Train Law Act

R.A.
10963 (TRAIN)
Income Tax Provisions
R.A. 8424 vs. R.A. 10963
-Income Tax Provisions Overview
Description R.A. 8424 (TAX CODE of 1997) R.A. 10963 (TRAIN)
Income Tax Rates Graduated rates from 5% to In general, graduated rates from 20% to 35%
for Individuals 32%, with 7 tiers; basis is from (beg. 2023, 15%-35%) with zero rate for first
P1 to over P500,000 P250Th and 5 tiers; basis is from over
P250,000 to over P8M; with option, under
certain cases, of qualified individuals to opt
for the 8% income tax rate in lieu of the
graduated rates and the percentage tax under
Sec. 116
Personal/Additional Available to qualified taxpayers None – already included in the P250,000
Exemptions & exempt from income tax; repeal of Sec. 33(A) of
Health Insurance the Magna Carta for Persons with Disability, Sec.
22(B) of the Foster Care Act of 2012
13th month pay Maximum of P82,000 Maximum of P90,000
other benefits
2
R.A. 8424 vs. R.A. 10963
-Income Tax Provisions Overview
Description R.A. 8424 (TAX CODE of 1997) R.A. 10963 (TRAIN)
GOCCs, Exceptions to IT: GSIS, SSS, Exceptions: GSIS, SSS, PHIC, LWD
Agencies/Instrumentalities PHIC, PCSO, LWD (repeal of Sec. 4 of An Act Providing for
Charity Sweepstakes, ….)
Employees of Preferential rates With Presidential veto note
RHQ/ROHQ/OBU/Petroleum
Fringe Benefit Tax (FBT) FBT rate: 32% of grossed-up FBT rate: 35% or the applicable tax
value rate
Filing of Quarterly ITR 1Q-April 15, 2Q-Aug. 15, 3Q- 1Q-May 15 …
Nov.15
Installment Payments of IT 2nd installment- July 15 2nd installment – October 15
3
SECTION 2. DEFINITION OF TERMS
Gross Receipts – refers to
a. the total
amount of money or its equivalent representing the
contract price, compensation, service fee, rental or royalty,
including the amount charged for materials supplied with the
services; and
b. deposits and advance payments actually or constructively
received during the taxable period for the services performed
or to be performed for another person, except returnable
security deposits for purposes of these regulations.
In the case of VAT taxpayer, this shall exclude the VAT
component.
4
SECTION 2. DEFINITION OF TERMS.
Gross Sales – refers to the total of all sale transactions reported in a period,
without any deduction. However, for purposes of these regulations specifically on the gross
sales to be subjected to the 8% income tax rate option, the following shall be allowed as
deductions:
1. Sales returns and allowances - proper credit or refund was made during the month or
quarter to the buyer for sales previously recorded as taxable sales.
2. Discounts determined and granted at the time of sale, which are expressly indicated in the
invoice; part of the gross sales; duly recorded in the books of accounts; the grant of which is not
dependent upon the happening of a future event - may be excluded from the gross sales within
the same month/quarter it was given.
5
SECTION 2. DEFINITION OF TERMS
Self-employed – a sole proprietor or an independent contractor who reports income earned from
self-employment. He/She controls who he/she works for, how the work is done and when it
is done. It includes those hired under a contract of service or job order, and professionals
whose income is derived purely from the practice of profession and not under an employer –
employee relationship.
Professional/s – Person formally certified by a professional body belonging to a specific
profession by virtue of having completed a required examination or course of studies and/or
practice, whose competence can usually be measured against an established set of standards;
also one who engages in some art or sport for money, as a means of livelihood, rather than as
a hobby.
It includes but is not limited to doctors, lawyers, engineers, architects, CPAs, professional
entertainers, artists, professional athletes, directors, producers, insurance agents, insurance
adjusters, management and technical consultants, bookkeeping agents, and other recipients
of professional, promotional and talent fees.
6
SECTION 2. DEFINITION OF TERMS.
VAT Threshold – refers to the ceiling set to determine VAT registrable taxpayers, currently set at
three million (P3,000,000.00) pesos; same threshold to be used to determine the income tax
liability of self- employed and/or professionals under Sections 24(A)(2)(b) and 24(A)(2)(c)(2)
of the Tax Code, as amended.
➢ Minimum Wage Earner (MWE) – refers to a worker in the private sector who is paid with a statutory
minimum wage (SMW) rates, or to an employee in the public sector with compensation income of
not more than the statutory minimum wage rates in the non-agricultural sector where the
worker/employee is assigned. Such statutory minimum wage rates are exempted from income tax.
•Likewise, covered by the exemption are the holiday pay, overtime pay, night shift differential pay
and hazard pay earned by MWE.
•However, a worker who receives/earns additional compensation such as commissions, honoraria,
fringe benefits, benefits in excess of the allowable P90,000.00 (inclusive of “de minimis” benefits),
taxable allowances and other taxable income other than the SMW, holiday pay, overtime pay, night
shift differential pay and hazard pay shall not enjoy the privilege of being a MWE.
7
SECTION 3. INCOME TAX RATES ON INDIVIDUAL
CITIZEN AND INDIVIDUAL RESIDENT ALIEN
In general, the income tax on the individual’s taxable income
shall be computed based on the following schedules as provided
under Sec. 24(A)(2)(a) :
Effective January 1, 2018 until December 31, 2022:
RANGE OF TAXABLE INCOME TAX DUE = a + (b x c)
BASIC ADDITIONAL (b) OF OVER
OVER NOT OVER (a) (c)
- 250,000.00 - -
250,000.00 400,000.00 - 20% 250,000.00
400,000.00 800,000.00 30,000.00 25% 400,000.00
800,000.00 2,000,000.00 130,000.00 30% 800,000.00
2,000,000.00 8,000,000.00 490,000.00 32% 2,000,000.00
8,000,000.00 - 2,410,000.00 35% 8,000,000.00
8
SECTION 3. INCOME TAX RATES ON INDIVIDUAL CITIZEN AND
INDIVIDUAL RESIDENT ALIEN
Effective January 1, 2023 and onwards:

RANGE OF TAXABLE INCOME TAX DUE = a + (b x c)
BASIC AMOUNT ADDITIONAL OF EXCESS OVER
OVER NOT OVER (a) RATE (c)
(b)
- 250,000.00 - -
250,000.00 400,000.00 - 15% 250,000.00
400,000.00 800,000.00 22,500.00 20% 400,000.00
800,000.00 2,000,000.00 102,500.00 25% 800,000.00
2,000,000.00 8,000,000.00 402,500.00 30% 2,000,000.00
8,000,000.00 - 2,202,500.00 35% 8,000,000.00
9
➢ Individuals Earning Purely Compensation Income. – Individuals earning purely compensation

income shall be taxed based on the graduated income tax rates prescribed.
➢ Income Tax Rates for Self-Employed Individuals Earning Income Purely from Self-Employment
or Practice of Profession. -
Individuals earning income purely from self-employment and/or practice of profession whose
gross sales/receipts and other non-operating income does not exceed the VAT threshold as
provided in Section 109 (BB) of the Tax Code, as amended, shall have the option to avail of :
10
OPTIONS (Purely Self-Employment/Practice of Profession)
1. The graduated rates under Section 24(A)(2)(a) of the Tax Code,
as amended;
OR
2. The 8% tax on gross sales or receipts and other non-operating income in excess of P250,000 in
lieu of:
the graduated income tax rates under Section 24(A)(2)(a) and the percentage tax
under Section 116.*
11
* Sec. 116 –Tax on Persons Exempt from VAT –

Any person whose sales or receipts are exempt under Sec. 109 (BB) of the Code from the
payment of VAT and who is not a VAT-registered person shall pay a tax equivalent to 3% of his
gross quarterly sales or receipts xxx.
12
➢ taxpayer shall be considered as having availed of the graduated income tax rates, unless the
taxpayer signifies in the 1st Quarter income tax return or the initial quarter of the taxable year
after the commencement of a new business/practice of profession, the intention to elect the
8% income tax rate and such election shall be irrevocable and no amendment of option shall be
made for the said taxable year.
13
• Provided that, at any time during a given taxable year, a taxpayer’s gross sales or receipts
exceeded the VAT threshold of P3,000,000, he/she shall automatically be subjected to the
graduated rates under Section 24(A)(2)(a) of the Tax Code, as amended.
14
➢ A VAT-registered taxpayer, regardless of the gross sales/receipts can no longer avail of the 8% income
tax rate option.
• When said taxpayer would later realize gross sales/receipts of less than the VAT threshold for a
taxable year, such taxpayer will still be liable to VAT for as long as the VAT-registered
invoices/receipts are issued and no update/s of registration was made.
15
➢ A non-VAT registered taxpayer who initially opted to avail of the 8% option but has exceeded the VAT
threshold during the taxable year:
• shall be subject to 3% Percentage Tax on the first P3,000,000.00 of his/her gross sales/receipts
under Section 116 of the Tax Code, as amended, without imposition of any penalty if payment is
timely made on the following month when the threshold is breached
• the amount over the threshold shall be subject to VAT prospectively, and the 8% income tax
previously paid shall be credited to the Income Tax Due under the graduated rates provided in
Section 24(A)(2)(a) of the Tax Code, as amended.
16
➢ Taxpayers who did not qualify for the 8% income tax rate shall be subject to the graduated income tax
rate, and shall also be subject to the applicable business tax/es, if any.
➢ Taxpayers who cannot avail of the 8% income tax rate:
➢ Those subject to Other Percentage Taxes under Title V of the Tax Code, as amended, except those
subject under Section 116 of the same Title
• Partners of a General Professional Partnership (GPP) since their distributive share from GPP is
already net of cost and expenses.
17
➢ Income Tax Rates for Individuals Earning Income Both from Compensation and from Self-
employment (business or practice of profession). – For MIXED income earners, the tax rates are :
1. The compensation income shall be subject to the graduated income tax rates prescribed
under Section 24(A)(2)(a) of the Tax Code, as amended;
AND
2. The income from business or practice of profession shall be subject to:
a. If the gross sales/receipts and other non-operating income do not exceed the VAT
threshold, option to be taxed at :
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a.1 Graduated income tax rates prescribed under Section 24(A)(2)(a) of the Tax Code, as
amended;
OR
a.2. Eight percent (8%) income tax rate based on gross sales/receipts and other non-
operating income in lieu of the graduated income tax rates and percentage tax under
Section 116 of the Tax Code, as amended.
b. If the gross sales/receipts and other non-operating income exceeds the VAT threshold, the
individual shall be subject to the graduated income tax rates prescribed under Section
24(A)(2)(a).
19
➢ The provision under Section 24(A)(2)(b) of the Tax Code, as amended, which allows an option of 8%
income tax rate on gross sales/receipts and other non-operating income in excess of P250,000.00 is
available only to purely self-employed individuals and/or professionals.
• not applicable to mixed income earners since it is already incorporated in the first tier of the
graduated income tax rates applicable to compensation income.
• excess of the P250,000.00 over the actual taxable compensation income is not creditable against the
taxable income from business/practice of profession under the 8% income tax rate option.
20
➢ Mixed income earner who opted to be taxed under the graduated income tax rates for income from
business/practice of profession, shall combine the taxable income from both compensation and
business/practice of profession in computing for the total taxable income and consequently, the income
tax due.
21
Income Tax Rates on Certain Passive Income
The following passive income shall be subject to the final income tax rates indicated:
➢ Interests from any currency bank deposit and yield or any other monetary benefit from deposit
substitutes and from trust funds and similar arrangements – 20%;
➢ Interest income received by an individual taxpayer (except a nonresident individual) from a
depository bank under the expanded foreign currency deposit system – 15%;
➢ Capital Gains from Sale of Shares of Stock not Traded in the Stock Exchange – 15%;
XXX
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SECTION 4. INCOME TAX RATES ON NON-RESIDENT ALIEN
INDIVIDUAL
The following income tax rates shall be imposed to non-resident alien individual:
➢ Non-resident Alien Engaged in Trade or Business Within the Philippines. -Applicable shall be the
income tax rates imposed to individual citizen and a resident alien individual for income derived
within the Philippines.
➢ Non-resident Alien Not Engaged in Trade or Business Within the Philippines – 25%.
➢ The provision on the preferential income tax rate of fifteen percent (15%) for qualified employees of
Regional Headquarters, Regional Operating Headquarters, Offshore Banking Units, and Petroleum
Service Contractors and Subcontractors has been vetoed.
23
Quoted hereunder is part of the veto message of the President relative
to the above:
“xxx xxx xxx
II. DIRECT VETO

By the power vested in me by Article VI, Section 27(2) of the Constitution, which provides that “the
President shall have the power to veto any particular item or items in an appropriation, revenue, or tariff
bill,” I hereby register the following line item vetoes to this law:
A. Reduced income tax rate of employees of Regional Headquarters (RHQs), Regional Operating
Headquarters (ROHQs), Offshore Banking Units (OBUs), and Petroleum Service Contractors and
Subcontractors.
24
RHQs, ROHQs, OBUs, Petroleum Service Contractors
and Subcontractors
I am constrained to veto the proviso under Section 6(F) of the enrolled bill that effectively
maintains the special tax rate of 15% of gross income for the aforementioned employees, to wit:
“PROVIDED, HOWEVER, THAT EXISTING RHQs/ROHQs, OBUs OR PETROLEUM SERVICE

CONTRACTORS AND SUBCONTRACTORS PRESENTLY AVAILING OF PREFERENTIAL TAX RATES FOR
QUALIFIED EMPLOYEES SHALL CONTINUE TO BE ENTITLED TO AVAIL OF THE PREFERENTIAL TAX
RATE FOR PRESENT AND FUTURE QUALIFIED EMPLOYEES.”
25
While I understand the laudable objective of the proposal, the provision is violative of Equal
Protection Clause under Section 1, Article III of the 1987 Constitution, as well as the rule of equity
and uniformity in the application of the burden of taxation:
Section 1. No person shall be deprived of life, liberty or property without due process of law, nor
shall any person be denied the equal protection of the laws.
In line with this, the overriding consideration is the promotion of fairness of the tax system for
individuals performing similar work. Given the significant reduction in the personal income tax, the
employees of these firms should follow the regular tax rates applicable to other individual
taxpayers.
xxx xxx xxx”
26
RHQs, ROHQs, OBUs, Petroleum Service Contractors and
Subcontractors
➢ Thus, the preferential income tax rate of qualified employees of aforementioned entities shall no
longer be applicable without prejudice to the application of preferential tax rates under existing
international tax treaties.
• All employees of RHQs/ROHQs/OBUs, and Petroleum Service Contractors and Subcontractors.

shall be subject to regular income tax rate under Section 24(A)(2)(a) of the Tax Code, as
amended, without prejudice to the application of preferential tax rates under existing
international tax treaties.
27
SECTION 5. GOVERNMENT OWNED AND CONTROLLED
CORPORATIONS (GOCCs), AGENCIES OR INSTRUMENTALITIES
Under Section 27(C) of the Tax Code, as amended, they shall pay such rate of tax upon their
taxable income as imposed upon corporations or associations engaged in a similar business,
industry, or activity, except for the following:
• Government Service Insurance System (GSIS)

• Social Security System (SSS)
• Philippine Health Insurance Corporation (PHIC)
• Local Water Districts (LWD)
28
SECTION 6. EXCLUSIONS FROM GROSS INCOME
The following items shall not be included in gross income and shall be exempt from income taxation:
➢ Life Insurance. – The proceeds paid to the heirs or beneficiaries upon the death of the insured,
whether in a single sum or otherwise, but if such amounts are held by the insurer under an
agreement to pay interest thereon, the interest payments shall be included in the gross.
➢ Miscellaneous Items. –
• Income derived by Foreign Government
• Income Derived by the Government or its Political Subdivisions
• Prizes and Awards
• Prizes and Awards in Sports Competition
XXX …
29
SECTION 6. EXCLUSIONS FROM GROSS INCOME
• 13th Month Pay and Other Benefits. – Gross benefits received by officials and employees of
public and private entities: Provided, however, That the total exclusion under this item shall
not exceed NINETY THOUSAND PESOS (₱90,000.00), which shall cover:
i. Benefits received by officials and employees of the national and local government pursuant
to Republic Act No. 6686;
ii. Benefits received by employees pursuant to Presidential Decree No. 851, as amended by
Memorandum Order No. 28, dated August 13, 1986;
iii. Benefits received by officials and employees not covered by Presidential Decree No. 851, as
amended by Memorandum Order No. 28, dated August 13, 1986; and
iv. Other benefits such as productivity incentives and Christmas bonus.
30
SECTION 7. SPECIAL TREATMENT OF FRINGE BENEFITS
The tax on fringe benefits at the rate of THIRTY-FIVE PERCENT (35%) shall be imposed on -
• the grossed-up monetary value of fringe benefits furnished or granted to an employee (except
rank and file employees) by the employer, whether an individual or a corporation (unless the
fringe benefit is required by the nature of, or necessary to the trade, business or profession of the
employer, or when the fringe benefit is for the convenience of or advantage of the employer).
• the tax herein imposed is payable by the employer which tax shall be paid in the same manner as
provided for under Section 57 (A) of the Tax Code, as amended.
31
SECTION 7. SPECIAL TREATMENT OF FRINGE BENEFITS
The grossed-up monetary value of the fringe benefit shall be determined:

• by dividing the actual monetary value of the fringe benefit by SIXTY-FIVE PERCENT (65%),
effective January 1, 2018 and onwards:
• provided, however, hat fringe benefit furnished to employees and taxable under Subsections (B),
(C), (D), and (E) of Section 25 of the Tax Code, as amended, shall be taxed at the applicable rates
imposed thereat:
• provided, further, That the grossed-up value of the benefit shall be determined by dividing the
actual monetary value of the fringe benefit by the difference between 100% and the applicable
tax rates .
32
SECTION 8. DEDUCTIONS FROM GROSS INCOME
In general, there shall be allowed, at the option of the taxpayer :
1. Itemized deductions;
OR
2. Optional Standard Deduction (OSD) at the rate of forty percent (40%) of gross sales/receipts for
individuals, while corporations an amount not exceeding forty percent (40%) of its gross income.
➢ No deductions shall be allowed to individual taxpayers earning compensation income arising from
personal services rendered under an employer-employee relationship, and those who opted to be
taxed at 8% income tax rateon their income from business/practice of profession.
33
The following are the allowable itemized deductions:
a. Expenses
b. Interest
c. Taxes
d. Losses
e. Bad Debts
f. Depreciation
g. Depletion of Oil and Gas Wells and Mines
h. Charitable and Other Contributions
i. Research and Development
j. Pension Trusts
34
➢ Unless the taxpayer signifies in the return the intention to elect the OSD, it shall be considered as
having availed of the itemized deductions. Such election, when made in the return shall be
irrevocable for the taxable year for which the return is made.
• The election to claim either the itemized deductions or the OSD for the taxable year must be
signified by checking the appropriate box in the income tax return filed for the first quarter of
the taxable year adopted by the taxpayer. Once the election is made, the same type of deduction
must be consistently applied for all the succeeding quarterly returns and in the final income tax
return for the taxable year.
35
SECTION 8. DEDUCTIONS FROM GROSS
INCOME
➢ An individual who is entitled to and claimed for the OSD shall not be required to submit with the
tax return such Financial Statements otherwise required under the Tax Code, as amended. A General
Professional Partnership (GPP) may avail of the OSD only once, either by the GPP or the partners
comprising the partnership.
➢ The OSD allowed to individual taxpayers except nonresident aliens shall be forty percent (40%)
of gross sales/receipts during the taxable year. If the individual is on the accrual basis of accounting
for his/her income and deductions, the OSD shall be based on the gross sales during the taxable year.
On the other hand, if the individual employs the cash basis of accounting for his/her income and
deductions, the OSD shall be based on his/her gross receipts during the taxable year. (Illustration 13)
36
GPPs and Partners of GPPs
➢ GPP is not subject to income tax imposed pursuant to Sec. 26 of the Tax Code, as amended.
However, the partners shall be liable to pay income tax on their separate and individual capacities
for their respective distributive share in the net income of the GPP.
➢ The GPP is not a taxable entity for income tax purposes since it is only acting as a “pass-
through” entity where its income is ultimately taxed to the partners comprising it. Section 26 of
the Tax Code, as amended, likewise provides that- “For purposes of computing the distributive
share of the partners, the net income of the GPP shall be computed in the same manner as a
corporation.”
37
• As such, a GPP may claim either the itemized deductions allowed under Section 34 of the
Code or in lieu thereof, it can opt to avail of the OSD allowed to corporations in claiming the
deductions in an amount not exceeding forty percent (40 %) of its gross income.
In computing taxable income defined under Section 31 of the Tax Code, as amended, the
following may be allowed as deductions:
1. Itemized expenses which are ordinary and necessary, incurred or paid for the practice of
profession;
OR
2. Optional Standard Deduction (OSD)
38
➢ The distributable net income of the partnership may be determined by claiming either itemized
deductions or OSD. The share in the net income of the partnership, actually or constructively received,
shall be reported as taxable income of each partner. The partners comprising the GPP can no longer
claim further deduction from their distributive share in the net income of the GPP and are not allowed to
avail of the 8% income tax rate option since their distributive share from the GPP is already net of cost
and expenses.
39
➢ If the partner also derives other income from trade, business or practice of profession apart and
distinct from his share in the net income of the GPP, the deduction that he can claim for the OTHER
INCOME would either be the itemized deductions or OSD.
40
SECTION 9. INDIVIDUALS NOT REQUIRED
TO FILE INCOME TAX RETURN
The following individuals are not required to file income tax return:
➢ AN INDIVIDUAL EARNING PURELY COMPENSATION INCOME WHOSE TAXABLE INCOME DOES NOT
EXCEED TWO HUNDRED FIFTY THOUSAND PESOS (P250,000.00);
• The Certificate of Withholding filed by the respective employers, duly stamped “Received” by the
Bureau, shall be tantamount to the substituted filing of income tax returns by said employees.
• Individual earning purely compensation income with more than one employer shall be required to
file an annual income tax return, regardless of the amount of income earned.
41
The following individuals are not required to file income tax return
(cont…):
➢ An individual whose income tax has been correctly withheld by his employer, provided, that such
individual has only one employer for the taxable year – the Certificate of Withholding filed by the
respective Employers, duly stamped “Received” by the Bureau, shall be tantamount to the
substituted filing of income tax returns by said employees;
42
The following individuals are not required to file income tax return (cont…):
➢ An individual whose sole income has been subjected to final withholding tax; and
➢ A minimum wage earner as defined in these regulations - The Certificate of Withholding
filed by the respective employers, duly stamped “Received” by the Bureau, shall be
tantamount to the substituted filing of income tax returns by said employees.
43
SECTION 10. TIME OF FILING OF INDIVIDUAL INCOME TAX
RETURN
Individuals engaged in business/practice of profession, regardless of sales/receipts/income, have

to file:
a. quarterly income tax return on or before MAY 15, August 15 and November 15 for the first,
second and third quarter of the current year, respectively , under Sec. 74(A); and
b. annual income tax return, not later than the fifteenth (15th) day of the fourth month
following the close of the calendar year or April 15 as provided under Section 51(C)(1) of the
Tax Code, as amended.
• Note: The creditable tax withheld is deductible from the income tax due.
44
SECTION 11. INSTALLMENT PAYMENT OF INDIVIDUAL INCOME
TAX
When the tax due is in excess of Two thousand pesos (P2,000.00), the individual may elect to pay the
tax in two equal installments, in which case -
a. the first installment shall be paid at the time the annual income tax return is filed (on or before
April 15); and
b. the second installment ON OR BEFORE OCTOBER 15 following the close of the calendar year.
• If any installment is not paid on or before the date fixed for its payment, the whole amount of
the unpaid tax becomes due and payable, together with the delinquency penalties.
45
SECTION 12. TRANSITORY PROVISIONS
In relation to Section 24(A)(2)(b) and Section 24(A)(2)(c) of the Tax Code, as amended, all existing VAT
registered taxpayers whose gross sales/receipts and other non-operating income in the preceding year did
not exceed the VAT threshold of P3,000,000.00 have the option to update their registration to non-VAT as
early as possible but not after March 31, 2018, following the existing procedures on registration updates
and the surrender/cancellation of unused VAT invoices/receipts.
Starting January 1, 2019, existing VAT-registered taxpayers who have not exceeded the threshold
for the immediately preceding three-years, may opt to update their registration to non-VAT following rules
and regulations on registration updates, inventory and cancellation of VAT invoices/receipts.
46
TRAIN LAW
REPUBLIC ACT NO. 10963
VALUE-ADDED TAX
1
[REPUBLIC ACT NO. 10963]
AN ACT AMENDING SECTIONS 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 52,
56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107, 108, 109,
110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151, 155, 171, 174,
175, 177, 178, 179, 180, 181, 182, 183, 186, 188, 189, 190, 191, 192,
193, 194, 195, 196, 197, 232, 236, 237, 249, 254, 264, 269, AND 288;
CREATING NEW SECTIONS 51-A, 148-A, 150-A, 150-B, 237-A, 264-A,
264-B, AND 265-A; AND REPEALING SECTIONS 35, 62, AND 89; ALL
UNDER REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE
NATIONAL INTERNAL REVENU CODE OF 1997, AS AMENDED, AND FOR
OTHER PURPOSES
2
TRAIN LAW RA 10963
NIRC TRAIN
SEC. 106. Value-Added Tax on Sale of Goods or SEC. 106. Value-Added Tax on Sale of Goods or
Properties. – Properties. –
XXXX XXXX
(2) The following sales by VAT-registered persons (2) The following sales by VAT-registered persons
shall be subject to zero percent (0%) rate:
shall be subject to zero percent (0%) rate:
(a) Export Sales. - The term “export sales”

(a) Export Sales. - The term “export sales” means:
means:
(1) The sale and actual shipment of goods from (1) The sale and actual shipment of goods from
the Philippines to a foreign country, irrespective the Philippines to a foreign country, irrespective
of any shipping arrangement that may be agreed of any shipping arrangement that may be agreed
upon which may influence or determine the upon which may influence or determine the
transfer of ownership of the goods so exported transfer of ownership of the goods so exported
and paid for in acceptable foreign currency or its and paid for in acceptable foreign currency or its
equivalent in goods or services, and accounted equivalent in goods or services, and accounted
for in accordance with the rules and regulations
for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);
of the Bangko Sentral ng Pilipinas (BSP); 3
TRAIN LAW RA 10963
NIRC TRAIN
“(2) Sale and delivery of goods to:

“(i) Registered enterprises within a
separate customs territory as provided
under special laws; and
“(ii) Registered enterprises within
tourism enterprise zones as declared
by the Tourism Infrastructure and
Enterprise Zone Authority (TIEZA)
subject to the provisions under
Republic Act No. 9593 or The Tourism
Act of 2009.
(VETOED)
4
TRAIN LAW RA 10963
NIRC TRAIN
RATIONALE OF THE VETO
The above provisions go against the

principle of limiting the VAT zero-rating to direct
exporters. The proliferation of separate customs
territories, which include buildings, creates
inequitable and significantly reduces the
revenues that could be better used for the poor.
As to the tourism enterprises, the TIEZA
law only allows for duty and tax free importation
of capital equipment, transportation equipment
and other goods. Thus, this provision (VETOED)
actually grants a new incentive to suppliers of
registered tourism enterprises. At any rate, the
TIEZA law, which is still in effect for 2 more years,
can be used to avail of the above-mentioned
incentives.
5
TRAIN LAW RA 10963
NIRC TRAIN
(2) Sale of raw materials or packaging (3) Sale of raw materials or packaging
materials to a nonresident buyer for delivery materials to a nonresident buyer for
to a resident local export-oriented enterprise delivery to a resident local export-
to be used in manufacturing, processing, oriented enterprise to be used in
packing or repacking in the Philippines of the manufacturing, processing, packing or
said buyer's goods and paid for in acceptable repacking in the Philippines of the said
foreign currency and accounted for in buyer's goods and paid for in acceptable
accordance with the rules and regulations of foreign currency and accounted for in
the Bangko Sentral ng Pilipinas (BSP); accordance with the rules and regulations
of the Bangko Sentral ng Pilipinas (BSP);
(3) Sale of raw materials or packaging

materials to export-oriented enterprise (4) Sale of raw materials or packaging
whose export sales exceed seventy percent
materials to export-oriented enterprise
whose export sales exceed seventy
(70%) of total annual production; percent (70%) of total annual production;
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TRAIN LAW RA 10963
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(5) Those considered export sales (5) Those considered export sales
under Executive Order NO. 226, under Executive Order NO. 226,
otherwise known as the “Omnibus otherwise known as the “Omnibus
Investment Code of 1987”, and other Investment Code of 1987”, and other
special laws; and
special laws; and
(6) The sale of goods, supplies,

(6) The sale of goods, supplies, equipment and fuel to persons
equipment and fuel to persons engaged in international shipping or
engaged in international shipping or international air transport operations.
international air transport operations. Provided, That the goods, supplies,
equipment and fuel shall be used for
international shipping or air transport
operations.
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Provided, That subparagraphs (3), (4), and (5)
hereof shall be subject to the twelve percent
(12%) value-added tax and no longer be
considered export sales subject to zero
percent (0%) VAT rate upon satisfaction of
the following conditions:
(1) The successful establishment and
implementation of an enhanced VAT refund
system that grants refunds of creditable
input tax within ninety (90) days from the
filing of the VAT refund application with the
Bureau: Provided, That, to determine the
effectivity of item no. 1, all applications filed
from January 1, 2018 shall be processed and
must be decided within ninety (90) days from
the filing of the VAT refund application; and
(2) All pending VAT refund claims as of
December 31, 2017 shall be fully paid in cash
by December 31, 2019.
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TRAIN LAW RA 10963
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Provided, That the Department of Finance shall
establish a VAT refund center in the Bureau of
Internal Revenue (BIR) and in the Bureau of
Customs (BOC) that will handle the processing
and granting of cash refunds of creditable input
tax.
An amount equivalent to five percent (5%) of the
total VAT collection of the BIR and the BOC from
the immediately preceding year shall be
automatically appropriated annually and shall be
treated as a special account in the General Fund
or as trust receipts for the purpose of funding
claims for VAT refund: Provided, That any unused
fund, at the end of the year shall revert to the
General Fund.
Provided, further, That the BIR and the BOC shall
be required to submit to the Congressional
Oversight Committee on the Comprehensive Tax
Reform Program (COCCTRP) a quarterly report of
all pending claims for refund and any unused
fund. 9
TRAIN LAW RA 10963
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(b) Sales to persons or entities whose exemption (b) Sales to persons or entities whose exemption
under special laws or international agreements to under special laws or international agreements to
which the Philippines is a signatory effectively which the Philippines is a signatory effectively
subjects such sales to zero rate. subjects such sales to zero rate.
SEC. 108. Value-added Tax on Sale of Services and SEC. 108. Value-added Tax on Sale of Services and
Use or Lease of Properties. – Use or Lease of Properties. –
(B) Transactions Subject to Zero Percent (0%) (B) Transactions Subject to Zero Percent (0%)
Rate. – The following services performed in the Rate. – The following services performed in the
Philippines by VAT-registered persons shall be Philippines by VAT-registered persons shall be
subject to zero percent (0%) rate: subject to zero percent (0%) rate:
(1) Processing, manufacturing or repacking goods (1) Processing, manufacturing or repacking goods
for other persons doing business outside the for other persons doing business outside the
Philippines which goods are subsequently Philippines which goods are subsequently
exported, where the services are paid for in exported, where the services are paid for in
acceptable foreign currency and accounted for in acceptable foreign currency and accounted for in
accordance with the rules and regulations of the accordance with the rules and regulations of the
Bangko Sentral ng Pilipinas (BSP); Bangko Sentral ng Pilipinas (BSP);
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(2) Services other than those mentioned (2) Services other than those mentioned
in the preceding paragraph, rendered to in the preceding paragraph, rendered to a
a person engaged in business conducted person engaged in business conducted
outside the Philippines or to a outside the Philippines or to a
nonresident person not engaged in nonresident person not engaged in
business who is outside the Philippines business who is outside the Philippines
when the services are performed, [51] when the services are performed, [51]
the consideration for which is paid for in the consideration for which is paid for in
acceptable foreign currency and acceptable foreign currency and
accounted for in accordance with the accounted for in accordance with the
rules and regulations of the Bangko rules and regulations of the Bangko
Sentral ng Pilipinas (BSP) Sentral ng Pilipinas (BSP)
(3) Services rendered to persons or (3) Services rendered to persons or
entities whose exemption under special entities whose exemption under special
laws or international agreements to laws or international agreements to
which the Philippines is a signatory which the Philippines is a signatory
effectively subjects the supply of such effectively subjects the supply of such
services to zero percent (0%) rate; services to zero percent (0%) rate; 11
TRAIN LAW RA 10963
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(4) Services rendered to persons (4) Services rendered to persons

engaged in international shipping or engaged in international shipping or
international air transport operations, international air transport operations,
including leases of property for use including leases of property for use
thereof; thereof: Provided, That these services
shall be exclusive for international
shipping or air transport operations;
(5) Services performed by
(5) Services performed by subcontractors and/or contractors in
subcontractors and/or contractors in processing, converting, or
processing, converting, or manufacturing goods for an enterprise
manufacturing goods for an enterprise whose export sales exceed seventy
whose export sales exceed seventy percent (70%) of total annual
percent (70%) of total annual production;
production; 12
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(6) Transport of passengers and cargo (6) Transport of passengers and cargo
by air or sea vessels from the by domestic air or sea vessels from the
Philippines to a foreign country; and Philippines to a foreign country; and
(7) Sale of power or fuel generated (7) Sale of power or fuel generated
through renewable sources of energy through renewable sources of energy
such as, but not limited to, biomass, such as, but not limited to, biomass,
solar, wind, hydropower, geothermal, solar, wind, hydropower, geothermal,
ocean energy, and other emerging ocean energy, and other emerging
energy sources using technologies energy sources using technologies such
such as fuel cells and hydrogen fuels. as fuel cells and hydrogen fuels.
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“(8) Services rendered to:

“(i) Registered enterprises within a
separate customs territory as provided
under special law; and
“(ii) Registered enterprises within
tourism enterprise zones as declared
by the TIEZA subject to the provisions
under Republic Act No. 9593 or The
Tourism Act of 2009.
(VETOED)
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“Provided, That subparagraphs (B)(1) and
(B)(5) hereof shall be subject to the twelve
percent (12%) value-added tax and no longer
be subject to zero percent (0%) VAT rate upon
satisfaction of the following conditions:
“(1) The successful establishment and
implementation of an enhanced VAT refund
system that grants refunds of creditable input
tax within ninety (90) days from the filing of
the VAT refund application with the Bureau:
Provided, That, to determine the effectivity of
item no. 1, all applications filed from January
1, 2018 shall be processed and must be
decided within ninety (90) days from the filing
of the VAT refund application; and
“(2) All pending VAT refund claims as of
December 31, 2017 shall be fully paid in cash
by December 31, 2019. 15
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“Provided, That the Department of Finance shall

establish a VAT refund center in the Bureau of
Internal Revenue (BIR) and in the Bureau of
Customs (BOC) that will handle the processing
and granting of cash refunds of creditable input
tax.
“An amount equivalent to five percent (5%) of the

total value-added tax collection of the BIR and
the BOC from the immediately preceding year
shall be automatically appropriated annually and
shall be treated as a special account in the
General Fund or as trust receipts for the purpose
of funding claims for VAT Refund: Provided, That
any unused fund, at the end of the year shall
revert to the General Fund.
“Provided, further, That the BIR and the BOC shall
be required to submit to the COCCTRP a quarterly
report of all pending claims for refund and any
unused fund.”
16
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SEC. 109. Exempt Transactions. – SEC. 109. Exempt Transactions. –
XXXX XXXX
(D) Importation of professional instruments D) Importation of professional instruments and
implements, tools of trade, occupation or
and implements, wearing apparel, domestic employment, wearing apparel, domestic animals, and
animals, and personal household effects personal and household effects belonging to persons
(except any vehicle, vessel, aircraft, coming to settle in the Philippines or Filipinos or their
machinery other goods for use in the families and descendants who are now residents or
manufacture and merchandise of any kind in citizens of other countries, such parties hereinafter
referred to as overseas Filipinos, in quantities and of
commercial quantity) belonging to persons the class suitable to the profession, rank or position of
coming to settle in the Philippines, for their the persons importing said items, for their own use
own use and not for sale, barter or exchange, and not for barter or sale, accompanying such
accompanying such persons, or arriving persons, or arriving within a reasonable time:
within ninety (90) days before or after their Provided, That the Bureau of Customs may, upon the
production of satisfactory evidence that such persons
arrival, upon the production of evidence are actually coming to settle in the Philippines and
satisfactory to the Commissioner, that such that the goods are brought from their former place of
persons are actually coming to settle in the abode, exempt such goods from payment of duties
Philippines and that the change of residence and taxes: Provided, further, That vehicles, vessels,
is bona fide; aircrafts, machineries and other similar goods for use
in manufacture, shall not fall within this classification
and shall therefore be subject to duties, taxes and
other charges; 17
TRAIN LAW RA 10963
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(P) Sale of real properties not primarily held (P) Sale of real properties not primarily held for sale to
customers or held for lease in the ordinary course of
for sale to customers or held for lease in the trade or business or real property utilized for low-cost
ordinary course of trade or business or real and socialized housing as defined by Republic Act No.
property utilized for low-cost and socialized 7279, otherwise known as the Urban Development
and Housing Act of 1992, and other related laws,
housing as defined by Republic Act No. 7279, residential lot valued at One million five hundred
otherwise known as the Urban Development thousand pesos (P1,500,000)and below, house and lot,
and Housing Act of 1992, and other related and other residential dwellings valued at Two million
five hundred thousand pesos (P2,500,000) and below:
laws, residential lot valued at One million Provided, That beginning January 1, 2021, the VAT
pesos (P1,500,000) and below, house and exemption shall only apply to sale of real properties
lot, and other residential dwellings valued at not primarily held for sale to customers or held for
Two million five hundred thousand pesos (P2, lease in the ordinary course of trade or business, sale
of real property utilized for socialized housing as
500, 000) and below: Provided, That not later defined by Republic Act No. 7279, sale of house and
than January 31, 2009 and every three (3) lot, and other residential dwellings with selling price
years thereafter, the amount herein stated of not more than Two million pesos (P2,000,000):
Provided, further, That every three (3) years
shall be adjusted to their present values using thereafter, the amount herein stated shall be adjusted
the Consumer Price Index, as published by to its present value using the Consumer Price Index, as
published by the Philippine Statistics Authority (PSA);
the National Statistics Office (NSO)
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(Q) Lease of a residential unit with a monthly (Q) Lease of a residential unit with a monthly
rental not exceeding Ten thousand pesos rental not exceeding Fifteen thousand pesos
(P10, 000): Provided, That not later than (P15,000);
January 31, 2009 and every three (3) years XXXX
thereafter, the amount herein stated shall be
adjusted to its present value using the
Consumer Price Index as published by the
National Statistics Office (NSO);
XXXX
(U) Importation of fuel, goods and supplies by
(U) Importation of fuel, goods and supplies by persons engaged in international shipping or
persons engaged in international shipping or air transport operations: Provided, That the
air transport operations; fuel, goods, and supplies shall be used for
international shipping or air transport
operations;
19
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(W) Sale or lease of goods and services to senior
citizens and persons with disability, as provided
under Republic Act Nos. 9994 (Expanded Senior
Citizens Act of2010) and 10754 (An Act Expanding
the Benefits and Privileges of Persons With
Disability), respectively;
(X) Transfer of property pursuant to Section
40(C)(2) of the NIRC, as amended;
(Y) Association dues, membership fees, and other
assessments and charges collected by
homeowners associations and condominium
corporations;
(Z) Sale of gold to the Bangko Sentral ng Pilipinas
(BSP);
(AA) Sale of drugs and medicines prescribed for
diabetes, high cholesterol, and hypertension
beginning January 1, 2019; and
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(W) Sale or lease of goods or (BB) Sale or lease of goods or
properties or the performance of properties or the performance of
services other than the transactions services other than the transactions
mentioned in the preceding mentioned in the preceding
paragraphs, the gross annual sales
and/or receipts do not exceed the paragraphs, the gross annual sales
amount of One million five hundred and/or receipts do not exceed the
thousand pesos (P1,500,000): amount of Three million pesos
Provided, That not later than January (P3,000,000).
31, 2009 and every three (3) years
thereafter, the amount herein stated
shall be adjusted to its present With
footnote in the book value using the
Consumer Price Index, as published by.
the National Statistics-Office (NSO);
21
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SEC. 110. Tax Credits. – SEC. 110. Tax Credits. –
A. Creditable Input Tax. – A. Creditable Input Tax. –
XXXX XXXX
Provided, that the input tax on goods purchased Provided, That the input tax on goods purchased or
or imported in a calendar month for use in trade imported in a calendar month for use in trade or
or business for which deduction for depreciation business for which deduction for depreciation is
allowed under this Code shall be spread evenly over
is allowed under this Code shall be spread evenly the month of acquisition and the fifty-nine (59)
over the a month of acquisition and the fifty-nine succeeding months if the aggregate acquisition cost
(59) succeeding months if the aggregate for such goods, excluding the VAT component thereof,
acquisition cost for such goods, excluding the VAT exceeds One million pesos (P1,000,000): Provided,
component thereof, exceeds One million pesos (P however, That if the estimated useful life of the capital
1, 000, 000): Provided, however, That if the good is less than five (5) years, as used for
estimated useful life of the capital goodis less depreciation purposes, then the input VAT shall be
than five (5) years, as used for depreciation spread over such a shorter period: Provided, further,
purposes, then the input VAT shall be spread That the amortization of the input VAT shall only be
over such a shorter period: [67]Provided, finally, allowed until December 31, 2021 after which
taxpayers with unutilized input VAT on capital goods
that in the case of purchase of services, lease or purchased or imported shall be allowed to apply the
use of properties, the input tax shall be same as scheduled until fully utilized: Provided, finally,
creditable to the purchaser, lessee or license That in the case of purchase of services, lease or use
upon payment of the compensation, rental, of properties, the input tax shall be creditable to the
royalty or free. purchaser, lessee or licensee upon payment of the
compensation, rental, royalty or fee. 22
TRAIN LAW RA 10963
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SEC. 112. Refunds or Tax Credits of Input Tax. SEC. 112. Refunds or Tax Credits of Input Tax.
XXXX XXXX
(C) Period within which Refund or Tax Credit of (C) Period within which Refund of Input Taxes shall be
Input Taxes shall be Made. - In proper cases, the Made. – In proper cases, the Commissioner shall grant
Commissioner shall grant a refund or issue the a refund for creditable input taxes within ninety (90)
tax credit certificate for creditable input taxes days from the date of submission of the official
receipts or invoices and other documents in support of
within one hundred twenty (120) days from the the application filed in accordance with Subsections
date of submission of complete documents in (A) and (B) hereof: Provided, That should the
support of the application filed in accordance Commissioner find that the grant of refund is not
with Subsections (A) hereof. [73] proper, the Commissioner must state in writing the
legal and factual basis for the denial.
In case of full or partial denial of the claim for tax
refund or tax credit, or the failure on the part of “In case of full or partial denial of the claim for tax
the Commissioner to act on the application refund, the taxpayer affected may, within thirty (30)
within the period prescribed above, the taxpayer days from the receipt of the decision denying the
affected may, within thirty (30) days from the claim, appeal the decision with the Court of Tax
receipt of the decision denying the claim or after Appeals (CTA): Provided, however, That failure on the
part of any official, agent, or employee of the BIR to
the expiration of the one hundred twenty day- act on the application within the ninety (90)-day
period, appeal the decision or the unacted claim period shall be punishable under Section 269 of this
with the Court of Tax Appeals. Code.
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(D) Manner of Giving Refund. - Refunds shall XXXX
be made upon warrants drawn by the
Commissioner or by his duly authorized
representative without the necessity of being
countersigned by the Chairman, Commission
on audit, the provisions of the Administrative
Code of 1987 to the contrary
notwithstanding: Provided, That refunds
under this paragraph shall be subject to post
audit by the Commission on Audit.
24
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SEC. 269. Violations Committed by “SEC. 269. Violations Committed by

Government Enforcement Officers. - Every Government Enforcement Officers. – x
official, agent, or employee of the Bureau of xx
Internal Revenue or any other agency of the
Government charged with the enforcement “(a) x x x;
of the provisions of this Code, who is guilty of
any of the offenses herein below specified “x x x
shall, upon conviction for each act or
omission, be punished by a fine of not less
than Fifty thousand pesos (P50,000) but not
more than One hundred thousand pesos
(P100,000) and suffer imprisonment of not
less than ten (10) years but not more than
fifteen (15) years and shall likewise suffer an
additional penalty of perpetual
disqualification to hold public office, to vote,
25
and to participate in any public election:
TRAIN LAW RA 10963
NIRC TRAIN
SEC. 114. Return and Payment of Value- SEC. 114. Return and Payment of Value-
Added Tax. - added Tax. –
(A) In General. - Every person liable to pay “(A) In General. – Every person liable to
the value-added tax imposed under this Title pay the value-added tax imposed under
shall file a quarterly return of the amount of this Title shall file a quarterly return of the
his gross sales or receipts within twenty-five amount of his gross sales or receipts
(25) days following the close of each taxable within twenty-five (25) days following the
quarter prescribed for each taxpayer: close of each taxable quarter prescribed
Provided, however, That VAT-registered for each taxpayer: Provided, however,
persons shall pay the value-added tax on a That VAT-registered persons shall pay the
monthly basis. value-added tax on a monthly basis:
Provided, finally, That beginning January
1, 2023, the filing and payment required
under this Subsection shall be done
within twenty-five (25) days following the
close of each taxable quarter. 26
TRAIN LAW RA 10963
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(C) Withholding of Value-added Tax. - The “(C) Withholding of Value-added Tax. – The
Government or any of its political subdivisions, Government or any of its political
instrumentalities or agencies, including
government-owned or -controlled corporations subdivisions, instrumentalities or agencies,
(GOCCs) shall, before making payment on including government-owned or -controlled
account of each purchase of goods and services corporations (GOCCs) shall, before making
which are subject to the value-added tax payment on account of each purchase of
imposed in Sections 106 and 108 of this Code,
deduct and withhold the value-added tax goods and services which are subject to the
imposed in Sections 106 and 108 of this Code, value-added tax imposed in Sections 106 and
deduct and withhold a final value-added tax at 108 of this Code, deduct and withhold the
the rate of five percent (5%) of the gross value-added tax imposed in Sections 106 and
payment thereof: Provided, That the payment for 108 of this Code, deduct and withhold a final
lease or use of properties or property rights to
nonresident owners shall be subject to ten value-added tax at the rate of five percent
percent (10%) withholding tax at the time of (5%) of the gross payment thereof: Provided,
payment. For purposes of this Section, the payor That beginning January 1, 2021, the VAT
or person in control of the payment shall be withholding system under this Subsection
considered as the withholding agent.
shall shift from final to a creditable system:
27
TRAIN LAW RA 10963
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Provided, further, That the payment for lease
or use of properties or property rights to
nonresident owners shall be subject to twelve
percent (12%) withholding tax at the time of
payment: Provided, finally, That payments for
purchases of goods and services arising from
projects funded by Official Development
Assistance (ODA) as defined under Republic
Act No. 8182, otherwise known as the ‘Official
Development Assistance Act of 1996’, as
amended, shall not be subject to the final
withholding tax system as imposed in this
Subsection. For purposes of this Section, the
payor or person in control of the payment
shall be considered as the withholding agent.
28
REVENUE REGULATION ON VAT
• Implementing Republic Act No. 10963, Further Amending Revenue

