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Section 22.

Section 84 of the NIRC, as compensated for by insurance or otherwise, amount finally determined as the value of such of this Section which the value of such part
amended, is hereby further amended to read and if at the time of the filing of the return such property in determining the value of the gift, or bears to the value of his entire gross estate
as follows: losses have not been claimed as a deduction the gross estate of such prior decedent, and wherever situated;
for the income tax purposes in an income tax only to the extent that the value of such
“Sec. 84. Rate of Estate Tax.— There shall be return, and provided that such losses were property is included in the decedent’s gross “(3) Property Previously Taxed.— x x x
levied, assessed, collected and paid upon the incurred not later than the last day for the estate, and only if in determining the value of
transfer of the net estate as determined in payment of the estate tax as prescribed in the estate of the prior decedent, no deduction “(4) Transfers for Public Use.— The amount of
accordance with Sections 85 and 86 of every Subsection (A) of Section 91. was allowable under paragraph (5) in respect all bequests, legacies, devises or transfers to
decedent, whether resident or nonresident of of the property or properties given in exchange or for the use of the Government of the
the Philippines, a tax at the rate of six percent “(5) Property Previously Taxed.— An amount therefor. Where a deduction was allowed of Republic of the Philippines or any political
(6%) based on the value of such net estate.” equal to the value specified below of any any mortgage or other lien in determining the subdivision thereof, for exclusively public
property forming part of the gross estate donor’s tax, or the estate tax of the prior purposes.
Section 23. Section 86 of the NIRC, as situated in the Philippines of any person who decedent, which was paid in whole or in part
amended, is hereby further amended to read died within five (5) years prior to the death of prior to the decedent’s death, then the “(C) Share in the Conjugal Property.— The net
as follows: the decedent, or transferred to the decedent by deduction allowable under said Subsection share of the surviving spouse in the conjugal
gift within five (5) years prior to his death, shall be reduced by the amount so paid. Such partnership property as diminished by the
“Sec. 86. Computation of Net Estate.— For the where such property can be identified as deduction allowable shall be reduced by an obligations properly chargeable to such
purpose of the tax imposed in this Chapter, the having been received by the decedent from the amount which bears the same ratio to the property shall, for the purpose of this Section,
value of the net estate shall be determined: donor by gift, or from such prior decedent by amounts allowed as deductions under be deducted from the net estate of the
gift, bequest, devise or inheritance, or which paragraphs (2), (3), (4), and (6) of this decedent.
“(A) Deductions Allowed to the Estate of a can be identified as having been acquired in Subsection as the amount otherwise deductible
Citizen or a Resident.— In the case of a citizen exchange for property so received: under said paragraph (5) bears to the value of “(D) Tax Credit for Estate Taxes Paid to a
or resident of the Philippines, by deducting the decedent’s estate. Where the property Foreign Country.—
from the value of the gross estate— “One hundred percent (100%) of the value, if referred to consists of two or more items, the
the prior decedent died within one (1) year prior aggregate value of such items shall be used for “(1) In General.— The tax imposed by this Title
“(1) Standard Deduction.— An amount to the death of the decedent, or if the property the purpose of computing the deduction. shall be credited with the amounts of any
equivalent to Five million pesos (₱5,000,000). was transferred to him by gift, within the same estate tax imposed by the authority of a foreign
period prior to his death; “(6) Transfers for Public Use.— The amount of country.
“(2) For claims against the estate: Provided, all bequests, legacies, devises or transfers to
That at the time the indebtedness was incurred “Eighty percent (80%) of the value, if the prior or for the use of the Government of the “(2) Limitations on Credit.— The amount of the
the debt instrument was duly notarized and, if decedent died more than one (1) year but not Republic of the Philippines, or any political credit taken under this Section shall be subject
the loan was contracted within three (3) years more than two (2) years prior to the death of subdivision thereof for exclusively public to each of the following limitations:
before the death of the decedent, the the decedent, or if the property was transferred purposes.
administrator or executor shall submit a to him by gift within the same period prior to his “(a) The amount of the credit in respect to the
statement showing the disposition of the death; “(7) The Family Home.— An amount equivalent tax paid to any country shall not exceed the
proceeds of the loan. to the current fair market value of the same proportion of the tax against which such
“Sixty percent (60%) of the value, if the prior decedent’s family home: Provided, however, credit is taken, which the decedent’s net estate
“(3) For claims of the deceased against decedent died more than two (2) years but not That if the said current fair market value situated within such country taxable under this
insolvent persons where the value of more than three (3) years prior to the death of exceeds Ten million pesos (₱10,000,000), the Title bears to his entire net estate; and
decedent’s interest therein is included in the the decedent, or if the property was transferred excess shall be subject to estate tax.
value of the gross estate. to him by gift within the same period prior to his “(b) The total amount of the credit shall not
death; “(8) Amount Received by Heirs Under Republic exceed the same proportion of the tax against
“(4) For unpaid mortgages upon, or any Act No. 4917.— Any amount received by the which such credit is taken, which the
indebtedness in respect to, property where the “Forty percent (40%) of the value, if the prior heirs from the decedent’s employee as a decedent’s net estate situated outside the
value of decedent’s interest therein, decedent died more than three (3) years but consequence of the death of the decedent- Philippines taxable under this Title bears to his
undiminished by such mortgage or not more than four (4) years prior to the death employee in accordance with Republic Act No. entire net estate.”
indebtedness, is included in the value of the of the decedent, or if the property was 4917: Provided, That such amount is included
gross estate, but not including any income tax transferred to him by gift within the same period in the gross estate of the decedent. Section 24. Section 89 of the NIRC, as
upon income received after the death of the prior to his death; and amended, is hereby repealed.
decedent, or property taxes not accrued before “(B) Deductions Allowed to Nonresident
his death, or any estate tax. The deduction “Twenty percent (20%) of the value, if the prior Estates.— In the case of a nonresident not a Section 25. Section 90 of the NIRC, as
herein allowed in the case of claims against the decedent died more than four (4) years but not citizen of the Philippines, by deducting from the amended, is hereby further amended to read
estate, unpaid mortgages or any indebtedness more than five (5) years prior to the death of value of that part of his gross estate which at as follows:
shall, when founded upon a promise or the decedent, or if the property was transferred the time of his death is situated in the
agreement, be limited to the extent that they to him by gift within the same period prior to his Philippines: “Sec. 90. Estate Tax Returns.—
were contracted bona fide and for an adequate death.
and full consideration in money or money’s “(1) Standard Deduction.— An amount “(A) Requirements.— In all cases of transfers
worth. There shall also be deducted losses “These deductions shall be allowed only where equivalent to Five hundred thousand pesos subject to the tax imposed herein, or regardless
incurred during the settlement of the estate a donor’s tax, or estate tax imposed under this (₱500,000); of the gross value of the estate, where the said
arising from fires, storms, shipwreck, or other Title was finally determined and paid by or on estate consists of registered or registrable
casualties, or from robbery, theft or behalf of such donor, or the estate of such prior “(2) That proportion of the deductions specified property such as real property, motor vehicle,
embezzlement, when such losses are not decedent, as the case may be, and only in the in paragraphs (2), (3), and (4) of Subsection (A) shares of stock or other similar property for
which a clearance from the Bureau of Internal “Sec. 97. Payment of Tax Antecedent to the “(1) The sale and actual shipment of goods
Revenue is required as a condition precedent Transfer of Shares, Bonds or Rights.— x x x. “(A) In the Case of Gifts Made by a Resident.— from the Philippines to a foreign country,
for the transfer of ownership thereof in the irrespective of any shipping arrangement that
name of the transferee, the executor, or the “If a bank has knowledge of the death of a “(1) Gifts made to or for the use of the National may be agreed upon which may influence or
administrator, or any of the legal heirs, as the person, who maintained a bank deposit Government or any entity created by any of its determine the transfer of ownership of the
case may be, shall file a return under oath in account alone, or jointly with another, it shall agencies which is not conducted for profit, or to goods so exported and paid for in acceptable
duplicate, setting forth: allow any withdrawal from the said deposit any political subdivision of the said foreign currency or its equivalent in goods or
account, subject to a final withholding tax of six Government; and services, and accounted for in accordance with
“(1) x x x percent (6%). For this purpose, all withdrawal the rules and regulations of the Bangko Sentral
slips shall contain a statement to the effect that “(2) Gifts in favor of an educational and/or ng Pilipinas (BSP);
“(2) x x x all of the joint depositors are still living at the charitable, religious, cultural or social welfare
time of withdrawal by any one of the joint corporation, institution, accredited “(2) Sale and delivery of goods to:
“(3) Such part of such information as may at depositors and such statement shall be under nongovernment organization, trust or
the time be ascertainable and such oath by the said depositors.” philanthropic organization or research “(i) Registered enterprises within a separate
supplemental data as may be necessary to institution or organization: Provided, however, customs territory as provided under special
establish the correct taxes. Section 28. Section 99 of the NIRC, as That not more than thirty percent (30%) of said laws; and
amended, is hereby further amended to read gifts shall be used by such donee for
“Provided, however, That estate tax returns as follows: administration purposes. For the purpose of “(ii) Registered enterprises within tourism
showing a gross value exceeding Five million this exemption, a ‘non-profit educational and/or enterprise zones as declared by the Tourism
pesos (₱5,000,000) shall be supported with a “Sec. 99. Rate of Tax Payable by Donor.— charitable corporation, institution, accredited Infrastructure and Enterprise Zone Authority
statement duly certified to by a Certified Public nongovernment organization, trust or (TIEZA) subject to the provisions under
Accountant containing the following: “(A) In General.— The tax for each calendar philanthropic organization and/or research Republic Act No. 9593 or The Tourism Act of
year shall be six percent (6%) computed on the institution or organization’ is a school, college 2009.
“x x x basis of the total gifts in excess of Two hundred or university and/or charitable corporation,
fifty thousand pesos (₱250,000) exempt gift accredited nongovernment organization, trust “(3) Sale of raw materials or packaging
“(B) Time for Filing.— For the purpose of made during the calendar year. or philanthropic organization and/ or research materials to a nonresident buyer for delivery to
determining the estate tax provided for in institution or organization, incorporated as a a resident local export-oriented enterprise to be
Section 84 of this Code, the estate tax return “(B) Any contribution in cash or in kind to any nonstock entity, paying no dividends, governed used in manufacturing, processing, packing or
required under the preceding Subsection (A) candidate, political party or coalition of parties by trustees who receive no compensation, and repacking in the Philippines of the said buyer’s
shall be filed within one (1) year from the for campaign purposes shall be governed by devoting all its income, whether students’ fees goods and paid for in acceptable foreign
decedent’s death. the Election Code, as amended.” or gifts, donation, subsidies or other forms of currency and accounted for in accordance with
philanthropy, to the accomplishment and the rules and regulations of the Bangko Sentral
“x x x.” Section 29. Section 100 of the NIRC, as promotion of the purposes enumerated in its ng Pilipinas (BSP);
amended, is hereby further amended to read Articles of Incorporation.
