The Secretary of Finance has issued Revenue Regulations (RR) No. 1-2018 dated 5 January 2018 to provide for the Revised Tax Rates on Mineral Products pursuant to the provisions of the Tax Reform for Acceleration and Inclusion (TRAIN) Law for the purpose of amending RR No. 13-94 which governs the imposition of excise tax on minerals and mineral products.
The revised tax rates are as follows:
Coal produced under Coal Operating Contracts entered into by the government pursuant to Presidential Decree No. 972 as well as those exempted from the excise tax on mineral products shall be subject to the applicable rates above beginning 1 January 2018.
For indigenous petroleum, “first taxable sale, barter, exchange or similar transaction” refers to the transfer of indigenous petroleum in its original state to a first taxable transferee.
“Gross output” is generally interpreted as the actual market value of minerals or mineral products, or of bullion from each mine or mineral lands operated as a separate entity without any deduction from mining, milling, refining, (including all expenses incurred to prepare the said minerals or mineral products in a marketable state), as well as transporting, handling, marketing, or any other expenses.
You may access the full version of the Regulation through the website of the Bureau of Internal Revenue. Click here to read.