Documente Academic
Documente Profesional
Documente Cultură
"36
s. No. 1592
~rrfflia~
l ~~
•
Begun end held In Metro ~la, on Monday, twenty-fourth
dey of July, two 1l1ousa:nd seventeen.
"(a) Tax Schedule Effective January l, 2018 pa,y received by such :minimum wage eamen ahall
until December Sl, 2022:
likewise be exempt from income tax.
"!'lot - nao.ooo -··---··..··-·-·- °" "(b) Rate of Toz 01'· Income of Purdy
-0... ~000 but - ..., Pf00,000 ---· 20ll oftilo-
Eklf-emp~yed Indiuiduala and/or ProfWJwnol$
- Pla0,000
-0... P.a<i,000 but-..., P800.000 - ....... P30,000+16" al Ille Whose Gross Salea '" Grou Receipl.s on.4 Oiiier
. esotM owr P400.000 Non-operolin1 Income Does Nol Exceed the
"<Mt Plll0.000but ... ...,1'2.000.000 - P180.000+IOl'°fllle Value-added 7hr (VA.17 ThreshlJld as Provided in
_._paoo,ooo Ekcti.on 109(BB). - Self-employed individuals
•o- PS.000,000 bot..,...., Pa.000.000.... P4G,OOO+l2"alllle and/orprofessinnala shall have the option to avail of
. . . . . O'l'tt Pl.000.000 an eight percent (8%) tax on gr088 aalee or g._
.. "o-Pl.-000 ---·-----·-·-·--oo•o J'S.'10.000+1&,.a(llle
- - 1'8,000.000
receipts and other DOD-operatinf ineome in excesao!
-r.o hundred fiAy tbou8and ~ (1'260,000) ~lieu
'Tax Schedule Etfed:i•eJanuary 1, 2028 and onwards: of the graduated income tu ratea llllder S•abeection
°Not- """"000 _ , , , _ _ _ _ _ _ °" (A)(2)(a) ofthis Section and the percentage tax UDder
Section 116 of this Code.
~ naG.OCQhi:ooc...a"P400,000 ___ ltKflltM.._.
.... nao.ooo "(c) Bau of Ta.: {or Miz«I. lna>me Earners.
-0...- P400,000 bat notCMr" Paoo,(X)I) --·- · PU,400 + 2°" o6&ht
- ...... r.00,000 - Taxpayexs earning both compensation income mid
income from busineas or practice ofprofession ahall
"O..t l'I00,000 but - ..., 1'11.000.000 - PI02,IOO + ll&,. of Ille
. . . . . O\'tl' ~000
be subject to the following taxes:
·o- 1'2,000,000 lM DOt OYer Pa,000,000.... P<Oa,IOO + l!Oi6 altluo
•._..over 1'2.000.000 "(l) All.Income from Co111penaation - The
"°"'' Pa,000,000 ... _. ......... - ............ _,,_, Pl.102.800+16"
....,. . _ PS.000.000
"* i:atee prescribed under Subsection (J\)~)(a) of this
Section.
"For manied individuals, the huaband and
"(2) All Income from Buaineaa or Practice of
wife, subject to the provision of Sect.ion 5l(D) heieo~
shall compute separately their individual ineome tax Profession -
based on their respective total taxable income:
...
Pn>ui<kd, That if any income oanaot be ddi.oilely I "(a) ffTotal Gross Salee and/or Groa Receipta
attributed to or identified as income exclusive!)' and Other Noll-Opelating Income Do Not Exceed the
eamecl or realized by either ofthe lpOU8e8, the aame l VATThresbold as Provided in Section 109(BB) of this
ehall be divided equally 'between the apouaea for the Code. - The rates prescribed 1111der Subeection
purpose of determining their respective tuable (A)(2)(a) of thia Section oo taxable income, or eight
income. percent (8%) income 1.8% based on l"ON eales or groaa
receipts and other non-operatinf inllome in lieu of
"Prouided, That minimum wage earners as tho graduated income tax rates under Subsection
dolined in Section 22(BB) ofthis Code aba1l be exempt (A)(2)(a) ofthis Section and the percentaae tax undor
&om t.he payment of income tax on their taxable
Section 116oftltiaCode.
income: Provided, {u.rl.Jr.er, That tho holiday pay,
8 9
"(b) IfTotal Groaa Sales and/or G!OIBReoeipla the Jong-term depoeitor in-ent certi6':atA> baled
an.d Other Non·operating Income Exceeda the on tbe remainina: maturity tbereof:
VA:r'I1>reabold aa IWrided in Section 109(BB) oLtbil
Code. - The ratea pieaczibed under Subaection
CAX2)(a) of tbia Secti<>n.
"(2) Cash. and/or ProJMrty Dividends. - A
"(B) Rote of Toz on Certain Passive final tax at the rate of ten percent (10%) shall be
l7U::Dme: - impoeed upon the auih and/or property dividenda
actn•Uy or conatrudively received by an indmdual
"(I) l.nWeat.s, Ro,alties. Priza, and OIMr from a domeatic corporation or from a joint stock
WiMings. - A final tax at the rate of twenty percent company, insurance or mutual fund companies and
(20%) is bezeby imposed upon the amount ofinterest regional operating headquarten of multinational
from any currency bank deposit and yield or any other companiea, or on the share of an individual in the
moaetary beoofit from deposit aubetitutea and from distributable net income after tax of a partnership
.. trust funds and similar arranaementa; royahiea, (emepta general pro(.....00,,al partnerahip)of which
except on boob. aa well as other literazy works and be is a partner, or on the share of an individual in
mll8ical compocitiona, which shall be impoeed a final the net income after tax of an aaeociation, a joint
tax of ten percent (10%); prizes (except prizes account, or a joint venture or conaortium taxable aa
amounting to Ten thousand pesoe (Pl0,000) or le3ll a corporation of which be is a meJ11berorco-venturer.
which shall be aubject to tax under Subeection (A) of
Section 24; and other winninp (euept winnfop "(C) Capital Gain.s from Sak ofShares of Si«Jt
a.moanling to Tan thou:.sandpeaoe (Pl0,000) or 1- not 7Todai .... the Stack~ - The provision&
&om Pbilippina Charity Swetimu. and Louo which of Section S9(B) notwithstanding, a final tax at the
ahaU be exempt), derived from aourcea wit.bin the rate of fifteen pen:ent (15%) i.a hereby impoeed upon
Philippinee: Provi&d, however, That interest income the net capital gains reallied duxi.ng the taxable year
received by an individual taxpayer (except. a from the sale, barter, exchange or other d.ispoaition
nonresident individual) irom a depoaitory bank under of shares o£ atock in a domestic corporation, euept
the expanded foreipl c:m:reiw:y depoeit system ahaU shares sold, or disposed of through the atock
be aubject to a final income tu at the rate of fifteen exchange.
percent (15%) o£ such interest income: Pro~
{urlh.er, That interest income from long-term depocit "xx x.•
or invet<tme.n t in the form of savings, common o.r
iodividwtl truatfund.o, depoeit.w..titl.lte.,.invcetmcnt S&:. 6. Section 25 of the NIRC, aa amended, ia hereby
management accounts ud 0th.e r investments further amended to read as follows:
evidenced by certificates in such form prescribed by
the Bangko Senlzal ng Pi1ipinaa (8fil') shall be exempt "SBC. 25. Tax on Nonresident Alien
from the tax imposed under this Subsection: I ruliui.du.al. -
Prouided, finally, Tha,t should the bolder of the
"(A) NonresUkm Alien. Enga{/ed in Trade or
certificate pre-terminate the depoait or investment
&siMss With.in IM Philippinu. -
before the fifth (6"') year, a final tu aball be imposed
on the entire income and abaU be deducted and "xx x
witbheld by the depositary bank from the proceeds of
10
.· ·.
11
"(D) Rates of Tax on. Certain. Passive "SEC. 32. Gross I n.come. -
Jn.comes. -
·w 0en.eraz Definition. - x x x
"(I) In.term from Deposits an.d Yield or an.JI
other Mon.etary Bene/il from Deposit Subslitu.le8 and "(B) Exclusio1'S from Gross In.come. - x x x
from Trost FUnds and Similar ArraniJemen.ts, and
llo.)lalties. - Afinal taxattherateoftWentypercent "(l) xxx
(20%) is hereby imposed upon the amount ofinterest .
on c=ency bank deposit arid yield or any other
· monetary benefit from deposit aubstitutes and from "(7) Miscellan.eous Items.-
trust funds and similar arrangements received by
domestic CO?pOratione, and royalties, derived from "(a) xxx
sources within the Philippines: Proui.ded, hcwever,
Thatintereatincomederivedbyadomesaccorporation "(e) 13'1' Mon.th.Pay and Otker Benefits. -
from a depository bank under the expanded foreign Gl068 benefits received by officials and employees of
cunoncy clepoeit eyetem ah4ll be aubjcct to a final public ""d privQtc entitiea: Provi.<kd, however, Tha~
income tax at therateoffifbeenpercent(l5%) ofsuch the total exclusion under this subparagraph shallnot
interest income. exceed Nmety thousand pesos (P90,000) which shall
cover:
"(2) Capital Gai,.. from the Sale of.Shares of
Skx:k Not Traded in. the StockE>:dumge. - A final "(i) Benefits .received by officials and employees
tax at the rst.e offifteen perr.ent (15%) shall beimpoeed of the national and local government pursuant to
on net capital gains realized during the taxable year Republic Act No. 6686;
from the aale, exchange or other disposition ofshares
·oo8eJMllite received by employeee plD'8Wl.Dt value ofthe ftinp benefit by the difrmence between
ooe hundred pucent (100%) and the appW:.ble rates
to Preaidential Decree No. 851, u amel)ded by
Mcmarandum Order No. 28, dated August 18, 1986; ofincome tax WlderSw-ctiona (JI), (C), (D),and(E)
ofSection 25.
"(iii) Benefit& received by officials and
elllp]ayeMDOtcovered by freeidential Decree No.851,
aa amended by Memorandum Onier No. 28, dated
Aucuat 18, 1986; and SBC. 11. Section S4ofthe NIRC, u amended, is hereby
further amended to read u follows:
"(iv) Other benefite such u productivity
incentive& and Chrialma.e bonus." "SBC. 34 • .Dedudioiu from Gr= bu:om.e. -
Except for texpa;yen earning compensation income
SBC. 10. Section 88 of the NIRC, aa amended, is hereby arising from penonal services rendered under an
furlberameMed toreadaafollowa: employer-employee rebtimship where no ded.ur:tioos
ahalJ be allowed under this Section, in computing
taxable income subject to income tax under Sections
"SEC. 88. Special Treolmenl of Fri~ge
24(A); 25(A);26; 27(A), (B);and (C); and ?.8(A)(l), tbete
&M{it. - ahalJ be allowcd the foJlowinc deductiona from gross
income:
W Imposition of To%. - Effective
January 1, 2018 and onwsrda, a final tax of
w~. -
thirty-five percent (86%) is hereby impoeed on the
sr-ed·up monetary value offringe benefitfl=iabed
or granted t.o the employee (except rank and file "(1) Ord.inmy and. Necessary Trade, Bu.sin.us
elllployeee as defined herein) by the employer, whether or Professional E~nsu. -
an ·individual or a corporation (unleaa the fringe
benofit is roq uirod by tho nature of, or neceaaary to "(a) Jn General. - x ,x x
the trade, busineaa or profeaaion of the employer, or
when tho fringo beno1it ia for the convenience or
advantage of the employer). Tbetax herein imposed
is pa.yable by the empl01er which tax ehall be ,Paid in "(L) Opticnal Ston.dard Ded.w:#Qn (OSD). -
the aame manner 81pnwidodforllllderSection57(A) In lieu of the deductions allowed under the preceding
ofthiaCode. Tho sroesed·up monetary value of the Subsections, an indiviclual subject to tu under
fringe benefit aball be determined by dividing the Soction24 oth.>rtlwu oonreaident.W..n. mt11•lod
actual monetary value of tbe fringe benefit bysi:l'.ty·
five percent (65%) ef!'ective January l, 2018 and
a atandeni deduction in an amount not exceeclinrbt:r
percent (40%)ofhia croee sales or groea receipts, as
onwards: Prouid«i, howeuer, That fringe benefit the case m.ay be. ln the caae of a corporation subject
~to employeee and taxable under&ibeectioas to tax under Sections 27(A) and 28(A)(l), it m.ay elect
(B), (C), (l>), and (E) of Section 25 shall be taxed at a etandMd deduction in an amount note•• ttdingbty
the applicable ralff impoeed thenlat: Prouided. percent (40%) of iteer- income 81 defined inSection
{l.rrlMr, That tbe croeeed·"P value ol'the fringe benefit 32.oftha Code. Unleaa the tupayenignifiesin hia
shall be detenxUned by clividinc the actual monetary return hia intention to elect the optional standard
.· ' ' •· .·
deduction, be ahall be conaidered . . havinJ availed "Cl) The following indhiduala ahall not be
himaelf of the deductiona allowed in the preceding required to file an income tax return=
Si>beectioaa Such election when made in the retum
ahall be inevocable for the tuahle year for which "(a) AD individual whoee taxable income doN
the return is made: ProviMd, That an individual not exceed Two hundred fifty thousand Peso•
wboisentitled toaodclaimedfurtheoptionaletaJld.ard (P260,000) widerSection24(A)(2)(a): Prouic/.rd, That
dedaction shall not be r equired to 1ubmit with his a cit:iun of the Philippines and any alien individual
tax retum such financial statements othertri.ae engaged in buainessor practice ofprofession within
required under this Code: ProuUJed, {urlhu, That a the Philippines shall file lll1 income tax return,
general profesaional partnership and the partnezs reprdless of the amount ofgroec income;
compriaing such parlnenhip may avail a!tbe opticml
standard deduction only once, either by the general "Xxx
professionalpart:nerahip or the partners comprising
thepartDersbjp: ProWkd,firw,ll;y, Tbatexceptwben
"(5) The income tax return (ITR) shall consist
the Commissioner othenrise permits, the aaid
of a maximum of.four (4) pages in paper form or
individ~ shall .keep such recorda pertaining to his : · ele<:tronic form, and aball only contain the fol.lowing
groea aales or 1f018 receipte, or the aaid cotporation in!oimation:
shall keep 8UCh records pertaining to his groaa illmme
as defioedinSection 32olthis Code during the tuahle
"(A) Personal profile and information;
year, oa may be required by the rules and regulatione
promulgated by the Secretazy of Finance, upon
recommendatign of the Comminioner. "(B) Total grosa sales, receipte or inoame from
compensation for aenicea rendered, conduct oftrade
•Notwithatanding the provisions of the or business or the exercise of a profeasion. except
income subject to final tax as provided under this
preceding Subsections, "" x.• Code;
SEC. 12. Section 85 of tho NIRC, as amended, is hereby
repealed. "(CJ Allowable deductions under this Code;
SBc.14_ Anewsectiondesignatedas8edion5l·Aofthe
Nll!.C, aa amended, is hereby .inserted to read aafollowe:
"(l) xxx
"SEc. 61-A. &beli"dedF'i/ineoflN:oml Tax
Reiurns b1 Emplo;yees Receiuing Pu.rel1
"X :r :r
Compensation Jncotrll. - Individual taxpayers
reoeiving purezy compenaation ioa>me, regardleaaof
amount, from only one employv in the Philippines
tor the calendar year, the income tu al which baa "Provided, That the futqoing proN!olle ehall
been withheld a:uec:d) by1be eaid emploJer (tu due not affect the implementalion of Republic Act
equala tax withheld) shall not be requi:ecl to file an No.10708orTIMTA
LD.llual income tax return.. The certificate of
.,.;thhnlding filed by the reapecti99 employera. duly
etamped 'received' by the BIR, ahall be tantamount
to the eubslituted filing ofinoome tax return. by said SEC. 16. Section 56 of the NIRC, as a.mended, i.a hereby
emp!Qyees." further amended to read aa followe:
SEC. 15. Section 52 of the NIRC, aa amended, i.a hereby "SEC. 56. Pa;ymm.t and. Assusment ofJn.come
further amended t.o read as follows: '1b% for In.diuid=l.s and Corporalio1'8. -
"(l) Corporate profile and information; SEC. 17. Section 57 of the NIRC, 118 amended, is hereby
further amended to read 118 follows:
"(2) Gross sales, receipts or income from
"SEC. 57. Withlwldi1111ofTazot Source. -
aervices rendered, or conduct of trade or bwrinees,
except inoome subject to final tu aa provided under
"(A) xxx
this Code;
"(S) Allowable deductions under tbia Code; "(B) WilMD/ding ofCrtditobk Ta.xot Source.
