BIR Ruling No. 379-11

October 20, 2011 BIR RULING NO. 379-11 RR No. 5-2011; 00-000 Monde Nissin Corporation 22/F 6750 Tower, Ayala Avenue Makati City, Philippines 1226 Attention: Ms. Corazon Sy Gonzales Personnel & Admin. Manager Gentlemen : This refers to your letter dated June 13, 2011 requesting for a clarification on Meal Allowance for Overtime Work under Revenue Regulations (RR) No. 5-2011 dated March 16, 2011 as against BIR Ruling No. DA-364-03 dated July 23, 2009 which provides that "even if the meal allowance is not given on occasion of overtime work, it may still be considered as "de minimis" meal allowance not subject to withholding tax on compensation." In reply, we regret to inform you that daily meal allowance which is not granted for overtime work and night/graveyard shift and not exceeding twenty five percent (25%) of the basic minimum wage, is not included in the term "DE MINIMIS" benefit anymore in view of Section 1 (j) and Section 4 of RR No. 5-2011 provides, viz.: Section 1. Section 2.78.1 (A) (3) (c) and (d) of RR 2-98, as last amended by RR 5-2008, is hereby amended as follows: "Sec. 2.78.1 Withholding of Income Tax on Compensation Income . (A) . . . (1) . . . xxx xxx xxx (2) Facilities and privileges of relatively small value xxx xxx xxx The following shall be considered as "de minimis" benefits not subject to income tax as well as withholding tax on compensation income of both managerial and rank and file employees: DTEAHI j) Daily meal allowance for overtime work and night/graveyard shift not exceeding twenty five percent (25%) of the basic minimum wage on a per region basis. All other benefits given by employers which are not included in the above enumeration shall not be considered as "de minimis" benefits, and hence, shall be subject to income tax as well as withholding tax on compensation income. Section 4. Repealing Clause . All existing rules and regulations or parts thereof which are inconsistent with the provisions of these regulations are hereby revoked, repealed or modified accordingly. A copy of RR No. 5-2011 is herewith attached for your information and appreciation. Please be guided accordingly. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue