RR No. 8-2011 — Amends certain provisions under Annex A of RR No. 23-2003 relative to the revised tax classification of new brands of alcohol products and variants thereof (Published in Manila Bulletin on June 23, 2011) Digest | Full Text | Annex A

BUREAU OF INTERNAL REVENUE REPUBLIC OE THE PHHILIPPINES DEPARINIFNT OF FInANGE BUNTAU OF INTERNAL HUVHNUU RHRR MGT TOISION JUN Z 1 Z01 98 i0:Qb Am

RECEIYED Quyon ('ity

Aprit 5, 201

REVENUE REGULATIONS NO. 6- 201

SUMECT Pcgulations No. 23-2003 dated August 22. 2003 Amending Certain Provisious Under "Anmex A" of Revenue

TO A!l luternal Revenue t Hticials and Others Concerned

BACKGROUND

of I997. as amendc!. made a distinction on the manner of computing the excise tax on The provisions of Section 141 (a) aud (b) of the National Internal Revenue Code

distilled spirits on tlte basis of the primary' raw materials used in the production thereof.

hipo. coconut. cassava. comofe, or huri palm or from the juice, syrup or sugar of the cane, Under Section 141 (a), if the distilied spirits are produced specifically from the sap ol

a singie specific tax rate per proof liter is directly imposed thereon. On the other hand, if the distifled spirits are produced from other raw materials which are not included in the said enumcration, the net retail price per bottle of seven hundred fifty milliliter (750 ml) volume capacity. exeluding vafue-added and excise taxes, should have to be determined first because the specific tax rate imposed under Sectiou 14t (b) vary according to three (3) price categories of such type of distilled spirits.

Oue of' the distilled spirits that falls under Section 141 (n) is the so called "rum".

fernentation and distillation and subsequently stored in oak barrels for a number of years The primary raw matcrial of rum is the juice of the sugarcane which undergoes

(called. "aging") depcnding on the desired taste and color before the same is bottted and eventually sold to consumers. However. there are certain imported brands of rum that were identified to have been erroneously classified as distilled spirits falling under Section 141 (b). as enumerated in Annex "A" of Revenue Rcgulations No. 23-2003. resulting. therefore. lo confusion and vioiation of the rule of uniformity in taxation to the detrinent of the af fected taxpayers.

It is. therefore. of paramount importance that this misclassification be rectified int order that these imported brands of run (e accorded the proper tax treatment; hence, this Regulatious.

CORPORATE COMMUNICATIONS DATE RECEIVED DYIGEY

SECTION 1. SCOPE. - Pursuant to the provisious of Section 244 in rclation to Section 245 of the Nationai Internal Revenue Code (NIRC) of 1997, as amended, these Regulations are herehy promulgated to antend the certain provisions prescribed under "Annex A" of Revenuc Regulations (RR) No. 23-2003 dated August 22, 2003 which iniplemented the revised tax classification of new brands of alcohol products and variants thereof based on the current net retail prices as determined in the survey conducted pursuant to Revenue Regulations No. 9-2003.

SEC. 2. AMENDING PROVISIONS. The provisions of "Anuex A" of RR No. 23-2003 are hereby amended and shall be read, in so far as the brands enumerated betow are concerned, in accordance with the details shown in Annex "A"" of these Regulations.

a) {avana ([uh Anejo Rcscrva:

c) Lemon Hart White Rum, d) Malibu Caribbean White Rum with Coco: b) Lemon Hart Jamaica Rum

c) Malibu Rum I} Myers Rum: and g) Myers Rum Planters Punch.

SEC 3 EFFECTIVITY. - These Regulations shalt take effect aiter fifteen (15) days fotlowing publication in leading newspapers of general circulation.

CESAR VPURISIMA

Secretary of Finance 002492

Recommending Approval:

KIM S JAQINTO-HENARES Commissioner of Internal Revenue u RECORDE MGT DIVISION BUREAU OF INTERNAL REVENUE

004056 JUN 2 i 2011 q jo:oD hm

D RECEIVED