- The Secretary of :Finance may, upon the
reocmm~ndati.on of the C'-OTDmiesiooer, requjie the
"(4) Taxable income as defined in Section 81 withholdjng of a tax on the iteme of income pllfable
of tbia Code; and to natural or juridical pcreone, residing in the
Philippines, by payor·corporation/persona aa
"(5) Income tu due and payable. provided for by law, at the rate of not leas than
. .. 20
.·. II
ODe peroeut(l")but DOtmoretban thirl;y-wo percem t:uable year on or beJOre May 15 aithe ~taxable
(32") thereof. which ahall be credited apinat the year. xxx
income tax liability of the taxpayer fur the t:uable
year: ProuUkd, That, beginning J auu.ai:y l, 2019, "(B) lldurn.an4Po;ymmtof&timd:edlncomt
the nite of withholding shall not be leaa than one To.x by Jndiuiduals. - The amount of eotimated
~(l") but not mare than fifteenpm:ent(15") income aa defined in Subeedinn (C) witb respect to
of the income payment. which a declaration is xequired under Subeeet:ion (A)
shall be paid in four (4) inatallmente. 1he first
"(C) xxx." in.stallment aball be paid at the time of dedazation
and the eecond and third shall be paid on August 15
SBo. 18. Section 58 of the NIRC, as amended, is hereby and November 15 of the current year, respectively.
further amended to read as follows: The fourth installment shall be paid on or bemre May
15 of tbe following calendar year whon the fi.nJIJ
"SEC. 68. Return and Payment of Taus acijusted income tax return ia due to be filed.
W"uMeld ~Source. -
"(C) XXL"
"(A)xxx
SEC. 21. Section 79 of the NIRC, aa amended, ia hereby
"x xx further amended to read as followa:
"The return fur final and creditable withholding "SEC. 79. Income To.x Collected ai Source. -
taxes shall be filed and the paym.e nt mad.o not later
than the last day of the month followiDg the c1oee of "xxx
the quarter during wbich withholding waa made."
"(C) Refund$ or Credits. -
SEC. 19. Section 62 of the NIRC, as amended, is hereby f'
repealed. L
• "(l) Employer. - x x x
SEc. 20. Section 74 of the NIRC, aa amended, is hereby
further amended to read as followa: "(2) Employees. - x xx
"SEC. 74. Declarotio11 of Income Tax for
lndividuoh.- "x xx
"1'hese deductiana eba1l be allowed only where "(8) Amolllll&ceived by Heirs Ulldu &publi.c
a donor'a tax, or estate tax impaeed under this Title Act No. 4917. - Any amount received by the heirs
was finally determined and paid by or on behalf of from the deoedent.'s employee as a OODllCCIUellCe of the
euch donor. or the estat.! of oucl> prior doccd..nt, u death of the deoedent-employee in accordanoe with
the case may be, and oDly in the amount finally RepublicActNo.4917: l'rouilkd, Tbatsuchamount
determined as the value of euch property in is included in the eroea estate ofthe decedent.
determining the ...lue oftbe gift, ortbe groesestate
of such prior decedent, and only to the extent that "(B) Deductions Allowed to Nonruident
tbevalueofsw:hpropenyfsincludedintbed.......Jen~a &tata. - In the case of a nonresident not a cit:U.en
gross estate, and only ifin determining the value of of tbe Philippines, by deducting ttolD the value of
the estate of the prior decedent, no deduction was
27
that part of bis gross estate which at the time of bis "(a) The amount of the credit in ..upect to the
death ia situated in the Philippines: tax paid to any COW1ley ahall not eueed the same
proportion of the tax against which auch credit ia
"(l) Siandard Deduclion. - An amount taken, wbichthedeoedent'eneteetateeituatedwithm
equivalenttoFiwhundredthousandpeeoe(Pl500.000); such country taxable under this Title bean to hia
entire netestate; and
"(2) Thatproportionofthedeductionaepecified
in paragraphs (2), (3). and (4) of Subaection (A) of "(b) The total amount ot the credit ehall not
this Section which the value ofsuch part bean to the exceed the eeme proportion ofthe tax against which
value of bis entire gross estate wherever 1ituated; such credit ia taken, which the decedent'a net eetate
aituated outside the Philippines taxable under this
"(S) Property Prwiou.sl1 '.lh:wl. - x x x
t
Ii
• Titlebearatobiseoti?e netestate.•
"(4) Tra:M{l!rs for PublU: Use. - The amount SEC. 24. Section 89 of the NIRC, u amended. ia hereby
of all bequesls. legacies. deviaee or tranaCe:e to or for repealed.
the uae of the Government of the Republic of the
Pbilippinea or any polliical subdivision thereof. for SBlc. 25. Section 90 of the NIRC, u amended. is hereby
exclusively public purposea. further amended to read as followa:
·cc, Share"' tJie Co'fli1111al Propu11. - The "SEC: 90. Estate 7hx &turns. -
net share of tbe surviving apouae in the conjugal
partruttahip property as diminished by the obligations
properly chargeable to such property shall, for the
·w Requirtmen.ts. - In all casea of trana!cre
subject to the tax imposed herein, or rega.rdleas of
purp- of this Seclion. be deducted from the net the gtese value of the estate, where the said estate
estate of the decedent. COllSlists of registered or rt?giatrable property rucli as
real property, motor vehicle, abarea of stock or other
"(D) 7\J.x Credil for E#aU Tcuea Paid lo a similar property for which a clea.rance from the
Fonip Co...wy. - BureauofIntemal Revenue is required as aoondilion
precedent far the lnmsfer ofownerabip thereofin the
"(l) In Genuol. - Tbe tax imposed by this name or the transre:ree, the uecutot, or the
Tit.le shall be credited with the amounts of any estate ad.m.inistntor, or any or the legal bein. u the case
tax imposed by the autbor:it;yofa foreign country. may be, shall file a return under oath in duplicate,
aetting forth:
"(2) Limilations on. Credit. - The amount of
the credit t:alten under this Section shall be eubject "(l) Xlll:
"(3) Such partaf llllCh information u ZD.a,r at SSC. 2'7. Section 9'I of the NIRC, u amended. is bereby
the lime be &&ti I aj11,,},J., aodsuclUIUppJementa! data further amended to read aa followa:
u may be neee 11 ry to e•hliah the coned tuea.
"SEc. 97. PoyrMll& of 7bx JlnUc:ecien& IO lhe
"Prouided, however, That eatate tax returns TroM{u of Shan$, Bond$ or Rifhi.. - x " L
showing a gross value exceeding Five million p~
(P5,000,000) aball be supported with a atatement duly "If a bank has knowledge of the death of a
certified to by a Certified Public Accountant peraoo, who maintejned a bankdepoait aooount alone,
containing the following: or joint\y with another, it shall allow any withdrawal
from the said deposit account, eubject to a final
withholding tax of siJt percent (6%). For thia purii-.
all withdrawal slips shall contain a statement to the
"(B) Time for Filing. - For the purpoee of effect that all of the joint depositors are atill living at
detuminiJJgthirestatetaxp~forinSection84. the time of withdrawal by any one of the joint
of this Code. the estate taxretum ~wider the depoaitora and such statemenfahall be wider oath
pteeeding Subsection (A) ahall be filed within one (1) by the said depositors."
year from tbedececkmt'adeath.
Ssc. 28. Section 99 of the NIRC, u amended, i.s hereby
furtber amended to read.as followa:
S EC. 26. Section 91 of the NIRC, u amended, ia hereby "SEc. 99. Rate of Tcu h:;oble b:; Donor. -
further amended to :read as follmn:
"(A) In General. - The tax for each calendar
"S&C. 91. Payment of Ta:<. - , year ah.all be six percent (6%) computed on the basis
or
of the total gifts in e:rceee Two hundred fifty
"(A) Time of PaylTWU. - :r :r :r thou.sand pesos (P250,000) ezempt gift made during.
the calendar year.
"(B) Extension of 7itM. - :r :r :r
"(B) Any contribution in cash or in kind to any
"J::r x candidate, political party or coalition of part:iee for
campaign purposes shall be gowmecl by the Election
"(C) l'tqmenl by~- - In cue the Codo, aa aJnorulocl..•
a vailable cash ofthe estat.e ia insufficient to PllJ' the
total estate tax due. payment byinstallmentahall be SBC. 29. Section 100 of the NIRC, u amended., ia hereby
allowed within two (2) years from the statutory date further amended to read as follows:
for ite payment without civil penalty and interest.
. "SEC. 100. Transfer for Less Than Adequau
"(D) Liability for Payment. - :r :r x ond lihll Consideration.. - Where property, other
than real property referred to in Section 24(D).
•.
'
llO 31
io transfeaed fur leaa than an adequate and full charitable corporation, accredlted nongoven:unent
oontideratian in money or money'a worth, then the argmUzstioc, tru.tor pbilantbropic orga:alzation and/
amountbywhichtbefairinatblvalue altbep~ or reaearch inl'tibrtinn oro:pnizaDon. iDLu:porated
nceeded the value of the ,.,,,,mderation ahall. mr the .a.a a non.etock entity, p aying no dividends. governed
purpoee althe tu impaied by this Cb.apter, be deemed bytrusteeewhoreoeiveDOCXllllpetmtim, andcleYlltizlg
a gift, and shall be included in computing the amount allitamcmne, whether students' feea or gi1ls,_ donetion,
of gifbl made during the. calendar year: Proui<kd, subsidies or other forma of philanthropy, to the
however, That a aale, exchange, or other Ransier of accompliahment and promotion of the purposes
property made in the ordina?y course of buainua ennmerateod in itaArticleaof lnoorporatlon.
(a transaction which ia a boM {Uk, at arm'e Jencth,
and free from ao,y donative intent). will be oonsidered -Xxx.•
aa made for an adequate and full consideration in
money or monefa worth.~ SBC. 31. Section 106 of the NIRC, as amended, io hereby
further amended lo read ae follows:
SBc. 30. section ioi of the NIRC, aa amended, io hereby
further •mended to read aa follows: "SEC. 106. Value-odJkdToxonSakofGooda
or Propmiu. -
"SBC.101. &aempti.on.ofCutaU. Gifts. - The
following gifbl or donetions shall be exemptfrmn the "(A) Rau and Base of fu. - There shall be
tax provided for in this Chaptu. levied. naeaeed and oollected on eveey asle, barter or
exchange of goods or properties, a value-added tax
equivalent lo twelve pel'Cellt (12%) of the groas aelling
price or~ value in money atthe goods or propertiea
"(l) Gifts made to or for the use of the National sold, bartered or exchanged. auch tax to be paid by
Government or any entity created by any of its the seller or transferor.
