RR No. 1-2018 — Provides the revised tax rates on Mineral Products pursuant to the provisions of RA No. 10963 (TRAIN Law), amending for the purpose Revenue Regulations No. 13-94 (Published in Manila Bulletin on January 18, 2018) Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPAKI'rVIf.N'I. OF FINANCIE BUREAU OF INTERNAI REVENUE QLrezun City RECET January 5. 2018 - REVENUE REGULATIONS NO. I AO I S SUBJECT : Providing for the Revised Tax Rates on Mineral Products pursuant to the Provisions of Republic Act No. 10963, otherwise known as the 'oTax Reform for Acceleration and Inclusion (TRAIN) Laly" Amending for the Purpose Revenue Regulations No. l3-94 TO All Internal Revenue Officers and Others Concerned. SECTION 1. SCOPE. - Pursuant to the provisions of Section 244 irt relation to Sectiorr 245 of the National Intemal Revenue Code of 1997 (NIRC), as amended, and Section 84 of Republic Act No. 10963, otherwise known as the "Tax Retbrrn for Acceleration and Ittclusion (TRAIN) Law''. these Regulations are hereby' proniulgated to antend the relevant provisions of Revenue Regulations (RR) No. l3-94 by providing for the revised tax rates on nrineral products. SEC. 2. Amending Section 3 of RR No. 13-94 *SEC. 3. DEFINITION OF TERMS. - For pluposes of these Regulations. tlte following words and phrases shall have the meaning indicated belor.r,: a. xxx xxxxxx xxx g. Grct.ss Outpzrl shall be interpreted as the actual market value of ntinerals or nrineral products or of bullion from each rnine or lnineral land operated as a separate entily", r.r,ithout any deduction frorl mining- rnilling. refining (including all expenses incurred to prepare the said minerals or ntineral products in a marketable state). as well as transporling, handling. nrarketing ol any other expenses: Provicler{, That if the minerals or lnineral products are sold or consigned abroad by the lessee or owner of the ntine under C.l.F. terms, the actual cost of ocean fieight and insurance shall be deducted'. Prot,idad, hov,ct,er. That in the case of milteral concerltrate. not traded in contmodiiT- exchanges in the Philippines or abroad. such as copper concentrate. the actual ntarket value shall be the rvorld price quotations of the refined nrineral ploducts content thereof prevailing in the said commodity excharrges. after deducting the smelling. refining and other charges incurred in the process of convefiing the mineral concentrates into refined metal traded in those commodity exclranges: xxx xxx xxx V,

t' Rt'vcrt tt Rc'gt t I tt t i t tt t /t'lt t. Page 2 of3 SEC.3. Amencling Section 5 of RR No. 13-94 ..SEC. 5. PAYMENT OF IXCISE TAX ON MINIERALS AND MINERAL PRODUCTS. - A. Rula and lJo.se of Tax. -There shall be levied. assessed and collected on mineral. nrineral products and quarry resources, excise tax as fbllows: 3.1 . On domestic and ilnported coal and coke: Date of Effectivitv Excise Tax per Metric Ton January l, 201 8 Fifty pesos (P50.00) Januatry 1.2019 Jarruary 1.2020 and onwards One hundred pesos (P100.00) One hundred and flfly pesos (P 150.00) Coal produced under Coal Operating Contracts entered into by the govenrment pursuant to Presidential Decree No. 972 as well as those exernpted fi'om excise tax ort mineral products under other lalvs shall now be subiect to the applicable rates above beginning Januan l, 201 8. 3.2. All nonnretallic nrinerals and quarw resolrrces: Locally extracted or produced Excise Tax Imported Four percert (4%) based on the actual Locally extracted natural gas and liquefied natural gas market value of the gross outplrt thereof at the time of rernoval. Four percenl (4%) based on the value used by the Bureau of Customs (BOC) in determining tariff and custonts duties. net of excise tax and valLre-added tax. Exempt. J.J. All metallic minerals: Locally extracted or produced Excise Tax copper. gold, chromite and other Four perceri (4%) based on the actual nretallic minerals lmporled copper. gold. chromite rnarket value of the gross output thereof at and other rnetallic minerals the time of removal. Four percent (4%) based on the value used by the BOC in deternrining tariff and custotxs dLrties, net of excise tax and value- added tax. 3.4. lndigenous petroleum, a tax of six percer* {6%) of the fair international nrarket price thereof^ on the first taxable sale. bafter', exchange or such similar transaction. such tax to be paid by the bu1,er or purchaser before renroval frotn the place of prodLrction. The phrase '.first tcLrablc .vulc. httrler, exchunge or .similor trcmsuc/iort 'nreans the transfer of indigenous petroleurl in its original . ,IU}iNAU OF ItrTEN,HAI, REVENIiE \fr' (D ;ttrcoilDs MGT. Drvls:c:i tD: 'A' la' JAl{ I 5 2018 ,/,1, ,., ilHrtrE\/'IT'Ft a bt- i-- -r. / .): -" .r.

Rcttenue Regulal ion |Vo, state to a first taxable transf'eree. The fair international market price shall be detenrined in consultation with arr appropriate rrovernnrent agency. For the purpose of this SLrbsection, 'incligutous petroleum 'shall include locally-extracted mineral oil. hydrocarbon gas. bitunren. clude asphalt. mineral gas arrd all other similar or naturally associated substances u,ith the exception of coal. peat, bituminous shale and/or stratified tritteral deposrts." B. xxx'' SEC. 4. REPEALING/AMENDATORY CLAUSE. - All regulations, r'ulings or orders or portions thereof not consistent herer.vith are herebv revoked. repealed. nrodified or anrerrded accold irrgll . SEC. 5. EFFECTIVITY CLAUSE. - These RegLrlations shall take effect immediatell' aftel its complete publication in a newspaper of general circulation. CARLOS G. DOMING Z TII Secretary of Finance 00071 B JAN 1 1 ?018 Recomnrend in g Approval : DUEEAU OF I}IIERIT{AT REI'ENIIE *.^{ta -/tro CAESAR R. DULAY 43 IIECORI}S MGT. DTVISIGN Conrrnissioner of Intenral Revenue tD" A' 14' a 12 4 5 I JAN 15 2ol8 Pl^hr^ RECEIVEU BIR TRAIN IRR/RR Draftins Comrnittee