The Bureau of Internal Revenue (BIR) has released Revenue Regulations No. 004-2025, stating that the annual clothing allowance for government employees will be increased to P7,000. Additionally, the regulation clarifies that this allowance will be exempt from income tax on compensation and fringe benefit tax, in line with the implementation of Republic Act No. 11466.

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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 exempt from income tax on compensation as well as from fringe benefit tax in relation to the implementation of Republic Act No. 11466.