Section 26. Section 91 of the NIRC, as as follows: “(4) Sale of raw materials or packaging
amended, is hereby further amended to read “x x x.” materials to export-oriented enterprise whose
as follows: “Sec. 100. Transfer for Less Than Adequate export sales exceed seventy percent (70%) of
and Full Consideration.— Where property, Section 31. Section 106 of the NIRC, as total annual production;
“Sec. 91. Payment of Tax.— other than real property referred to in Section amended, is hereby further amended to read
24(D), is transferred for less than an adequate as follows: “(5) Those considered export sales under
“(A) Time of Payment.— x x x and full consideration in money or money’s Executive Order No. 226, otherwise known as
worth, then the amount by which the fair market “Sec. 106. Value-added Tax on Sale of Goods the Omnibus Investment Code of 1987, and
“(B) Extension of Time.— x x x value of the property exceeded the value of the or Properties.— other special laws; and
consideration shall, for the purpose of the tax
“x x x imposed by this Chapter, be deemed a gift, and “(A) Rate and Base of Tax.— There shall be “(6) The sale of goods, supplies, equipment
shall be included in computing the amount of levied, assessed and collected on every sale, and fuel to persons engaged in international
“(C) Payment by Installment.— In case the gifts made during the calendar year: Provided, barter or exchange of goods or properties, a shipping or international air transport
available cash of the estate is insufficient to however, That a sale, exchange, or other value-added tax equivalent to twelve percent operations: Provided, That the goods, supplies,
pay the total estate tax due, payment by transfer of property made in the ordinary (12%) of the gross selling price or gross value equipment and fuel shall be used for
installment shall be allowed within two (2) years course of business (a transaction which is a in money of the goods or properties sold, international shipping or air transport
from the statutory date for its payment without bona fide, at arm’s length, and free from any bartered or exchanged, such tax to be paid by operations.
civil penalty and interest. donative intent), will be considered as made for the seller or transferor.
an adequate and full consideration in money or “Provided, That subparagraphs (3), (4), and (5)
“(D) Liability for Payment.— x x x money’s worth.” “(1) x x x hereof shall be subject to the twelve percent
(12%) value-added tax and no longer be
“x x x Section 30. Section 101 of the NIRC, as “(2) The following sales by VAT-registered considered export sales subject to zero percent
amended, is hereby further amended to read persons shall be subject to zero percent (0%) (0%) VAT rate upon satisfaction of the following
Section 27. Section 97 of the NIRC, as as follows: rate: conditions:
amended, is hereby further amended to read
as follows: “Sec. 101. Exemption of Certain Gifts.— The “(a) Export Sales.— The term ‘export sales’ “(1) The successful establishment and
following gifts or donations shall be exempt means: implementation of an enhanced VAT refund
from the tax provided for in this Chapter: system that grants refunds of creditable input
tax within ninety (90) days from the filing of the goods, the value-added tax shall be based on “(1) The lease or the use of or the right or
VAT refund application with the Bureau: the landed cost plus excise taxes, if any. privilege to use any copyright, patent, design or “(1) Processing, manufacturing or repacking
Provided, That, to determine the effectivity of model, plan, secret formula or process, goods for other persons doing business outside
item no. 1, all applications filed from January 1, “(B) Transfer of Goods by Tax-exempt goodwill, trademark, trade brand or other like the Philippines which goods are subsequently
2018 shall be processed and must be decided Persons.— x x x.” property or right; exported, where the services are paid for in
within ninety (90) days from the filing of the acceptable foreign currency and accounted for
VAT refund application; and Section 33. Section 108 of the NIRC, as “(2) The lease or the use of, or the right to use in accordance with the rules and regulations of
amended, is hereby further amended to read of any industrial, commercial or scientific the Bangko Sentral ng Pilipinas (BSP);
“(2) All pending VAT refund claims as of as follows: equipment;
December 31, 2017 shall be fully paid in cash “(2) Services other than those mentioned in the
by December 31, 2019. “Sec. 108. Value-added Tax on Sale of “(3) The supply of scientific, technical industrial preceding paragraph, rendered to a person
Services and Use or Lease of Properties.— or commercial knowledge or information; engaged in business conducted outside the
“Provided, That the Department of Finance Philippines or to a nonresident person not
shall establish a VAT refund center in the “(A) Rate and Base of Tax.— There shall be “(4) The supply of any assistance that is engaged in business who is outside the
Bureau of Internal Revenue (BIR) and in the levied, assessed and collected, a value-added ancillary and subsidiary to and is furnished as a Philippines when the services are performed,
Bureau of Customs (BOC) that will handle the tax equivalent to twelve percent (12%) of gross means of enabling the application or enjoyment the consideration for which is paid for in
processing and granting of cash refunds of receipts derived from the sale or exchange of of any such property, or right as is mentioned in acceptable foreign currency and accounted for
creditable input tax. services, including the use or lease of subparagraph (2) or any such knowledge or in accordance with the rules and regulations of
properties. information as is mentioned in subparagraph the Bangko Sentral ng Pilipinas (BSP);
“An amount equivalent to five percent (5%) of (3);
the total VAT collection of the BIR and the BOC “The phrase ‘sale or exchange of services’ “(3) Services rendered to persons or entities
from the immediately preceding year shall be means the performance of all kinds of services “(5) The supply of services by a nonresident whose exemption under special laws or
automatically appropriated annually and shall in the Philippines for others for a fee, person or his employee in connection with the international agreements to which the
be treated as a special account in the General remuneration or consideration, including those use of property or rights belonging to, or the Philippines is a signatory effectively subjects
Fund or as trust receipts for the purpose of performed or rendered by construction and installation or operation of any brand, the supply of such services to zero percent
funding claims for VAT refund: Provided, That service contractors; stock, real estate, machinery or other apparatus purchased from (0%) rate;
any unused fund, at the end of the year shall commercial, customs and immigration brokers; such nonresident person;
revert to the General Fund. lessors of property, whether personal or real; “(4) Services rendered to persons engaged in
warehousing services; lessors or distributors of “(6) The supply of technical advice, assistance international shipping or international air
“Provided, further, That the BIR and the BOC cinematographic films; persons engaged in or services rendered in connection with transport operations, including leases of
shall be required to submit to the milling, processing, manufacturing or repacking technical management or administration of any property for use thereof: Provided, That these
Congressional Oversight Committee on the goods for others; proprietors, operators or scientific industrial or commercial undertaking, services shall be exclusive for international
Comprehensive Tax Reform Program keepers of hotels, motels, resthouses, pension venture, projector scheme; shipping or air transport operations;
(COCCTRP) a quarterly report of all pending houses, inns, resorts; proprietors or operators
claims for refund and any unused fund. of restaurants, refreshment parlors, cafes and “(7) The lease of motion picture films, -films, “(5) Services performed by subcontractors
other eating places, including clubs and tapes and discs; and and/or contractors in processing, converting, or
“(b) Sales to persons or entities whose caterers; dealers in securities; lending manufacturing goods for an enterprise whose
exemption under special laws or international investors; transportation contractors on their “(8) The lease or the use of or the right to use export sales exceed seventy percent (70%) of
agreements to which the Philippines is a transport of goods or cargoes, including radio, television, satellite transmission and total annual production;
signatory effectively subjects such sales to zero persons who transport goods or cargoes for cable television time.
rate. hire and other domestic common carriers by “(6) Transport of passengers and cargo by
land relative to their transport of goods or “Lease of properties shall be subject to the tax domestic air or sea vessels from the
“x x x.” cargoes; common carriers by air and sea herein imposed irrespective of the place where Philippines to a foreign country; and
relative to their transport of passengers, goods the contract of lease or licensing agreement
Section 32. Section 107 of the NIRC, as or cargoes from one place in the Philippines to was executed if the property is leased or used “(7) Sale of power or fuel generated through
amended, is hereby further amended to read another place in the Philippines; sales of in the Philippines. renewable sources of energy such as, but not
as follows: electricity by generation companies, limited to, biomass, solar, wind, hydropower,
transmission by any entity, and distribution “The term ‘gross receipts’ means the total geothermal, ocean energy, and other emerging
“Sec. 107. Value-added Tax on Importation of companies, including electric cooperatives; amount of money or its equivalent representing energy sources using technologies such as fuel
Goods.— services of franchise grantees of electric the contract price, compensation, service fee, cells and hydrogen fuels.
utilities, telephone and telegraph, radio and rental or royalty, including the amount charged
“(A) In General.— There shall be levied, television broadcasting and all other franchise for materials supplied with the services and “(8) Services rendered to:
assessed and collected on every importation of grantees except those under Section 119 of deposits and advanced payments actually or
goods a value-added tax equivalent to twelve this Code and non-life insurance companies constructively received during the taxable “(i) Registered enterprises within a separate
percent (12%) based on the total value used by (except their crop insurances), including surety, quarter for the services performed or to be customs territory as provided under special
the Bureau of Customs in determining tariff and fidelity, indemnity and bonding companies; and performed for another person, excluding value- law; and
customs duties, plus customs duties, excise similar services regardless of whether or not added tax.
taxes, if any, and other charges, such tax to be the performance thereof calls for the exercise “(ii) Registered enterprises within tourism
paid by the importer prior to the release of such or use of the physical or mental faculties. The “(B) Transactions Subject to Zero Percent (0%) enterprise zones as declared by the TIEZA
goods from customs custody: Provided, That phrase ‘sale or exchange of services’ shall Rate.— The following services performed in the subject to the provisions under Republic Act
where the customs duties are determined on likewise include: Philippines by VAT registered persons shall be No. 9593 or The Tourism Act of 2009.
the basis of the quantity or volume of the subject to zero percent (0%) rate:
“Provided, That subparagraphs (B)(1) and animals, and personal and household effects their produce, whether in its original state or
(B)(5) hereof shall be subject to the twelve belonging to persons coming to settle in the processed form, to non-members; their “(S) Transport of passengers by international
percent (12%) value-added tax and no longer Philippines or Filipinos or their families and importation of direct farm inputs, machineries carriers;
be subject to zero percent (0%) VAT rate upon descendants who are now residents or citizens and equipment, including spare parts thereof,
satisfaction of the following conditions: of other countries, such parties hereinafter to be used directly and exclusively in the “(T) Sale, importation or lease of passenger or
referred to as overseas Filipinos, in quantities production and/or processing of their produce; cargo vessels and aircraft, including engine,
“(1) The successful establishment and and of the class suitable to the profession, rank equipment and spare parts thereof for domestic
implementation of an enhanced VAT refund or position of the persons importing said items, “(M) Gross receipts from lending activities by or international transport operations;
system that grants refunds of creditable input for their own use and not for barter or sale, credit or multi-purpose cooperatives duly
tax within ninety (90) days from the filing of the accompanying such persons, or arriving within registered with the Cooperative Development “(U) Importation of fuel, goods and supplies by
VAT refund application with the Bureau: a reasonable time: Provided, That the Bureau Authority; persons engaged in international shipping or air
Provided, That, to determine the effectivity of of Customs may, upon the production of transport operations: Provided, That the fuel,
item no. 1, all applications filed from January 1, satisfactory evidence that such persons are “(N) Sales by non-agricultural, non-electric and goods, and supplies shall be used for
2018 shall be processed and must be decided actually coming to settle in the Philippines and non-credit cooperatives duly registered with the international shipping or air transport
within ninety (90) days from the filing of the that the goods are brought from their former Cooperative Development Authority: Provided, operations;
VAT refund application; and place of abode, exempt such goods from That the share capital contribution of each
payment of duties and taxes: Provided, further, member does not exceed Fifteen thousand “(V) Services of bank, non-bank financial
“(2) All pending VAT refund claims as of That vehicles, vessels, aircrafts, machineries pesos (₱15,000) and regardless of the intermediaries performing quasi-banking
December 31, 2017 shall be fully paid in cash and other similar goods for use in manufacture, aggregate capital and net surplus ratably functions, and other non-bank financial
by December 31, 2019. shall not fall within this classification and shall distributed among the members; intermediaries;
therefore be subject to duties, taxes and other
“Provided, That the Department of Finance charges; “(O) Export sales by persons who are not VAT- “(W) Sale or lease of goods and services to
shall establish a VAT refund center in the registered; senior citizens and persons with disability, as
Bureau of Internal Revenue (BIR) and in the “(E) Services subject to percentage tax under provided under Republic Act Nos. 9994
Bureau of Customs (BOC) that will handle the Title V; “(P) Sale of real properties not primarily held for (Expanded Senior Citizens Act of 2010) and
processing and granting of cash refunds of sale to customers or held for lease in the 10754 (An Act Expanding the Benefits and
creditable input tax. “(F) Services by agricultural contract growers ordinary course of trade or business or real Privileges of Persons With Disability),
and milling for others of palay into rice, corn property utilized for low-cost and socialized respectively;
“An amount equivalent to five percent (5%) of into grits and sugar cane into raw sugar; housing as defined by Republic Act No. 7279,
the total value-added tax collection of the BIR otherwise known as the Urban Development “(X) Transfer of property pursuant to Section
and the BOC from the immediately preceding “(G) Medical, dental, hospital and veterinary and Housing Act of 1992, and other related 40(C)(2) of the NIRC, as amended;
year shall be automatically appropriated services except those rendered by laws, residential lot valued at One million five
annually and shall be treated as a special professionals; hundred thousand pesos (₱1,500,000) and “(Y) Association dues, membership fees, and
account in the General Fund or as trust below, house and lot, and other residential other assessments and charges collected by
receipts for the purpose of funding claims for “(H) Educational services rendered by private dwellings valued at Two million five hundred homeowners associations and condominium
VAT Refund: Provided, That any unused fund, educational institutions, duly accredited by the thousand pesos (₱2,500,000) and below: corporations;
at the end of the year shall revert to the Department of Education (DepEd), the Provided, That beginning January 1, 2021, the
General Fund. Commission on Higher Education (CHED), the VAT exemption shall only apply to sale of real “(Z) Sale of gold to the Bangko Sentral ng
Technical Education and Skills Development properties not primarily held for sale to Pilipinas (BSP);
“Provided, further, That the BIR and the BOC Authority (TESDA) and those rendered by customers or held for lease in the ordinary
shall be required to submit to the COCCTRP a government educational institutions; course of trade or business, sale of real “(AA) Sale of drugs and medicines prescribed
quarterly report of all pending claims for refund property utilized for socialized housing as for diabetes, high cholesterol, and hypertension
and any unused fund.” “(I) Services rendered by individuals pursuant defined by Republic Act No. 7279, sale of beginning January 1, 2019; and
to an employer-employee relationship; house and lot, and other residential dwellings
Section 34. Section 109 of the NIRC, as with selling price of not more than Two million “(BB) Sale or lease of goods or properties or
amended, is hereby further amended to read “(J) Services rendered by regional or area pesos (₱2,000,000): Provided, further, That the performance of services other than the
as follows: headquarters established in the Philippines by every three (3) years thereafter, the amount transactions mentioned in the preceding
multinational corporations which act as herein stated shall be adjusted to its present paragraphs, the gross annual sales and/or
“Sec. 109. Exempt Transactions.— (1) Subject supervisory, communications and coordinating value using the Consumer Price Index, as receipts do not exceed the amount of Three
to the provisions of Subsection (2) hereof, the centers for their affiliates, subsidiaries or published by the Philippine Statistics Authority million pesos (₱3,000,000).
following transactions shall be exempt from the branches in the Asia-Pacific Region and do not (PSA);
value-added tax: earn or derive income from the Philippines; Section 35. Section 110 of the NIRC, as
“(Q) Lease of a residential unit with a monthly amended, is hereby further amended to read
“(A) x x x “(K) Transactions which are exempt under rental not exceeding Fifteen thousand pesos as follows:
international agreements to which the (₱15,000);
“(B) x x x Philippines is a signatory or under special laws, “Sec. 110. Tax Credits.—
except those under Presidential Decree No. “(R) Sale, importation, printing or publication of
“(C) x x x 529; books and any newspaper, magazine, review “(A) Creditable Input Tax.—
or bulletin which appears at regular intervals
“(D) Importation of professional instruments “(L) Sales by agricultural cooperatives duly with fixed prices or subscription and sale and “(1) x x x
and implements, tools of trade, occupation or registered with the Cooperative Development which is not devoted principally to the
employment, wearing apparel, domestic Authority to their members as well as sale of publication of paid advertisements; “(2) x x x
employee of the BIR to act on the application Section 38. Section 116 of the NIRC, as
“(a) x x x within the ninety (90)-day period shall be amended, is hereby further amended to read Section 41. Section 129, Chapter 1 of Title VI
punishable under Section 269 of this Code. as follows: of the NIRC, as amended, is hereby further
“(b) x x x amended to read as follows:
“x x x.“ “Sec. 116. Tax on Persons Exempt from Value-
“Provided, That the input tax on goods added Tax (VAT).— Any person whose sales “TITLE VI–EXCISE TAXES ON CERTAIN
purchased or imported in a calendar month for Section 37. Section 114 of the NIRC, as or receipts are exempt under Section 109(BB) GOODS AND SERVICES
use in trade or business for which deduction for amended, is hereby further amended to read of this Code from the payment of value-added
depreciation is allowed under this Code shall as follows: tax and who is not a VAT-registered person “CHAPTER 1—GENERAL PROVISIONS
be spread evenly over the month of acquisition shall pay a tax equivalent to three percent (3%)
and the fifty-nine (59) succeeding months if the “Sec. 114. Return and Payment of Value-added of his gross quarterly sales or receipts: “Sec. 129. Goods and Services Subject to
aggregate acquisition cost for such goods, Tax.— Provided, That cooperatives, and beginning Excise Taxes.— Excise taxes apply to goods
excluding the VAT component thereof, exceeds January 1, 2019, self-employed and manufactured or produced in the Philippines for
One million pesos (₱1,000,000): Provided, “(A) In General.— Every person liable to pay professionals with total annual gross sales domestic sales or consumption or for any other
however, That if the estimated useful life of the the value-added tax imposed under this Title and/or gross receipts not exceeding Five disposition and to things imported as well as
capital good is less than five (5) years, as used shall file a quarterly return of the amount of his hundred thousand pesos (₱500,000) shall be services performed in the Philippines. The
for depreciation purposes, then the input VAT gross sales or receipts within twenty-five (25) exempt from the three percent (3%) gross excise tax imposed herein shall be in addition
shall be spread over such a shorter period: days following the close of each taxable quarter receipts tax herein imposed.” to the value-added tax imposed under Title IV.
Provided, further, That the amortization of the prescribed for each taxpayer: Provided,
input VAT shall only be allowed until December however, That VAT-registered persons shall Section 39. Section 127 of the NIRC, as “For purposes of this Title, excise taxes herein
31, 2021 after which taxpayers with unutilized pay the value-added tax on a monthly basis: amended, is hereby further amended to read imposed and based on weight or volume
input VAT on capital goods purchased or Provided, finally, That beginning January 1, as follows: capacity or any other physical unit of
imported shall be allowed to apply the same as 2023, the filing and payment required under measurement shall be referred to as ‘specific
scheduled until fully utilized: Provided, finally, this Subsection shall be done within twenty-five “Sec. 127. Tax on Sale, Barter or Exchange of tax’ and an excise tax herein imposed and
That in the case of purchase of services, lease (25) days following the close of each taxable Shares of Stock Listed and Traded through the based on selling price or other specified value
or use of properties, the input tax shall be quarter. Local Stock Exchange or through Initial Public of the good or service performed shall be
creditable to the purchaser, lessee or licensee Offering.— referred to as ‘ad valorem tax.’”
upon payment of the compensation, rental, “x x x
royalty or fee. “(A) Tax on Sale, Barter or Exchange of Shares Section 42. Section 145 of the NIRC, as
“(B) x x x of Stock Listed and Traded through the Local amended, is hereby further amended to read
“x x x.” Stock Exchange.— There shall be levied, as follows:
“(C) Withholding of Value-added Tax.— The assessed and collected on every sale, barter,
Section 36. Section 112 of the NIRC, as Government or any of its political subdivisions, exchange or other disposition of shares of “Sec. 145. Cigars and Cigarettes.—
amended, is hereby further amended to read instrumentalities or agencies, including stock listed and traded through the local stock
as follows: government-owned or -controlled corporations exchange other than the sale by a dealer in “(A) Cigars.— x x x
(GOCCs) shall, before making payment on securities, a tax at the rate of six-tenths of one
“Sec. 112. Refunds or Tax Credits of Input account of each purchase of goods and percent (6⁄10 of 1%) of the gross selling price “(B) Cigarettes Packed by Hand.— There shall
Tax.— services which are subject to the value-added or gross value in money of the shares of stock be levied, assessed and collected on cigarettes
tax imposed in Sections 106 and 108 of this sold, bartered, exchanged or otherwise packed by hand an excise tax based on the
“(A) x x x Code, deduct and withhold the value-added tax disposed which shall be paid by the seller or following schedules:
imposed in Sections 106 and 108 of this Code, transferor.
“(B) x x x deduct and withhold a final value-added tax at “Effective on January 1, 2018 until June 30,
the rate of five percent (5%) of the gross “x x x.” 2018, Thirty-two pesos and fifty centavos
“(C) Period within which Refund of Input Taxes payment thereof: Provided, That beginning (₱32.50) per pack;
shall be Made.— In proper cases, the January 1, 2021, the VAT witholding system
Commissioner shall grant a refund for under this Subsection shall shift from final to a Section 40. Section 128 of the NIRC, as “Effective on July 1, 2018 until December 31,
creditable input taxes within ninety (90) days creditable system: Provided, further, That the amended, is hereby further amended to read 2019, Thirty-five pesos (₱35.00) per pack;
from the date of submission of the official payment for lease or use of properties or as follows:
receipts or invoices and other documents in property rights to nonresident owners shall be “Effective on January 1, 2020 until December
support of the application filed in accordance subject to twelve percent (12%) withholding tax “Sec. 128. Returns and Payment of Percentage 31, 2021, Thirty-seven pesos and fifty centavos
with Subsections (A) and (B) hereof: Provided, at the time of payment: Provided, finally, That Taxes.— (₱37.50) per pack; and
That should the Commissioner find that the payments for purchases of goods and services
grant of refund is not proper, the Commissioner arising from projects funded by Official “(A) x x x “Effective on January 1, 2022 until December
must state in writing the legal and factual basis Development Assistance (ODA) as defined 31, 2023, Forty pesos (₱40.00)per pack.
for the denial. under Republic Act No. 8182, otherwise known “(1) x x x
as the ‘Official Development Assistance Act of “The rates of tax imposed under this subsection
“In case of full or partial denial of the claim for 1996’, as amended, shall not be subject to the “(2) Persons Retiring from Business.— x x x shall be increased by four percent (4%) every
tax refund, the taxpayer affected may, within final withholding tax system as imposed in this year effective on January 1, 2024, through
thirty (30) days from the receipt of the decision Subsection. For purposes of this Section, the “(3) Determination of Correct Sales or revenue regulations issued by the Secretary of
denying the claim, appeal the decision with the payor or person in control of the payment shall Receipts.— x x x Finance.
Court of Tax Appeals: Provided, however, That be considered as the withholding agent.
failure on the part of any official, agent, or “x x x.”
“Duly registered cigarettes packed by hand volume capacity or weight, Eight pesos which are subject to excise tax under this volume capacity or weight, Nine pesos (₱9.00):
shall only be packed in twenties and other (₱8.00): Provided, That lubricating oils and Section; Provided, That lubricating oils and greases
packaging combinations of not more than greases produced from basestocks and produced from basestocks and additives on
twenty. additives on which the excise tax has already “(f) Unleaded premium gasoline, per liter of which the excise tax has already been paid
been paid shall no longer be subject to excise volume capacity, Seven pesos (₱7.00); shall no longer be subject to excise tax:
“‘Cigarettes packed by hand’ shall refer to the tax: Provided, further, That locally produced or Provided, further, That locally produced or
manner of packaging of cigarette sticks using imported oils previously taxed as such but are “(g) Aviation turbo jet fuel, aviation gas, per liter imported oils previously taxed as such but are
an individual person’s hands and not through subsequently reprocessed, refined or recycled of volume capacity, Four pesos (₱4.00); subsequently reprocessed, rerefined or
any other means such as a mechanical device, shall likewise be subject to the tax imposed recycled shall likewise be subject to the tax
machine or equipment. under this Subsection; “(h) Kerosene, per liter of volume capacity, imposed under this Subsection.
Three pesos (₱3.00): Provided, That kerosene,
“(C) Cigarettes Packed by Machine.— There “(b) Processed gas, per liter of volume when used as aviation fuel, shall be subject to “(b) Processed gas, per liter of volume
shall be levied, assessed and collected on capacity, Eight pesos (₱8.00); the same tax on aviation turbo jet fuel under capacity, Nine pesos (₱9.00);
cigarettes packed by machine a tax at the rates the preceding paragraph (g), such tax to be
prescribed below: “(c) Waxes and petrolatum, per kilogram, Eight assessed on the user thereof; “(c) Waxes and petrolatum, per kilogram, Nine
pesos (₱8.00); pesos (₱9.00);
“Effective on January 1, 2018 until June 30, “(i) Diesel fuel oil, and on similar fuel oils
2018, the tax on all cigarettes packed by “(d) On denatured alcohol to be used for motive having more or less the same generating “(d) On denatured alcohol to be used for motive
machine shall be Thirty-two pesos and fifty power, per liter of volume capacity, Eight pesos power, per liter of volume capacity, Two pesos power, per liter of volume capacity, Nine pesos
centavos (₱32.50) per pack; (₱8.00): Provided, That unless otherwise and fifty centavos (₱2.50); (₱9.00): Provided, That unless otherwise
provided by special laws, if the denatured provided by special laws, if the denatured
“Effective on July 1, 2018 until December 31, alcohol is mixed with gasoline, the excise tax “(j) Liquefied petroleum gas, per kilogram, One alcohol is mixed with gasoline, the excise tax
2019, the tax on all cigarettes packed by on which has already been paid, only the peso (₱1.00): Provided, That liquefied on which has already been paid, only the
machine shall be Thirty-five pesos (₱35.00) per alcohol content shall be subject to the tax petroleum gas when used as raw material in alcohol content shall be subject to the tax
pack; herein prescribed. For purposes of this the production of petrochemical products, herein prescribed. For purposes of this
Subsection, the removal of denatured alcohol subject to the rules and regulations to be Subsection, the removal of denatured alcohol
“Effective on January 1, 2020 until December of not less than one hundred eighty degrees promulgated by the Secretary of Finance, shall of not less than one hundred eighty degrees
31, 2021, the tax on all cigarettes packed by (180°) proof (ninety percent (90%) absolute be taxed zero (₱0.00) per kilogram: (180°) proof (ninety percent (90%) absolute
machine shall be Thirty-seven pesos and fifty alcohol) shall be deemed to have been alcohol) shall be deemed to have been
centavos (₱37.50) per pack; and removed for motive power, unless shown “Provided, finally, That liquefied petroleum gas removed for motive power, unless shown
otherwise; used for motive power shall be taxed at the otherwise;
“Effective on January 1, 2022 until December equivalent rate as the excise tax on diesel fuel
31, 2023, the tax on all cigarettes packed by “(e) Naphtha, regular gasoline, pyrolysis oil; “(e) Naphtha, regular gasoline, pyrolysis
machine shall be Forty pesos (₱40.00) per gasoline and other similar products of gasoline, and other similar products of
pack. distillation, per liter of volume capacity, Seven “(k) Asphalts, per kilogram, Eight pesos distillation, per liter of volume capacity, Nine
pesos (₱7.00): Provided, however, That (₱8.00); pesos (₱9.00): Provided, however, That
“The rates of tax imposed under this naphtha and pyrolysis gasoline, when used as naphtha and pyrolysis gasoline, when used as
Subsection shall be increased by four percent a raw material in the production of “(l) Bunker fuel oil, and on similar fuel oils a raw material in the production of
(4%) every year thereafter effective on January petrochemical products, or in the refining of having more or less the same generating petrochemical products, or in the refining of
1, 2024, through revenue regulations issued by petroleum products, or as replacement fuel for power, per liter of volume capacity, Two pesos petroleum products, or as replacement fuel for
the Secretary of Finance.” natural-gas-fired-combined cycle power plant in and fifty centavos (₱2.50): Provided, however, natural-gas-fired-combined cyclepower plant in
lieu of locally-extracted natural gas during the That the excise taxes paid on the purchased lieu of locally-extracted natural gas during the
Section 43. Section 148 of the NIRC, as non-availability thereof, subject to the rules and basestock (bunker) used in the manufacture of non-availability thereof, subject to the rules and
amended, is hereby further amended to read regulations to be promulgated by the Secretary excisable articles and forming part thereof shall regulations to be promulgated by the Secretary
as follows: of Finance, per liter of volume capacity, zero be credited against the excise tax due of Finance, per liter of volume capacity, zero
(₱0.00): Provided, further, That the production therefrom; and (₱0.00): Provided, further, That the production
“Sec. 148. Manufactured Oils and Other of petroleum products, whether or not they are of petroleum products, whether or not they are
Fuels.— There shall be collected on refined classified as products of distillation and for use “(m) Petroleum coke, per metric ton, Two pesos classified as products of distillation and for use
and manufactured mineral oils and motor fuels, solely for the production of gasoline shall be and fifty centavos.(₱2.50): Provided, however, solely for the production of gasoline shall be
the following excise taxes which shall attach to exempt from excise tax: Provided, finally, That That, petroleum coke, when used as feedstock exempt from excise tax: Provided, finally, That
the goods hereunder enumerated as soon as the by-product including fuel oil, diesel fuel, to any power generating facility, per metric ton, the by-product including fuel oil, diesel fuel,
they are in existence as such: kerosene, pyrolysis gasoline, liquefied zero (₱0.00). kerosene, pyrolysis gasoline, liquefied
petroleum gases and similar oils having more petroleum, gases and similar oils having more
“Effective January 1, 2018 or less the same generating power, which are “Effective January 1, 2019 or less the same generating power, which are
produced in the processing of naphtha into produced in the processing of naphtha into
“(a) Lubricating oils and greases, including but petrochemical products shall be subject to the “(a) Lubricating oils and greases, including but petrochemical products shall be subject to the
not limited to, basestock for lube oils and applicable excise tax specified in this Section, not limited to, basestock for lube oils and applicable excise tax specified in this Section,
greases, high vacuum distillates, aromatic except when such by-products are transferred greases, high vacuum distillates, aromatic except when such by-products are transferred
extracts and other similar preparations, and to any of the local oil refineries through sale, extracts and other similar preparations, and to any of the local oil refineries through sale,
additives for lubricating oils and greases, barter or exchange, for the purpose of further additives for lubricating oils and greases, barter or exchange, for the purpose of further
whether such additives are petroleum based or processing or blending into finished products whether such additives are petroleum based or processing or blending into finished products
not, per liter and kilogram, respectively, of not, per liter and kilogram, respectively, of
which are subject to excise tax under this additives on which the excise tax has already “(f) Unleaded premium gasoline, per liter of or less the same generating power, which are
Section; been paid shall no longer be subject to excise volume capacity, Ten pesos (₱10.00); produced in the processing of naphtha into
tax: Provided, further, That locally produced or petrochemical products shall be subject to the
“(f) Unleaded premium gasoline, per liter of imported oils previously taxed as such but are “(g) Aviation turbojet fuel, aviation gas, per liter applicable excise tax specified in this Section,
volume capacity, Nine pesos (₱9.00); subsequently reprocessed, rerefined or of volume capacity, Four pesos (₱4.00); except when such by-products are transferred
recycled shall likewise be subject to the tax to any of the local oil refineries through sale,
“(g) Aviation turbo jet fuel, aviation gas, per liter imposed under this Subsection. “(h) Kerosene, per liter of volume capacity, Five barter or exchange, for the purpose of further
of volume capacity, Four pesos (₱4.00); pesos (₱5.00): Provided, That kerosene, when processing or blending into finished products
“(b) Processed gas, per liter of volume used as aviation fuel, shall be subject to the which are subject to excise tax under this
“(h) Kerosene, per liter of volume capacity, capacity, Ten pesos (₱10.00); same tax on aviation turbo jet fuel under the Section.
Four pesos (₱4.00): Provided, That kerosene, preceding paragraph (g), such tax to be
when used as aviation fuel, shall be subject to “(c) Waxes and petrolatum, per kilogram, Ten assessed on the user thereof; “For the period covering 2018 to 2020, the
the same tax on aviation turbo jet fuel under pesos (₱10.00); scheduled increase in the excise tax on fuel as
the preceding paragraph (g), such tax to be “(i) Diesel fuel oil, and on similar fuel oils imposed in this Section shall be suspended
assessed on the user thereof; “(d) On denatured alcohol to be used for motive having more or less the same generating when the average Dubai crude oil price based
power, per liter of volume capacity, Ten pesos power, per liter of volume capacity, Six pesos on Mean of Platts Singapore (MOPS)for three
“(i) Diesel fuel oil, and on similar fuel oils (₱10.00): Provided, That unless otherwise (₱6.00); (3) months prior to the scheduled increase of
having more or less the same generating provided by special laws, if the denatured the month reaches or exceeds Eighty dollars
power, per liter of volume capacity, Four pesos alcohol is mixed with gasoline, the excise tax “(j) Liquefied petroleum gas, per kilogram, (USD 80) per barrel.
and fifty centavos (₱4.50); on which has already been paid, only the Three pesos (₱3.00): Provided, That liquefied
alcohol content shall be subject to the tax petroleum gas when used as raw material in “Provided, That the Department of Finance
“(j) Liquefied petroleum gas, per kilogram, Two herein prescribed. For purposes of this the production of petrochemical products, shall perform an annual review of the
pesos(₱2.00): Provided, That liquefied Subsection, the removal of denatured alcohol subject to the rules and regulations to be implementation of the excise tax on fuel and
petroleum gas when used as raw material in of not less than one hundred eighty degrees promulgated by the Secretary of Finance, per shall, based on projections provided and
the production of petrochemical products, (180°) proof (ninety percent (90%) absolute kilogram, zero (₱0.00): Provided, finally, That recommendations of the Development Budget
subject to the rules and regulations to be alcohol) shall be deemed to have been liquefied petroleum gas used for motive power Coordination Committee, as reconciled from
promulgated by the Secretary of Finance, per removed for motive power, unless shown shall be taxed at the equivalent rate as the the conditions as provided above, recommend
kilogram, zero (₱0.00): Provided, finally, That otherwise; excise tax on diesel fuel oil; the implementation or suspension of the excise
liquefied petroleum gas used for motive power tax on fuel: Provided, further, That the
shall be taxed at the equivalent rate as the “(e) Naphtha, regular gasoline, pyrolysis “(k) Asphalts, per kilogram, Ten pesos recommendation shall be given on a yearly
excise tax on diesel fuel oil; gasoline and other similar products of (₱10.00); basis: Provided, finally, That any suspension of
distillation, per liter of volume capacity, Ten the increase in excise tax shall not result in any
“(k) Asphalts, per kilogram, Nine pesos (₱9.00); pesos (₱10.00): Provided, however, That “(l) Bunker fuel oil, and on similar fuel oils reduction of the excise tax being imposed at
naphtha and pyrolysis gasoline, when used as having more or less the same generating the time of the suspension.”
“(l) Bunker fuel oil, and on similar fuel oils a raw material in the production of power, per liter of volume capacity, Six pesos
having more or less the same generating petrochemical products, or in the refining of (₱6.00): Provided, however, That the excise Section 44. A new section designated as
power, per liter of volume capacity, Four pesos petroleum products or as replacement fuel for taxes paid on the purchased basestock Section 148-A under Chapter V of the NIRC,
and fifty centavos (₱4.50): Provided, however, natural-gas-fired-combined cycle power plant in (bunker) used in the manufacture of excisable as amended, is hereby inserted to read as
That the excise taxes paid on the purchased lieu of locally-extracted natural gas during the articles and forming part thereof shall be follows:
basestock (bunker) used in the manufacture of non-availability thereof, subject to the rules and credited against the excise tax due therefrom;
excisable articles and forming part thereof shall regulations to be promulgated by the Secretary and “Sec. 148-A. Mandatory Marking of All
be credited against the excise tax due of Finance, per liter of volume capacity, zero Petroleum Products.— In accordance with
therefrom; and (₱0.00): Provided, further, That the production “(m) Petroleum coke, per metric ton, Six pesos rules and regulations to be issued by the
of petroleum products, whether or not they are (₱6.00): Provided, however, That, petroleum Secretary of Finance, in consultation with the
“(m) Petroleum coke, per metric ton, Four classified as products of distillation and for use coke, when used as feedstock to any power Commissioner of Internal Revenue and
pesos and fifty centavos (₱4.50): Provided, solely for the production of gasoline shall be generating facility, per metric ton, zero (₱0.00). Commissioner of Customs and in coordination
however, That, petroleum coke, when used as exempt from excise tax: Provided, finally, That with the Secretary of Energy, the Secretary of
feedstock to any power generating facility, per the by-product including fuel oil, diesel fuel, “Petroleum products, including naphtha, LPG, Finance shall require the use of an official fuel
metric ton, zero (₱0.00). kerosene, pyrolysis gasoline, liquefied petroleum coke, refinery fuel and other marking or similar technology on petroleum
petroleum gases and similar oils having more products of distillation, when used as input, products that are refined, manufactured, or
“Effective January 1, 2020 or less the same generating power, which are feedstock or as raw material in the imported into the Philippines, and that are
produced in the processing of naphtha into manufacturing of petrochemical products, or in subject to the payment of taxes and duties,
“(a) Lubricating oils and greases, including but petrochemical products shall be subject to the the refining of petroleum products, or as such as but not limited to, unleaded premium
not limited to, basestock for lube oils and applicable excise tax specified in this Section, replacement fuel for natural-gas-fired-combined gasoline, kerosene, and diesel fuel oil after the
greases, high vacuum distillates, aromatic except when such by-products are transferred cyclepower plant in lieu of locally-extracted taxes and duties thereon have been paid. The
extracts and other similar preparations, and to any of the local oil refineries through sale, natural gas during the non-availability thereof, mandatory marking of all petroleum products
additives for lubricating oils and greases, barter or exchange, for the purpose of further subject to the rules and regulations to be shall be in accordance with the following:
whether such additives are petroleum based or processing or blending into finished products promulgated by the Secretary of Finance, per
not, per liter and kilogram, respectively, of which are subject to excise tax under this liter of volume capacity, zero (₱0.00): Provided, “(a) Official Markers.— There shall be a list of
volume capacity or weight, Ten pesos Section; That the by-product including fuel oil, diesel chemical additives and corresponding
(₱10.00): Provided, That lubricating oils and fuel, kerosene, pyrolysis gasoline, liquefied quantitative ratio as identified by the Secretary
greases produced from basestocks and petroleum gases, and similar oils having more of Finance as official fuel markers. The official
fuel markers shall be .distinct and, to the products, as the case may be: Provided, That “Over Six hundred thousand pesos (₱600,000)
greatest degree possible, impossible to imitate the government may subsidize the cost of to One million pesos (₱1,000,000) Ten “(g) Hybrid electric vehicle shall mean a motor
or replicate: Provided, That the official fuel official fuel markers in the first year of percent (10%) vehicle powered by electric energy, with or
marker must be unique to the Philippines and implementation; “Over One million pesos (₱1,000,000) to Four without provision for off-vehicle charging, in
that its chemical composition and quantitative million pesos (₱4,000,000) Twenty combination with gasoline, diesel or any other
ratio must persist for at least three (3) years “(h) Fuel Marking Program Funds.— In addition percent(20%) motive power: Provided, That, for purposes of
from their application or administration to the to any appropriation to implement this Section “Over Four million pesos (₱4,000,000) Fifty this Act, a hybrid electric vehicle must be able
unmarked fuel; and the last paragraph of Section 171 of this percent (50%) to propel itself from a stationary condition using
Act, fees or charges collected in relation to the “Provided, That hybrid vehicles shall be subject solely electric motor.
