RR No. 18-2025 — Amending Pertinent Provisions of Revenue Regulations No. 25-2003, as Amended, to Implement Section 149 of the National Internal Revenue Code of 1997, as Further Amended Under Section 18 of Republic Act No. 12214, Otherwise Known as the "Capital Markets Efficiency Promotion Act" (Date Posted: August 5, 2025)

Bringing In Revenues for Nation-Building BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE National Office Building Quezon City AUG 0 5 2025 PILIPINAS BAGONG

REVENUE REGULATIONS NO. 018-2025

SUBJECT Amending Pertinent Provisions of Revenue Regulations No. 25-

Internal Revenue Code of 1997, as Further Amended Under Section 18 of Republic Act No. 12214, Otherwise Known as the "Capital Markets Efficiency Promotion Act" 2003, as Amended, to Implement Section 149 of the National

TO All Internal Revenue Officials, Employees and Others Concerned

these Regulations are hereby promulgated to amend Revenue Regulations (RR) No. 25-2003. the list of tax-exempt automobiles. as amended, in relation to RR No. 5-2018, mainly for the purpose of removing pick-ups from SECTION 1. SCOPE. Pursuant to Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), in relation to Sections 18 and 25 of Republic Act (RA) No. 12214, otherwise known as the "Capital Markets Efficiency Promotion Act" (CMEPA)

now reads, as follows: Section 149 of the Tax Code, as further amended by Section 18 of the CMEPA, which

"SEC. 149. Automobiles. -- There shall be levied, assessed and collected an ad

valorem tax on automobiles based on the manufacturer's or importer's

following schedule: selling price, net of excise and value-added tax, in accordance with the

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Provided, That hybrid vehicles shall be subject to fifty percent (50%) of the further, That purely electric vehicles shall be exempt from excise tax on applicable excise tax rates on automobiles under this Section: Provided. automobiles.

list of automobiles exempt from excise tax starting July 1, 2025. SECTION 2. COVERAGE. -- These Regulations cover the exclusion of pick-ups from the

hereby further amended to read as follows: SECTION 3. DEFINITION OF TERMS. Section 2 of RR No. 25-2003, as amended, is

following words and phrases shall have the meaning indicated below. (a "SEC. 2. DEFINITION OF TERMS. - For purposes of these Regulations, the XXX BUREAU OF INTERNAL REVENUE RECORQS MANAGEMENT DIVISION 0

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X X X

o PICK-UPS -- shall refer to motor vehicles having enclosed cab and oper

bodies with low sides and tailgates.

SECTION 4. RATES. -- Section 4 of RR No. 25-2003, as amended, is hereby amended and shall now read, as follows:

"SEC. 4. RATES AND BASES OF THE AD VALOREM TAX ON

price, net ofexcise and value-added tax, in accordance with the following schedule: on automobiles based on the manufacturer's/ assembler's or importer's selling AUTOMOBILES. There shall be levied, assessed and collected an ad valorem tax

Net Manufacturer's/ Importer's Selling Price Tax Rate Up to Six Hundred Thousand Pesos (P600,000.00) 4% Over Six Hundred Thousand Pesos (P600.000.00 to One Million Pesos (P1,000,000.00) 10%

Over One Million Pesos (P1,000,000.00) to Four Million Pesos (P4,000,000.00) 20%

Over Four Million Pesos (P4,000,000.00) 50%

applicable excise tax rates on automobiles: Provided, further, That purely electric Provided, that hybrid vehicles shall be subject to fifty percent (50%) of the

vehicles shall be exempt from excise tax on automobiles. '

SECTION 5. TAX-EXEMPT REMOVALS OF AUTOMOBILES. - Section 9 of RR No 25-2003 is hereby further amended to exclude pick-ups from the list of tax-exempt removals of automobiles and shall now read, as follows:

from the place of production or from customs ' custody, respectively, are exempt from the payment of the appropriate excise taxes subject to certain conditions removals of locally manufactured/assembled or release of imported automobiles "SEC. 9. TAX-EXEMPT REMOVALS OF AUTOMOBILES. The following

a. Removals for Export

automobiles which shall be remc No ad valorem tax shall be collected on locally manufactured/assembled 1 ed for exportation and are actually

conditions: exported without returning to the Philippines subject to the following

(1) Permit to Export -- Immediately before removal, exporters of automobile shall apply in writing for a written permit from the

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Commissioner of Internal Revenue. stating the brand/model number of units and value per unit of the automobiles to be

appropriate permit shall be deemed prima facie evidence of illegal removal of the same and the ad valorem tax shall be due immediately upon demand. exported, country of destination, name of the vessel, consignee, and the place of loading. The discovery of any of such unit in-transit or which have actually been exported without the issuance of the

(2) Direct delivery to vessel - Automobiles for export shall be loaded direct from the place of production/assembly to the vessel or means of transportation carrying them outside the Philippines and the

same shall be under the supervision of authorized internal revenue

territory. Bureau of Customs immediately after loading and departure of the vessel or other means of transportation from the Philippine officer. A certification to this effect shall be duly issued by the

(3) Proof of exportation -- Exporters of automobiles are required to from the place of assembly/production. The proofs of exportation submit proof of exportation satisfactory to the Commissioner of shall consist of the following documents. Internal Revenue within thirty (30) days from the date of removal

i Statement from the Bangko Sentral ng Pilipinas (BSP) or

any of its accredited banks that the proceeds of the sale in

and accounted for in accordance with the existing banking rules and regulations; acceptable foreign currency have been inwardly remitted

ii. Certified true copy of the bill of lading or airway bill

iii. Commercial invoice issued by the manufacturer/assembler exporter to the foreign consignee; and

iv. An Export Entry and a Certificate of Inspection and supervised the actual loading of the automobile units into the vessel. Loading issued by the Bureau of Customs officer who had

official receipt covering the payment. required to pay the ad valorem tax including the applicable penalties. Such payment shall be entered in the Official Register Book stating the date of payment and validation number of the the thirty-day period, or where such proofs are submitted within the period but the same are not satisfactory to the Commissioner of Internal Revenue, the manufacturer/assembler-exporter shall be In cases where the proofs of exportation are not submitted within

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(4) Exporter's bond -- when deemed necessary, an exporter shall be

required to give a bond for an amount equivalent to the removal of

the same in good faith. the same for export shipment, conditioned upon the exportation of

b. Delivery to tax-exempt persons or entities -

allowed to sell to tax-exempt persons c ad valorem tax subject to certain conditions. Manufacturers/assemblers or importers of automobiles are hereby r entities without the pre-payment of

1. Tax exempt persons or entities

a) Embassies of foreign governments subject to the principle of reciprocity.

b) Tax-exempt organizations such as the Asian Development Bank

and regulations. (ADB) pursuant to special laws and subject to existing rules

c) Other tax-exempt entities or agencies covered by tax treaties! conventions, and international agreements to which the Philippines is a signatory subject to reciprocity.

automobiles from customs custody without the pre-payment of the ad valorem tax subject to existing rules and regulations The above persons or entities may also remove imported

2. Requirements in the sale of automobiles to tax-exempt entities

purchase order indicating the description of the automobiles to be purchased; the chassis and engine number; and the place or location of the point of delivery of the automobiles. indorsement from concerned government agency (e.g., Department of Foreign Affairs for tax exempt purchase of automobile by foreign embassies for their official use); an authenticated true copy of the place of production or release from customs custody for sale to tax- approval of such exemption submitting, among others, favorable exempt agencies without prior written approval from the Commissioner of Internal Revenue. The tax-exempt customer of the manufacturers/assembler or importer shall apply in writing for the No automobiles shall be removed from the assembly plant or

from excise tax, to the dealer. Such written approval is valid only for the particular transaction applied for by the tax-exempt customer. his duly authorized representative shall be forwarded by the tax- exempt customer to the manufacturer/assembler, through the dealer and thereafter, the automobile may be removed and delivered, free The written approval of the Commissioner of Internal Revenue or RUREA PF INTERNEN REVENUE Page 4 of 7

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3. Tax credits/refunds by tax-exempt persons or entities.

the ad valorem tax had been erroneously or illegally collected, such automobiles in which the ad valorem tax due thereon was paid or where In cases where the tax-exempt persons or entities purchased

and regulations, submitting the following: tax-exempt persons or entities may file a claim for tax refund or tax credit with the Commissioner of Internal Revenue under existing rules

b) Original and duplicate copies of sales invoices; and a) Authenticated copy of the Certificate of Tax Exemption;

c) Certified photocopies of proof of payment of the ad valorem tax

by the BIR but the actual issuance of Tax Credit Certificate/refund shall tax should be filed within two (2) years from date of payment of the ad come from the agency where the actual payment was made. valorem tax. Processing of claims for tax refund/credit shall be done The claim for tax credit/refund for erroneous payment of ad valorem