agoocies which is not conducted for profit, or to ao,y
political subdivision of the said Government; and "(l) x lt lt
"(2) Gifts in favor of an educational and/or "(2) The following sale. by VAT-registered
charitable, relipoua, cultural or aocial welfare persons shall be subject. lo zero percent(°") rate:
corporation, in.stitution, a=edited nongovemment
organization. trust or philanthropic organization or
research institution or organization: Prouiihd, "(a) Export SaUx:. - 'T'hA tAnn 'exp0rt sales'
however, That not more than thirty percent (30%) of means:
aaid gifts shall be U,sed by 1uch don.e e for
administration purposes. For the purpose of this "(l) Tbe aale andadual abipmeni<i goods from
e:remption, a 'nan-profit educational and/or cbarjtab!e the Philippines lo a foreign country, irrespective of
coi:poration, institution, w:credited nongovernment any shipping arrangement that may be agreed upon
organization, truat or philanthropic organization which may influence or determine the transfer of
and/or research institution or organization' ownersbip of the goods so exported and paid fur in
ia a school, college or university and/or acceptable beign CUJ"rellCf or ita equivalent in good.a
.· .• •,
or 80nices, and accounted for in accordance with the "ProWkd, 'lbatlnlbparagraph8 (8), (4), and (15)
rules and regulatiom of the Ba.ngko Sentral ng hereof shall be eubjed: to the twelve percent (12%)
Pilipin.as (BSP);
value-addod tax and no longer be OOlllideredexport
ealee subject to zero percent (0%) VAT rate upon
"(2) Sale and delivezy of eoods to: eatiotju:lfon of the following ....,ditioua:
"(i) Regiatered enterprises within a eoparate "(l) The succeSBful eetabliehment and
customs territory 8.8 p?OVided under special laws; and implementation of an enhanced VAT refund ayetem
that grants relwids or creditable input tax within
"(ii') Regiatered enterpriaes within tourism ninety (90) days from the filing of the VAT refund
enterprise zones as declared by the Tourism application with the Bureau: Proui<kd, That, to
Infraatruc:ture and Enterprise Z-oneAutbority (1'IEZA) determine the offe<:tivit;y of item no. 1, all applicatione
subject to the provisions "UDder Republic Ad No. 9598 5.led from Januazy 1, 2018 ah.all be proceased and
or Tbe Tourism Act of 2009. must be decided within.n inety (90) dayafrom the filing
of~VATrefundapplicatioo; and
"(3) Sale of raw materials or packaging
materiale to a rumresident bllfer for delivery to a "(2) All pending VAT refund claims ae of
neid.entlocal~enterpriae to be ueedin December 31, 2017 shall be fully paid in cash by
manufecturing, procesgjng, paclting or repaclting in December 31, 2019.
the Philippines of the said bl.lYer'a goods and paid for
in aoceptable foreign currency and accounted for in "Provilkd, That tho Department of Finance
aa:ordance with the rules and regulations of the shall establieha VATi:efundcenterin theBu:reaunf
BanpoSentral Di Pilip;inaa OISP); lntnn•IBevenue(BlR)andintbeBureaua£Customa
(BOC) that will handle the Pf'Oa!ssing and granting
"(4) Sale of raw materials or packaging of cash. refunds ofcreditable
. input tax.
meteriala to export.ariented enterprise whole export
sales exceed seventy percent (70%) of total annual •An amount equivalent to five percenl; (5%) of
production; the total VAT collection of the BIR and the BOC from
the immediately preceding year shall be aulomaticalq
"(5) Those coneidered export salea under appropriated annually and ah.all be treated as o
Executive Order No. 226. otherwise known ae the special account in the General Fund or as truat
Omnibus lnvestmant Coda of 1987. arul othtt special receipts for the purpose of funding claima for VAT
laws; and refund: ProWUd, Tlla~ aey unused fwid, at tbc cud
of the year shall revert to the General Fund.
"(6) The sale of goods, supplies. equipment and
fuel to peraons engaged in int.emational &hipping or "ProWkd, furllrq, That the BIR and the BOC
international air transport operations: Prouitkd, shall be required to submit to the Conpessional
That the goods, supplies, equipment and fuel shall be Oversight Committee on the Comprebauaive Tax
used for international shipping or air transport Reform Program (COCCTRP) a quarterly report o!
operations. all pending claima for refund and any unuaedfund.
·• ' .·.
"(b) Salee topemana oreatmee w1-e examption "The phrase 'eale or uchange of
under apecial Jaws or intem.ational acnemante to ...-.ices' means the perlomance of all kind.a of
which the Philippines is a oignatory effectivel;y aervicea in the Philippine• for othsre for a fee,
subjects aucli sales to zero rate. remuneration or conaideration, including those
performed or rendered by conatruction IUld. eervioe
•:xx x.. contractors; stock. real estate, commercial, customs
and immigration brokers; leaeors ofpxq>erty, whether
personal or real; waxehouai.ng services; le880rs or
SSC. 32. Section 107 of:the NIRC, aa amended, is he.reby
distributors of cinematographic films; persons
further amended to read a.a follows:
engaged in milling, proceeaUig, manufacturing or
repacking goods for others; proprietors, opsratore or
"SEC. 107. Value.added T<U o,. Importmion keepers of hot.els. motels,~. pension houses,
ofGoods. - inns, reaorta; proprietors or aperatora of teetau:ranl8,
1'9freshment parlors, cafee and other eating places,
"(A) ,In. GeneraJ... • - Theze ehall be le.vied. including clubs and catereJs; dealere in eecurities;
uaened and coll......., on every importation of goode lenrlinginvestoo>, ~tioncoolztlClaraon their
a value-added tax equivalent ID twem peroent (12%) t..ansport of goods or cargoes. including penone who
baaed Oil the talal value ueed by the BureaurLCulllmna
in determining tariff and custom• dutiee, plus - transport goods or augoee for hire and oCher domeetjc:
f,
common carriers by land relative to their transport
cuatoma duties, excise taxes, if &.DJ', and other of goode or cargoes; common ca.rrien by air and sea
chezgee, such tax to be paid by the importer prior to relative to their transport of pasaengera, goods or
the release of such goods from custom• custody: (. cargoes from one place in the Philippines to another
Pro11Ukd, That where the cuatoma duties are place in the Philippines; sales of electricity by
determined on the basis ofthe quantity or volume of generation companies, transmiseion by any entity,
the goode, the value-added tax ahal1 be ha.sod on the and distribution companiee, including electric
landed cost plua excise taxes, if any. · co<iperatives; servic:eS of franchise grantees of electric
utilities; telephooe and telegraph, radio and television
"(B) Transfer of Goods b;y Ta:L·eumpt broadcasting and all other franchise granteee except
Persons. - x x L • those under Section 119 of this Code and non-life
insurance companies (except their crop insurances),
including surety, fidelity, indemnity and bonding
SBc. 33. Section 108 of the NIRC, aa amended, is hereby
companjea; and similar aervioes regardlees ofwhether
further amended to read as follows:
oc DOt \he~ t.hcroo£...U. for the eurei9A
or use of the physical or mental faculties. The
"SBC. 108. Value-added TO% Oil Sale of phrase 'sale or exchange of eervices' ahall likewi&e
Sutn«s and Use or~ of Propertia. - include:
"(A) Rate and Base of Tax. - There shall be "(l) The lease or the use of or the right or
levied, aaaessed and collected, a value-added tax privilege to use any copyright, patent, design or
equivalent to twelve percent (12%) of groea receipts model, plan, secret formula or proce88, goodwill.
derived from the sale or exchange of services,
trademark, trade brand or other like property or right;
including the use or lease of properties.
'
86 87
"(2) The leaee or the use o{. or the right to uae rental or royalty, incl'1ding the amount cbarce<I for
of an,y industrial, commercial or rjentjfic equjpment; m aterja!a wpplied wi:lh the ~and depolit& and
ad•anoed""11MJJl8artu•'lyor~receiwd
"(3) The aupply of scientific, technical, dm:inc the tuahle quarter for the eervioes pedom.ed
indus1rial or com.mettial knowledge or information; or to be performed for another person, e:rcl:udiDg
value-added tax.
'(4) The aupply of an.y aaaiatance that ia
•ncillary and subeidi uy to and ia fumiahed as a "(B) 7hln.sadions Subjtd lO Zero Perom.I (0%)
meam of enabling the application or etijoyment of Rate. - The following aenicea performed in the
any such property, or right aa ia mentioned m Philippines by VAT-registered pez8008 shsll be lllbject
subparagraph (2) or any such knowledge or to iero percent (0%) rate:
information as is mentioned in subparagraph (8);
"(l) Processing, manufacturing or repacking
• . "(5) The supply gf service• bf a DC?mesident :
gooiis for other~ doiDJ bnain- outside the
pereon or his employee in cmmection with the use of Philippinea which goods are eubeequently erported.
property or righte beloagiDg to, or the iDstallation or where the services are paid !orin acceptable fonicn
y
operation ofan,y brand, maclrii>ery or other apparatua currency and accounted for in accordance with the
purchased from such nomesident penon;
"(d) Regi.stol'lld enterprises witbi.n tourism •Prouidtd, fu.rtlaer, That the BIR and the BOC
enterprise zones aa declarod by tbe TIEZA subject to shall be required to eubm.it to the COCCTRP a
the provi.aione under Republic Act No. 9593 or quarterly report of allpeoclingcWma for refund and
The Tourism Actof 2009. any unused fund.•
"Prouided, That aubparagrapha (B)(l) and SSC. 84. Section 109 of the NIRO, 88 amended, is hereby
(B)(5) hereof ahall be subject to the twelve percent further amended to read 88 follows.:
(12%) valuo·added tax and no longer be aubject to
zeroparcent(0'6) VAT rate upooaatiafaction of the "SEC.109. Exempt Tronsoclions.
foll.....U.g conditioa.a: (I) Subject CO tile provis!ODB of Subsect!on (2) hereof,
the following transactions ahall be exe.mpt &om the
"(1) The a ucceaaful eetabliahment and value-added tu:
implemeotationof aoPnhao~d VAT refund system
that grant& refund.a of craditable input tax within "(,/\) xxx
ninety (90) days &om the filin& of the VAT refund
application with the Bureau: ProWkd, That, to "(B) xx x
determine tbe e1fectivity ofitem DO. l, all applications
filed from January 1, 2018 ebalJ be p>OeeSl!ed and
"(C) xxx
r. .· ..
"(P) Sale of realpropcrtiea not prim•r'13' held "(U) Importation offuel, goods and supplloa by
for sale to cuatmnera or held for 1eaaein the ordinary pereons engaged in international ahippinJ or air
couno oftncle or busine11 orroalpzopertyu+mucl t:ra.nsportoperations: PrvuWd. That the fuel, goods,
for low-<Oat and. socja!ittcl bouaing 88 defined by and suppliea shall be Wied for int.ematiooal abippinr
BepublicActNo. 7279,othawialcnawnaatbeUrban or air transport operationa;
Development and Houai:nr Act of 1992, and other
related. Jaws, residential lot valued at. One million "(V) Services o! bank, non-bank financial
five hundred thoUS8Dd peaoe (Pl,500,000)ancl below, intermecliariespeifonningquaei·bankingfunc:tions,
houae and lot, and other meidential dwellings valued and other non-bank financial intennediariea;
at Two million five hundred thousand. pesos
(1'2.500,000) ancl below: Prollid«l, That ~nnninr "(W) Sale or lease al goods and servioe8 to senior
January l, 2021. the VAT exemption shall only epp\y c:itimns and pel9CIDS wi1h disab.Diy, as pro9ided uoder
to eale olreal pzoperties not primaril,y beldfauale to Republic Act Nos. 9994 (!Upended Senior Citimns
c:ustomen or held for 1e&ae in the ordinary.murae of Ad.ci20.10) and.10754 (An Ad.E:rpsndinrthe Benefits
trade or buai:nesa, sale of real propedy utillied for and Privileges of Pereoils With Disability),
socialized housing as defined. by Republic Act respectivezy;
No. 7279, sale of house and lot, and other residential
dwellings with selling price of not more than "(X) Transfer of property pursuant to
Two million pesos (P2,000,000): Prouided,
Section 40(C)(2) ofth& NlRC, aa am.ended;
(u:rlMr, That every three (3) yeua thereafter, the
amount herein stated &ball be ailjusted to its present
value uaiDg the Consumer Price lnclex, as published "(Y) Associ•tion duee, membership ree., and
by the Philippine Statist:icaAuthority (PSA); other assessments and chazgea collected by
homeowners associations and condominium
corporations;
•cQ) Lease of a residential unit with a monthly
rental notexooeding Fifteen thousand pesos (Pl5,000);
"(Z) Sale oI gold to the Bangko Sentral ng
Pilipinaa (BSP);
"(R) Sale, importation, Printi.nr orpublication
of boob and any newspaper, mqazine, review or
bulletin which appean at. recular intervals with fixed "f/>A) Sale of drugs and medicine$ pret=Ded
prices or subscription and aale and which is not (or diabetes, high cholesterol, and hypertension
devoted principally to the publication of paid beiiinninrJanuar:v l.2019;and
advertiaementa;
"(BB) Sale or lease or goods or properties or the
"(S) Traneportofpaaaenren by international performsnce of services other than the transactions
carrien: mentioned in the pteeeding paragmpba, the poee
annual sales and/or receipts do not exceed the amount
of Three million~ (PS,000,000).
"fl') Sale, importation or lease of p888ell(er or
cargo veesels and aircraft, including engine,
equipment and spare parts thereof for domestic or
international transport opemtiona;
SBc. 36. Section 11.Z <IE the NIRC, aa amellded. ia hereby
SBC. 35. Sect"nn llOoftbe ND!.C, aaamaoded. i8bereby
further amended to rud.u followa:
further amended to read as fullawa:
file a quarterly nitum oftbe amoumafhia ll'088 aaJea SEc. 38. Section 116 oftbe NlRC, u amomled. ia hereby
or receipts within twenty·five (25) days following the furtbor amended to read as followe:
c1oee of each taxable quarter preecribed for each
ta:rpayer: Provid«J, however, 'lbt VAT-:ecistered "SBC. 116. Ta.x o" Perso..a E:umpt from
perllOD8 aluill PllY the value-added tu on a mcmtbl;y v~ Thx(VAT,). - Anypenon whoeeaalea
basi.a: ProlJUkd, {iMlly, That beginning January 1, or receipts are exempt under Section 109 (BB) ofthis
2028, the filing and payment required undor this Code from the payment ofvalue-added tax and wbois
Sub-9nn sball be done within twenty-five (25) ~ not a VAT-registered penonaballpllY a tax equivalent
following the clOM! ofeach tuahJe quart.er. to thzee pe?CeDt (3%) of hie gross quarterly sales or
receipts: Provi<kd, Tbatoooperali•.., and begninin&
"xx x January l, 2019, eel!-e:mployedandprofeaijooalawith
total annual gross sales and/or gro8a receipts not
"(B) xx x exceedinr Five hundred thousand pe808 (P500,000)
ahall be exenuit from the ~ percent (3") g!0!'8
i:eceipts tax berein.impoeed."