“(b) The person, entity, or taxpayer who owns fuel marking program may be recorded as trust to fifty percent (50%) of the applicable excise
or enters the petroleum products into the receipts of the implementing agencies, and tax rates on automobiles under this Section: “Provided, That in the case of imported
country, or the person to whom the petroleum shall be exclusively disbursed to defray the Provided, further, That purely electric vehicles automobiles not for sale, the tax imposed
products are consigned shall cause and cost of services or equipment required to fully and pick-ups shall be exempt from excise tax herein shall be based on the total landed value,
accommodate the marking of the petroleum implement the said program, subject to rules on automobiles. including transaction value, customs duty and
products with the official marking agent; and regulations to be issued by the DOF-DBM- all other charges.
COA permanent committee; “As used in this Section—
“(c) Internal revenue or customs officers shall “Automobiles used exclusively within the
be on site to administer the declaration of the “(i) The marking of petroleum products shall be “(a) Automobile shall mean any four (4) or more freeoort zone shall be exempt from. excise tax.”
tax and duties imposed on the petroleum mandatory within five (5) years from the wheeled motor vehicle regardless of seating
products and to oversee the application of the effectivity of this Act; and capacity, which is propelled by gasoline, diesel,
fuel marking; electricity or any other motive power: Provided,
“(j) The term ‘random field test’ shall refer to That for purposes of this Act, buses, trucks, Section 46. A new section designated as
“(d) Absence of Official or Dilution of the Official periodic random inspections and tests cargo vans, jeepneys/jeepney substitutes, Section 150-A under Chapter VI, Title VI of
Marker; Presumptions.— In the event that the performed to establish qualitative and single cab chassis, and special-purpose the NIRC, as amended, is hereby inserted to
petroleum products which do not contain the quantitative positive result of fuel trafficking, vehicles shall not be considered as read as follows:
official marker or which contain the official which are conducted on fuels found in automobiles.
marker but are diluted beyond the acceptable warehouses, storage tanks, gas stations and “Sec. 150-A. Non-essential Services.— There
percentage approved by the Secretary of other retail outlets, and in such other properties “(b) Truck/cargo van shall mean a motor shall be levied, assessed, and collect a tax
Finance are found in the domestic market or in or equipment, including mechanisms of vehicle of any configuration that is exclusively equivalent to five percent (5%) based on the
the possession of anyone, or under any transportation, of persons engaged in the sale, designed for the carriage of goods and with any gross receipts derived from the performance of
situation where said petroleum products are delivery, trading, transportation, distribution, or number of wheels and axles: Provided, That services, net of excise tax and value-added tax,
subject to duties and taxes, it shall be importation of fuel intended for domestic pick-ups shall be considered as trucks. on invasive cosmetic procedures, surgeries,
presumed that the same were withdrawn with market. and body enhancements directed solely
the intention to evade the payment of the taxes “(c) Jeepney/jeepney substitutes shall mean as towards improving, altering, or enhancing the
and duties due thereon; “The term ‘confirmatory tests’ shall refer to the ‘Philippine jeep or jeepney’ which are of the patient’s appearance and do not meaning fully
accurate and precise analytical test of the jitney type Jocally designed and manufactured promote the proper function of the body or
“(e) The use of fraudulent marker on the tested unmarked, adulterated, or diluted fuel generally from surplus parts and components. prevent or treat illness or disease: Provided,
petroleum products shall be considered prima using a device, tool or equipment which will It shall also include jeepney substitutes that are That this tax shall not apply to procedures
facie evidence that the same have been validate and confirm the result of the field test, manufactured from brand-new single cab necessary to ameliorate a deformity arising
withdrawn or imported without the payment of that is immediately conducted in an accredited chassis or cowl chassis and locally customized from, or directly related to, a congenital or
taxes and duties due thereon; testing facility that is certified to ISO 17025.” rear body that has continuous sideway row developmental defect or abnormality, a
seats with open rear door and without personal injury resulting from an accident or
“(f) Engagement of Fuel Marking Provider.— Section 45. Section 149, Chapter 6 of Title VI retractable glass windows. trauma, or disfiguring disease, tumor, virus or
The government shall engage only one fuel of the NIRC, as amended, is hereby further infection: Provided, further, That cases or
marking provider who shall, under the amended to read as follows: “(d) Bus shall mean a motor vehicle of any treatments covered by the National Health
supervision and direction of the Commissioners configuration with gross vehicle weight of 4.0 Insurance Program shall not be subject to this
of Internal Revenue and Customs, be “CHAPTER VI – EXCISE TAX ON tons or more with any number of wheels and tax.”
responsible for providing, monitoring, and MISCELLANEOUS ARTICLES axles, which is generally accepted and
administering the fuel markers, provide specially designed for or public transportation. Section 47. A new section designated as
equipment and devices, conduct field and “Sec. 149. Automobiles.— There shall be Section 150-B under Chapter VI, Title VI of
confirmatory tests, and perform such other acts levied, assessed and collected an ad valorem “(e) Single cab chassis shall mean a motor the NIRC, as amended, is hereby inserted to
incidental or necessary to the proper tax on automobiles based on the vehicle with complete engine power train and read as follows:
implementation of the provisions of this Act: manufacturer’s or importer’s selling price, net of chassis equipped with a cab that has a
Provided, That the fuel marking provider shall excise and value-added tax, in accordance with maximum of two (2) doors and only one (1) row “Sec. 150-B. Sweetened Beverages.—
provide an end-to-end solution to the the following schedule: of seats.
Government, including the establishment and “(A) Rate and Base of Tax.— Effective January
operation of testing facilities that are certified to “Effective January 1, 2018 “(f) Special purpose vehicle shall mean a motor 1, 2018:
ISO 17025; vehicle designed for specific applications such
“Net manufacturer’s price/importer‘s selling as cement mixer, fire truck, boom truck, “(1) A tax of Six pesos (₱6.00) per liter of
“(g) All costs pertaining to the procurement of price Rate ambulance and/or medical unit, and off-road volume capacity shall be levied, assessed, and
the official fuel markers shall be borne by the “Up to Six hundred thousand pesos (₱600,000) vehicles for heavy industries and not for collected on sweetened beverages using purely
refiner, manufacturer or importer, of petroleum Four percent (4%) recreational activities. caloric sweeteners, and purely non-caloric
sweeteners, or a mix of caloric and non-caloric processed that produces a certain sweetness. Customs that any manufacturer or importer, in “For this purpose, the above mentioned control
sweeteners: Provided, That this tax rate shall These are substances which can be directly violation of this Section, misdeclares or measure shall be caused by the Commissioner
not apply to sweetened beverages using high added to beverages, such as aspartame, misrepresents in the sworn statement provided to be printed with adequate security features to
fructose corn syrup: Provided, further, That sucralose, saccharin, acesulfame, potassium, in Section 130(c) of the NIRC, as amended, ensure the payment of excise tax on
sweetened beverages using purely coconut neotame, cyclamates and other non-nutritive any pertinent data or information, the penalty of sweetened beverages.
sap sugar and purely steviol glycosides shall sweeteners approved by the Codex summary cancellation or withdrawal of the
be exempt from this tax; and Alimentarius and adopted by the FDA. permit to engage in business as manufacturer “(G) Review of Implementation of the
or importer of sweetened beverages as Sweetened Beverage Tax.— At the start of the
“(2) A tax of Twelve pesos (₱12.00) per liter of “(C) Exclusions.— The following products, as provided under Section 268 of the NIRC, as implementation of the sugar sweetened
volume capacity shall be levied, assessed, and described in the food category system from amended, shall be imposed. beverage tax and every year thereafter, the
collected on sweetened beverages using purely Codex Alimentarius Food Category Descriptors Department of Health, Department of Science
high fructose corn syrup or in combination with (Codex Stan 192-1995, Rev. 2017 or the latest) “Any corporation, association or partnership and Technology, and Department of Finance
any caloric or non-caloric sweetener. as adopted by the FDA, are excluded from the liable for any of the acts or omissions in shall review the impact of these provisions on
scope of this Act: violation of this Section shall be fined treble the its health objectives with the view to making
“(B) Definition of Terms.— As used in this Act: amount of deficiency taxes, surcharges, and recommendations on the tax rate on these
“(1) All milk products, including plain milk, infant interest which may be assessed pursuant to beverages.”
“(1) Sweetened beverages (SBs) refer to non- formula milk, follow-on milk, growing up milk, this Section.
alcoholic beverages of any constitution (liquid, powdered milk, ready-to-drink milk and flavored Section 48. Section 151 of the NIRC, as
powder, or concentrates) that are pre- milk, fermented milk, soymilk, and flavored “Any person liable for any of the acts or amended is hereby further amended to read
packaged and sealed in accordance with the soymilk; omissions prohibited under this Section. shall as follows:
Food and Drug Administration (FDA) be crirninal1y liable and penalized under
standards, that contain caloric and/or non- “(2) One Hundred Percent (100%) Natural Fruit Section 254 of the NIRC, as amended. Any “Sec. 151. Mineral Products.—
caloric sweeteners added by the Juices – Original liquid resulting from the person who willfully aids or abets in the
manufacturers, and shall include, but not be pressing of fruit, the liquid resulting from the commission of any such act or omission shall “(A) Rates of Tax.— There shall be levied,
limited to the following, as described in the reconstitution of natural fruit juice concentrate, be criminally liable in the same manner as the assessed and collected on minerals, mineral
Food Category System from Codex or the liquid resulting from the restoration of principal. products and quarry resources, excise tax as
Alimentarius Food Category Descriptors water to dehydrated natural fruit juice that do follows:
(Codex Stan 192-1995, Rev. 2017 or the latest) not have added sugar or caloric sweetener; “If not a citizen of the Philippines, the offender
as adopted by the FDA: shall be deported immediately after serving the “(1) On domestic or imported coal and coke,
“(3) One Hundred Percent (100%) Natural sentence without further proceedings for notwithstanding any incentives granted in any
“(a) Sweetened juice drinks; Vegetable Juices – Original liquid resulting deportation. law or special law:
from the pressing of vegetables, the liquid
“(b) Sweetened tea; resulting from the reconstitution of natural “(E) Specific Responsibility of the Food and “Effective January 1, 2018, Fifty pesos
vegetable juice concentrate, or the liquid Drug Administration (FDA).— Starting June 1, (₱50.00) per metric ton;
“(c) All carbonated beverages; resulting from the restoration of water to 2018, the FDA shall require all manufacturers
dehydrated natural vegetable juice that do not and importers of sweetened beverages “Effective January 1, 2019, One hundred pesos
“(d) Flavored water; have added sugar or caloric sweetener; covered by this Act to indicate on the label the (₱100.00) per metric ton; and
type of sweetener used, and on sweetened
“(e) Energy and sports drinks; “(4) Meal Replacement and Medically Indicated beverages in powder form to indicate on the “Effective January 1, 2020, One hundred fifty
Beverages – Any liquid or powder drink/product label the equivalent of each serving per liter of pesos {₱150.00) per metric ton.