Regulations (RR) No. 16-2005 (Consolidated Value-Added Tax
Regulations of 2005), as Amended.
29
Republic Act No. 10963
Tax Reform on Acceleration and
Inclusion (TRAIN) Act
TOBACCO
Tobacco
R.A.10351 /
RR 17-2012
R. A. 10963
CIGARETTES, per pack January 1, July 1, 2018 January 1, January 1, January 1,
2018 until until 2020 until 2022 until 2024
2017
June 30, December December December Onwards
2018 31, 2019 31, 2021 31, 2023
Cigarettes packed by hand
Effective
Php30 Php32.50 Php35.00 Php37.50 Php40.00 1/1/2024, the
specific tax
Cigarettes packed by machine rate shall be
increased by
4% every
Php30 Php32.50 Php35.00 Php37.50 Php40.00 year
thereafter
Tobacco
REVISED RATES AND BASES OF EXCISE TAX ON TOBACCO PRODUCTS
TOBACCO PRODUCTS
R.A.10351 / RR 17-2012
2017 2018
(1) TOBACCO PRODUCTS, per kilo
a) Tobacco twisted by hand or reduced into a condition to be consumed in any
manner other than the ordinary mode of drying and curing; Php2.05 Php2.13
Effective
b) Tobacco prepared or partially prepared with or without the use of any machine January 1,
or instrument or without being pressed or sweetened; and Php2.05 2014, the Php2.13
tax rate
c) Fine-cut shorts and refuse, scraps, clippings, cuttings, stems, midribs and shall be
Php2.05 Php2.13
sweepings of tobacco increased
(2) CHEWING TOBACCO, per kilo Php1.75 by 4% every Php1.82
(3) CIGARS, per cigar year
AD VALOREM TAX equivalent to % of NRP/cigar and Specific Tax per cigar thereafter
AD VALOREM TAX 20% 20%
SPECIFIC TAX Php5.85 Php6.08
PETROLEUM
PETROLEUM
RA No. 10963
PRODUCTS 2017 January 1, January 1, January 1,
2018 2019 2020
(a) Lubricating oils and greases, including but not
limited to basestock for lube oils and greases, high
vacuum distillates, aromatic extracts and other
similar preparations, and additives for lubricating P4.50
oils and greases, whether such additives are
petroleum based or not, per liter and kilogram
respectively, of volume capacity or weight.
(a.1) Locally produced or imported oils previously P8.00 P9.00 P10.00
taxed but are subsequently reprocessed, rerefined
P4.50
or recycled, per liter and kilogram of volume
capacity or weight.
(b) Processed gas, per liter of volume capacity. P0.05
(c) Waxes and petrolatum per kilogram. P3.50
(d) Denatured alcohol to be used for motive
P0.05
power, per liter of volume capacity.
(e) Asphalts, per kilogram. P0.56
PETROLEUM
RA No. 10963
2018 2019 2020
(f) Naphtha, regular gasoline, and other
similar products of distillation, per liter of P4.35
volume capacity
P7.00 P9.00 P10.00
Pyrolysis gasoline -
(g) Unleaded premium gasoline, per liter
P4.35
of volume capacity
(h) Kerosene, per liter of volume capacity P0.00 P3.00 P4.00 P5.00
PETROLEUM
RA No. 10963
2018 2019 2020
(i) Aviation turbo jet fuel, per liter of volume capacity P3.67
Aviation gas - P4.00 P4.00 P4.00
(j) Kerosene, when used as aviation fuel, per liter of
P3.67
volume capacity
(k) Diesel fuel oil, and on similar fuel oils having
more or less the same generating power, per liter of P0.00
volume capacity
(l) Liquefied petroleum gas used for motive power,
P0.00
per kilogram P2.50 P4.50 P6.00
(m) Bunker fuel oil, and on similar oils having more
or less the same generating power, per liter of volume P0.00
capacity
(n) Petroleum coke, per metric ton -
PETROLEUM
RA No. 10963
2018 2019 2020
(o) Liquefied petroleum gas, per kilogram P0.00 P1.00 P2.00 P3.00
(p) Naphtha and pyrolysis gasoline, when used
as a raw material in the production of
petrochemical products or in the refining of
petroleum products, or as replacement fuel for
P0.00
natural-gas-fired-combined cycle power plant,
in lieu of locally-extracted natural gas during
the non-availability thereof, per liter of volume P0.00 P0.00 P0.00
capacity
(q) Liquefied petroleum gas, when used as raw
material in the production of petrochemical P0.00
products, per kilogram
(r) Petroleum coke, when used as feedstock to
-
any power generating facility, per metric ton
PETROLEUM
SEC. 3. EXCEPTION TO REVISED EXCISE TAX RATES. — The

revised rates under Section 2 shall not apply under the following instances:
a) Lubricating oils and greases produced from basestocks and additives on which
the excise tax has already been paid shall no longer be subject to excise tax.
a) Unless otherwise provided by special laws, if the denatured alcohol is mixed

with gasoline, the excise tax on which has already been paid, only the alcohol
content shall be subject to the tax herein prescribed. The removal of denatured
alcohol of not less than one hundred eighty degrees (180°) proof (ninety
percent (90%) absolute alcohol) shall be deemed to have been removed for
motive power, unless shown otherwise;
PETROLEUM
SEC. 4. CREDITABLE EXCISE TAX. — The

excise tax paid on the purchased basestock (bunker) used in
the manufacture of excisable articles and forming part
thereof shall be credited against the excise tax due thereon.
For purposes of these regulations, any excess of excise taxes
paid on raw materials resulting from manufacturing,
blending, processing, storage and handling losses shall not
give rise to a tax refund or credit.
PETROLEUM
SEC. 5. SUSPENSION OF SCHEDULED

INCREASE. — For the period covering 2018 to 2020, the
scheduled increase in the excise tax on fuel as imposed in
this section shall be suspended when the average Dubai
crude oil based on Mean Of Platts Singapore (MOPS) for
three (3) months prior to the scheduled increase of the
month reaches or exceeds eighty dollars (USD 80) per
barrel. A separate Revenue Regulation (RR) shall be issued
for this purpose.
PETROLEUM
SEC. 6. MANDATORY MARKING OF ALL
PETROLEUM PRODUCTS. — The use of an official fuel
marking or similar technology on petroleum products that are
refined, manufactured, or imported into the Philippines, and
that are subject to the payment of taxes and duties, such as
but not limited to unleaded premium gasoline, kerosene, and
diesel fuel oil shall be required. It shall be implemented in
accordance with rules and regulations to be issued by the
Secretary of Finance in consultation with the Commissioner
of Internal Revenue and Commissioner of Customs and in
coordination with the Secretary of Energy.
PETROLEUM
SEC. 7. MANUFACTURERS AND/ OR IMPORTERS TO PROVIDE
THEMSELVES WITH COUNTING OR METERING DEVICES TO
DETERMINE VOLUME OF PRODUCTION AND IMPORTATION. —
Manufacturers of oil products subject to excise tax shall provide themselves with such
necessary number of suitable counting or metering devices to determine as accurately as
possible the volume, quantity or articles produced by them under the rules and
regulations promulgated by the Secretary of Finance, upon recommendation of the
Commissioner of Internal Revenue: Provided, That the Department of Finance shall
maintain a registry of all petroleum manufacturers and/ or importers and the articles
being manufactured and/ or imported by them: Provided, further, That the Department
of Finance shall mandate the creation of a real-time inventory of petroleum articles
being manufactured, imported or found in storage depots of such petroleum
manufacturers and/ or importers: Provided, finally, That importers of finished petroleum
products shall also provide themselves with Bureau-accredited metering devices to
determine as accurately as possible the volume of petroleum products imported by them.
PETROLEUM
SEC. 8. TRANSITORY PROVISION.
a) Submission of Stock Inventories. Concerned oil companies, owners, operators or lessees of

storage depots shall submit duly notarized inventories of all petroleum products as of
midnight of December 31, 2017 to Excise LT Field Operations Division (ELTFOD)
b) Accounting for stocks or inventory of goods after each date of effectivity of the new excise tax
rates. These inventories of petroleum products taken prior to each date of effectivity shall be
liquidated and accounted for on a “First-In First-Out” (FIFO) method of inventory.
c) Issuance of Withdrawal Certificates. All Withdrawal Certificates issued covering the removals
of petroleum products subject to the old or previous tax rates products shall be prominently
stamped with the phrase “STOCKS ON HAND PRIOR TO APPLICABLE DATE OF
EFFECTIVITY”.
MINERALS
MINERALS
R.A. No. 10963

PRODUCT TYPE 2017 January 1, January 1, January 1,
2018 2019 2020
On coal and coke,
P10.00 P50.00 P100.00 P150.00
per metric ton
MINERALS
PRODUCT TYPE 2017 R.A. No. 10963
On all non-metallic mineral and quarry resources
1. Locally extracted or
produced, based on actual 2% 4%
market value
2. In the case of importation
based on value used by Bureau
of Customs in determining tariff 2% 4%
and customs duties, net of excise
tax and VAT
3. Locally-extracted natural gas
P0.00 Exempt
and liquefied natural gas
MINERALS
PRODUCT TYPE 2017 R.A. No. 10963
On all metallic mineral and quarry resources
1. Locally extracted or produced, based on
actual market value
a) Copper and other metallic minerals 2% 4%
b) Gold and chromite 2% 4%
2. In the case of importation based on value
used by Bureau of Customs in determining tariff
and customs duties, net of excise tax and VAT
a) Copper and other metallic minerals 2% 4%
b) Gold and chromite 2% 4%
On indigenous petroleum, based on the fair
international market price thereof, on the first
3% 6%
taxable sale, barter, exchange or similar
transaction.
AUTOMOBILES
AUTOMOBILES
BASED ON THE NET MANUFACTURER’S PRICE/ IMPORTER’S SELLING PRICE
RR 25-2003 R.A. No. 10963
OVER UP TO RATE OVER UP TO RATE
0 P 600,000 2%
P 12,000 + 0 P 600,000 4%
P600,000 P 1,100,000 20% in excess
of P 600,000 P
P600,000 10%
P112,000+ 1,000,000
P1,100,000 P2,100,000 40% in excess
of P1,100,000 P4,000,00
P1,000,000 20%
P512,000 + 0
P2,100,000 over 60% in excess
of P2,100,000 P4,000,000 over 50%
AUTOMOBILES
SEC. 2. DEFINITION OF TERM

(N) HYBRID ELECTRIC VEHICLE - SHALL REFER TO
A MOTOR VEHICLE POWERED BY ELECTRIC
ENERGY, WITH OR WITHOUT PROVISION FOR OFF-
VEHICLE CHARGING, IN COMBINATION WITH
GASOLINE, DIESEL OR ANY OTHER MOTIVE
POWER: PROVIDED, THAT, FOR PURPOSES OF THIS
ACT, A HYBRID ELECTRIC VEHICLE MUST BE ABLE
TO PROPEL ITSELF FROM A STATIONARY
CONDITION USING SOLELY ELECTRIC MOTOR.”
AUTOMOBILES
PROVIDED, THAT HYBRID VEHICLES SHALL BE TAXED AT
FIFTY PERCENT (50%) OF THE APPLICABLE EXCISE TAX RATES
ON AUTOMOBILES SUBJECT TO THE CONDITIONS IN SECTION
9(E) OF THIS REGULATIONS: PROVIDED, FURTHER, THAT IN
THE CASE OF IMPORTED AUTOMOBILES NOT FOR SALE, THE
TAX IMPOSED HEREIN SHALL BE BASED ON THE TOTAL
LANDED VALUE, INCLUDING TRANSACTION VALUE,
CUSTOMS DUTY AND ALL OTHER CHARGES.”
AUTOMOBILES
SEC. 4. Section 9 is hereby amended as follows:
“SEC. 9. TAX-EXEMPT REMOVALS OF AUTOMOBILES

E. PURELY ELECTRIC VEHICLES SHALL BE EXEMPT FROM THE EXCISE TAX ON
AUTOMOBILES. HYBRID VEHICLES SHALL BE SUBJECT TO FIFTY PERCENT
(50%) OF THE APPLICABLE EXCISE TAX RATES ON AUTOMOBILES. PRIOR TO
THE REMOVAL OF THE AUTOMOBILES FROM THE MANUFACTURING PLANT OR
CUSTOMS CUSTODY, THE DEPARTMENT OF ENERGY (DOE) SHALL DETERMINE
WHETHER THE AUTOMOBILES ARE HYBRID VEHICLES OR PURELY ELECTRIC
VEHICLES, AND FURNISH THE COMMISSIONER OF INTERNAL REVENUE,
ATTENTION: CHIEF EXCISE LARGE TAXPAYERS REGULATORY DIVISION
(ELTRD), CERTIFIED COPIES OF THE RESULTS OF SUCH EXAMINATION OR
INDORSEMENT TO THAT EFFECT.
F. PICK-UPS. ”
AUTOMOBILES
SEC. 5. A new provision designated as Section 5-A in RR No. 25-2003 is hereby
inserted to read as follows:
“SEC. 5-A. VALIDATION OF MANUFACTURERS’ AND IMPORTERS’

