In 2024, a mid-sized BPO in Taguig faced an unexpected tax reassessment after misclassifying employee allowances as non-taxable de minimis benefits. The result: over ₱1.2 million in back taxes and penalties, plus months of payroll reconciliation. The issue wasn’t generosity—it was misunderstanding de minimis rules. According to Philippine tax guidelines, de minimis benefits are non-taxable