“(f) Other powdered drinks not classified as for oral nutritional therapy for persons who volume capacity.
milk, juice, tea, and coffee; cannot absorb or metabolize dietary nutrients “(2) On all nonmetallic minerals and quarry
from food or beverages, or as a source of “The FDA shall also conduct post marketing resources, a tax of four percent (4%) based on
“(g) Cereal and grain beverages; and necessary nutrition used due to a medical surveillance of the sweetened beverages on the actual market value of the gross output
condition and an oral electrolyte solution for display in supermarkets, groceries or retail thereof at the time of removal, in the case of
“(h) Other non-alcoholic beverages that contain infants and children formulated to prevent stores and/or inspection of manufacturing sites those locally extracted or produced; or the
added sugar. dehydration due to illness; and to determine compliance with the requirements value used by the Bureau of Customs in
of this Section. Violations of the provisions of determining tariff and customs duties, net of
“(2) Caloric sweetener refers to a substance “(5) Ground coffee, instant soluble coffee, and this Act, including but not limited to, mislabeling excise tax and value-added tax in the case of
that is sweet and includes sucrose, fructose, pre-packaged powdered coffee products. or misbranding, shall, to the extent applicable, importation.
and glucose that produces a certain be punishable under existing laws.
sweetness; “(D) Filing of Return and Payment of Excise “x x x:
Tax and Penalty.— “(F) Duty of the Commissioner to Ensure
“(3) High fructose corn syrup refers to a sweet Payment of Taxes.— It shall be the duty of the “(a) Copper and other metallic minerals, four
saccharide mixture containing fructose and “(1) Filing of Return and Payment of Excise Tax Commissioner, among other things, to percent (4%); and
glucose which is derived from corn and added on Domestic and Imported Sweetened prescribe a materially unique, secure and non
to provide sweetness to beverages, and which Beverages.— The provision of Sections 130 removable identification, such as codes, “(b) Gold and chromite, four percent (4%).
includes other similar fructose syrup and 131 of the NIRC, as appropriate, shall stamps or other markings, to be firmly and
preparations; and apply to sweetened beverages. conspicuously affixed on and form part of the “(4) On indigenous petroleum, a tax of six
label of all excisable sweetened beverages. percent (6%) of the fair international market
“(4) Non-caloric sweetener refers to a “(2) Penalty.— Upon final findings by the price thereof, on the first taxable sale, barter,
substance that are artificially or chemically Commissioner of Internal Revenue and/or exchange or such similar transaction, such tax
to be paid by the buyer or purchaser before carries any article on which the excise tax has Section 52. Section 175 of the NIRC, as demand there shall be collected a documentary
removal from the place of production. x x x. not been paid. amended, is hereby further amended to read stamp tax of Three pesos (₱3.00).”
as follows:
“x x x.” “Subject to rules and regulations to be issued Section 55. Section 179 of the NIRC, as
by the Secretary of Finance, the Commissioner “Sec. 175. Stamp Tax on Sales, Agreements to amended is hereby further amended to read
Section 49. Section 155 of the NIRC, as of Internal Revenue or his authorized Sell, Memoranda of Sales, Deliveries or as follows:
amended, is hereby further amended to read representatives may conduct periodic random Transfer of Shares or Certificates of Stock.—
as follows: field tests and confirmatory tests on fuel On all sales, or agreements to sell, or “Sec. 179. Stamp Tax on All Debt
required to be marked under Section 148-A memoranda of sales, or deliveries, or transfer Instruments.— On every original issue of debt
“Sec. 155. Manufacturers and/or Importers to found in warehouses, storage tanks, gas of shares or certificates of stock in any instruments, there shall be collected a
Provide Themselves with Counting or Metering stations and other retail outlets, and in such association, company, or corporation, or documentary stamp-tax of One peso and fifty
Devices to Determine Volume of Production other properties of persons engaged in the transfer of such securities by assignment in centavos (₱1.50) on each Two hundred pesos
and Importation.— Manufacturers of cigarettes, sale, delivery, trading, transportation, blank, or by delivery, or by any paper or (₱200), or fractional part thereof, of the issue
alcoholic products, oil products, and other distribution, or importation of fuel intended for agreement, or memorandum or other price of any such debt instruments: Provided,
articles subject to excise tax that can be the domestic market: Provided, evidences of transfer or sale whether entitling That for such debt instruments with terms of
similarly measured shall provide themselves the holder in any manner to the benefit of such less than one (1) year, the documentary stamp
with such necessary number of suitable “(a) Random field testing shall be conducted in stock, or to secure the future payment of tax to be collected shall be of a proportional
counting or metering devices to determine as the presence of revenue or customs officers, money, or for the future transfer of any stock, amount in accordance with the ratio of its term
accurately as possible the volume, quantity or fuel marking provider, and the authorized there shall be collected a documentary stamp in number of days to three hundred sixty-five
number of the articles produced by them under representative of the owner of the fuel to be tax of One peso and fifty centavos (₱1.50) on (365) days: Provided, further, That only one
rules and regulations promulgated by the tested: Provided, That an employee assigned each Two hundred pesos (₱200), or fractional documentary stamp tax shall be imposed on
Secretary of Finance, upon recommendation of or working at the place where the random field part thereof, of the par value of such stock: either loan agreement, or promissory notes
the Commissioner: Provided, That the tests conducted shall be deemed an authorized Provided, That only one tax shall be collected issued to secure such loan.
Department of Finance shall maintain a registry representative of the owner; on each sale or transfer of stock from one
of all petroleum manufacturers and/or importers person to another, regardless of whether or not “x x x.”
and the articles being manufactured and/or “(b) All field tests shall be properly filmed or a certificate of stock is issued, indorsed, or
imported by them: Provided, further, That the video taped, and documented; and delivered in pursuance of such sale or transfer: Section 56. Section 180 of the NIRC, as
Department of Finance shall mandate the and Provided, further, That in the case of stock amended, is hereby further amended to read
creation of a real-time inventory of petroleum “(c) A sample of the randomly tested fuel shall without par value the amount of the as follows:
articles being manufactured, imported or found be immediately obtained by the revenue or documentary stamp tax herein prescribed shall
in storage depots of such petroleum customs officer upon discovering that the same be equivalent to fifty percent (50%) of the “Sec. 180. Stamp Tax on All Bills of Exchange
manufacturers and/or importers: Provided, unmarked, adulterated, or diluted: documentary stamp tax paid upon the original or Drafts.— On all bills of exchange (between
finally, That importers of finished petroleum issue of said stock.” points within the Philippines) or drafts, there
products shall also provide themselves with “Provided, further, That confirmatory fuel test shall be collected a documentary stamp tax of
Bureau-accredited metering devices to certificates issued by fuel testing facilities shall Section 53. Section 177 of the NIRC, as Sixty centavos (₱0.60) on each Two hundred
determine as accurately as possible the volume be valid for any legal purpose from the date of amended, is hereby further amended to read pesos (₱200), or fractional part thereof, of the
of petroleum products imported by them. issue, and shall constitute admissible and as follows: face value of any such bill of exchange or
conclusive evidence before any court.” draft.”
This requirement shall be complied with before “Sec. 177. Stamp Tax on Certificates of Profits
commencement of operations.” Section 51. Section 174 of the NIRC, as or Interest in Property or Accumulations.— On Section 57. Section 181 of the NIRC, as
amended, is hereby further amended to read all certificates of profits, or any certificate or amended, is hereby further amended to read
as follows: memorandum showing interest in the property as follows:
or accumulations of any association, company
Section 50. Section 171 of the NIRC, as “Sec. 174. Stamp Tax on Original Issue of or corporation, and on all transfers of such “Sec. 180. Stamp Tax Upon Acceptance of Bills
amended, is hereby further amended to read Shares of Stock.— On every original issue, certificates or memoranda, there shall be of Exchange and Others.— Upon any
as follows: whether on organization, reorganization or for collected a documentary stamp tax of One acceptance or payment of any bill of exchange
any lawful purpose, of shares of stock by any peso (₱1.00) on each Two hundred pesos or order for the payment of money purporting to
“Sec. 171. Authority of Internal Revenue Officer association, company, or corporation; there (₱200), or fractional part thereof, of the face be drawn in a foreign country but payable in the
in Searching for and Testing Taxable shall be collected a documentary stamp tax of value of such certificates or memorandum.” Philippines, there shall be collected a
Articles.— Any internal revenue officer may, in Two pesos (₱2.00) on each Two hundred documentary stamp tax of Sixty centavos
the discharge of his official duties, enter any pesos (₱200), or fractional part thereof, of the Section 54. Section 178 of the NIRC, as (₱0.60) on each Two hundred pesos (₱200), or
house, building or place where articles subject par value, of such shares of stock: Provided, amended, is hereby further amended to read fractional part thereof, of the face value of any
to tax under this Title are produced or kept, or That in the case of the original issue of shares as follows: such bill of exchange, or order, or the
are believed by him upon reasonable grounds of stock without par value, the amount of the Philippine equivalent of such value, if
to be produced or kept, so far as may be documentary stamp tax herein prescribed shall “Sec. 178. Stamp Tax on Bank Checks, Drafts, expressed in foreign currency.”
necessary to examine, test, discover or seize be based upon the actual consideration for the Certificates of Deposit not Bearing Interest, and
the same. issuance of such shares of stock: Provided, Other Instruments.— On each bank check, Section 58. Section 182 of the NIRC, as
further, That in the case of stock dividends, on draft, or certificate of deposit not drawing amended, is hereby further amended to read
“He may also stop and search any vehicle or the actual value represented by each share.” interest, or order for the payment of any sum of as follows:
other means of transportation when upon money drawn upon or issued by any bank, trust
reasonable grounds he believes that the same company, for any person or persons, “Sec. 182. Stamp Tax on Foreign Bills of
companies or corporations, at sight or on Exchange and Letters of Credit.— On all
foreign bills of exchange and letter of credit Section 61. Section 188 of the NIRC, as not exceed One thousand pesos (₱1,000); where the same shall be made as a security for
(including orders, by telegraph or otherwise, for amended, is hereby further amended to read Twenty pesos (₱20.00), if the value exceeds the payment of any definite and certain sum of
the payment of money issued by express or as follows: One thousand pesos (₱1,000): Provided, money lent at the time or previously due and
steamship companies or by any person or however, That freight tickets covering goods, owing or forborne to be paid, being payable,
persons) drawn in but payable out of the “Sec. 188. Stamp Tax on Certificates.— On merchandise or effects carried as accompanied and on any conveyance of land, estate, or
Philippines in a set of three (3) or more each certificate of damage or otherwise, and on baggage of passengers on land and water property whatsoever, in trust or to be sold, or
according to the custom of merchants and every other certificate or document issued by carriers primarily engaged in the transportation otherwise converted into money which shall be
bankers, there shall be collected a any customs officer, marine surveyor, or other of passengers are hereby exempt.” and intended only as security, either by
documentary stamp tax of Sixty centavos person acting as such, and on each certificate express stipulation or otherwise, there shall be
(₱0.60) on each Two hundred pesos (₱200), or issued by a notary public, and on each Section 65. Section 192 of the NIRC, as collected a documentary stamp tax at the
fractional part thereof, of the face value of any certificate of any description required by law or amended, is hereby further amended to read following rates:
such bill of exchange or letter of credit, or the by rules or regulations of a public office, or as follows:
Philippine equivalent of such face value, if which is issued for the purpose of giving “(a) When the amount secured does not
expressed in foreign information, or establishing proof of a fact, and “Sec. 192. Stamp Tax on Proms.— On each exceed Five thousand pesos (₱5,000), Forty
not otherwise specified herein, there shall be proxy for voting at any election of officers of pesos (₱40.00).
collected a documentary stamp tax of Thirty any company or association, or for any other
pesos (₱30.00).” purpose, except proxies issued affecting the “(b) On each Five thousand pesos (₱5,000), or
Section 59. Section 183 of the NIRC, as affairs of associations or corporations fractional part thereof in excess of Five
amended, is hereby further amended to read Section 62. Section 189 of the NIRC, as organized for religious, charitable or literary thousand pesos (₱5,000), an additional tax of
as follows: amended, is hereby further amended to read purposes, there shall be collected a Twenty pesos (₱20.00).
as follows: documentary stamp tax of Thirty pesos
“Sec. 183. Stamp Tax on Life Insurance (₱30.00).” “x x x.”
