RMC No. 20-2023 — Clarifies the provision of Section 5 of RMC No. 063-22 pertaining to the application of the three (3) primary taxable bases in applying the excise tax rates for automobiles

REPUBLIC OF THE PHILIPPINES BUREAU OF INTERNAL WEVE E NaYY

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE FEB 08 2023 s 2.m

RECorDS MGt. DiVISIO?

O8 February 2023

REVENUE MEMORANDUM CIRCULAR NO. _ 20- 2023

SUBJECT (3) Primary Taxable Bases in Applying the Excise Tax Rates Clarifying the Provision of Section 5 of Revenue Memorandum Circular No. 063-22 pertaining to the Application of the Three

for Automobiles

TO All Internai Revenue Officials and Revenue Officers Concerned

This Circular is hereby issued to address the issues and concerns pertaining to the correct tax base in computing the excise tax on the importation of automobiles for resale pursuant to Section 149 of the National Internal Revenue Code (Tax Code) of 1997, as amended.

primary taxable bases on which an excise tax rates shall be applied, as follows: Based on Section 5 of Revenue Memorandum Circular (RMC) No. 063-22; there are 3

bases in applying the excise tax rates for automobiles, namely: "Based on the above provisions, there are three (3) primary taxable

2 3. I Declared manufacturer's or importer's selling price, net of excise Based on the 80% actual dealer's price, net of excise and value- added taxes; and Based on the total cost of importation and expenses divided by and value-added taxes;

90%.

taxable base provided above, which is "the total cost of importation and expenses divided by Several issues and concerns have been raised with the Bureau on the application of the 3rd

90%". Relative thereto, this Office clarifies that the 3ra'taxable base provided in number 3 of Section 5 of RMC No. 63-22 shall only apply in cases where the Net Importer's selling price is fower than the cost of importation and expenses as defined in said RMC.

All other issuances inconsistent herewith are hereby repealed and modified accordingly.

All internal revenue officials/officers, employees and others concerned are hereby enjoincd to give this Circular a wide publicity as possible.

This Circular shall take effect immediately.

JMAGUI JR momissioner of Internal Revenue

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