"(C) Withholdi,;g ofValue-added Thx. - The
Government or a.ey of ite political subdivisions,
instrumentalitiea or agencies, including SEC. 39. Section 127 of the NIRC, aa amended, is bereby
furtheramended to read as follows:
government-owned or -controlled corporations
(GOCCa)sball, befotemakingpa;rmentonaccountof
each purchase of goods and services which aro subject "SEC. 127. Tax: 01' Sak, Barter or Ezchan.ge
to tho value-added tax imposed in Sectiona 106 and of Shm-es of Stoek Li8Ud. and Traded through lhe
108 mthis C<xle. deduct and withhold the value-added Local Stock ~e or thro"lfh ln.itial Public
tax imposed in $ecrinns 106 and 108 of this Code, Offering. -
deduct and withhold a final value-added tax at the
rate Otfive percent(6%)"of the gross payment thereof: "(,A) Tax on. S<lle, Barter or E:cchange of
Provid«J, Thatbr.cinningJanuazy l, 2021, the VAT Shares ofStoclc Listed and Traded thro1J8h IN Local
wjtho!dingayatem under lhia Subsection ahallahift Stock~- - Tbeni aball be levied, asae11ed
from final to a C2:11ditable system: Provided, further, andoollededon every aale, barter, exchange or other
That the payment for lease or use of properties or disposition ofshares ofstock listed and traded through
property rights tn nonresident ownerssball be subject tbe local stock exchange otber than tbe sale by a
to twelve percent (12%) withholding tax at the time dealer in aecuritie6, a tu at tbe rate of six-tenths of
o! P"1"'=t: l'roWkd, finoJ~, ThAt Pa.YD>Onte far one percent(6110of I") of the gross eellingpric:e or
purclwiea of goods and services arising from projects gross value in money of the shares of stock sold,
funded by Official DeVlllapment.Assistance (ODA> as ·. bartered, ex.changed or otherwise dispoeed which sball
defined under Republic Act No. 8182, otherwise be paid by tbe eeller or tranaferor.
known as the 'Official DevelopmentAssistanai Ad.of
1996', 88 amended, shall not be subject to tho final "xx x.·
withholding tax sy&tom asimpoeed in this Subsection.
For purposes of this Section, the payor or poreon in
amaol of the P81Dlettt shall be considered 88 the
withholding agent.
SBc. 40. Secfton 128 of the N1RC, u amended, ;,, hereby Sze. 42. Section 145 of the NIRC, u amended. ;,, hereby
further amended to read as follows: £urther amended to read 88 filllowe:
"SBC. 145. Ci/JanondCiiantta. -
"SEC. 128. Returns ond Poymcnl of
Percentage T= - "(A) Cigars. - x x x
"E!fectiveJanumy 1, 2018
"(CJ CigaTetUs Pochd by Ma.cJWic. - Tbeze
ahall be levied, a ed and collected OD c:iprettea
pacbd by marhjne a tax at the ratee preeczibed below: "(a) I"'"· •ting ailaand p n-. inchMtincbut
not limited to, i.-tock for Iv.be oil.I and peues,
high vacuum clilmll•ta, llIOIDAW: exlncle and other
"Effective on January l, 2018 until aimilar preparations. and additives for lubricating
June 80, 2018, the tu on all cigarette• packed by oila and greases, whether such additivel are petroleum
machine aball be Thirty-two pe808 and fif\y oenta""8 baaed or not. per liter and kilogram, respectively. of
(PS2.50) per pack; volume capacity or weight, Eight peeos (P8.00):
Provided, Thatlubricating oils and gxeaaea produced
"Effective on July l, 2018 until from baaestocks and additives on which the excise
December S l, 2019, the tax on all cigarettes packed tax has already been paid shall no Ionaer be subject
by machine ahall be Thirty-five pe808 (P35.00) per to excise tu: Provided. further, That JocaUy produced
pack; or imported oils previous.13 taxed as 1~ but are
. . subiequently reproceaaed. refined or recycled shail
"Effective on January 1, 2020 until likewise be subject to the tax impoeed under this
December Sl, 2021, the tax Oil all c:iprettea pack:ed Subsection:
by machine ahail be Thirty-seven ~ and fif\y
centa909 (P37.50) per pack; and '(b) Pro< d gas, per liter of wlume capaci1;y.
Bi&ht pe808 (PB.00);
"Effective on January l , 2022 until
December 31, 2023, the tax on all cigarette. pack:ed "(c) Waxes and petrolatum, per kiloeram.
by machine shall be Forty pe808 (P40.00) per pack. Eight peaos (PB.00):
"(() Unleaded premium gasoline, per liter of "(m) Petroleum cnke, per metric ton. Two pesos
volume capacity, Sevenpesos(P7.00); andfiftycentavos·(P2.50): Provided, however, That,
petroleum coke, when usedaafeedstock to 81l,)'power
"(g) Aviation turbo jet fuel, aviation pa, per generating facility, per metric ton, ze10 (P0.00).
literofvolumecapacity, Four~(P4.00);
"Effective January l, 2019
"(b) Ke'°""""- pP.T HtP.r n( vnlum~ Cllp•cit:y,
Tbreep-.(P3.00): Provided, Tbatkeroeene,wben \a) I uhricatingoilsand greases. including but
u.eed 88 aviation fuel. shall be subject to the aame tax ' not limited to, ba.sestock for lube oils and greases,
on aviation turbo jet fuel under the preceding high vacuum distillates. aromatic extractl and other
paragraph (g), such tax to be aaaeseed on the uaer similar preparations, and additives for lubrl...,ting oils
therecr. and greases, whether such additive• are petroleum
baaed or not, per liter and kilogram, respectively, of
"(i) Diesel fuel oil. and on similar fuel oils volume capacity or weight, Nine pesos (P9.00):
having more or less the same gonorating power, ProvUkd, Thatlubricati.og oils and greases produced
, from baaeatoclr.a and additives on which the excise
tax baa alread,y been paid ahall no lnnger be subject
production or guoline eball be exempt from excise
tax: ProWi«J, {Will1. That the by-pzodur:tincluding
to exci8e tax: Prooided, fl,lrther. That locally pzoduced fuel oil, dleeel fuel, kezoeene, p}'?Ol,ysia ga.eoline,
or imported oila previoualy taxed aa such but are liquefied petroleum paee and aimilar oile having
subeequentl:y reproceeeed, rerofined or recycled ehall more or Iese the ea:me rencrati.nc power, wlllch are
libwiee be eubjact to the tax impoeed under this produced in the proceaainr of naphtha into
Subeeetion. petrochemical product& shall be eubject to the"
applicable exci8e tax tpecified in this Sedion, euept
"(b) Pl• m~gu,perliteroholumecapacil;y, when l'UCh by·prod~ are tranafezred to 81r! clthe
N"tnepeam (P9.00); local ail refineries throup ea.le, barter ot exchange,
for the P"'P'* of farther pt.,. -i11gor blendinginlD
"(c) Waxes and petrolatum, per kilogram, finiahedproducta whidlJre subjectID excise tax under
tbia Section;
N"inepe-(P9.00); J
"(cl) On denatured almhol to be ll8ed (or m.oav.. • "(/) U~aded premium paoline, per liter of
power, per liter of volume capacity, Nine pesos (P9.00): volume cap~. N3na pe-(P9.00);
Provided, That unlese otherwise provided by special
Jawa,iftbedcnatured aJcobolia mixed with gal!Cl!ine, "(g) Aviation turbo jet fuel, aviation gas, per
the exc:iae tax on which baa a.I.ready been paid, only lit.er or volume capacity, Four peeoa (P4.00);
the alcohol content aball be eubject to the tax herein
prescribed. For purposes of tbia Subaeetion, the or
"(h) Keroaene, per liter volume capacity,
removal of denatured alcohol of not le88 than one Four peaos (P4.00): ProWkd, That kerosene. when
hundred eighty dogreoa (180") proof (ninety percent l188d ae aviation fuGl, ahaJl be subject to the 68llle tax
(90%) absolute alcohol) shall be deemed to have been on aviation turbo jet fuel under the preceding
removed for motive poWler, unless shown otberwjse; paragraph (g), such tax to be 888e88ed on the user
thereoe
"(e) Naphtha, reruJar gasoline, pyrolyeia
gasoline, and otbor 8imilar products of diatillation, "(i) Diesel fuel oil. and on similar fuel oils
per liter of volume capacity, Nine peeoe (P9.00): having more or leas the same generating power, per
Prouided, howeuer, That naphtha and p}'?Olysis lit.er ofvolume capacity, Four peeos and fifty centavos
gasoline, when uaed as a raw material in the ) (P4.50);
production of petrochemical products, or in the
refining cl petroleum producta, or aa replacement fuel ) "(j) Liquefied petroleum gas, per li:ilogram,
for natural-gu-fued-combined cycle power plant in Twopeeoe (P2JIO): Provid«l, That liquefiedpetroleum
lieu of locally-extraeted natural gaa during the gae when l188d aa raw material in the production of
non-availability thereof. subject to the rules and petrochemlW prodw:te, aubjecl to the rules and
regulations ID he promulgated by the Secretary of regulatione to he promulgated by the Secretary
Finance, per liter of volume capacity, zero (P0.00): or Finance, per kilQlnJD, zero (P0.00): ProuUJed. .
ProWkd,fl,lrther, Thattbeproduclionofpetroleum /WJU1. Thatl.iquefiedpetroleumgaaueedformoliw
products, whether or not they are classified aa power shall be taxed at the equivalent rate as the
products of diatil.latioo and for uae aolel;y for the exciM tax OD diMel fuel oil;
t'
.· .,
51
'
"(d) On d.enatuzed akabol to be uaed far motive
power, per liter of 'Volume capacity, T~n peaos
"(I) Bunker fuel oil. and on .umJar fuel oils (Pl0.00): ProWkd. That unleaa othenriae provided
having more or 1- the ea.me generating power, per by epecial1a..., if tbe denatured alcobolia miJed with
gaeoline, the exciM tax on which baa &heady been
liter ol volwne capacity, Four pe808 and fifty centa"""'
(P4.60): Provided, howwer, That the exci.ae taxes paid, only the alcobol. c:onWnt ahall be subject to the
pm oo tbe purcha.9ed be a etock (bunker) used in die tax herein preecribed. For purposes of this
manufacture of excieable a.rticlu and bming part Subeection. the removal of denatured alc:obol aC not
thereof shall be aedited against the exci.ee tex due lea than one hundred eighty degreu (180') proof
therefrom; and
(ninety percent (90") abeolute alcohol) shall be
deemed to ha'lle b~uemcn>ed fur motivepower, unless
shown othertri9e;
"(m) Petroleum coke. per metric Inn, Four pe90S
and fift;y centavoe (P4.60): ProWkd, howwu, That,
petzoleum ~. when Uled·aa fo.ed.stock to any JlO'l'er • ~) Naphtha, -reg_ul.ar gasoline, pyrolysis
generating faC:ilitr, per metric ton,~ (P0.00). · gaeoline and other siJllilar products aC cWtillation,
per liter aC volume capacity, Ten peaoa (Pl0.00): .
ProuUkd, however, That nepbtha and pyrolysis
"Effective Janwuy 1, 2020 gaeoline, when uaed aa a raw material in the
production of petrochemical products, or in the
"(a) Lubticating oila and greaaee. including but refining aC petroleum products or as replacement fuel
not limited to, ba.seatoclc for lube oils and greases, for natural-gaa-fired~mbined cycle power plant in
high vacuum di.etillatea, aromatic extracts and other lieu of locally-extra.c ted natural gas during the
similar preparation.s, and additives !or lubricating non-availability thereof, subject to the rules and
oils and i:rea-. whether such additivea are petroleum regulatione to be promulgated by the Secretary of
based or not, per liter and 'kilogram, respectively, of Finance, per liter of 'llolume capacity, 7.ero (P0.00):
volume capacity or weight, Ton pesos (Pl0.00): ProWWJ,[url.her, Th.attheproduct.ionofpetroleum
Provided, That lubricating oils and greases produced products, whether or not they are classified as ·
&om bOJM?stocka and add.i:tives on which the excise products of d.istillati.o n and for use eolely for the
tex bas already been paid ,s hall no longer be subject production of gasoline shall be exempt from excise
toexcisetu: Provided,{urlher, Thatlocall,yproduced tax: Provided,fin.aJly. That the by-productincluding
or importAld oila pre'Oiousl,y taxed aa such but are fuel oil, diesel fuel, keroeene, pyrol,ysi.a gasoline,
subsequently reprocessed, :rerefined or recycled shall liquC!Md petroleum paes and similar oils having
likowit& be aubject to the tax imposed under this moro or looo the ea.mo pnor-ating powe:r. which 8.1'8
Sub6e<:tion. produced in the processing of naphtha into
petrochemical prod11cts shall be subject to the
"(b) Proceaeed gas. per liter of volume capacity, applialble excise tax specified in this Section, except
Ten pe808 (l'l0.00); when such by-product& are transferred to any af the
local oil refiDeriea through aale, barter or exchange,
"(c) Waxes and pell'olatum, per lcilogram. Ten far the purpoee of further prooessinir ar blendinginto
pesos (Pl0.00); finished produda which are subject to ezcise tax under
this Socti.on;
r 159
"If) Unleaded pnmium ga.aoline, per liter of "Petroleum producta, indnding naphtha, U'G,
volume capecity, Ten peeos (Pl0.00); petroleum coke, refinery fuel and other p~w:ta of
distillation. when uaed as input, feedstock or u raw
"(g) Aviation turbo jet fuel, aviation gu, pe.r material in the manufacturing of petrochemical
liter of volume capacity, Four peeoe (P4.00); products. or in the refining ofpetroleum prodw:ta, or
asreplacementfuelfornatural·gaa·fired-combincd
cycle power plant in lieu oflocally-extracted natural
"(h) Keroeene, per lit.er of volume capacity,
gasduriilg the non-aY'8ilability thereof. aubject to the
Five peaoa (P6.00): Providld, That lteroeene, when
rules and regulatiom to be promulgated by the
used as a'riatioo fuel, ehall be subject to tbe aame tax Secretazy of Finance, per liter of volum.e capacity,
on aviation turbo jet fuel under the preceding zero (P0.00): Prooided, Thatthe by-ptOduct inc!ucting
paragraph (g), auch tax to be asseeeed on the wrer
fuel oil, di-1 fuel, kerosene, pyrolyllia peoline,
lbereol; liquefied petroleum gases, and similar oil8 having
m.o re or leas the same generating power, which are
. •(i) ~eael fuel oil, aJi4 on similar fuel ~ile pro·duced in the processing of naphtha into
having more or leas the same generating power, per petrochemical products &hall be subject to the
liter of volume capacity, Six pesos (P6.00); applicable exclBe tax epecified in th:ia Section. cxoopt
when such by-products are transferred to any ofthe
"(j) liquefied petroleum gu, per kilogram. local oil l8fineriea tbzough sale, barter or exchange,
Three peao1 (PS.00): Proui<kd, That liquefied for the purpoeeof!urtherpm es ·'*If OI' blendincinto
petroleum gas when uaed as raw material in the furlalwl produda which areStJbject to exdee tu under
production of petrochemical ptOdw:ta, subject to the this Section.
rules and regulations to be promulgated by the
Secretuy of Finance, per kilogram, zero (P0.00): "For the period covering 2018 to 2020, the
Proui.l:kd, finally, That liquefied petroleum gas used scheduled inaea.ee in the excise tax on fuel 88 im~
for motive power shall be taxed at the equivalent rate in this Section ahall be suspended when the average
as the exclae tax on d.ieeol fuel oil; ·Dubai crude oil price based on Mean of Platts
Singapore ()\{OPS) for three (S) months prior to the
"(lQ Asphalt&, per kilogram, Ten pHos scheduled i.DC'ease afthe month reaches or exceeds
(Pl0.00); Eighty dollars (USD 80) per barrel.
