components, or unsafe/non-airworthy condition thereof caused by faulty workmanship and/or non-compliance with standard practices/technical procedures and/or company procedures; (3) any finding of faulty workmanship and/or non-compliance with standard procedures that, if undetected, could have resulted in damage of an aircraft, engine, components, or an unsafe/no-airworthy condition thereof; and (4) any case of incompletely and/or improperly accomplished release-to-service documentation. That the performance is measured on a weekly basis xxx” (BIR Ruling No. DA- 026-2005)

Once the above-described two conditions are met, LTP employees will be entitled to a performance bonus based on their job grade classification: (1) job grades A to D – P350.00 per week; and (2) job grades E to E – P700.00 per week (BIR Ruling No. DA-026-2005).

Under Section 32 (B) (7) (e) (iv) of the Tax Code, “other benefits” include all benefits other than the 13th month pay such as the annual Christmas bonus given by private offices, 14th month pay, mid-year productivity incentive bonus, gift in cash or in kind and other similar benefits received by an employee in one calendar year, the total amount of which including the 13th month pay is subject to the ceiling of P30,000.00 (BIR Ruling No. DA-026-2005).

I. Rice Subsidy

Rice allowance benefit in the amount of P1,000.00 per month is within the limitation set by Revenue Regulations No. 3-98 as amended by Revenue Regulations Nos. 8-2000 and 10-2000. Accordingly, rice allowance in the amount of P1,000.00 per month is neither subject to income tax nor to the fringe benefit tax. (BIR Ruling No. DA-168-2004)

In keeping with the spirit of the rules and regulations on ‘de minimis’ benefits, there can be no aggregation of the values set for each item of benefit stated in Revenue Regulations Nos. 2-98 and 3-98 as amended by Revenue Regulations Nos. 8-2000 and 10-2000. The intent of the Regulations is to treat each item of ‘de minimis’ benefit independently of each other. Thus, the Regulations separately provide maximum values for rice allowance and for meal allowance and there can be no aggregation of ‘de minimis’ values for rice and meal and food benefits (BIR Ruling No. DA-168-2004, April 5, 2004, citing BIR Ruling No. 23-2002 [June 21, 2002]).

J. Subsistence Allowance

In BIR Ruling No. DA-163-98 [April 12, 1998] the Bureau of Internal Revenue considered the subsistence allowance in the amount of P80.00 per day or P2,400.00 per month furnished by Yazaki-Torres Manufacturing, Inc. to its employees in order to promote the latter’s health, goodwill, contentment and efficiency as a ‘de minimis’ benefit considering further that the same was of relatively small value. Accordingly, the benefit was not subjected to the withholding tax prescribed in Section 79 in relation to Section 24 both of the Tax Code as implemented by Revenue Regulations No. 2-98 (BIR Ruling No. DA-163-98 [April 22, 1998] issued to Yazaki-Torres Manufacturing, Inc.).

In the above-cited Ruling it was represented that the company’s main office and place of production is in Calamba, Laguna. The company maintained a Manila Liaison Office to facilitate communication and dealing with government and private offices in Manila. Most of the company’s employees assigned to its Manila Liaison Office were coming from Laguna and Batangas. The company granted a daily subsistence allowance in the amount of P80.00 to compensate its employees for the additional expense in their daily subsistence (BIR Ruling No. DA-320-99).

Facilities and privileges offered by employers to employees generally will not be considered as income subject to withholding if the same are of relatively small value and furnished merely as a means of promoting the health, goodwill, contentment, or efficiency of employees. These facilities or privileges include entertainment, medical service or so-called “courtesy” discounts on purchases (BIR Ruling No. DA-320-99).

K. Transportation and Representation Allowances

In general, transportation and representation allowances that are fixed in amount and regularly received by employees as part of their monthly compensation income will be considered as taxable compensation income subject to tax imposed under Section 24 of the Tax Code (BIR Ruling No. 168-2004).

However, any amount paid specifically, either as advances or reimbursements for traveling, representation and other bona fide ordinary and necessary expenses incurred or reasonably expected to be incurred by an employee in the performance of his duties may not be considered as compensation subject to withholding, if the following conditions are satisfied:

(a) It is for ordinary and necessary traveling and representation or entertainment expenses paid or incurred by the employee in the pursuit of the employer’s trade, business or profession; and

(b) The employee is required to account or liquidate for the same in accordance with the specific requirements of substantiation for each category of expenses pursuant to Section 34 of the Tax Code. The excess of advances made over actual expenses shall constitute taxable income if such amount is not returned to the employer.

However, reasonable amounts of reimbursements or advances for traveling and entertainment expenses which are pre-computed on a daily basis and paid to an employee while he or she is on an assignment or duty are not subject to substantiation and withholding (Revenue Regulations 8-2000).

Thus, pre-computed transportation allowance in the amount of two thousand pesos (P2,000.00) per month or around ninety-one pesos (P91.00) per day given to customer service representatives of Philippine Long Distance Company subsidiaries, Parlance and Vocative, while on duty, and three thousand pesos (P3,000.00) or around one hundred thirty six pesos (P136.00) per day for coaches were not considered as compensation subject to income tax and consequently to withholding tax on wages in accordance with Revenue Regulations No. 2-98, as amended (BIR Ruling No. DA-335-2004 [June 25, 2004] issued to Philippine Long Distance Company).