SELLING PRICE. – By the end of three months from the imposition of the new
rates, the Bureau of Internal Revenue shall validate the Manufacturer’s or
Importer’s Selling Price of the newly introduced models against the Manufacturer’s
or Importer’s Selling Price as defined herein and initially determine the correct
bracket under which a newly introduced model shall be classified. After the end of
one year from such validation, and every year thereafter, the Bureau of Internal
Revenue shall revalidate the initially validated Net Manufacturer’s or Importer’s
Selling Price against the Net Manufacturer’s or Importer’s Selling Price as of the
time of revalidation in order to finally determine the correct tax bracket under
which a newly introduced model shall be classified.”
AUTOMOBILES
SEC. 6. TRANSITORY PROVISIONS
1. All manufacturer’s/assembler’s or importers are hereby required to file an

updated manufacturer’s/assemblers or importer’s sworn statement for each
brands/models of automobiles as of the day immediately before the date of
effectivity of these Regulations.
2. All manufacturers/assemblers or importers shall submit a duly notarized list of
inventory on-hand that are located within the manufacturing/assembly plant,
storage facility or warehouse or the customs’ premises for which import entries
have been filed as of the day immediately before the date of effectivity of these
Regulations, indicating therein the brand, year model, engine, body and chassis
numbers thereof,
Excise Tax on Non-Essential Services
Section 46 of RA 10963 (TRAIN) introduces a
NEW section- Section 150-A (Excise Tax on Non-
Essential Services)
•SEC. 2. Definition of Terms. –
• 2.1. Plastic Surgery shall refer to a surgical specialty

dedicated to reconstruction of facial and body defects
due to birth disorders, trauma, burns, and disease. It
intends to correct dysfunctional areas of the body and
is reconstructive in nature.
2.2. Cosmetic Surgery shall refer to a type of plastic surgery
that aims to improve a perso ’s appearance, through
invasive cosmetic procedures, surgeries, and body
enhancements directed solely on improving, altering, or
enhancing the perso ’s appearance and do not necessarily
promote the proper functions of the body or prevent or
treat illness or disease.
2.3. Reconstructive Surgery shall refer to another type of
plastic surgery which aims to improve function and give
a normal appearance to a part of a perso ’s body that
has been damaged, ameliorate a deformity arising from,
or directly related to, a congenital or developmental
defect or abnormality, a personal injury resulting from
accident or trauma, or disfiguring disease, tumor, virus
or infection.
2.4. Invasive Cosmetic Procedure shall refer to a
surgery that is carried out by entering the body
through the skin or through a body cavity or
anatomical opening, but with the smallest
damage possible to these structures. Invasive
Cosmetic Procedures shall include, but not be
limited to the following:
1. Liposuction
2. Mammoplasty
3. Breastlift
4. Buccal Fat Reduction
5. Buttocks Augmentation
6. Chin Augmentation
7. Facelift/Necklift
8. Thread Lift
9. Hair Restoration/Transplantation
10. Eyelid Surgery
11. Vaginal Plastic Surgery
12. Abdominoplasty or Tummy Tuck
13. Auto Grafting
14. Rhinoplasty/Alar Trimming
15. Otoplasty
2.5 Non-Invasive Cosmetic Procedure shall refer
to a conservative treatment that does not
require incision into the body or the removal of
tissue, or when no break in the skin is created
and there is no contact with mucosa, or skin
break, or internal body cavity beyond a natural or
artificial body orifice. Non- Invasive Cosmetic
Procedures shall include, but not be limited to
the following:
1. Acupuncture Rejuvenation Therapy
2. Air Dissector
3. Botulinum Toxin Injection/Treatment
4. Collagen Induction Therapy
5. Dermal Fillers (Crosslinked & Non-Crosslinked)
6. Embedded Protein Threads
7. Non-surgical facelifting & skin tightening
using radio frequency, ultrasound,
infrared
8. Fractional CO 2
9. Lasers and Light Treatments
10. Body Treatments and Contouring Procedures
11. Cleanings and Facials
12. Peelings (Face and Body)
13. Injectables and Weight Management Treatment
COVERAGE, NATURE, BASIS AND RATE OF EXCISE
TAX
• SEC.3. Rate and Base of Excise Tax. –
Rate = five percent (5%)

Tax Base = Gross Receipts, net of excise tax and VAT
Coverage = invasive cosmetic procedures, surgeries and
body enhancements directed solely towards improving,
altering, or enhancing the patie t’s appearance and do not
meaningfully promote the proper function of the body or
prevent or treat illness or disease.
Exclusions
• Non-invasive cosmetic procedures and surgeries necessary to
ameliorate a deformity arising from or directly related to,
a congenital or developmental defect or abnormality,
a personal injury resulting from an accident or trauma,
or disfiguring disease, tumor, virus or infection
• Cases or treatments covered by the National Health
Insurance Program
͞Gross Receipts͟ means the total amount of money or its
equivalent representing the contract price including
deposits applied as payments for services rendered and
advance payments actually or constructively received for
services performed or to be performed for another person
͞Constructive Receipt͟ occurs when the money

consideration or its equivalent is placed at the control of
the person who rendered the service without restrictions
by the payor/customer. Also covers exchange deal
arrangement.
Persons Liable
Any person, whether individual or juridical entity,

performing invasive medical/cosmetic procedures, surgeries,
body enhancements directed solely on improving, altering, or
enhancing the patie t’s appearance and do not meaningfully
promote the proper functions of the body or prevent or treat
illness
Nature and Characteristic of Excise Tax
An excise tax is considered an indirect tax,

meaning that the service provider who is the statutory
bearer of the said excise tax is expected to shift the tax
by billing the same to the customer-client.
Excise taxes are typically imposed in addition to
another indirect tax such as VAT. The service provider
is hereby authorized to act as withholding agent for the
five percent (5%) excise tax billed and is ultimately
liable to remit the excise tax collected from the
client/customer. The five percent (5%) excise tax to be
withheld and remitted is based on gross receipts net of
VAT and is considered final and no adjustment shall be
allowed to be made by the statutory bearer of the said
excise tax.
Manner of Remittance of Excise Tax
Under existing rules on goods subject to
excise taxes, the excise tax return is required to be
filed and the excise tax paid by the manufacturer or
producer of the goods before removal from the
place of production.
However, Section 150-A (Non-Essential
Services) of the Tax Code involves performance of
medical/cosmetic services and not goods, hence,
an innovative remittance scheme is hereby
employed under which the seller of
services/service provider collects the five percent
(5%) excise tax from its client/customer and remits
the same to the Bureau based on gross receipts,
net of VAT.
This practice outlines the circumstances when
the withholding tax obligation in respect of
payment is reversed and placed on the recipient of
the payment instead of the payor, as an exception
to the existing tax rules on withholding on income
payments for good and services. This concept of
withholding tax reverse charge obligation on
payments is herein prescribed for administrative
expediency.
In cases where no service subject to excise
tax is performed and there are no payments received,
the Monthly Remittance Return of Final Withholding
of Excise Tax shall still be filed with Excise Large
Taxpayers Field Operations Division (ELTFOD) for Large
Taxpayers/Revenue District Office for taxpayers in the
National Capital Region (NCR)/Excise Tax Area (EXTA)
in Regional Offices for taxpayers outside NCR.
Taxpayers filing via EFPS shall comply with
the provisions of the EFPS Regulations.
SEC.6.3. Invoicing and Accounting Requirements.
6.3.1 Invoicing Requirements. –

Every person subject to excise tax herein imposed
shall issue:
1. An Official Receipt for services performed
whether invasive/non-invasive.
2. The following information shall be indicated
in the Official Receipt:
a. The total amount which the patient/client pays or is obligated
to pay to the service provider including the excise tax and value
added tax:
Provided, that:
• The amount of excise tax shall be shown as a separate item
in the OR;
• Discounts given shall be indicated in the OR, otherwise the
same shall not be allowed as deduction from gross receipts;
• If the procedure performed is non-invasive and considered
exempt from excise tax, the term Exempt from Excise Tax
shall be shown on the OR;
• If the services performed involved both invasive (excisable)
and non-invasive (exempt from excise tax) procedures, the
receipt shall clearly indicate the breakdown of the amount
received between its taxable and exempt components and
the calculation of excise tax on each portion of the procedure
performed shall be shown on the receipt:
• Provided, that the service provider may issue separate ORs for
the excisable and exempt components of the services
rendered.
Illustration:
To improve her body shape, Starlet S engaged the
services of Dok Salamat, a well-known cosmetic
surgeon in the country, to perform a liposuction
procedure on her thighs, and Dok Salamat charged
Starlet S the amount of P50,000.00 inclusive of 12%
VAT for the services rendered.
Based on the foregoing, the 5% excise tax shall be computed, as follows:
Contract Price (inclusive of 12% VAT) (50,000/112%) P 50,000.00
Price (net of 12% VAT) (excise tax base) P 44,642.85
Add: 5% excise tax (44,642.85 x 5%) 2,232.15*
12% VAT (44,642.85 x 12%) 5,357.15
Total Amount to be Collected from Customer P 52,232.15
*Represents the excise tax to be withheld and remitted by the
service provider to the BIR
A sample Official Receipt is shown in Annex B hereof.
•ACCOUNTING ENTRIES:
CASH 52,232.15
FWT-EXCISE TAX 2,232.15
OUTPUT TAX 5,357.15
SERVICE INCOME 44, 642.85
Sample Only DOK SALAMAT, M.D. Annex B
Rm. 000 St. Luke’s Hospital, E. Rodriguez Sr.,Q.C.
VAT Reg. TIN: 144-424-024-0000
OFFICIAL RECEIPT
In settlement of the following:
DATE January 1, 2018
Amount
Received from Starlet S with TIN_12304560789 and

Price (Net of 12% VAT) 44,642.85 address at Quezon City the sum of __Fifty Two Thousand
Add: 5% Excise Tax 2,232.15 Two Hundred Thirty Two and 15/100 pesos (P52,232.15) In
12% VAT 5,357.15 partial/full payment for liposuction procedure.
Total Amount Collected 52,232.15 By: Juana Dela Cruz
Cashier/ Authorized Representative
Form of Payment: No. 1001

10 Bklts (3x) 1001-1500
BIR Authority to Print No. 3AU000805222
Date Issued 07-30-13: Valid until 07-29-2018 Printer’s Accreditation No. P08051200
BERTHA PRINTING SERVICES, INC. Date Issued 08-01-12
Bgy. 789, Quezon City
TIN: 123-456-789-0000 “THIS DOCUMENT IS VALID FOR CLAIM OF INPUT TAXES”
THIS OFFICIAL RECEIPT SHALL BE VALID FOR FIVE (5) YEARS FROM THE DATE OF ATP.
Illustration:
• To improve her body shape, Starlet S engaged the services of

Dok Salamat, a well-known cosmetic surgeon in the country, to
perform a liposuction procedure on her thighs. Dok Sala at’s
clinic is located in ABC Hospital. Starlet S was admitted to ABC
Hospital for the procedure. The hospital charged Starlet S the
amount of P70,000.00 inclusive of 12% VAT for the service
rendered. The professional fee included in the contract price
amounts to P 20,000.00.
• Based on the foregoing, the 5% excise tax shall be computed, as follows:
Billing by Hospital P 50,000.00

Doctor’s Fee 20,000.00
Total Price (inclusive of 12% VAT) (70,000/112%) P 70,000.00
Price (net of 12% VAT) (excise tax base) P 62,500.00
Add: 5% excise tax (62,500.00 x 5%) 3,125.00*
12% VAT (62,500.00 x 12%) 7,500.00
Total Amount to be Collected from Customer P 73,125.00
• *Represents the excise tax to be withheld and remitted by the service
provider to the BIR
Hospital Book Entry is as follows:
Cash 73,125.00
Professional Fee 17,857.14
Input VAT (P20,000.00/1.12 x 12%) 2,142.86
FWT-Excise 3,125.00
Output VAT 7,500.00
Doctor’s Fee Payable (P20,000.00/1.12 – 2,142.86) 18,571.43
Withholding Tax Payable (Prof Fee) 1,428.57
Service Income 62,500.00
• 6.3.2 Accounting Requirements. –
Not with standing the provisions of Section 233, all

persons subject to excise tax under Section 150-A of the Tax
Code shall, in addition to the regular accounting records
required, maintain a subsidiary ledger on which every service
rendered/performed on any given day is recorded. The
subsidiary ledger shall contain the following information:
1. Name of Patient;
2. Taxpayers Identification Number;
3. Invasive Cosmetic Procedures Performed (Indicate if excisable or not)
• If not excisable, keep records as proof that the procedures are not
taxable.
4. Non-Invasive Cosmetic Procedures Performed;
5. Official Receipts Number;
6. Gross Receipts (net of VAT and 5% excise tax)
7. 5%Excise Tax to be Withheld and Remitted
8. 12% VAT Due
9. Total Amount to be Collected from Customer (sum of 6, 7 and 8)
10. Remarks (description of cosmetic procedure performed)
• SEC. 7. Penalties – Violations of these Regulations shall be
subject to the corresponding penalties under Title X of the
NIRC, as amended.
Further, the following penalty provisions are hereby
prescribed pursuant to the provisions of the Act as follows:
1. Any person subject to excise tax under Section 150-A of

the Tax Code, as amended, found liable for any of the acts
or omissions in violation of the Act and its implementing
Regulations shall be fined treble the aggregate amount of
deficiency taxes, surcharges and interest which may be
assessed pursuant to the provisions of this Act;
• Any person liable for any of the acts or omission prohibited
under the Act and its implementing Regulations shall be
criminally liable and penalized under Section 254 of the NIRC, as
amended;
• Any person willfully aids or abets in the commission of any such

act or omission shall be criminally liable in the same manner as
the principal; and
• If the offender is not a citizen of the Philippines, he shall be

deported immediately after serving the sentence, without
further proceedings for deportation.
• SEC.4.130.3. Place of Filing of the Return and
Payment of the Tax. –
Except as the Commissioner otherwise permits, the

return shall be filed with and the final excise tax withheld
remitted to any authorized agent bank (AAB) under the
jurisdiction of the Revenue District Office/BIR Office
where the taxpayer (Head Office of the business
establishment) is registered or required to register.
For taxpayers located outside the National
Capital Region (NCR) and in cases where there are no
duly accredited agent banks within the municipality or
city, Excise Tax due shall be filed and payments made
to the Collection Agent or duly authorized Treasurer
of the Municipality/City where such taxpayer (head
office of the business establishment) is required to be
registered.
•SEC.4.130.4. Exceptions. –
The Secretary of Finance, upon the

recommendation of the Commissioner, may, by rules
and regulations, prescribe the manner and time for
filing of the return and payment of excise tax other
than as prescribed under Section 130, Chapter I, Title
VI of the Tax Code, as amended.
• SEC.4.130.2. & .3 Time and Place for Filing of
Return and Payment of the Tax. –
BIR FORM TIME OF FILING AND PLACE

