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THE Bureau of Internal Revenue (BIR) has upheld the tax exemption on the P7,000 uniform or clothing allowance of government employees.
“Pursuant to Sections 4 and 244 in relation to Section 33 of the Tax Code of 1997, these regulations are hereby promulgated to further amend RR Nos. 2-98, as amended, with respect to de minimis benefits which are exempted from income tax on compensation as well as from fringe benefits tax in relation to the implementation of Republic Act No. 11466,” the BIR said in a revenue regulation dated Jan. 30.
This regulation will take effect after 15 days following publication.
In April 2024, the Department of Budget and Management (DBM) announced in a budget circular an increase in the uniform grant to P7,000 annually to qualified government employees.
This clothing grant was P6,000 previously.
The DBM circular covered civilian government personnel occupying regular, contractual, or casual positions; appointive or elective posts; and those rendering services on a full-time or part-time basis. — Aubrey Rose A. Inosante