"(!) Bunker fuel oil, and on similar fuel oils "Prouid«l, That the Department of Pinance
having mo<e or looo the oamo gen.orating powRr, I""' ahall periacm an annual review ofthe im,plementatimi
liter of volume capacity, Six pesos (P6.00): Prouiikd, ofthe exciae tax on fuel and shaJl. baaed on projections
however, That the oxciae taxes paid on the purchased provided and recommendations of the Development
baaestock (bunker) used in the manufacture of Budget Coordination Committee, as reconciled from
excisable articles and forming part thereof shall be the conditions aa provided above, recommend the
credit.ed against the excise tax due therefrom; and implementation or suspension of the exclae tax on
fuel: Prouided, {urlher, That the recommendation
"(m) Petroleum coke, per metric ton, Six~ shall be given on a yearly basis: ProuUUd, finally,
(P6.00): ProWkd, howwu, That., petroleum coke, That &DJ' wspenaion d the increase in exciee tu eball
when used u feedstock to 8llY power generating not result in any reduction of the excise tax being
facility, per metric ton, mro (P0.00). impmed at the time of the suspenaion."
.•
60 Sl
SBc. <W. A new 1ection deei.1ll4ted u Section 148-A "(cl) Absence of Off•dal or Dilulio1' of IM
under Chapter V of the NIRC, aa amended, ia hereby iDaerted O{ficialMaT~r; Pra1U11ption.a. - In the event that
to read u followa: the petroleum producta which do not contain tho
official marker or which contain the official marker
"SIC. 148-A. Manclolory Marking of All but are diluted beyond the acceptable percentage
Peln>kum Produ.cta. - In accordance with rules approved by the Secreta:y of Finance are found in
and regulationa to be ileued by the Secretary of the domestic market or in the pc sseni:m of anyone,
FUwioa, in coOIUltation with the Commisaioner of orunder~liP••tionwbereaaidpetroleumproducta
Internal R.e-oenuo and CommissjmerofCustnmund are mbjed to duties and Wea. it shall be pteSUl!led
in coordination with the Secretary of Energy, the that the 1&111e were withdrawn with the intention to
Secretary of Finance ehall require the use of an evade tbe~ento!thetaxeeand duties due tbereoo;
official fuel marking or similar technology on
peb'Oleum producta thatue refined, m•nnfacbtted, "(e) Tbe use nf &audulent marker on the
or imported inllO the Philippines, and that are~ petroleum producte aba11 be considered pri.m4 f~ ·
to the-payment of tax&1 and dutlea, such as but not evidence lhat the aame have been withdrawn or
limited to. unleaded piemjum paoline. kero.ne, and importld without the payment of taxea and duties
dieeel fuel oil after the taxea and duties thereon have due thereon;
boonpaid. Themandatorymarlcingofallpetroleum
producta shall be in accordance with the following: "(.J) Engagement of Fuel Marking Provider.
-The govemmentahall engage only one fuelm•r!ring
"(a,) O{ficiol Marirus. - There ehall be a liat provider who shall, under the supervision 8lld
ofchemical additivee and correaponding quantitative direction of the CommimonereoflnternalRevenue
ratio aa identified by the Secretary of Finance as and Customs, be r&aponaible for providing,
official fuel markera. The oflicialfuelmarkera shall monitoring, and administering the fuel markers,
be ,d istinct and, to the greatest degree po88iblo, provide equipment l!Dd devices, cond\lct field and
impo88ible to imitate or replicate: Proui<kd, That confirmatory tests, and perform such other acts
the official fuel marker must be un.ique to the incidental or nocoasary to the proper implementation
Pbilippinoa and that ita chemical composition and oftbeprovi.aionaofthiaAct: Provided., Thatlhefuel
qUS11titativo rntio must peniat for at least three (3) marlcingprovidor ehall provide an end·to-endsolution
years from their application or administration to tho to the Govemmont, including the e$1;sb]isbmentand
unmarked fuel; operation of testing facilities that are certified to
ISO 17026:
"(b) The person, entity, or tSipayerwhoowns
or enters the petroleum products into the country, or "(8) All costa pertaining to the procurement of
the penon to whom the petroleum producte are the ol!icial fuel markers ahall be borne by the refiner,
consignedahall cause and accommodat.e the mar!ring manufacturer or importer, of petroleum products.
of the petroleum product& with the oflicial mar!ring u the cue ma.y be: Prouilkd, That the government
scent; may 511baidize the cost ofofficial fuel markers in the
first year of implementation;
"(c) internal re. .nue or c:uatmn. officers shall
be on aite to ad.miniatez the declaration of the tax
and dutice impoeed an Ibo petroleum products and to
- -.....~_...._ , : _ ..., __ -'•'-" · ~- · -- '-? -
.- -.
Gt 6S
"(h) Fuel MarldAg ProfIT0111 Puna.. - In automobiles based on the m.a .nu!ac:turer'a or
addition to any appropriation to implement thia importer'• eellingprice, netol em. - i 98lu&-edded
Section and the last paragraph of Section 171 of this tax. in sooardance with the followinc acbedule:
Act.. feee or charges oollected in relation to the fuel
marking program may be recorded u trust receipts
ofthe implementjng agencieA, andeball beexcl~ "Net muu!actmu'1 priool
cliabUl'Sed to defray the cost of aervicea or equipment ia\porte?'I ..n.mi price
required to fully implement the ea.id program, subject
"Up to Sa bundred tbounnd
to rulea and regulation& to be ieeued by the peooo (P600,000) Four porot•t (4!1)
DOF-DBM-COApermanentcommittee;
"Owr Six buched tbouu.od puo1
(!'600,000) to One milliDn
"(i) The marking of petroleum products shall - (Pl,000,000) TtD peRODt (lllll)
be mandatmywithinfive (5) yearafroui the elfectivil;y
of this Act; and ·
•o.er One millioc - (Pl,000,000)
lo Four millicm - (1>~000,000) Tnoqpe<entOOlil
estehlish qualitative and quantitative positive result "Prouided., That hybrid vehlcles &hall be
offueltrafficking, whic:hareconductedonfuelefound aubjed to fifty percent (50%) ofthe applicable exci8e
in wmehouaes, storage tanka, gaa etetione and other t.ax rat.ea on automobiles under thia Section:
retail outlets, and in such other propertiea or Proui.ded, {urfJr.er, Th.at purely elec:t:ric vehicles and
equipment, including mechanjsma oftransportation, pick-ups shall be exempt from exc:iae tax on
of pereons engaged in the sale, delivery, trading, automobiles.
transportation, d.istrilbution, or importation of fuel
inte.n dedfordomesticmarket. •As used in this Section -
'The term 'oonfinnatory te8ta' shall refer to the "(a) Automobile shall mean any four (4) or
accurate and precise analytical teet of the tested more wheeled motor vehicle reprdle88 0£ seating
1U11Mrked, adulterated. or diluted fuel usinr a device, capacity, which is propelled by cuoline. diesel,
tool or equipment which will validate and confirm electricity ar any oilier motive power: Prouided. That
the result of the field test, that ie immediately for purposes of this Act, buses, trudta, cargo vans,
conducted in an ~ te8ting Cacility that ie jeep~ aubotitutoo. oiDele eab chsniB. ond
certified to ISO l 70'l5.~ special-purpose .-elW:les shall not be considered as
automobiles.
SBC. ~- Section 149, Chapter 6 of Title VJ ol the NIRC,
u amended, is hereby further amended to read u follows: "(b) Truck/carfO van &ball mean a motor
vehicle of any configuration that ie exclusively
"CHAPTER VI -EXCISE TAX ON MISCELLANEOUS designedfor the carriqe of goods and with any number
ARTICLES of wheels and axles: ProuUUd, That picl<·upa shall
"SEC. 149. Automobiles. - There shall be be considered as trucks.
levied. assessed and collected an ad vab>rem tax on
' r
•(c) Jeepneyljeepney subetitutee ahail mean 88 SEO. 46. AnewsectiondeaignatedasSection 15().Aunder
'Philippine jeep or jeepney' which are al the jitney Chapter VI, Title VI ofthe NIRC, as amended, is hereby inllerted
\ype locally designed and manufactured geoera]J,y flom to read u follows:
surplus parts and compononta. It shall alao inclwlo
jeepney 81lhatitutea that are manufactured from "SBc.150-A. No1Wl#lll:ial &:rvices. - There
brand·new single cab chau:ia or cowl chaasi.a and ahaD be levied, • ii, and aillech>d a texeqaivalent
locally cuslom.iud rear body that has omtinuoua to five percent (5%) baaed on the groesreceipta derived
sideway row seats with open rear door and without from the performane& 0£ eervice.e, net of mci.8e tu
retractable glass wind.owe. and value-added tex, on mvasive coameticpioceduroe,
surgeries, and body enhancements directed eolely
"(d) Bus shall mean a motor vehicle of any toward.a improving, altering, or enhancing the
~with groea vehicle weightot4.0 tom or patients appearance and do ootmemiingful1ypromote
more with 8llf number of wheels and ax1ea, which ia the proper £unction of the body or prevent or treat
generally...icet>¥and opeci•liy d_.gned fnr masaor illneaa or. disease: Pro11Ukd, That this tu ahalI not
public trallSpOrtatiou. appl,y to procedures neceaaary to ·ameliorate a
deformity arisllig Crom, or directly related to, a
"(e) Smgle cab chaaaia shall mean a motor congenital or developmental defect or abnormality, a
vehicle with complete engine power train and chaaaia pcreonalilljuryreeulting&omanaa:identortrauma,
equipped with a cab that has a maximum of two (2) or diafiauzing diseaae, tumor, virus or infection:
dOllr& and Oll]y one (1) row alaeata. Provided, {r.irlltq, That cues or treatment. ooverod
by the National Health lnlunmce Program ahall not
be subject to this tax..
"(l) Special pur;pcee vehicle aballmeana motor
vehicle designed for apecific applications such 88
cement mixer. fire truck, boom truck, ambulance S&C. 47. AnewsectiondesignatedasSection 150-Bunder
and/or medical unit, andoff·road vehiclea for heavy .Chapter VJ, Title YI o£the NllRC, as amended. is hereby inserted
industries and not for recreational activitiea. to read as follows:
"(g) Hybrid electric vehicle ahail mean a motor "SEC. 150-B. SwttUMd &verogu. -
vehicle powered by electric 8llelCY. with or wit.bout
provieicm fnraff.veJrlde cbaJ1ing. in combination with "(A) ~andBoset>{To:c. - EffectiveJanU8J)'
gasoline, ~or any other motive power. ProWkd, 1,2018:
That, ror purpooco of tblo Act, "b,ybrid el.octrio vomclo
must be able to propel itself from a stationary "(l) A talC of Su pesos (P6.00) per litor of
oondition using solely electric motor. volume capacity shall be levied, assessed, and
col1ecnd on sweet.ened bevera.ges using purely c:alm:ic
"Prouided, That ill the cue ol imported automobile& aweetenera, and purely non-<:aloric sweeteners, or a
not for aale, the tax i.m~ be:rein ahail be baaed on mix of caloric and non-caloric sweeteneni: Prouided,
the total landed value, illeluding transaction value, That thia tax rate ahall not apply to sweetened
customs duty and all otber charges. beverages using high fruc:toee com syrup: Prouided,
further, That sweetened beverages using purely
•Automobiles wed eicclusively within tho coconut sap sugar and purely steviol glycoeides shall
&eeoort zone shall be exempt from excise tu." be exempt from this tax; a.nd
..
r "(2) A tax of Twelve peeoe (Pl2.00) per liter of
17
"(c) All carbonated beverages; "(l) All milk products, including plain milk.
infant formula milk. follow-on milk, growiDg up milk,
"(cl) Flavored water; powderedmilk. reaily-to-drink milk and flavored milk,
fermented milk. aoymilk. and fiawted eoymilk;
"(e) Energy and sported.rinks;
"(2) One Hundred Percent (100%) Natural
Fruit Juices - Orig;illal liquid .re&ult.iug from tbe
"(f) Other powdered drinks not clasaified 88
pressing of fruit, th!l liquid resulting from the
milk, juice, tea, and coffee;
reconstitution of natural fruit juice concentrate, or
the liquid resulting from the restoration of water to
"(g) Cereal and craio beverages; and dehydratecinatural fruit juice that do oat have added
1upror caloric sweetener;
"(h) Other non- alcoholic beverages that contain
addodeugar. "(3) One Hundred Percent (100%} Natural
Vegetable Juices - Original liquid resultinr from
the pressing of vegetables, the liquid reeultinr from
.. .... .
f
69
the roco1U1titution of nat=al vegetable juice thi.a Section ahal1 be fined tzeble the amo1U1t of
• concentrate, or th.e liquid rell'Q.}ting &om th.e deficiellC.Y taxee, rurclwgea. and intereat which may
reetorationofwatertodehfdratednaturalvegetable be ane-dpur8UADt.tothisSection.
juice that do not have added augar or caloric
sweet.ener; •Any pereon liable for any of the acta or
omisaiona pzohibited under this Section. ehall be
"(4) Mea!Replarementand MediatQI' Incliaited criminal\y liable and penaliz.ed under SecQon 254 of
Beveragee - Any liquid Or powder drink/pzodw:t for the NIBC, u emended Any peraon who willfully
on.lnubjtjcmaltberapyf'orpenaoswhocannotabeorb aids or abeta in the cmnmi•si00 of any such act or
or metabaljR dietu:y n 1111 ie1 ds from fDOd or bweracea, om.iaaion ahal1 be criminally liable in the aame
or aa a soun:e of necessary nut:rilinn u8ed due to a manner u the princ:ipal.
medical condition and an oral eledrol,yte IOlution for
infants and children formulated to prevent "If not a citizen of the Philippine6, the offonder
dehfdration due to illness; and shall be deported immediately after serving the
,· . '
"(6) Ground ccffee, instant soluble coffee, and
; sentence withoutfurtherprooeedinga for deportation.
pre-packaged powdered coll'eepzoclucta.