Policies.— On all policies of insurance or other “Sec. 189. Stamp Tax on Warehouse
instruments by whatever name the same may Receipts.— On each warehouse receipt for Section 66. Section 193 of the NIRC, as Section 69. Section 196 of the NIRC, as
be called, whereby any insurance shall be property held in storage in a public or private amended, is hereby further amended to read amended, is hereby further amended to read
made or renewed upon any life or lives, there warehouse or yard for any person other than as follows: as follows:
shall be collected a one-time documentary the proprietor of such warehouse or yard, there
stamp tax at the following rates: shall be collected a documentary stamp tax of “Sec. 193. Stamp Tax on Powers of Attorney.— “Sec. 196. Stamp Tax on Deeds of Sale,
Thirty pesos (₱30.00): Provided, That no tax On each power of attorney to perform any act Conveyances and Donation of Real Property.—
“If the amount of insurance does not exceed shall be collected on each warehouse receipt whatsoever, except acts connected with the On all conveyances, donations, deeds,
₱100,000 - Exempt issued to any one person in any one calendar collection of claims due from or accruing to the instruments, or writings, other than grants,
“"If the amount of Insurance exceeds ₱100,000 month covering property the value of which Government of the Republic of the Philippines, patents or original certificates of adjudication
but does not exceed ₱300,000 - ₱20.00 does not exceed Two hundred pesos (₱200).” or the government of any province, city or issued by the Government, whereby any land,
“If the amount of insurance exceeds ₱300,000 municipality, there shall be collected a tenement, or other realty sold shall be granted,
but does not exceed ₱500,000 - ₱50.00 Section 63. Section 190 of the NIRC, as documentary stamp tax of Ten pesos assigned, transferred, donated or otherwise
“If the amount of insurance exceeds ₱500,000 amended, is hereby further amended to read (₱10.00).” conveyed to the purchaser, or purchasers, or to
but does not exceed ₱750,000 - ₱100.00 as follows: any other person or persons designated by
“If the amount of insurance exceeds ₱750,000 Section 67. Section 194 of the NIRC, as such purchaser or purchasers, or donee, there
but does not exceed ₱1,000,000 - ₱150.00 “Sec. 190. Stamp Tax on Jai-alai, Horse Race, amended, is hereby further amended to read shall be collected a documentary stamp tax, at
“If the amount of insurance exceeds Tickets, Lotto or Other Authorized Numbers as follows: the rates herein below prescribed, based on
₱1,000,000 - ₱200.00” Games.— On each jai-alai, horse race ticket, the consideration contracted to be paid for such
lotto, or other authorized numbers games, “Sec. 194. Stamp Tax on Leases and Other realty or on its fair market value determined in
Section 60. Section 186 of the NIRC, as there shall be collected a documentary stamp Hiring Agreements.— On each lease, accordance with Section 6(E) of this Code,
amended, is hereby further amended to read tax of Twenty centavos (₱0.20): Provided, That agreement, memorandum, or contract for hire, whichever is higher: Provided, That when one
as follows: if the cost of the ticket exceed One peso use or rent of any lands or tenements, or of the contracting parties is the Government,
(₱1.00), an additional tax of Twenty centavos portions thereof, there shall be collected a the tax herein imposed shall be based on the
“Sec. 186. Stamp Tax on Policies of Annuities (₱0.20) on every One peso (₱1.00), or documentary stamp tax of Six pesos (₱6.00) actual consideration:
and Pre-Need Plans.— On all policies of fractional part thereof, shall be collected.” for the first Two thousand pesos (₱2,000), or
annuities, or other instruments by whatever fractional part thereof, and an additional Two “(a) When the consideration, or value received
name the same may be called, whereby an Section 64. Section 191 of the same Code, pesos (₱2.00) for every One thousand pesos or contracted to be paid for such realty, after
annuity may be made, transferred or as amended, is hereby further amended to (₱1,000) or fractional part thereof, in excess of making proper allowance of any encumbrance,
redeemed, there shall be collected a read as follows: the first Two thousand pesos (₱2,000) for each does not exceed One thousand pesos
documentary stamp tax of One peso (₱1.00) on year of the term of said contract or agreement.” (₱1,000), Fifteen pesos (₱15.00).
each Two hundred pesos (₱200), or fractional “Sec. 191. Stamp Tax on Bills of Lading or
part thereof, of the premium or installment Receipts.— On each set of bills of lading or Section 68. Section 195 of the NIRC, as “(b) For each additional One thousand pesos
payment on contract price collected. On pre- receipts (except charter party) for any goods, amended, is hereby further amended to read (₱1,000), or fractional part thereof in excess of
need plans, the documentary stamp tax shall merchandise or effects shipped from one port as follows: One thousand pesos (₱1,000) of such
be Forty centavos (₱0.40) on each Two or place in the Philippines (except on ferries consideration or value, Fifteen pesos (₱15.00).
hundred pesos (₱200), or fractional part thereof across rivers), or to any foreign port, there shall “Sec. 195. Stamp Tax on Mortgages, Pledges
of the premium or contribution collected.” be collected a documentary stamp tax of Two and Deeds of Trust.— On every mortgage or “Transfers exempt from donor’s tax under
pesos (₱2.00), if the value of such goods pledge of lands, estate, or property, real or Section 101(a) and (b) of this Code shall be
exceeds One hundred pesos (₱100) and does personal, heritable or movable, whatsoever,
exempt from the tax imposed under this Section 71. Section 232 of the NIRC, as exempt under Section 109(A) to (BB), have Provided, further, That where the purchaser is
Section. amended, is hereby further amended to read exceeded Three million pesos (₱3,000,000); or a VAT-registered person, in addition to the
as follows: information herein required, the invoice or
“When it appears that the amount of the “(b) There are reasonable grounds to believe receipt shall further show the Taxpayer
documentary stamp tax payable hereunder has “Sec. 232. Keeping of Books of Accounts.— that his gross sales or receipts for the next Identification Number (TIN) of the purchaser.
been reduced by an incorrect statement of the twelve (12) months, other than those that are
consideration in any conveyance, deed, “(A) Corporations, Companies, Partnerships or exempt under Section 109(A) to (BB), will “Within five (5) years from the effectivity of this
instrument or writing subject to such tax the Persons Required to Keep Books of exceed Three million pesos (₱3,000,000). Act and upon the establishment of a system
Commissioner, provincial or city Treasurer, or Accounts.— All corporations, companies, capable of storing and processing the required
other revenue officer shall. from the partnerships or persons required by law to pay “x x x data. the Bureau shall require taxpayers
assessment rolls or other reliable source of internal revenue taxes shall keep and use engaged in the export of goods and services,
information, assess the property of its true relevant and appropriate set of bookkeeping “(H) Optional Registration for Value-Added Tax taxpayers engaged in e-commerce, and
market value and collect the proper tax records duly authorized by the Secretary of of Exempt Person.— (1) Any person who is not taxpayers under the jurisdiction of the Large
thereon.” Finance wherein all transactions and results of required to register for value-added tax under Taxpayers Service to issue electronic receipts
operations are shown and from which all taxes Subsection (G) hereof may elect to register for or sales or commercial invoices in lieu of
Section 70. Section 197 of the NIRC, as due the Government may readily and value-added tax by registering with the manual receipts or sales or commercial
amended, is hereby further amended to read accurately be ascertained and determined any Revenue District Office that has jurisdiction invoices subject to rules and regulations to be
as follows: time of the year: Provided, That corporations, over the head office of that person, and paying issued by th; Secretary of Finance upon
companies, partnerships or persons whose the annual registration fee in Subsection (B) recommendation of the Commissioner and
“Sec. 197. Stamp Tax on Charter Parties and gross annual sales, earnings, receipts or output hereof. after a public hearing shall have been held for
Similar Instruments.— On every charter party, exceed Three million pesos (₱3,000,000), shall this purpose: Provided, That taxpayers not
contract or agreement for the charter of any have their books of accounts audited and “(2) Any person who elects to register under covered by the mandate of this provision may
ship, vessel or streamer, or any letter or examined yearly by independent Certified this Subsection shall not be entitled to cancel issue electronic receipts or, sales or
memorandum or other writing between the Public Accountants and their income tax his registration under Subsection (F)(2) for the commercial invoices, in lieu of manual receipts,
captain, master or owner or other person acting returns accompanied with a duly accomplished next three (3) years. and sales and commercial invoices.
as agent of any ship, vessel or steamer, and Account Information Form (AIF) which shall
any other person or persons for relating to the contain, among others, information lifted from “Provided, That any person taxed under “The original of each receipt or invoice shall be
charter of any such ship, vessel or streamer, certified balance sheets, profit and loss Section 24(A)(2)(b) and 24(A)(2)(c)(2)(a) of the issued to the purchaser, customer or client at
and on any renewal or transfer of such charter, statements, schedules listing income-producing NIRC who elected to pay the eight percent the time the transaction is effected, who, if
contract, agreement, letter or memorandum properties and the corresponding income (8%) tax on gross sales or receipts shall not be engaged in business or in the exercise of
there shall be collected a documentary stamp therefrom and other relevant statements. allowed to avail of this option. profession, shall keep and preserve the same
tax the following rates: in his place of business for a period of three (3)
“x x x.” “For purposes of Title IV of this Code, any years from the close of the taxable year in
“(a) If the registered gross tonnage of the ship, person who has registered value-added tax as which such invoice or receipt was issued, while
vessel or steamer does not exceed one Section 72. Section 236 of the NIRC, as a tax type in accordance with the provisions of the duplicate shall be kept and preserved by
thousand (1,000) tons, and the duration of the amended, is hereby further amended to read Subsection (C) hereof shall be referred to as a the issuer, also in his place of business, for a
charter or contract does not exceed six (6) as follows: ‘VAT-registered person’ who shall be assigned like period: Provided, That in case of electronic
months, One thousand pesos (₱1,000); and for only one Taxpayer Identification Number (TIN). receipts or sales or commercial invoices, the
each month or fraction of a month in excess of “Sec. 236. Registration Requirements.— digital records of the same shall be kept by the
six (6) months, an additional tax of One “x x x.” purchaser, customer or client and the issuer for
hundred pesos (₱100) shall be paid. “(A) Requirements.— x x x the same period above stated.
Section 73. Section 237 of the NIRC, as
“(b) If the registered gross tonnage exceeds “x x x amended, is hereby further amended to read “The Commissioner may, in meritorious cases,
one thousand (1,000) tons and does not as follows: exempt any person subject to internal revenue
exceed ten thousand (10,000) tons, and the “The registration shall contain the taxpayer’s tax from compliance with the provisions of this
duration of the charter or contract does not name, style, place of residence, business, and “Sec. 237. Issuance of Receipts or Sales or Section.”
exceed six (6) months, Two thousand pesos such other information as may be required by Commercial Invoices.—
(₱2,000); and for each month or fraction of a the Commissioner in the form prescribed Section 74. A new section designated as
month in excess of six (6) months, an therefor: Provided, That the Commissioner “(A) Issuance.— All persons subject to an Section 237-A under Chapter II, Title IX of
additional tax of Two hundred pesos (₱200) shall simplify the business registration and tax internal revenue tax shall, at the point of each the NIRC, as amended, is hereby inserted to
shall be paid. compliance requirements of self-employed sale and transfer of merchandise or for read as follows:
individuals and/or professionals. services rendered valued at One hundred
“(c) If the registered gross tonnage exceeds ten pesos (₱100) or more, issue duly registered “Sec. 237-A. Electronic Sales Reporting
thousand (10,000) tons and the duration of the “x x x receipts or sale or commercial invoices, System.— Within five (5) years from the
charter or contract does not exceed six (6) showing the date of transaction, quantity, unit effectivity of this Act and upon the
months, Three thousand pesos (₱3,000); and “(G) Persons Required to Register for Value- cost and description of merchandise or nature establishment of a system capable of storing
for each month or fraction of a month in excess Added Tax.— of service: Provided, however, That where the and processing the required data, the Bureau
of six (6) months, an additional tax of Three receipt is issued to cover payment made as shall require taxpayers engaged in the export
hundred pesos (₱300) shall be paid.” “(1) x x x rentals, commissions, compensation or fees, of goods and services, and taxpayers under the
receipts or invoices shall be issued which shall jurisdiction of the Large Taxpayers Service to
“(a) His gross sales or receipts for the past show the name, business style, if any, and electronically report their sales data to the
twelve (12) months, other than those that are address of the purchaser, customer or client: Bureau through the use of electronic point of
sales systems, subject to rules and regulations addition to other penalties provided by law, imposed: Provided, further, That if the failure to “(3) For the third offense,a fine of Ten million
to be issued by the Secretary of Finance as upon conviction thereof, be punished with a transmit is due to force majeure or any causes pesos (₱10,000,000)and revocation of license
recommended by the Commissioner of Internal fine of not less than Five hundred thousand beyond the control of the taxpayer the penalty to engage in any trade or business.
