Taxable and Non-Taxable Income Review

A set of vocabulary flashcards covering non-taxable de minimis benefits, statutory deductions, and tax calculation formulas based on the lecture transcript.

De Minimis Benefits

Non-taxable compensation granted by employers to their employees holding managerial and rank-and-file positions that are mandated by law.

Monetized Unused Vacation Leave (Private Employees)

Credits of private employees that are non-taxable up to $10$ days.

Medical Cash Allowance to Dependents

Non-taxable de minimis benefit up to $Php\,1,500$ per semester or $Php\,250$ per month.

Rice Subsidy

De minimis benefit up to $Php\,2,000$ or one sack of $50\,kg$ rice per month amounting to not more than $P2,000$.

Uniform and Clothing Allowance

Non-taxable de minimis benefit not exceeding $Php\,7,000$ per annum.

Actual Medical Assistance

Includes medical allowance, annual check-ups, maternity assistance, and routine consultations, not exceeding $Php\,10,000$ per annum.

Laundry Allowance

Non-taxable de minimis benefit up to $Php\,300$ per month.

Employee Achievement Awards

Awards for length of service or safety in the form of cash, gift certificates, or property, with an annual monetary value not exceeding $Php\,10,000$.

Christmas and Major Anniversary Gifts

Gifts not exceeding $Php\,5,000$ per employee per annum.

Daily Meal Allowance (Overtime/Night Shift)

Non-taxable benefit for overtime and night/graveyard shifts not exceeding $25\%$ of the basic minimum wage on a per region basis.

CBA and Productivity Incentive Schemes

Combined annual monetary value received from both schemes that is non-taxable up to $Php\,10,000$ per employee per annum.

Other Benefits Ceiling

Benefits given in excess of the maximum De Minimis amounts are included as part of other benefits subject to a $Php\,90,000.00$ ceiling.

Aggregation Rule

The rules and regulations on de minimis benefits do not allow aggregation of the amounts set for each type of benefit.

Exempted Statutory Contributions

Social security contributions (SSS, GSIS, Philhealth, Pag-ibig) up to mandatory limits and union dues that are excluded from gross income.

SSS Employee Share

The employee's contribution portion to the Social Security System, which is $4.5\%$.

GSIS Employee Share

The contribution made by government employees, which is $9\%$ of their actual monthly salary.

Philhealth Premium Rate (2026)

The premium rate scheduled for $2026$ which is $5.00\%$ of the monthly basic salary.

Pag-IBIG Monthly Savings (Mandatory)

The required member share which is capped at $Php\,200$ based on a Maximum Fund Salary (MFS) of $Php\,10,000$ effective February $2024$.

Taxable Income

Calculated as Total Income minus (Total Non-Taxable Income and Total Non-Taxable Deductions).

Net Income

The remaining income calculated by subtracting Total Deductions from Gross Income.