"(E) Specific Respon.sibility of the Food
and Drug AdmiAistrotion (FDA). - Starting
"(D) Fili1111 of Return alld Paymval of~ June 1, 2018, the FDA shall require all
Th.>:olld hnoUy. - ma.nufacbuer9 and importers rL-eetened beverages
covered by this Ad. to indicate on the label the type of
"(l) Filing of Return and Payment of Excise sweetener used, and on sweetened beveraiea in
Tax OD Domestic and Imported Sweetenedilnerages. powder form to indicate on the label the equivalent of
- The provision of Sections 130 and 181 ofthe NIRC, each serving per liter of volume capacity.
as appropriate, shall apply to sweetened beverages.
"The FDA shall also conduct post-
"(2) Penalty. - Upon final findings by the m.arketing surveillance ofthe sweetened beverages on
Commiaiouer o!lnternal Revenue and/or Customs display in supermarkets, groceries or retail atorea
that any manufacturer or importer, in violation of and/or inspectim ofmanufac;tming sites to determine
this Section, m.iadedares or misrepieaente in the complian<:e with the requirements of this Section.
sworn statement provided in Section lSO(c) of the Violations of the provisions ofthis Act, including but
NIBC, as •mended. any pettinentdata or information. not~ to, mislabeling or misbranding, shall, to
the p<:ill&ll,y uf•IUD.ID&l"Y ainooJJa1'ion or withdrawal the extent applicable, be punishable under e:aieting
ofthe permit to engaite in businea as manufacturer laws.
or importer of sweetened beverages as proWled IU1der
Section 268 of the N1RC, as amended, shall be "(F) Duty of th.e Commissioner to E1'sure
imposed. Payment of Taus. - It shall be the duty of the
Commiaaioner, among other things, to preec:ribe a
"An:! corporation, association or partnerahip materially unique, secure and nonre.m ovable
liable for any of the act& or omissions in violation of identification, auch as codes, stamps or other
marlrinp, to be firmly and conspicuoualy dlixed on
and foxm part of the label of all excisable sweetened
bever&Rea.
·.
711 71
"For tbia pu.poee, the abovemctntfoned 0011trol the time of :rem.oval. in the cue al tho. locally
measure shall be cauaed by tbe Commiwioner to be extracted or produced; or the ...alue .aed by the
printed with adequate eecurity featurea to ensure the BureauofCustum.aindetnmininrtm:Urandc:ulttma
p_,,.,ent of excise tax onsweetened bevengea. duties, net of Gciee tax and velue-addecl tax in the
case ofimportation.
"(G) Reuiew of Implomontotion of Ike
Sweelened Beueroge Tox. - At the start of the "xxx:
implementation ofthe sugar aweotonod beverage tax
andeveryyearthe.reaft.er, theDepartmentofHoalth, "(a) Copper and other 111etallic min.e rala,
Department of Science and Technoloey, and fourpercent(4%);and
DepartmentafF!nanoe ehallreview tho impact ofthese
provisioDS on its health objectives with the view to "(b) Gold and chromite, fourpercent(4%).
m•lring recommemlations on the tax rate on these
.. beverages."
'(4) On indigenous pet!'oleu.m, a tu of
aii peramt(6") oftbe:fair intmnatiooal marketprice
SBc. 48. Section 151 of the NIRC, u amended. is hereby thereof, on the firG taxable aale, batter, excbanp or
further amended to tead es !ollowa: such eimilar tnmaction, such tax lo be paid by the
b>zyer or purchaser before removal from the pla<:e of
"SEC. 151. MUterol ~- - production. xx x.
'Thia requirement shall be a:mplied with before "(c) A aample ofthe randoml,y tested fuel ahall
commencement of operations.• be immediately obta:ined by the revenue or custolllS
· officer upon discovering that the same is unmarked,
• SEC. 50. Secti.o n 1710ftheNIRCraeaniended, is hereby·· adui.wated, or diluted:
further amended to read aa followa:
•ProuUkd., furthu, That confirmatory fuel test
"SBC. 171. Authority of l11ternol Reue11ru certificate• iaaued by fuel testing facilitiea ahall be
O{firo in. ~{orandTestiltg7bmbleArlicla. valid for any lepl purpose from the date of iasue,
- ADY internal reven.11e oflicer may, in the cliacbarge and ahall conatitute admissible a.nd conclwrive
ofbia official dutiee, CEt.er aey houee. building or place evideiM:e before aey court.•
where arliclea aubjeci to tax uru4r this Title are
produced or kept, or are believed by him upon SEC. 61. Sectionl74oftheNIRC,aaamonded,i.shereby
reasonable grounds t:o be produced or kept. eo far as further amended to read a.a follows:
may be necesaa.ry to examine, test, discover or aeizo '
the same.
"SEC. 174. Stamp To:< 011 Origin.oJ l11Sru of
Sharu ofSt«Jc. - On every ori!Pn•I iaaue, whether
'He may alao stop and search 8IU' vehicle or on orp.niution, reorganjution or for any lawful
other mean.a al transportation when upon re•eonable purpoae, of aharea of stoclt by any 8880Ciation,
gNUDda he believe. that tbe same caniaa 8IU' article oomp&IU', or corponuon, there shall be oollected a
on which the exci&e tax hunot been paid. documentary stamp tax ofTwo pesoa (P2.00) on each
Two hundred peeoe (P200), or fractional p81t th~
·subject to rules and ~tions to be issued of the par value, of such shares of stock: Prouilkd.,
by the Secretazy of Finance, the Commissioner of That in the caae of the original i.saue of shares of
Intemal Revenue or Dia authorimdrepreaentati'Ves stock without pe.r value, the amount of the
may conduct periodic random field teate and documentazy stamp tax herein p~d ahJill be
confirmatory tests OD fuelrequired to be maxked under based upon the actual consideration for the iasu.ai=
Section 148-A found in warehoaaea, atorage tanks. of such aha.tee of stock: Provided., {u.rtMr, That in
gas ataliona and other retailoullets, and in such other the cue of stock di'Videnda, on the actual value
properties of penona engaged in the Nle, delivery, representod by each share."
trading, traD8portation. distribution, or importation
of fuel intended for the domestic market: Provided,
76
SBC. 52. Section 175 of the NIRC, aa amended, ia hereby stamp tax of One peeo (Pl.DO) on each Two hundred
further amended to readl aa follows: poeoe (P200), or fractional part thereof, of tho face
value ofsuch certifiaiteo or memorandum.•
"SBc.175. Stamp Tm: on Sala. AgreemmU
IO &U, Mvrwronda of Sala. .DelWuia or TraM{trr SBC. 54. Section 178 of the NIRC, aa amended, ia hereby
ofSbsuesor~ofStock. - Ooallaalea,or further amended to read aa follows:
agreements to sell, or memoranda of sales, or
deliveries, or transfer ofshares or certificates of stock "SBc.178. St omp To.x on Bonk Checks,
in any association. company, or corporation, or Dro{l8, CertificaW ofDeposil n.ol &oring Inlerut,
transfer of such securities by auipmumt in blank. 01ld Olho- ~- - On each bank check,
or by delivery, or hy any paper or agreement, or draft, or certificate of deposit not drawing interest,
. memorandum or other evidoocea of transfer or sale . ·or order for the payment of any sum ofm~y drawn
.I whether entitling the.holder in any ma'nnet to ~e ; upon or issued.by any bank, trust company, or any
benefit of such stock, or to secuze the future paYmeot penoo or pel80D8, companies or corpcn.tioxis, atei«ht
of money. or for the future transfer of any stock. orond•m81Jd• thereahallbem!lec+M ad"C'U"entary
there shall be oollected a documentary stamp tax of atamp tax of Three peaos (P3.00)."
One peso and fifty centavos (Pl.50) on each Two
hundred pesoe (P200), or fractional part thereof, of SEC. 55. Section 179 of the NIRC, aa amended. i.B hereby
the par value ofsuch stock: ProvUkd, That only one further amended to read u followa:
tax ehaJl be collectod OD each sale or tnnsfer ofatock
from one pen;on to another, regardle. of whether or "SEc. 179. Stomp To.x o,. AU Debt
not a certifica.te of stock is iaaued, indorsed, or ln.slrumems. - On every original issue of debt
delivered in pursuance of such sale or transfer: and instruments, there eha1l be collected a documentary
'Provided, fur!Mr, That in the cue of stock without stamp tu ofOoepoao andfift;yccntavoe(Pl.50)on
par value the amoWlt of the doeumentuy·stamp tax each Two hundred pellOS (1'200), or fractional part
benio pll'80">1>ed aball be equivalaot to fifty percent thereof, of the iaaue price of any such debt
(50%) of the documentary stamp tax paid upon the instruments: Provided, That for such debt
original issue of aaid stock.• ioatrumente with tmnsofless than one (l)year, the
documentary stamp tax to be collected shall be of a
SEC. 53. Section 177 oftheNIRC, aaameoded, ia hereby proportional amount in~ with tho ratio of
further amended co read aa follows: ita term in number of daya to three hundred
sixty-five (365) days: Provikd, further, That only
"SBC. 177. Stomp To.x on Cerlificotes of one documentary stamp tax shall be imposed on either
Profits or lnterul in. Property or Accumulotion& - 1oen agreement, or promissory notee i.eeued to secure
On all certificates of profit&, or any certificate or suchloen.
memorandum aho....mg iotere.t in the property or
a ccumulations of any association, company or "xx x.·
corporation, and on all transfera of euch certificates
or memoranda, there shall be oolled.ed a docwoeotery
·. -· ' .·
r
76 77
SBc. 66. Section 180 of the NIRC, u amended, is bezeby SBc.159. Sectioo 183 aftbeNIRC, aaamended, is hereby
further amended to read u follows: further •mended to read u followa:
•S&e. l!)O. Stam.p Tax on All Bills of "SEC. 188. Scamp To: on Life In.suronce
E:rdiatige or Draf". - On all billa of exchan&e Policies. - On all policies of ineurance or other
(between point.a within the Pbilippinee) or dza&, inmumeots by whatever name the same may be
there ahall be colle<:ted a documentuy stamp tax of called, whereby any insurance shall be made or
Sixty centavos (P0.60) on each Two bwulred peaoe renewed upon any lire or Ima. tbere ahall be collected
(P200), or fractional part thereof, of the face value of a one·time documentm:y stamp tax at the following
any auch bill of exchuge or draft.• rates:
SEc. 157. SectioD 181 of the NIRC, as amended, is hereby "It Ibo - ollannJxe does - -
PlOO,ooo Bnllll>t
further amended to read u follows:
"li ti\• amount of hulµranoe exceed.I
"SBC." 181. Stom.p Tax Upon Accepta"" of Pl00,9d0 but dota not exce¢ P300.000 P20.oo
Bilu of E:«lumga ond 01Mr1. - Upon any "It Ibo......- otw..---"'
aoceptaoce orpaymantaf any bill ofexcbange or order noo.ooo bat does ""' u.coed P500,ooo ~.oo
for the p~ent of money purporting to be drawn in
a foreign country but PtlYable in the Philippines, thmi 'lt tbt am.ouut of lnlura.nce exceed.I
Pl!00.000 but cloea not , ...ed P750,000 Pl00.00
shall be oollecteda documentary stamp taxofSUt,
centavos (P0.60) on each Two hundred pesos (P200), "It tlJ4I OJDOWlt of ......._ ai:eecb
or fractiODBl part thereof, of the face value of 8111 P760,000 batdooo -Ga!Od Pl,000,000 Pl60.00
such bill of exchange, or order, or the Pbilippine "It the amown or hulur&D<e .._.is
equivalent of sucb value, if expresaed in foreign p t.000,000 P200.oo"
cunency.•
SBC. 60. Section 186 of the NIRC, aa amended, is hereby
Siie. 58. Section 182oftheNIRC,aaamended,ishereby further amended to read as followa:
further amended to read aa follows:
"SEC.186. & Ta:ton.A>liciesofAnnuiti.es
"SEC. 182. Stam.p Tax on Foreign Bills of and Pre-Nud PlaM. - On all policies of annuities,
~ and utter• of Credit. - On all foreign or other inatru.menta by whatever name the same
bills ofexchang13 and letter oCcredit (lDcludingardeno, ~be called. wbe...._hy An Annuit;y may be made.
by telegraph or otherwiae, for the payment of money tranaferred or redeemed, there ahall be oolle<:ted a
issued by express or steamship companies or by any documentary stamp tax of One poeo{Pl.00) on each
person or persona) drawn in but payable out of the Two hundred peeoa {P200), or fractional part thereof,
Philippines in a aet of three (S) or more accordiJli to of tbo premium or installment payment on contract
the custom of merchants and bankera, there shall be price collected. Onpre-needplana, thedocwnentary
oolleded a dllcument.ary stamp tax of Sixty centa-.o1 stamp tax shall be Forty centavoe (P0.40) on each
(P0.60) on ea ch Two hundred peeoa (P200), or Two hundred pesos (P200), or fractional part tbenof,
fractional part then1of, of the face value of any such of the premium or contribution collected.·
bill of exchange or letter of credit, or tlie Philippine
equivalent of such face value, ifexpressed in foreiin
78 78
SEC. 61. Section 188 of the NIRC. u amended, is hereby SBC. 64. Section 191 of the eame Code. a.a amended. is
further amended t.o read aa followa: hereby furt:ber amended to read U follow8'
"SBc. 188. SkJmp Tox on Certificotu. - "$BC. 191. Sl4mp Thz Oil BilJa Of Lodi1lg or
On each certificate of damap or othertriee, and on &oeipl& - On each aet of bille of lading or receipte
every other certificate or document issued by any (except charter party} for any goodl, mercbandioe or
cuatoms officer, marine surveyor, or other person effecta shipped from one port or place in the
acting aa such, 8Ild on each certificate issued by a Philippines (exreptonferriee acroae rivet'll), or to any
notary public, and on each certificate of any foreign port, there ehall be collected a documentary
description required by law or by rules or rejlll).ations stamp tax of Two puos (P2.00), if the value of such
of a public office, o:r which ia issued for the purpoee of goods exceeds One htllldred peeoe (PlOO) and does not
giving information. or establiahing proof of a fact, exceed One thousand pesos (Pl ,000); Twenty pesos
and not otherwise specified heroin, there shall be (P20.00), if the value exceed& One thoUllaJlli peaoe
collected a docum_entary stamp tax.o!Tbirt:y pesos (P·l,000): Prouided, however, That freight tickete
(P30.po)." • covering goOd.s, merchand.iN or effects cmried as
~anjed !Jaaager/.paaMDgenonlanda.nd water
SEc. 62. Section 189 of the NIRC, u amended, is hereby carriers primarily engaged in the traneportation of
further amended t.o read as follow11: passengers are hereby exempt."