Revenue: Provided, That the machines, fiscal pesos (₱500,000) but not more than Ten shall not apply.”
devices, and fiscal memory devices shall be at million pesos (₱10,000,000), and imprisonment “(b) Any person who causes the removal of the
the expense of the taxpayers. of not less than six (6) years but not more than Section 79. A new section designated as official fuel marking agent from marked fuel,
ten (10) years: Provided, That the conviction or Section 264-B under Chapter II, Title X of the and the adulteration or dilution of fuel intended
“The data processing of sales and purchase acquittal obtained under this Section shall not NIRC, as amended, is hereby inserted to for sale to the domestic market, or the knowing
data shall comply with the provisions of be a bar to the filing of a civil suit for the read as follows: possession, storage, transfer or offer for sale of
Republic Act No. 10173, otherwise known as collection of taxes.” fuel obtained as a result of such removal,
the “Data Privacy Act” and Section 270 of the “Sec. 264-B. Purchase, Use, Possession, Sale adulteration or dilution shall be penalized in the
NIRC, as amended, on unlawful divulgence of Section 77. Section 264 of the NIRC, as or Offer to Sell, Installment, Transfer, Update, same manner and extent as provided for in the
taxpayer information and such other laws amended, is hereby further amended to read Upgrade, Keeping or Maintaining of Sales preceding Subsection.
relating to the confidentiality of information. as follows: Suppression Devices.— Any person who shall
purchase, use, possess, sell or offer to sell, “(c) Any person who commits any of the acts
“The Bureau shall also establish policies, risk “Sec. 264. Failure or Refusal to Issue Receipts install, transfer, update, upgrade, keep, or enumerated hereunder shall, upon conviction,
management approaches, actions, trainings, or Sales or Commercial Invoices, Violations maintain any software or device designed for, be punished by a fine of not less than One
and technologies to protect the cyber Related to the Printing of such Receipts or or is capable of: (a) suppressing the creation of million pesos (₱1,000,000) but not more than
environment, organization, and data in Invoices and Other Violations.— electronic records of sale transactions that a Five million pesos (₱5,000,000), and suffer
compliance with Republic Act No. 10175 or the taxpayer is required to keep under existing tax imprisonment of not less than four (4) years but
“Cybercrime Prevention Act of 2012.” “(a) x x x laws and/or regulations; or (b) modifying, not more than eight (8) years:
hiding, or deleting electronic records of sales
Section 75. Section 249 of the NIRC, as “(b) Any person who commits any of the acts transactions and providing a ready means of “(1) Making, importing, selling, using or
amended, is hereby further amended to read enumerated hereunder shall be penalized with access to them, shall be punished by a fine of possessing fuel markers without express
as follows: a fine of not less than Five hundred thousand not less than Five hundred thousand pesos authority;
pesos (₱500,000) but not more than Ten (₱500,000) but not more than Ten million
“Sec. 249. Interest.— million pesos (₱10,000,000), and imprisonment pesos (₱10,000,000), and suffer imprisonment “(2) Making, importing, selling, using or
of not less than six (6) years but not more than of not less than two (2) years but not more than possessing counterfeit fuel markers;
“(A) In General.— There shall be assessed and ten (10) years: four (4) years: Provided, That a cumulative
collected on any unpaid amount of tax, interest suppression of electronic sales record in “(3) Causing another person or entity to commit
at the rate of double the legal interest rate for “(1) x x x; excess of the amount of Fifty million pesos any of the two (2) preceding acts; or
loans or forbearance of any money in the (₱50,000,000) shall be considered as
absence of an express stipulation as set by the “(2) x x x; economic sabotage and shall be punished in “(4) Causing the sale, distribution, supply or
Bangko Sentral ng Pilipinas from the date the maximum penalty provided for under this transport of legitimately imported, in-transit,
prescribed for payment until the amount is fully “(3) x x x; or provision.” manufactured or procured controlled
paid: Provided, That in no case shall the precursors and essential chemicals, in diluted,
deficiency and the delinquency interest “(4) Printing of other fraudulent receipts or Section 80. A new section designated as mixtures or in concentrated form, to any person
prescribed under Subsections (B) and (C) sales or commercial invoices.” Section 265-A under Chapter II, Title X of the or entity penalized in Subsections (a), (b), or (c)
hereof, be imposed simultaneously. NIRC, as amended, is hereby inserted to hereof, including but not limited to, packaging,
Section 78. A new section designated as read as follows: repackaging, labeling, relabeling or
“(B) Deficiency Interest.— Any deficiency in the Section 264-A under Chapter II, Title X of the concealment of such transaction through fraud,
tax due, as the term is defined in this Code, NIRC, as amended, is hereby inserted as “Sec. 265-A. Offenses Relating to Fuel destruction of documents, fraudulent use of
shall be subject to the interest prescribed in follows: Marking.— All offenses relating to fuel marking permits, misdeclaration, use of front companies
Subsection (A) hereof, which interest shall be shall, in addition to the penalties imposed or mail fraud.
assessed and collected from the date “Sec. 264-A. Failure to Transmit Sales Data under Title X of the NIRC, as amended,
prescribed for its payment until the full payment Entered on Cash Register Machine Section 1401 of Republic Act No. 10863, “(d) Any person who willfully inserts, places,
thereof, or upon issuance of a notice and (CRM)/Point of Sales System (POS) Machines otherwise known as the ‘Customs adds or attaches directly or indirectly, through
demand by the Commissioner of Internal to the BIR’s Electronic Sales Reporting Modernization and Tariff Act (CMTA)’,and other any overt or covert. act, whatever quantity of
Revenue, whichever comes earlier. System.— Any taxpayer required to transmit relevant laws, be punishable as follows: any unmarked fuel, counterfeit additive or
sales data to the Bureau’s electronic sales chemical in the person, house, effects,
“(C) Delinquency Interest.— x x x reporting system but fails to do so, shall pay, “(a) Any person who is found to be engaged in inventory, or in the immediate vicinity of an
for each day of violation, a penalty amounting the sale, trade, delivery, distribution or innocent individual for the purpose of
“x x x.” to one-tenth of one percent (1⁄10 of 1%) of the transportation of unmarked fuel in commercial implicating, incriminating or imputing the
annual net income as reflected in the quantity held for domestic use or merchandise commission of any violation of this Act shall,
Section 76. Section 254 of the NIRC, as taxpayer’s audited financial statement for the shall, upon conviction, suffer the penalties of: upon conviction, be punished by a fine of not
amended, is hereby further amended to read second year preceding the current taxable year less than Five million pesos (₱5,000,000) but
as follows: for each day of violation or Ten thousand pesos “(1) For the first offense, a fine of Two million not more than Ten million pesos
(₱10,000), whichever is higher: Provided, That five hundred thousand pesos (₱2,500,000); (₱10,000,000), and suffer imprisonment of not
“Sec. 254. Attempt to Evade or Defeat Tax.— should the aggregate number of days of less than four (4) years but not more than eight
Any person who willfully attempts in any violation exceed one hundred eighty (180) days “(2) For the second offense, a fine of Five (8) years.
manner to evade or defeat any tax imposed within a taxable year, an additional penalty of million pesos (₱5,000,000); and
under this Code or the payment thereof shall, in permanent closure of the taxpayer shall be
“(e) Any person who is authorized, licensed or “(ii) Fuel vouchers to qualified franchise holders “Within sixty (60) days from the end of the three
accredited under this Act and its implementing “(B) x x x of Public Utility Jeepneys (PUJs); (3)-year period from the effectivity of this Act,
rules to conduct fuel tests, who issues false or the interagency committee and respective
fraudulent fuel test results knowingly, willfully or “(C) x x x “(iii)For minimum wage earners, unemployed, implementing agencies for the above programs
through gross negligence, shall suffer the and the poorest fifty percent (50%) of the shall submit corresponding program
additional penalty of imprisonment ranging from “(D) x x x population: assessments to the COCCTRP. The National
one (1) year and one (1) day to two (2) years Expenditure Program from 2019 onwards shall
and six (6) months. “(E) x x x “(1) Fare discount from all public utility vehicles provide line items that correspond to the
(except trucks for hire and school transport allocations mandated in the provisions above.
“The additional penalties of revocation of the “(F) Incremental Revenues from the Tax service) in the amount equivalent to ten percent
license to practice his profession in case of a Reform for Acceleration and Inclusion (10%) of the authorized fare; “At the end of five (5) years from the effectivity
practitioner, and the closure of the fuel testing (TRAIN).— For five (5) years from the of this Act, all earmarking provisions under
facility, may also be imposed at the instance of effectivity of this Act, the yearly incremental “(2) Discounted purchase of National Food Subsection (F), shall cease to exist and all
the court.” revenues generated shall be automatically Authority (NFA) rice from accredited retail incremental revenues derived under this Act
appropriated as follows: stores in the amount equivalent to ten percent shall accrue to the General Fund of the
Section 81. Section 269 of the NIRC, as (10%) of the net retail prices, up to a maximum government.”
amended, is hereby further amended to read “(1) Not more than-seventy percent (70%) to of twenty (20) kilos per month; and
as follows: fund infrastructure projects such as, but not
limited to, the Build, Build, Build Program and “(3) Free skills training under a program
“Sec. 269. Violations Committed by provide infrastructure programs to address implement.ed by the Technical Skills and
Government Enforcement Officers.— x x x congestion through mass transport and new Development Authority (TESDA).
road networks military infrastructure, sports
“(a) x x x; facilities for public schools, and potable “Provided, That benefits or grants contained in
drinking water supply in all public places; and this Subsection shall not be availed in addition
“x x x to any other discounts.
“(2) Not more than thirty percent (30%) to fund:
“(h) Having knowledge or information of any “(iv) Other social benefits programs to be
violation of this Code or of any fraud committed “(a) Programs under Republic Act No. 10659 developed and implemented by the
on the revenues collectible by the Bureau of otherwise known as ‘Sugarcane Industry government.
Internal Revenue, failure to report such Development Act of 2015’, to advance the self-
knowledge or information to then superior reliance of sugar farmers that will increase “Notwithstanding any provisions herein to the
officer, or failure to report as otherwise required productivity, provide livelihood opportunities, contrary, the incremental revenues from the
by law; develop alternative farming systems and tobacco taxes under this Act shall be subject to
ultimately enhance farmers’ income; Section 3 of Republic Act No. 7171, otherwise
“(i) x x x; and known as ‘An Act to Promote the Development
“(b) Social mitigating measures and of the Farmer in the Virginia Tobacco
“(j) Deliberate failure to act on the application investments in: (i) education, (ii) health, Producing Provinces’, and Section 8 of
for refunds within the prescribed period targeted nutrition, and anti-hunger programs for Republic Act No. 8240, otherwise known as ‘An
provided under Section 112 of this Act. mothers infants, and young children, (iii) social Act Amending Sections 138, 139, 140 and 142
protection, (iv) employment, and (v) housing of the National Internal Revenue Code, as
“Provided, That the provisions of the foregoing that prioritize and directly benefit both the poor Amended, and for Other Purposes’.
paragraph notwithstanding, any internal and near-poor households;
revenue officer for which a prima facie case of “An interagency committee, chaired by the
grave misconduct has been established shall, “(c) A social welfare and benefits program Department of Budget and Management (DBM)
after due notice and hearing of the where qualified beneficiaries shall be provided and co-chaired by DOF and DSWD, and
administrative case and subject to Civil Service with a social benefits card to avail of the comprised of the National Economic and
Laws, be dismissed from the revenue service: following social benefits: Development Authority (NEDA), Department of
Provided, further, That the term ‘grave Transportation (DOTr), Department of
misconduct’, as defined in the Civil Service “(i) Unconditional cash transfer to households Education (DepEd), Department of Health
Law, shall include the issuance of fake letters in the first to seventh income deciles of the (DOH), Department of Labor and Employment
of authority and receipts, forgery of signature, National Household Targeting System for (DOLE), National Housing Authority (NHA),
usurpation of authority and habitual issuance of Poverty Reduction (NHTS-PR), Pantawid Sugar Regulatory Administration (SRA),
unreasonable assessments. Pamilyang Pilipino Program, and the social Department of the Interior and Local
pension program for a period of three (3) years Government (DILG), Department of Energy
Section 82. Section 288 of the NIRC, as from the effectivity of this Act: Provided, That (DOE), NFA, and TESDA, is hereby created to
amended, is hereby further amended to read the unconditional cash transfer shall be Two oversee the identification of qualified
as follows: hundred pesos (₱200.00) per month for the first beneficiaries and the implementation of these
year and Three hundred pesos (₱300.00) per projects and programs: Provided, That qualified
“Sec. 288. Disposition of Incremental month for the second year and third-year, to be beneficiaries under Subsection (c) hereof shall
Revenue.— implemented by the Department of Social be identified using the National ID System
Welfare and Development (DSWD); which may be enacted by Congress.
“(A) x x x