RR No. 6-2025 — Implementing Section 135 on Petroleum Products Sold to International Carriers and Exempt Entities or Agencies and the new Section 135-A on Refund of Excise Tax on Petroleum Products of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066 (Date Posted: February 27, 2025)

Bringing In Revenues for Nation-Building BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE National Office Building Quezon City FEB 2 5 2025 PILIPINAS BagOnG

REVENUE REGULATIONSNO. 0 0.6 - 2.0 2 5

SUBJECT Implementing Section 135 on Pctroleum Products SoId to new Section 135-A on Refund of Excise Tax on Petroleum amended by Republic Act No. 12066 International Carriers and Exempt Entities or Agencies and the Products of the National Internal Revenue Code of 1997, as

TO All Internal Revenue Officials, Employees and Others Concerned

Sections 135 and Section 135-A of the Tax Code, specifically on: Revenue Code of 1997, as amended (Tax Code), in relation to Sections 10 and 32 of Republic Act (RA) No. 12066, these Regulations are hereby promulgated to implement SECTION 1. SCOPE. -- Pursuant to Sections 244 and Section 245 of the National Internai

(2 Exemption from Excise Tax of Petroleum Products Sold to International Refund of Excise Tax on Exempt Petroleum Products. Carriers and Exempt Entities or Agencies; and

to the following are exempt from excise tax: SECTION 2. PETROLEUM PRODUCTS SOLD TO INTERNATIONAL CARRIERS AND EXEMPT ENTITIES OR AGENCIES. - Petroleum products sold

(a International carriers of Philippine or foreign registry directly importing petroleum products, on their use or consumption outside the Philippines. The bonded storage tank duly accredited by the Bureau of Customs (BOC). The rules and regulations, subject to the approval of the Secretary of Finance, said international carriers claiming exemption shall comply with the providing for the specific guidelines and procedures on the use of the bonded storage tanks. said petroleum products sold to these international carriers shall be stored in a registration requirements for their importation. The BOC shall promulgate

and these Regulations; Suppliers of petroleum products to international carriers shall be allowed to file a claim for refund of excise tax paid on such products, upon presenting Philippine or foreign registry, for the Iatter's use or consumption outside the Philippines, following the procedures under Section 135-A of the Tax Code proof that the petroleum products were sold to international carriers of reegads oFinaeran revenur T OF INTERNAL REVENUE

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EFB_27_2025 BIR National Office Bldg., Senator Miriam Defensor-Santiago Avenue, Di m e Ct

Trunkline: 8981-7000 : 8929-7676 Website: www.bir.gov.ph BY adminunit- tTaE: S:S0on

b Exempt entities or agencies covered by tax treaties, conventions and other

international agreements for their use of consumption: Provided, however That the country of said foreign intemational carrier or exempt entities or agencies exempts from similar taxes petroleum products sold to Philippine carriers, entities or agencies; and

(c)Entities which are by law exempt from direct and indirect taxes.

SECTION 3. PROCESSING OF REFUND UNDER SECTION 135-A OF THE TAX CODE.

No refund of excise tax paid shall be allowed unless the supplier of petroleum authorized representative, within two (2) years after the payment of excise tax. products to international carriers and exempt entities or agencies files a written claim for refund with the Commissioner of Internal Revenue (CIR) or his duly

{b} The return filed showing an overpayment shall be considered a written claim] purpose, within the two (2)-year prescriptive period. for refund. Provided, that for purposes of the ninety (90)-day pracessing period, the counting thereof shall begin upon the submission of the complete documents in support of the application, prescribed by the BIR for this

c The CiR or his duly authorized representative shall process, and decide on, the complete documents supporting the application filed. claim for refund of excise tax within ninety (90) days from the submission of

Should the CIR or his duly authorized representative deny the claim for refund in full or in part, the CIR or his duly authorized representative shall communicate in writing to the taxpayer ihe legal and factual basis for the denial.

(e The taxpayer shall have fifteen (15) days from receipt of the full or partial claim for refund. Additional documentary requirements particularly those unsubmitted/ unsupported mandatory requirements during the filing of the shall be limited only to questions of law on the full or partiai denial of thc claim shall not be accepted. denial to file a request for reconsideration. The request for reconsideration

The CIR or his duly authorized representative shall decide on the request for the decision final. reconsideration within fifteen (15) days from actual receipt thereof. Failure to file a request for reconsideration within the fifteen (1 5)-day period shall render

g In case of full or partial denial of the request for reconsideration, or failure on the part of the CIR or his duly authorized representative to act on the application for refund or request for reconsideration within the periods prescribed above, the taxpayer affected may appeal with the Court of Tax Appeals (CTA) within thirty (30) days:

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( after the expiration of the ninety (90)-day period to decide on the

application for refund, in cases where no action is made by the CIR Q0 or his duly authorized representative on the application for refind;

from the receipt of the decision denying the request for reconsideration; or

(i request for reconsideration, in cases where after the lapse of the fifteen (15)-day period to decide on the the CIR or his duly authorized representative on the request for reconsideration. no action is made by

remedy within thirty (30) days from such period, the administrative claim for Ionger be processed. as the case may be, and the taxpayer-claimant opted to seek for a judicial refund or the request for reconsideration shall be considered moot and shall no When no decision is rendered within the 90-day period or the 15-day period

SECTION 4. POST-AUDIT BY THE COMMISSION ON AUDIT (COA) OF THE APPROVED EXCISE TAX REFUND.

(a) Refund shall be made upon warrants drawn by the CIR or by his duly contrary notwithstanding. authorized representative without the necessity of being countersigned by the COA Chairman, the provisions of Revised Administrative Code to the

b Approved Excise Tax Refund under Section 135-A of the Tax Code shall be subject to post audit by the COA.

C In case of disallowance by the COA, orily the taxpayer shall be liable for the in the grant of the tax refund. disallowed amount without prejudice to any administrative liability on the part of the employee/official of the BIR who may be found to be grossly negligent

SECTION 5. LIABILITY OF ANY OFFICIAL AGENT OR BIR OFFICLAL

CLAIM FOR REFUND WITHIN THE PRESCRIBED PERIOD. - Failure on the part the request for reconsideration within the fifteen (15)-day period, shall be punishable EMPLOYEE FOR DELIBERATE FAILURE TO PROCESS AND DECIDE of any official agent or official/employee of the BIR who deliberately causcd the delay of processing and deciding on the application within the ninety (90)-day period, and/or on under Section 269(J) of the Tax Code.

SECTION 6. TRANSITORY PROVISION. - To provide aimple time for the taxpayers and the BIR to adjust to the new requirements and procedures to be prescribed pursuant to

refund that are filed starting April 1, 2025 onwards. the amendments introduced by RA No. 12066, these Regulations shall cover claims for

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remaining provisions hereof shall remain in full force and effect. SECTION 7. SEPARABILITY CLAUSE. - If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional, the validity of the

SECTION 8. REPEALING CLAUSE. -- All other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly.

SECTION 9. EFFECTIVITY. -- These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR Official Website, whichever cones first.

HC .1FCTO ecretefy of Finance FEB 2 6 2025

Recommending 'Approval

Comissioner of Internal`Revenue ROMET LOMAGJR BUREAUOF INTERNALREVENUE KECORDS MANAGEMENT DIVSION WAT e

FEB 27 2025

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