-SSC. 189. Stomp Toz on Warehouse SBC. 65. Section 192 of the NIRC, u amended, is hereby
Receipts. - On each wareholl88receiptforpn>perty further amended to read 88 followa:
held in at.orage in a public or private warehouse or
ya.rd for any person other than the proprietor ofsuch "SEC. 192. Stamp Tol:oll Pro:Qa. - On each
warehouse or yard, there ehall be collected a proxy for voting at 8JJ11 election of officers of any
documentary stamp tu of Tbirt:y peaoe (PS0.00): comp8JJ11 or association. or for 8JJ/I other purpose,
Prouided, That no tax ehall be collected on each · exce~t proxies iSsued aHectin~ the 'affIDJ:s of
warehouse receipt issued t.o any one per80n in any associations or corporations organ1zed for religious,
one calendar month covering property the value of charitable or lite?arypurpoeea, there shall be oollected
which does not exceed Two hundred peaoe (P200)." a documentary stamp tax of Thirty peaoe (P30.00)."
SEc. 63. Section 190 of the NIRC, a.a amended, is hereby SBc. 66. Section 193ofthe NIRC. a.a amended, is hereby
further amended t.o read as follows: further amended to read 88 filllows:
"SEc. 190. Stomp TG% Oil Joi-alai, Boru "SEc. 193. StampThzollPoweno{Attorney.
Race, Tit:kd&, Lotto or Olhu AulMrized Numbers - On each power of attorney to perform any act
Gomes. - On eachiai·alai. hone race ticket, lotto, whstsoever, except acts connected with the cn!lettirm
or other authorized numbers gamee, there shall be of cl.a.ims due from or accruing to the Government of
collected a documentary stamp tax of Twenty cenlavoe the Republic of the Philippine&, or the government of
(P0.20): Provided, That ifthe coat of the ticket exceed any province, city or municipality, there ehall be
One peso (Pl.00), an additional tax of Twenty centavoe collected a docume.n tary stamp tax of Ten pesos
(P0.20)onevery One peso (Pl.OD), or fractiooalpart (Pl0.00)."
thereof, shall be collected.•
~ · 80 81
SEC. 67. Section 194oftheNIRC,aaamended.iahereby SBC. 69. Section 196 of the NIRC, aa amended. ia bexeby
further amended to read aa followa: further amended to read aa followa:
'SEC. 194·. Stamp Tm: on Leasea and Ollw "SEC. 196. Stamp Ta.x on. Dee<U of Sale,
Klrirllf A,qreenunts. - On each lease, agreement, Conveyoncu CJ1ld Doll<Jlion of Real Proputy. -
memorandum, or C011tract for hire, use or rent of any On all conveyances, d.anations, deeds, instnlment&,
lands or tenementa. or portions thereof. theze shall or writinp, other than grants, patenta or oricina1
be collected a doc:umenta:ry stamp tu of Siz pesos oeitiN:at...oCad;jndjra1jm i"S'Jed by tbe Gooermnent,
(1'6.00) far the first Two thousand peeoe (P2.000), or wbezeby any land. wnement. arother really eold aball
fraction.al part thereof, and an additional Two peeoe be granted, uaigned. transferred, donated or
(P2.00) for every Ooe thousand peaoe (Pl,000) or otbenri8e conveyed to the purchaser, or purdluen,
fractional part thereof. in eueaa of the first Two or to any other person or pei:sons designated by auch
thousand peeoe (P2,000) for each year of the term of purchaeer or purchasera, or donee, there aball be
said contrl!,ct or agreement.• _ · collected 11 doclimentaey stamp tax,.at the r,ates
hUein below preacribed, base4 on~ consideration
' SEc. 68. Section 195 oftbe NIRC, as amended, ia hereby contracted to be paid. for such realty or on ite fair
furtber am.e nded to read as follows: market •alue determined in accordance with
Section 6(E) of thia Code, whichever is higher:
"SBc. 195. Stamp Tm: onMo~ ~ ProW:Ud, That when one afthe comracting parties
cmdDttdso{Tnut. - OoeveeymortpgoorpJeclce is the Government. the tu beiein impoeed aball be
af1aDda, eatate, or property, realar pmana). herjtahle baaed on the actual oonsidezation;
armavahle, wiw-.er, where the same ahail be ID8de
as a eecurity for the pllYJllent of any definite and "(a) When tho consideration, ar value received
certain awn of money lent at the time orpreviowliy or contracted to be paid for such realty, after malciDg
due and owing or forborne to be paid, being payable, proper allowance ofany 8llQllllhrance. does not exceed
and on any conveyance of land, estate, or property One thousandpeeoe (Pl,000), Fifteenpoaoe (Pl5.00),
whateoever, in trust or to be sold, or otherwise
converted into money which shall be and intended "(b) For each additional One thousand pesos
onl,y as security, either by ~88 stipulation or (Pl,000), or fractional part thereof inexoea of One
otherwise, there ehall be co1lected a documentary thousand pea» (Pl.000) af such consideration or
eta.mp tu at the following rates:_ value, Fifteen peeoe (Pl5.00).
"(a) When the amount secured does not exceed "Tranafera e:rempt from donor's tax under
Five thousandpeeoa (P6,000), Forty peaoe (P40.00). Section lOl{a) and (b) of this Code a1iall be exempt
from the taximpoaedlllllderthis Section.
' (b) On oach Five thousand peeoe (P6,000), or
fractional part thereofin excess ofFive tboua8lid peeoe "When it appears that the amount of the
(P5,000), an additional tu ofTwenty peeoe (P20.00). documentary stamp tax payable hereunder bas been
reducedbyanina:JrrectatatementaCtbeauideration
in any conveyance, deed, instrument o:r writing
gubject to euch tax the Commissioner, provincial or
82
"SBc. 19'1. Stamp Thi on Chark!r Portia and "SBC. 232. Kupi.ng of Boolts of Account;,. -
Similar Instruments.. - On every charter party,
contract or agreemen t for the charter of aey ahip, "(A) Ccrporaticn..s, Ccmpania, Partnerships
vessel or streamer, or aey letter or memorandum or or Persons &quind to Keep Boob of &counts. -
other wriling between the captain, muter or OWXlel' AD corporatians, a:mpanies, partnerships or pel'80D8
wother perean acting-as agent of any &hip, veeael.,; required by law to pay internal revenue tasu shall
keep and use relevant end apJ!ropriate set of
steamer, and "IIY Other perao:n or penona for ar
relating to the charter of any such &hip, veaael or bookkeapingrecards dubr antOOrized by the Seaeta.ey
slnamer, and an any renewal or tnnafer of auch of Finance wherein all transactions and results ol
cbarter, mn1rart, agreement, letterer memorandum. operations are abown end from which all taxea due
there ahaJl be collectecl a documentary stamp tu at the Government ~ readily and accuratel,)- be
the following rates: aacertained and determined any time of the year:
ProWJ.ed, Tbatcorporatioos, ~ psxtoezshlps
or persons whose groea annual aalea, earnings,
"(a) Iftbe registered groea tonnage of the ship,
vessel ar steamer does not exoeed one thouaand receipts or output ex·c eed Three million pesos
(l,000) tons, and the druation of the charter or (PS,000,000), aball have their books of accounts
audited and e,xsmined yearly by independent Certified
contract does not exceed six (6) months, One tho11811Dd
pesos (Pl,000); and far each month or fraction of a
Public Accountants and their income tu returns
month i.n excees of six (6) months, an additional tu accompanied· with a duly accomplished Account
of0nehundredpesl8 (PIOO) sball be paid. Information Form (AIF) which shall contain, among
others, information li&d from oerti.fi.ed balance
sheeta, profit and loea statements, acbodulC8 list:i.ng
"(b) lftbe regis1ered grosa tonnage exceeds one i.ncome-producingproperti88 and the correeponding
thousand (l ,000) tons and doea not exoeed ten
income therefrom and other relevant statements.
thouaand (10.000) to:ns. 8lld the duration ol the
charter or contract does not exoeed aix (6) months,
Two thousand pesos (P2.000); and for each month or
fraction of a month in ex09l8 of six (6) montha, an
additional tax of Two hundred pesos {P200) ahaJl be SEC. 72. Section 236 of the NIRC, aa amended, is hereby
paid. further amended to read as follows:
"(c) Ifthe registered groeetonnage exceeds ten "SEC. 236. llegis&roti.on Requiremenlll. -
thou.sand (10,000) tons and the duration of the
charter or contract does not exceed ei:.t (6) montbe, "(A,) Requirements. - " x x
"xxx
·,
.
'
8d
'Tho tt!Patratiou ab.all amtain the taxpa.yer'a "Provuud, That any pereon taxed under
name, style, place of reaidence, buGnea, and euch Section U(A)(2)(b) and U(A)(2)(c)(2}(a) of the NIRC
other information aa ma.y be required by the who elected to pa.y the eight percent (8%} tax OD pC*
Commisaionar in the form p:reacribed therefor: aalasorreceipta ahall not be allowed to avail of this
Provided., That the Cornmi"8ioner ahall simpJilY the oplian.
buaineaa regiatration aod tax compliance
requiremeots of self-employed individuals and/or "For pmpoaea of Title IV o! tbi8 Code, &Jl1
prof~mian·l· peraon who has regilte:red value-added tax aa a tax
type in accordance with the pmviaiona ofSubeed:ion
(C) hereof ahall be refe.rred to as a 'VAT·regist.ered
peraoll'who ahall be assigoed ooly one Taxpayer
"(0) Persons Required to Register for IdeotificationNumber (TIN).
Valiu-kkkd 'lbx.-
":>:xx.·
"(l) xxx
SBc. 73. Section 231 of the NIRC, as amended. i.s hereby
"(a) His gross aalea or receipts for the past further amended to read as follows:
twelve (12) months, other than those that are exempt
under $ecti011 l09(A) to (BB), have exceeded Th:ee "SEC. 287. Issuance of l/eceipls or Saks or
millionpeaoe (PS,000,000);or Comnwcial bwoicts. -
"SBC. 265-A. Offenses RelaJint1 lo Fuel "(1) Mal<int, importing, eelling, uaing or
Marking. - All offenses relating to fuel marking possessing fuel markers without e:rpreea aulhority;
.W.U. iu addition to the penalttes lmpoeed under
Title X of the NIRC, as amended, Section 1401 at "(2) Making, importing, selling, uaing or
Repuhlic Act No. 10863, otbenriee known aa the pcssetaing counterfeit fuel markers;
'Cu.stoma Modemiza1;iao and Tariff Ad. (CMTA)', and
other relevant laws, be punishable asfollowe: "(3) Causing another person or entity to
commit any of the two (2) p-ding acte; or
"(a) Any person who is found to be engaged in
the aale, trade, delivery, distribution or transportation
' .·
"(4) Cauallig the eale, diatribution, oupply or Sic. 8L Section 269 of the NIRC, aa amended. i.e hereby
transport of legitimate~ imported, in-tranait, furt.ber emended to readaa followa:
manufactured or piwwed oontn>lled pnic:unora and
e1Nntial chemicals, in diluted, mixture• or in "SBC. 269. VaolalioM Commilled by
amcentrab!d form. to anypenon orentitypenatired Go~ Enforcemm.1 Officen. - "xx
i.n$n'-ctjnna (a), (b), or (c) hereof, including but not
limited to, packaging, repackaging, labeling,
"(a) xx x;
relabeling or cxmceslmentof sucb tranaaction through
fraud, destruction of documents, fraudulent use of
permits, misdeclaration, use of front companies or "x x x
mail fraud.