REMITTANCE
BIR FORM Every 10th of the authorized agent bank (AAB)
1620-XC following month under the jurisdiction of the
Revenue District Office/BIR
Office where the taxpayer
(Head Office of the business
establishment) is registered
or required to register
Submit Summary of Invasive Cosmetic Procedures Performed
(please refer to prescribed format on Annex A hereof) as an
attachment to the said form for submission via email at
xcp.attachment@bir.gov.ph.
"Annex A"
NAME OF TAXPAYER
Monthly Summary of Invasive Cosmetic Procedures Performed
For the Month _______________
COSMETIC
OFFICIAL RECEIPT PROCEDURES AMOUNT COLLECTED
Gross Receipts
(Net of VAT 5% Excise Tax
No. Date PERFORMED /Excise) Withheld 12% VAT Total
• SEC.6. Administrative Requirements.
SEC.6.1. Application for Permit to Operate. –

Any person subject to excise tax under Section 150-A of
the Tax Code, as amended, shall file an application for a
Permit to Operate with the Excise LT Regulatory Division
(ELTRD) BIR National Office (whether Large or Non-
Large Taxpayers) not later than fifteen (15) days from
the effectivity of this Regulations.
The application shall be accompanied by the following:
a. Request Letter
Attention: Chief, Excise LT Regulatory Division
(ELTRD)
b. Certificate of Securities and Exchange Commission,
together with Articles of Incorporation and By-
Laws (for corporation and partnership) and
Certificate of Registration with the Office of the
Domestic Trade and Industry (for individual)
c. Mayor’s Permit
d. BIR Certificate of Registration (with latest
registration fee BIR Form 0605)
e. Latest Copy of Income Tax Return
f. Location Map of Clinics/Hospitals where
the medical professionals/practitioners
perform the services
g. Price list of Invasive/Non-invasive Medical
Procedures
• SEC.6.2. Application for Registration.
Every person subject to excise tax under Section 150-A of

the Tax Code, as amended, shall register as Excise Taxpayer
engaged in the performance of Invasive Cosmetic Procedures
with the Excise LT Regulatory Division (ELTRD) for Large
Taxpayers or with the Revenue District Office (RDO) for Non-
Large Taxpayers where the taxpayer is required to be
registered for updating of Certificate of Registration. The
application for registration shall be filed within ten (10) days
from the effectivity date of this Regulations.
• SEC. 8. Transitory Provision. – For the effective
implementation of the Act, the following guidelines shall
be followed during the transitory period:
1. Taxpayer may continue to use existing Official Receipts

for a period of six (6) months.
After the said period, taxpayer must apply for a
separate sets of Official Receipts for invasive cosmetic
procedures and non-evasive cosmetic procedures.
2. The current Certificate of Registration (COR) shall be
updated to include excise tax type using BIR Form 1905 and the
same shall be issued to the applicant by the Excise LT Regulatory
Division (ELTRD) for Large Taxpayers and Revenue District Office
(RDO) having jurisdiction of the applicant for Non-Large Taxpayers
in compliance with the requirements for registration.
3. The BIR Form No. 1620-XC (Monthly Remittance Return of Final
Withholding of Excise Tax on Cosmetic Procedures) is available for
downloading from the BIR website for purposes of remitting Final
Withholding of Excise Tax on cosmetic procedures and shall be
manually filed with the BIR, together with the prescribed attachment
to the said form (Summary of Invasive Cosmetic Procedures
Performed) for submission via email at xcp.attachment@bir.gov.ph.
4. Submission of Pricelist for Invasive/Non-Invasive Medical
Procedures to Excise LT Regulatory Division (ELTRD) as of
December 31, 2017 which is due on or before the filing of the
application of Permit to Operate.
SWEETENED BEVERAGES
(Section 150B of the Tax Code)
Republic Act No. 10963 otherwise known as the “Tax
Reform for Acceleration and Inclusion (TRAIN) Law”
SWEETENED BEVERAGES (SBs) -
refer to non-alcoholic beverages of any
constitution (liquid, powder, or
concentrates), that are pre-packaged and
sealed in accordance with the Food and
Drug Administration (FDA) standards, that
contain High Fructose Corn Syrup (HFCS)
and other caloric and/or non-caloric
sweeteners added by the manufacturers.
TYPE of SWEETENERS
CALORIC SWEETENER - refers to a substance
that is sweet and includes sucrose, fructose, and
glucose that produces a certain sweetness.
HIGH FRUCTOSE CORN SYRUP – refers to a

sweet saccharide mixture containing fructose and
glucose which is derived from corn and added to
provide sweetness to beverages, and which
includes other similar fructose syrup preparations.
TYPE of SWEETENERS
NON-CALORIC SWEETENER - refers to a
substance that is artificially or chemically
processed that produces a certain sweetness. These
are substances which can be directly added to
beverages, such as aspartame, sucralose, saccharin,
acesulfame potassium, neotame, cyclamates and
other non-nutritive sweeteners approved by the
codex alimentarius and adopted by the FDA.
SB Products SUBJECT to Excise Tax
 Sweetened juice drinks;
 Sweetened tea;
 All carbonated beverages;
 Flavored water;
 Energy and sports drinks;
 Other powdered drinks not classified as milk, juice, tea,
and coffee;
 Cereal and grain beverages; and
 Other non-alcoholic beverages that contain added sugar
SB Products NOT Subject to Excise Tax
a) All milk products
b) One Hundred Percent (100%) natural fruit
juices w/o added sugar/ caloric sweetener
c) One Hundred Percent (100%) natural vegetable
juices w/o added sugar/ caloric sweetener
d) Meal replacement and medically indicated
beverages for oral nutritional therapy
e) Ground, instant soluble and pre-packaged
powdered coffee products.
PERSONS LIABLE
a) Manufacturer
b) Owner or Possessor of
untaxed products
c) Importer
TAX RATES AND BASES
PRODUCT TAX RATE
(per Liter)
Using purely caloric sweeteners, and
purely non-caloric sweeteners, or a mix P6.00
of caloric and non-caloric sweeteners
Using purely high fructose corn syrup or
in combination with any caloric or non- P12.00
caloric sweetener
Using purely coconut sap sugar and
purely steviol glycosides
Exempt
COMPUTATION OF EXCISE TAX
Number of Liters
EXCISE TAX DUE = X
(Specific Tax) Excise Tax Rate
ILLUSTRATION
1. Carbonated Beverages
Dulce Manufacturing Corp. will remove
100 cases of Super Cola using HFCS and
non-caloric sweetener from place of
production. Each case contains 6 bottles
of 1.5 liters each.
Compute for the excise tax.
Solution:
No. of Cases 100
Multiplied by no. of bottles per case x 6
Total no. of bottles 600
Multiplied by contents per bottle x 1.5L
Total Volume in Liters 900L
Multiplied by Specific Tax Rate x P12.00
Total Excise Tax Due P10,800.00
ILLUSTRATION
2. Powdered Juice
Sweety Import Corp. will remove from
customs custody 50 cases of Four Seasons
Juice using caloric and non-caloric
sweetener containing 144 packs by 25
grams. Each 25grams pack can make 1Liter.
Compute for the excise tax.
Solution:
No. of Cases 50
Multiplied by no. of packs per case x 144
Total no. of packs 7,200
Multiplied by consumable yield per pack x 1L
Total Volume in Liters 7,200L
Multiplied by Specific Tax Rate x P6.00
Total Excise Tax Due P43,200.00
FILING AND PAYMENT OF EXCISE TAX
In General
Before removal from the place of production, in
case of locally manufactured products
 Advance Payment/Deposit – Taxpayer, at his
option pay to the BIR using BIR Form 2200S
Before release from Customs house, in case of

imported products
Specific Responsibility of Food and
Drug Administration (FDA)
1. Require Manufacturer/Importer to
indicate on the label the:
a. Type of sweetener used
b. Equivalent of each serving per liter
2. FDA shall conduct post marketing
surveillance of SBs on display in markets
and/or manufacturing plants
Specific Responsibility of Food and
Drug Administration (FDA)
3. Require Manufacturer/Importer to
submit monthly report of sugar and
other sweetener used in the production
4. Provide to BIR summary of Certificate of
Product Registration for each existing
brand of sweetened beverages
PENALTIES
VIOLATION PENALTIES
Misdeclaration or summary cancellation or
misrepresentation of withdrawal of his permit
sworn statement
any of the acts or treble the aggregate
omissions in violation of amount of deficiency taxes,
the Act and surcharges and interest
implemented by these
Regulations
PENALTIES
VIOLATION PENALTIES
any of the acts or criminal liability and
omission prohibited penalty under Section 254
under the Act of the NIRC
willfully aids or abets in criminal liability as the
the commission of any principal;
such act or omission
If the offender is not a Deported immediately after
citizen of the Philippines serving the sentence
ADMINISTRATIVE REQUIREMENTS
for Excise Taxpayers
 Registration (Sec. 154; RMO 38-2003)
• Permit to Operate as Manufacturer/ Permit to Operate
as Toll-Manufacture/ Permit to Operate as Importer
• Permit to Register Brands and Variants (Sec. 143 & Sec. 245)
 Issuance of Assessment Number (RMO 38-2003)
 Posting of Bonds (Sec. 160)
 Issuance of ATRIGs (RMO 35-2002; RMO 14-2014)
 Issuance of Export Permit (RMO 38-2003; Sec. 159)
ADMINISTRATIVE REQUIREMENTS
for Excise Taxpayers
 Transfer or Sale or Disposition of Raw Materials
and/or Semi-processed goods
 Maintenance of Official Register Book (ORB) (Sec.
153)
 Assignment of Revenue Officer On Premise

(ROOPs) (Sec. 16; RMO 18-86/LTS Memo 3-2005)
 Regular Stocktaking of Inventories (Sec. 6C)
 Use of BIR Form on All Removals of SB (BIR Form
No. 2299 - Excise Taxpayer’s Removal Declaration)
TRANSITORY PROVISIONS
1. Excise Taxpayer engaged in manufacturing and importing of SBs
shall register with Excise LT Regulatory Division (ELTRD) for Large
Taxpayers or with the Revenue District Office (RDO) for Non-
Large Taxpayers where the taxpayer is required to be registered
for updating of their Certificate of Registration (BIR Form No.
2303) using BIR Form No. 1905 to add an excise tax type. The
application for registration shall be filed on or before January
31, 2018.
2. Submit to the ELTRD copy furnished ELTFOD notarized list of
existing and new locally manufactured and imported brands of
SBs for purposes of registration of said brands on or before
January 31, 2018. (Please refer to Sec. 13 A for the
requirements).
3. Submit Sworn Declarations of Inventory List as of December 31,
2017 to ELTFOD on or before January 15, 2018. This requirement
is in addition to the regular filing of Inventory List as of
December 31, 2017 on or before January 30, 2018
4. Use the downloadable BIR Form No. 2200-S in filing and paying
of excise tax due upon removals of excisable products from the
place of production.
5. Submit summary of transactions of Excise Taxpayer’s Removal

Declaration (ETRD), Delivery Receipt/ Sales Invoice/ Transfer
Slips as supporting attachments to the BIR Form 2200S to its
designated email address at sb.attachment@bir.gov.ph
6. Secure Permit to Operate as Manufacturer/Toll
Manufacturer/Importer of Sweetened Beverages whether
registered as large taxpayers or non-large taxpayers at ELTRD on
or before January 31, 2018
7. Secure an Authority to Release Imported Goods (ATRIGs) at the

ELTRD before release of shipment from customs custody
8. Requisition from ELTFOD in writing the BIR Form No. 2299