c. Removals for delivery and use exclusively within the freeport zone -

subject to customs duties, taxes, and charges, including excise and value- establishments located within the customs territory for use exclusively automobile was purchased from establishments located within the customs territory, the same shall be deemed an importation into the Philippines the legislated freeport zones from abroad or purchased from tax. Therefore, in the event that the automobile is, by whatever mode, introduced into the customs territory, in case where the automobile was directly imported, or re-introduced into the customs territory in case the added taxes. within the freeport zone shall be exempt from the imposition of the excise For purposes of these Regulations, automobiles imported directly into

d.Removal of automobiles for test run -

the said unit to the manufacturing/assembly plant within the prescribed period, the ad valorem tax otherwise due thereon shall be immediately due should be given to the appropriate BIR Office that may allow the test run; provided, that the unit under the test run shall be returned to the plant on the same day. In the event that the manufacturer/assembler failed to return and demandable. Should an automobile be removed for test run, prior notice of the test

e. Purely Electric Vehicle --

Automobiles. Hybrid Vehicles shall be subject to Fifty Percent (50%) of Purely Electric Vehicle shall be exempt from the Excise Tax on

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automobiles from the manufacturing plant or customs custody, the Commissioner of Internal Revenue (CIR), shall refer to the electric vehicle recognition list published by the Department of Energy (DOE), which contains the information and classification for battery electric vehicles the applicable excise tax rates on automobiles, prior to the removal of the

and hybrid electric vehicles (HEV). (purely electric vehicles/BEV), plug-in hybrid electric vehicles (PHEV),

from excise tax or subject to 50% excise tax, respectively, on the basis of The BIR shall make a determination whether the automobile is exempt

the DOE's list of recognized electric vehicles. published on its website

assessment of the automobiles. without prejudice to the BIR's authority to conduct any post-verification

certified true copy of an updated list of recognized electric vehicles. list of recognized electric vehicles, the DOE shall furnish the BIR with a For purposes of keeping up to date with the latest publications of the

SECTION 6. RESPONSIBILITY OF MANUFACTURERS, ASSEMBLERS AND IMPORTERS. -- All manufacturers, assemblers or importers are hereby required to file an updated manufacturers'/assemblers' or importers' sworn statement on all brands/models of pick-ups as of June 30, 2025. The updated manufacturers'/assemblers' or importers' sworn

Division (ELTRD) within fifteen (15) working days from the date of effectivity of these Regulations. This sworn statement shall likewise be subjected to verification as provided under existing regulations and issuances. statement shall be submitted to the CIR. Attention: Chief. Excise Large Taxpayers Regulatory

the date of effectivity of these Regulations. Failure to submit the inventory list shall be construed that the concerned manufacturers, assemblers or importers do not have any inventory Customs (BOC) on or before June 30, 2025, indicating therein the brand, model, year, engine Chief, Excise LT Field Operations Division (ELTFOD) within fifteen (15) working days from on hand or in transit of CBUs. CKDs and SKDs as of June 30. 2025. notarized list of inventory of on-hand Completely Built-Up (CBU) pick-ups, including Completely Knocked-Down (CKD) and Semi-Knocked Down (SKD) units that are located within the manufacturing/assembly plant, storage facility or warehouse or the customs premises, and those in transit for which import entries have been filed with the Bureau of number, body and chassis number thereof. The list shall be submitted to the CIR, Attention: All manufacturers, assemblers or importers are further required to submit a duly

implementation of these Regulations, the imposition of excise tax on pick-ups shall not apply on the following: SECTION7.TRANSITORYPROVISION. In order to ensure the orderly

1 Those units that are included in the inventory list as of June 30, 2025 duly

submitted to the BIR within the prescribed period; and

2. Those units in transit for which import entries have been filed with the BOC on or before June 30, 2025 and withdrawn on or after July 1, 2025.

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SECTION 8. SEPARABILITY CLAUSE. - If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.

are hereby repealed, amended or modified accordingly. SECTION 9. REPEALING CLAUSE. - parts thereof which are contrary to and inconsistent with the provisions of these Regulations - All other issuances and rules and regulations or

SECTION 10.EFFECTIVITY. -- These Regulations shall take effect on July l, 2025 following its publication in the Official Gazette or the Bureau of Internal Revenue's official website, whichever comes first.

RAIPH RECTO Sectetar &f Finance

9 2925 Recommending Approval:

ROME umaGuI, Jr. Comntssioner of Internal Revenue

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