"(b) Having knowledge or information of any
"(d) Any person who willfully inserts, places, violation of thl8 Code or of a.ny fraud committed on
the revenue& collectible by the Bureau of Internal
adds or attaches cmectly or inclirectl3, throueh an,y
Revenue, failure to r eport auch knowledge or
overt or covert act, whatever Cl\l8DtitY of a.ny
iiifarmatian to their superior officer, ar failure to
~iµhd fuel. .,.;unte,deit additive or chem.ica'l i.n
the penion, house, efl'ecla, inventory, or in the report as otberwUie teqUired by law;
immediate vicinity ofan iD!IM!Dt indi'fidual for the
purpoaeofimpticating iocrimio•tingorimputingtbe "(i) " x :a:; and
commi•siou of any violation of thia Act aball. upon
convi<:tian, be puniahed by a 6ne a! not leaa than "(j) Deliberalefailure to act on the applicalion
Five million pesos (PS,000,000) but not mora than for refunds within Iha prescribed pariod provided
Ten million pesos (Pl0,000,000), and suffer under Section 112 oftbia Act.
imprisonment of not less than four (4) years but not
more tban eight (8) years. "Provided, That th& provision.a ofthe foregni.ng
paragraph notwithstanding, a.ny internal revenue
"(e) Any person who ia autbmized, licensed or officer for which a prima focie case of grave
aocredited under this Act and its imple.m enting rules miaconductbas been established shall. after due noti<:e
to conduct fuel tests, whoiasuealal.ae or fraudulent and bearing of the admioi.strative case and subject to
fuel test reaulis knowingly, willfull.y or through gross Civil Service Laws, be dismissed from the revenue
negligence, shall sufl'er the additional penalty of service: Prouilkd, furl/I.er, That the term 'grave
imprisonment ranging from one (1) year and one (1) m.iscondud', as defiDed in the Civil Service Law, shall
day to two (2) yean; and m (6) months. or
include the issuance offake letters autbmi:ty and
receipts,forgeryofeignature, uaurpadono!autbority
'"l'be additional penaltiea of revocation of the and halriP1al isswmce of umeaaooable 111 ments.•
license to practice his pro{eaaion in caae of a
ptaetitioner, and the cbute o£tbe Cuel teating facility, SEc. 82. Section288oftbe NIRC, uameoded.is hereby
or
may also be imposed at the inatance the court.. further amended to read aa follows:
"SEC. 288. Di•posilion of In.cremen.tal
&venue. -
"(A) "x"
•.
..
"(c) A social welfare and benefit8 pzocram
where qualified benefici•rieeahall be provided with
a aoc:ial bendiW card. to avail ol the following aocial
benefit8:
"(D) :i:J:x
"(i) lJnronditiona] cash transfer to bonseholds
in the fizst t.o seventh.income decilee of the National
Household Targeting- Syat.em for Poverty Reduction
·~ ln.crementol Reuen.ues from the Tax (NRTS-PR), Pantawid Pamilyang Filipino Program,
Reform for kcelera:lion and Inclusion (TRAIN). - and the social pension program for a period of time
For five (5)yearafrom tbeeffectivityofthiaAct, the (8) years from the effectivity of this Act: Prowud,
yeazl,y incremental revenues generated aha.U be That the unconditional C8Jlh tranafer shall be Two
aut<lUl.atically app?Opriated as follows: hundred pesos (P200.00) per month for the first year
and Three hunched pesos (PS00.00) per month for
"(l) Not ~ore .than aeventy percent (70%) tJ; the eeca¢year and third year, to be implemented by
theDepartmentofS<ici.al Wel!are and Development
fund infrastrncture projedll such ... but not limited
t.o, the Build, Build, Build Program and provide (DSWD);
infrastructure programa to addreu con.gestion
through mass transport and new road netwoth. "(ii) Fuel voucheni to qualified £ranchiae bllders
military infrastructure, apcn1a f..,..1itiea for public of Public Utility Jeepneya (PUJe);
echools, and potable drinking water supply in all
public pl.aces; and "(jii)Forntimmumwageearnere, unemployed,
and the poorestfift;y pen:ent (60%) o!the population:
"(2) Not more than t.lrirty pemmt (80%) t.o fund:
"(l) Fare discount from all public utility
"(a) Programs !Wlder RepublicActNo.10659, vehicles (except triickis for hire end school transport
otherwise known as 'Sugarcane Induatry Development service) in the amount equivalent to ten percent (10%)
Act of 2015', t.o advance the aelf-reliance of sugar of the authorized.fare;
fenners that will increase productivity, provide
livelilioodoppm:t> 111itiiea, develop alternative f1'rming "CZ> Di=unted purcllue of National Food
systems and ultimately enhance Carmen( income· Authcrity (NFA) rice from aa:red.it.ecl retail stores in
•
the amount equivalent to ten pm:ent (10%) of the net
\b) Social mitigating meaaures and retail pricea, up to a maxi.mum of twen1;y ~)kilos
investments in: (i) education, (il) health. targeted per month; and
nutrition, and anti-h1lllgllr programa for mothers,
infanla, and young childzen. (iU) social protection, "(S) Free akilla training under a program
(iv) employment, and (v) housing that prioritize and implemented bytlie TedmicalSkilla and Development
directly benefit both the poor and near-poor Authority Cl'ESDA).
bowieholds;
"Proui.ded, That benefits or granta contained
in tbis Subsection shall not be availed in addition to
any other discounts.
96 ••
97
(b) Section 10, imofar u VAT uemption is (.i) Sectim 21, m..&r aa VAT exemption ia
concerned. o!Republic Ad No. (lt.A.) 6807 or AuAct coucenied. of R.A. 7366 or the Law Creating the
~tbe Matt Community CoOece into a Stale National Cammi-ion for Culture and the Arla;
Collep to be known as the Davao Oriental State
I College of Science and Technoloa. Providing for a (j) Section 7(f), inaofa:r u VAT exemption ii
Charter for this Purpoee, Expanding ita Curricular concerned. of R.A. 7371 or Au Act Converting the
Offerings, &.!directing its Objectivea, and Aldan.Agricultural College into .Aklau State Collep
Appropriating Funds Therefor; ofAgriculture, audAppropriatinr Funda Therefor;
(c) Sections 18 and 19, insofar aa VAT (Ji) Section 12, second sentence, in8ofar as VAT
exemption ia o:mcemed, ofR.A. 6847 or The Philippine exemption is concerned, of R.A. 7878 or Au Act
Sports CommjesjOT1 Act; Establ.i.ahiug the Eas:tem Visaya• Science Higb
School;
.· . (d) . ~ 8(d), laat paragraph, iosaf.ar as .
VAT exemptionia cxmcerned, ofR.A 7278 or An.Act (I) Section U(j), insofar aa VAT exemption.is
Amending CommouwealthActNo. 111, aa Amended CXJh El I ffl, ofR.A. 7605ar the Chartsrolthe Pbilippine
by P .D. 460, eul:i:tled An Act to Create a Public State College afAmlnautics;
Cozparation to be Known aa the Boy Scouta of the
Philippines, and to Define ita Powen and Purpoeea, (m) Section 126, in8ofar as VAT exemption is
by Strengthening tlle Volunteer and Democratic concemeci.' of R.A. 7603 or The New Central Bank
Character of the Boy Sa:iuta of the Philippines aud Act;
for Othe:r Purpoeee;
(II) Section 14, imofar aa VAT exemption ia
(e) Section 1, iuso£ar ea VAT exemption is concerned. of R.A. 7876 or the Natioaal Health
concerned, ofR.A. 7291 or AoAct Reatoringthe Tax Iuauraoce Act of 1995;
and Duty Incentives Previoualy Enjoyed by the
Veterans Federation ofthe Philippines under Republic (o) Section 18, insofar ea VAT'exemption ia
Act Numbered Twenty-Six Hundred and Forty; CO!la!med, and Sectiou 18, last parapapb of R.A. 7884
or the National Dairy Development Act of 1995;
(f) Section 21. insofar aa VAT exemption is
coucemed,ofR.A. 7306ortheCba.rterofthePeople'a (p) Section 8, insofar as VAT exemption ia
Television Network, Inc.; concerned. R.A. 8160 or Au Act Granting the
University of the Pbtltppmea a P'rauchise io
(g) Section 14, insofar aa VAT exomption is Conatruct, Install, Operate and Maintain for
concerned, ofR.A. 7354 or the P041tal Service Act of F.ducational and Other Related Purpoeee, Radio and
1992; Television Broadcasting Statione Within the
Uni•msi:ty oftbs Philippines and inSuch OtherAreaa
(h) Section9(c), i.Mofar as VAT exemption is Within the Scope of its Operation;
concerned, ofR.A. 7355 or the ManliHkha ng Bayau
Act;
100 .·~ lU~
(q) Sooti ••2and16,inaa!araaVATeaoemptioo (y) Section 13, in.tofu aa VAT uamplion i.9
ia CODCe%1led. o!R.A. 8282 or The Soci.a1 Secumy Act ccmcemed ofR.A. 9088 or AnAct Establiahing the
0
of1997; Sta. Rosa Science and Technology HJch School in
Sta. Rosa, Laguna;
(r) Section 39, insofar as VAT exemption i.9
concerned. ofR.A 8291 or '!be Government Service (,,.) Section 7(c) and (!), inaofar as VAT
lmurance Syatem Act of 1997; exemption i.9 concemed. of R.A. 9138 or An Ad
Est.ahlisbing tbe Guimar8a State College;
(s) Section 4(c) ud (!), insofar as VAT
exemption ia c:oncerued, of R..A. 8292 or the Hilber (aa) Sed:ion 7(c), inaofar as VAT exemption ia
Edw:ationModamizationAttofl997; concerned, of R.A. 9141 or An Act Con'Veding the
Negroe Occidental Agricultural College into State
(t) Section 25, in.aofar as VAT exemption ia College to be known as the Negros Occidental
concerned, ofR..A. 8492 or the National Museum Act Agricultural College;
of1998; •
·. '(bb) Section 16, i:n.eofar as VAT exeml'tion is
(u) Section S(h), inaofar as VAT exemption ia concerned, ofR.A. 9497 or The CivilA'l'iationAutlwrity
concerned. of R.A. 8502 or the Jewelry Industry Actof2008;
DevelopmentActof 1998;
· (cc) Section 25(b) and (c), inlofar as VAT
(v) Article 66, :insofar 88 VAT e:romption and oxemptioni.9 concerned. and (d),insofar 88 V.AT r.ero-
zero rating ia concerned, of regional or area rating ia c:oncerned. ofR.A. 9500 or tho University of
headquartera and ze:ro..ratingoftbe aale or lease of the Philippine& Charter of2008;
good.a and pzoperly and the rendition of aervicea to
regional or area headquarters, andArtide 67, insofar (dd) Section 25(b) and (c), inaofar as VAT
aa VAT exemption ia concemed, of R.A. 8756; exemption \a coru:emed, and (d) inaofar as VAT
Provided, Thatexjsting RHQa and ROHQa enjoying zero.rating ia co!ll:erned, of R.A. 9519 or An !'cl
VAT exemption and zero.rating at the ti.me of the Convexting Mitv!anao Pol.Jtechnic state College into
effecti.vity of TRAIN shall not be affected; a State University to be Known 88 the Mindanao
University of Science and Technology;
(w) Section 7(c), insofar as VAT exemptionia
concerned, of R.A. 9045 or An Act Creating tbe (ee) Sect:ionl7(c), inaomas VATexemptionia
Bata.ngaa Stato Univcraitr, ., "oed of'llA. 8591. othenrise knownu lhe PDIC
Charter.~ amended by Section 8 of RA 9576,
(:r) Section 7(c), insofar as VAT exemption ia otherwise known ae An Act Increasing tbe Mai:imum
concemed. of 1lA. 9()55 or An Act Converting the Deposit lnauraru:e Coverage, and in Connection
Altlan State College of Airiculture into the Ak1an Therewith, to Strengthen the Regulatory and
State University; Administrative Authority, and Financial Capability
of the Philippine Deposit lnaurance Corporation
(PDIC), Amending for tbia Purpose Republic Act
10~ 103
Nwnbered Three Thousand Five Hun<Ued (DD) Section 35 (b)(c), with rN]>8Ct t.o VAT, of
N"mety-One, as Amended, Otherwiae Known aa the R..A.. 8550 or The Philippine Fiaberiel Code of 1998;
PDIC Charter, and for Other Purpoeea;
(oo) SectiGn 13, aeoond paraaxaph, with reaped
(If) Sections 2 and 19, insofar as VAT to VAT, ofR.A. 10817 or the Philippine Halal Export
exemption is concemed, of R.A. 9679 or An Act DevelopmentandPromotion Actof2016;
Further Strengthening the Home Dovelopment
Mutual Fund, and for Other Purpoaee; (pp) Section 9(8), (4), and (8), with respect to
VAT, ofR.A 8479 or the Downstream Oil Industry
(gg} Section23, insofar as VAT exemption is Deregulation Act of 1998;
concerned of the National Historical Commission of
the ~hilippines, ofR.A.. 10086, or the Strengthening (qq) Section6(c)and(d), withrespectto VAT,
ofR4. 7108 or Ute~ and Steel Industry Act;
0
~ Section 7(b) and (c), inaofar aa VAT (rr) Section 10, with respect to VAT, of
exemption is concerned. and (d), insofar as VAT R..A.. 7718or AnActAmending R.A. No. 6957;
zeio.ralingiscxmrnned,ofR.A.9647orthePhilippine
Normal Unive111it1 ModemizationActof2009; (88) Section 26(B)(3), with resi-t t.o VAT, of
R.A. 9275 or the Philippine Clean Water Actof2004;
(ii) Section 17, inaofar aa VAT exemption is
concerned, of R.A. 7898, aa &mended by (tt) Section 20(d)(3) ofR.A. 7279 or the Urban
R.A. 10849. Establishing the Reviaed APP Development and Housing Act of1992;
Modernization Program and for Other Purpose&;
(uu) Section 20(d)(8) of R.A.10884 or An Act
Gi) Section 56, insofar as VAT e.x emption is Strengthening the Balanced Houaiilg Development
concerned, of R.A. 10801 or the Oveneaa Workers Program, Amending for the Purpose R.A. 7279, as
Welfare Administmtion Act; Amended, Otherwise Known ae the Urban
Development and Housing Act of 1992;
(kk) Section9 (e}(2)and(D, withreepectto VAT,
o( R..A.. 7900 or the High·Value Crops Development (vv) S ection 14. with r u pAct to VAT, af
Actofl995; R.A. 8423 orthe'l'raditinnal and Altemative Medicine
Act (TAMA) of 1997;
(IQ Sectioll24(e) ofR.A.10068orthe Organic
Agricult>= Act of 2010; (ww) Section 22(b) ofR.A. 10747 or the Rare
Diseaaea ofthe Philippines;
(mm) Section 14(b), with respect t.o VAT,
R..A. 7308 or the Seed Industry Development Act of (xx) Section 45(a), (b), and (c), with respect to
1992; VAT, of R.A. 9003 or the Ecological Solid Waste
Management Act of2000;
UM
105
d::::::O
Secretary ofthe Se11ate
~p~A
&crctary General
House of&presentarives
([
President oftht Philippines
0
UIVN.JC or m Pall.I PPJm
PMO 2011 • OOl71'