(ETRD) to be used in supporting the removals of the excisable
products
TRANSFER TAXES
ESTATE TAX
THE LAW THAT GOVERNS THE IMPOSITION OF ESTATE TAX
It is a well-settled rule that estate taxation is governed by the

statute in force at the time of death of the decedent. The estate tax accrues
as of the death of the decedent and the accrual of the tax is distinct from
the obligation to pay the same. Upon the death of the decedent, succession
takes place and the right of the State to tax the privilege to transmit the
estate vests instantly upon death.
ESTATE TAX
RA 8424 RA 10963
Rate Graduated 5%-20% on the net 6% based on the net value of
value of the estate the estate
Deductions
Family Home 1M 10M
Standard 1M 5M
Funeral Expenses 5% of Gross Estate > 200K none
Judicial Expenses allowed none
Medical Expense 500K none
Time of Filing 6 months from date of death I year from date of death
Payment by Installments No provisions 2 years in case of insufficient
cash without civil penalty &
interest
CPA Certification 2M 5M
Withdrawal on deposits of none 6% Final Tax
decedent
Notice of Death Within 2 months repealed
ESTATE TAX
RATE OF ESTATE TAX
The transfer of the net estate of every decedent, whether resident or non-
resident of the Philippines, as determined in accordance with the NIRC, shall be
subject to an estate tax at the rate of six percent (6%).
ESTATE TAX
What are included in gross estate?
For resident alien decedents/citizens:
a) Real or immovable property, wherever located
b) Tangible personal property, wherever located
c) Intangible personal property, wherever located
For non-resident decedent/non-citizens:

a) Real or immovable property located in the Philippines
b) Tangible personal property located in the Philippines
c) Intangible personal property - with a situs in the Philippines
ESTATE TAX
What are excluded from gross estate?
 GSIS proceeds/ benefits
 Accruals from SSS
 Proceeds of life insurance where the beneficiary is irrevocably appointed
 Proceeds of life insurance under a group insurance taken by employer (not taken out upon his
life)
 War damage payments
 Transfer by way of bona fide sales
 Transfer of property to the National Government or to any of its political subdivisions
 Separate property of the surviving spouse
 Merger of usufruct in the owner of the naked title
 Properties held in trust by the decedent
 Acquisition and/or transfer expressly declared as not taxable
ESTATE TAX
What will be used as basis in the valuation of property?
 Theproperties subject to Estate Tax shall be appraised based on its fair

market value at the time of the decedent's death.
 The appraised value of the real estate shall be whichever is higher of the fair
market value, as determined by the Commissioner (zonal value) or the fair
market value, as shown in the schedule of values fixed by the Provincial or
City Assessor.
 If
there is no zonal value, the taxable base is the fair market value that
appears in the latest tax declaration.
 If
there is an improvement, the value of improvement is the construction cost
per building permit or the fair market value per latest tax declaration
ESTATE TAX
What are the allowable deductions for Estate Tax Purposes?
For a citizen or resident alien
1. Standard deduction – A deduction in the amount of Five Million Pesos (P5,000,000.00) shall be allowed
as an additional deduction without need of substantiation.
2. Claims against the estate.
3. Claims of the deceased against insolvent persons where the value of the decedent’s interest therein is
included in the value of the gross estate
4. Unpaid mortgages, taxes and casualty losses
5. Property previously taxed
6. Transfers for public use
7. The family home - fair market value but not to exceed P10,000,000.00
8.Amount received by heirs under Republic Act No. 4917
Net share of the surviving spouse in the conjugal partnership or community property
ESTATE TAX
What are the allowable deductions for Estate Tax Purposes?
For a non-resident alien
1. Standard deduction – P500,000.00
2. Proportion of the following deductions
a. Claims against the estate.
b. Claims of the deceased against insolvent persons where the value of the
decedent’s interest therein is included in the value of the gross estate
c. Unpaid mortgages, taxes and casualty losses
3. Property previously taxed
4. Transfers for public use
Net share of the surviving spouse in the conjugal partnership or community

property
ESTATE TAX
CITIZEN OR RESIDENT
Gross estate: Conjugal Exclusive Total
- Real property
- Personal property
Less: Deductions:
- Standard deduction (P5 M)
- Claims against the estate – debt instrument was notarized; statement showing disposition of proceeds of
loan, if contracted within 3years from date of death
- Claims of the deceased against insolvent persons
- Unpaid mortgages, taxes and casualty losses
- Properties previously taxed (vanishing deduction)
- Transfers for public use
- Family home (not to exceed P10 M)
- Amount received by heirs under RA 4917, provided such amount is included in gross estate of decedent
- Share of the surviving spouse (50% of net conjugal estate)
Net Taxable Estate
 Estate tax (6%)

ESTATE TAX
NON RESIDENT
Gross estate: Conjugal Exclusive Total
- Real property
- Personal property
Less: Deductions:
- Standard deduction (P500 K)
- Proportion of the following:
 Claims against the estate – debt instrument was notarized; statement showing disposition of proceeds of
loan, if contracted within 3years from date of death
 Claims of the deceased against insolvent persons
 Unpaid mortgages, taxes and casualty losses
- Properties previously taxed (vanishing deduction)
- Transfers for public use
- Share of the surviving spouse (50% of net conjugal estate)
Net Taxable Estate
 Estate tax (6%)

ESTATE TAX
When to file and pay?
File estate tax return and pay tax within one (1) year from date of
death.
How about installment Payments?

If case the available cash of the estate is insufficient to pay the total
estate tax due, payment by installment shall be allowed within to (2) years
from the statutory date for its payment without civil penalty and interest.
When is CPA Certification required?

If gross estate exceeds P5 million, attach to estate tax return a
certified statement of assets and itemized deductions.
ESTATE TAX
• Tax clearance is required before any transfer of shares may be made in the
name of new owners, however,
• If a bank has knowledge of the death of a person, who maintained a bank

deposit account alone, or jointly with another, it shall allow any withdrawal
from the said deposit account, subject to a final withholding tax of six
percent (6%), without such certification from the CIR.
DONOR’S TAX
RA 8424 RA 10963
Rate
Relative Graduated 2%-15% 6%
First P100,000 of net gift is exempt P250,000-Exempt
2% on P100,001 to P200,000
15% on amount over P10 M
Stranger 30% 6%
Exemption
Dowries or gifts on allowed none
account of marriage
DONOR’S TAX
THE LAW THAT GOVERNS THE IMPOSITION OF DONOR’S TAX
 The donor’s tax is not a property tax, but is a tax imposed on the transfer of property by way of gift inter
vivos. (Lladoc vs. Commissioner of Internal Revenue, L-19201, June 16, 1965; 14 SCRA, 292)
 The donor’s tax shall not apply unless and until there is a completed gift. The transfer of property by gift is
perfected from the moment the donor knows of the acceptance by the donee; it is completed by the delivery,
either actually or constructively, of the donated property to the donee.
 Thus, the law in force at the time of the perfection/completion of the donation shall govern the imposition of
the donor’s tax.
DONOR’S TAX
Donations or gifts with at least P250,000 worth will be
charged a donor’s tax of 6% flat rate. This will be charged
regardless of the relationship between the donor and the donee.
DONOR’S TAX
TRANSFER FOR LESS THAN ADEQUATE AND FULL CONSIDERATION
Where property, other than real property referred to in Section 24(D), is transferred for
less than an adequate and full consideration in money or money's worth, then the amount
by which the fair market value of the property exceeded the value of the consideration
shall, for the purpose of the tax imposed, be deemed a gift, and shall be included in
computing the amount of gifts made during the calendar year: Provided, however, that a
sale, exchange, or other transfer of property made in the ordinary course of business (a
transaction which is a bona fide, at arm’s length, and free from any donative intent) will be
considered as made for an adequate and full consideration in money or money’s worth.
DONOR’S TAX
EXEMPTION OF CERTAIN GIFTS:
 Gifts Made by a Resident or by a Nonresident not a Citizen of the Philippines
 Gifts made to or for the use of the National Government or any entity created by any of its agencies
which is not conducted for profit, or to any political subdivision of the said Government; and
 Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation,
institution, accredited nongovernment organization, trust or philanthropic organization or research
institution or organization:
SAMPLE COMPUTATION
ILLUSTRATION:
DONATIONS MADE ON:
JANUARY 30, 2018 – P2,000,000

MARCH 30, 2018 – 1,000,000
AUGUST 15, 2018 – 500,000
SOLUTION/COMPUTATION:
DATE OF DONATION AMOUNT DONOR’S TAX

1. JANUARY 30, 2018 P2,000,000
JANUARY 30, 2018 DONATION 2,000,000

LESS: EXEMPT GIFT (250,000)
1,750,000 P 105,000
Continuation…
2. MARCH 30, 2018 1,000,000
MARCH 30, 2018 DONATION 1,000,000

ADD: JANUARY 30, 2018 DONATION 2,000,000
TOTAL 2,750,000
TAX DUE THEREON 165,000

LESS: TAX DUE/PAID ON JANUARY DONATION 105,000
TAX DUE/PAYABLE ON THE MARCH DONATION P 60,000
Continuation…
3. AUGUST 15,2018 500,000
AUGUST 15, 2018 DONATION 500,000

ADD: JANUARY 2018 DONATION 2,000,000
MARCH 2018 DONATION 1,000,000
TOTAL 3,250,000
TAX DUE THEREON 195,000

LESS: TAX DUE/PAID ON JAN/MARCH DONATION 165,000
TAX DUE/PAYABLE ON THE AUGUST DONATION P 30,000

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R.A.

Effective January 1, 2023 and onwards:

➢ Individuals Earning Purely Compensation Income. – Individuals earning purely compensation

* Sec. 116 –Tax on Persons Exempt from VAT –

“xxx xxx xxx

II. DIRECT VETO

“PROVIDED, HOWEVER, THAT EXISTING RHQs/ROHQs, OBUs OR PETROLEUM SERVICE

• All employees of RHQs/ROHQs/OBUs, and Petroleum Service Contractors and Subcontractors.

• Government Service Insurance System (GSIS)

The grossed-up monetary value of the fringe benefit shall be determined:

2. Optional Standard Deduction (OSD)

Individuals engaged in business/practice of profession, regardless of sales/receipts/income, have

REPUBLIC ACT NO. 10963

(a) Export Sales. - The term “export sales”

“(2) Sale and delivery of goods to:

The above provisions go against the

(3) Sale of raw materials or packaging

(6) The sale of goods, supplies,

(4) Services rendered to persons (4) Services rendered to persons

“(8) Services rendered to:

“Provided, That the Department of Finance shall

“An amount equivalent to five percent (5%) of the

SEC. 269. Violations Committed by “SEC. 269. Violations Committed by

• Implementing Republic Act No. 10963, Further Amending Revenue

SEC. 3. EXCEPTION TO REVISED EXCISE TAX RATES. — The

a) Unless otherwise provided by special laws, if the denatured alcohol is mixed

SEC. 4. CREDITABLE EXCISE TAX. — The

SEC. 5. SUSPENSION OF SCHEDULED

a) Submission of Stock Inventories. Concerned oil companies, owners, operators or lessees of

R.A. No. 10963

SEC. 2. DEFINITION OF TERM

“SEC. 9. TAX-EXEMPT REMOVALS OF AUTOMOBILES

“SEC. 5-A. VALIDATION OF MANUFACTURERS’ AND IMPORTERS’

SEC. 6. TRANSITORY PROVISIONS

1. All manufacturer’s/assembler’s or importers are hereby required to file an

• 2.1. Plastic Surgery shall refer to a surgical specialty

Rate = five percent (5%)

͞Constructive Receipt͟ occurs when the money

Any person, whether individual or juridical entity,

An excise tax is considered an indirect tax,

6.3.1 Invoicing Requirements. –

Received from Starlet S with TIN_12304560789 and

Form of Payment: No. 1001

• To improve her body shape, Starlet S engaged the services of

Billing by Hospital P 50,000.00

Not with standing the provisions of Section 233, all

1. Any person subject to excise tax under Section 150-A of

• Any person willfully aids or abets in the commission of any such

• If the offender is not a citizen of the Philippines, he shall be

Except as the Commissioner otherwise permits, the

The Secretary of Finance, upon the

BIR FORM TIME OF FILING AND PLACE

SEC.6.1. Application for Permit to Operate. –

Every person subject to excise tax under Section 150-A of

1. Taxpayer may continue to use existing Official Receipts

HIGH FRUCTOSE CORN SYRUP – refers to a

Before release from Customs house, in case of

 Assignment of Revenue Officer On Premise

5. Submit summary of transactions of Excise Taxpayer’s Removal

7. Secure an Authority to Release Imported Goods (ATRIGs) at the

8. Requisition from ELTFOD in writing the BIR Form No. 2299

THE LAW THAT GOVERNS THE IMPOSITION OF ESTATE TAX

It is a well-settled rule that estate taxation is governed by the

RATE OF ESTATE TAX