Moreover, since the transportation allowance is pre-computed on a daily basis and are paid to the employee while on assignment or duty, the said transportation allowance was not subjected to the requirements of substantiation and to withholding pursuant to Revenue Regulations No. 2-98, as amended.

L. Uniforms and Clothing Allowance

Uniforms and clothing allowance not exceeding P3,000.00 per annum may be considered tax-exempt benefits. Any excess over the P3,000.00 limit prescribed under the Regulations shall be added to the “other benefits” under Section 32 (B) (7) (e) of the Tax Code for purposes of determining whether or not the P30,000.00 threshold has been exceeded. The excess over P30,000.00 shall be taxable to the employee receiving the benefits. (BIR Ruling No. DA-264-2004)

IV. Conclusion

Facilities and privileges that are considered as ‘de minimis’ under pertinent rules and regulations and/or BIR rulings are excluded from employees’ taxable gross compensation income. Further, they are also excluded from “other benefits’ subject to the P30,000.00 limit on the total amount thereof and are thus exempt from income tax under Section 32 (B) (7) (e) of the Tax Code Further, ‘de minimis’ benefits are not subject to withholding tax on compensation in view or their tax exemption (BIR Ruling No. 168-2004).

Revenue Regulations No. 8-2000 and 10-2000 are merely illustrative and non-exclusive in the enumeration of what are considered as ‘de minimis’ benefits (BIR Ruling No. 081-03). Thus the Bureau of Internal allowed ‘de minimis’ amounts of meal and food allowance not for overtime work, perfect attendance and performance incentives, and subsistence allowance as tax-exempt benefits although they are not included in the enumeration under the Regulations.

In keeping with the spirit of the rules and regulations on ‘de minimis’ benefits, there can be no aggregation of the values for each item of benefit pursuant to Revenue Regulations Nos. 2-98 and 3-98 as amended by Revenue Regulations Nos. 8-2000 and 10-2000. The intent of the Regulations is to treat each item of ‘de minimis’ benefit independently of each other (BIR Ruling No. 168-2004).

Gross benefits granted to rank and file, supervisory or managerial employees including the 13th month pay up to the extent of the threshold of P30,000.00 mandated by Section 32 (B) (7) (e) of the Tax Code are also excluded from gross income and therefore tax-exempt. Benefits received by employees in excess of the said threshold of P30,000.00 are considered as taxable income (BIR Ruling No. 168-2004).

The “other benefits” referred to in Section 32 (B) (7) (e) of the Tax Code include the 13th month pay, Christmas bonus, 14th month pay, gifts in cash or in kind, other similar benefits, and benefits in excess of the limits prescribed for each item under Revenue Regulations Nos. 2-98 and 3-98 as amended by Revenue Regulations Nos. 8-2000 and 10-2000.

V. Bibliography

A. Statute

Republic Act No. 8424 [1997] otherwise known as the National Internal Revenue Code of 1997 or the Tax Code

B. Revenue Regulations

Revenue Regulations No. 10-2000 [December 14, 2000] amending Revenue Regulations Nos. 2-98 and 3-98, as last amended by Revenue Regulations 8-2000.

Revenue Regulations No. 8-2000 [August 21, 2000] amending Revenue Regulations Nos. 2-98 and 3-98.

Revenue Regulations 3-98 [May 21, 1998, effective starting January 1, 1998]. Implementing Section 33 of Republic Act No. 8424 Relative to the Special Treatment of Fringe Benefits.

Revenue Regulations 2-98 [April 17, 1998]. Implementing Republic Act No. 8424 Relative to the Withholding on Income Subject to the Expanded Withholding Tax and Final Withholding Tax, Withholding of Income Tax on Compensation, Withholding of Creditable Value-Added Tax and Other Percentage Taxes.

C. BIR Rulings

No. DA-205-2005 [April 21, 2005] issued to Capt. Orlando C. Alovera c/o Philippine Coast Guard

No. DA-159-2005 [April 14, 2005] issued to Punongbayan & Araullo

No. DA-139-2005 [April 11, 2005] issued to V. C. Mamalateo & Associates on behalf of Philippine American Life and General Assurance Company

No. DA-026-2005 [January 21, 2005] issued to Lufthansa Technik Philippines, Inc.

No. DA-635-04 [December 15, 2004] issued to Foreign Holiday Philippines, Inc.

No. DA-432-2004 [August 11, 2004] issued to SGV & Co. on behalf of Great Pacific Life Assurance Corporation

No. DA-335-2004 [June 25, 2004] issued to Philippine Long Distance Company

No. DA-266-2004 [May 17, 2004] issued to the Office of the Ombudsman

No. DA-241-04 [May 7, 2004] issued to Sohbi Koghei (Phils.), Inc.

No. DA-264-2004 issued to Petron Corporation

No. DA-169-2004 [April 6, 2004] issued to Mitsuwa Philippines, Inc.

No. DA-168-2004 [April 5, 2004] issued to Philippines Samsung Electronics Corporation

No. DA-078-2004 [February 20, 2004] issued to Lacson & Lacson Insurance Brokers, Inc.

No. 081-2003 issued to Sodexho Pass, Inc.

No. 023-2002 issued to Sodexho Pass, Inc.

No. DA-163-98 [April 22, 1998] issued to Yazaki-Torres Manufacturing, Inc.