ILNo.

5636
S. No15W

Begun and held in Matro Manila, on Monday, twenty-fourth

day of July, two thousand seventeen.

[ REPUBLIC ACT N . 1 0 9 6 3

ANACTAMENDING SECTIONS 5, 6, 34, 25, 27, 3¥, 32, 33, 34,

61, 52, 56, 57, 58, 74, 79, ß4, 86, 90, 91, 97, 99, 100, 101,
106, 107, 108, 109, 110, 112, 114, 116, 127, 12B, 129, 145,
148, 149, 151, 155, 171, 174, 175, 177, 178, 179, 180, 181,
182, 183, 186, 188, 189, 190, 191, 192, 193, 194, 195, 196,
197, 232, 236, 237, S49, 254, 264, 269, AND288; GREATOIG
NEW SECTIONS 5I-A, 148-A, 150-A, 150-B, 237-A,
264-A, 2fi4-B, AND 265-A; AND REPEALINO SECTIONS
35, 62, AND 89; ALL UNDER REPUBLIC ACT NO. 8424,
OTHERWISE RNOWNAS TRE NATIONAL INTERNAL
conE oF 1997, AS AMENDED, AND FOR
OTBEfi PURPOSES

be it enacted by the Senate and House of Represent atives of the

Philippines in Congress assembled:
 2
SECTION 1. Etle. — This Act shall be known as the “Tax
Reform for Acceleration and Inclusion (TRAIN)".
SEc. 2. Declaration ofPoliey. — It is hereby declared the
policg of the State:
(a) To enhance the progressivity of the taa system through
the rationalization of the Philippine internal revenue tax system,
thereby promoting sustainable and inclusive economic growth;
(b) To provide, as much as possible, an equitable relief to a
greater number of taxpayers and their families in order to improve
levels of disposable income and increase economic activity; and
(c) To ensure that the government is able to provide for the
needs of those under its jurisdiction and care through the provision
of better infrastructure, health, education, jobs, and aoeial
protection for the people.
SEC. 3. Section 5 of the NationalInternalRevenue Co6e ot
1997 (NIRC), as amended, is hereby further amended to read as
‘SEC. 5. Power of ffi Commissioner to Ot›tain
Information, and to S!umruon, Examine, and Tahe
Testimoii2 f Perso us. - In ascertaining the
correctness of any return, or in making a return when
none has been made, or in determining the liability
of any person for any internal revenue tax, or in
collecting any eueh liability, or in evaluating tax
compliance, the Commissioner is authorised:
“(B) To obtain on a regular basis from any
person other than the person whose internal
revenue tax liability is subject to audit or
investigation, or from any office or officer of the
nationalandlocal governments, government agéncies
and instrumentalities, including the Bangko Sentral
eg Pflipinas and government-owned or -controlled
corporations, any informañon such as, but not limited
to, costs and volume of production, receipts or sales
and gross incomes of taxpayers, and the namee,
addressee, and financial statements of corporations,
mutual fund comp aniea, insurance companies,
regional operating headquarters of multinational
mmpaniea, joint acmunte, aesoeiations, jointventures
or consortia and registered partnerships, and their
members: Prouided, That the Cooperative
DevelopmentAuthonty ahallsubmit to the Bureau a
tax incentive report, which shall include information
on the income tax, value-added tax, and other tax
incentives availed of by cooperatives registered and
enjoying incentives under Republic Act No. 6938, as
amended: Provided, further, That the intonation
submitted by the Cooperative Development Authority
to the Bureau shall be submitted to tLe Department
of Finance and shall be included in the database
created under Republic Act No. 10708, otherwise
known as ‘The Tax Incentives Management and
Transparency Act (TIMTA)’.
SEC. 4. Section 6 of the NIRC, as amended, is hereby
further amended to read as follows:
“SEC. 6. Power o/ the Com miv Riover to Make
Assess rrse n t8 an d Pres cri be Addict on at
^ Req uireme• ts for Tax Ad iniiiistratio ti arid
Enforcement. —
‘ (A) Examination of Returns ond
Determination of 7'nz Due. — Aker a return has
been filed aa required under the provisions of thia
Code, the Commissioner or hia duly authorized
representative may authorize the examination of any
taxpayer and the assessment of:the correct amount
of tax, notwithstanding any law requiring the prior
authorization of any government agency or
instrumentality-. Proui‹fed, hoMeoer, That failure to
file a return ahall not prevent the Gommisaioner fzom
authorizing the examination of any taxpayer.

further amended to read asfollows:
‘ (E) Autlsoril y o[ the Cocimiscioner io
is hereby authörised to divide the Philipjinee into
di8erent zoñes or areas and shaft, upon mandatory
consultation with œmpetent appraiaera bothfzoz the
primate and public sectora, and witii prior notice to
affeeted tazpa3rers, detezæine the fair market value
of realpzopertieslocated ineach zone or area, Sect
to automatic adjustment once everjr three (3) years
throughrules andregulaÔons issuedby the Secretary
of Finance based on the current Philippine valuation
standards: Prouiöed, That no adjustment in zonal
valuaÔon shall be valid unleaB pHbliahed in a
newspaper of general‹är‹mlationînthe province, city
ormunidpabtyœxœmeQorioüea6ærmet6œeo(,
shall be posted in the provincial capitol, city or
municipalhnli andin two (2) other conspicuous public
places therein: Provided, fler, That the basis of
any valuation, including the records of consultations
done, shall be public records open to the inquiry of
any taxpayer. Forpurposes of computing anjr internal
revenue tax, the value of the property shell be,
whichever is the higher of
‘(l) the fair market mlue as determined by the
Commiseioner; or
‘t*) the fair market value as shown in the
achedule of values of the Proxûncial and City
88C. 5- Section 34 of the NIRC, as amended, is hereby
IEC. 24. l ico rne Tu Rotes. -
and nd,v‘v*’dual Rezideitl Aliezi of tW Philippines. -
‘(1) An income tax is hereby impoæd:
On the taxable income defined inSection
Gode, other than ineome subject to tax
undez Subsections (B), (C), and (D) of thia Section,
derived for eaeh taxable year from all eourœs witbin
and without the Philippines by every iodividual
citizen of the Philippines reeiding therein;
‘(b) On the taxable income defined inSection
31 Of this Gode, other tban income subject to tax
under Subseetions fay, (C), and (D) of this Section,
dezived for each taxable year i'rom allsourœa witbin
the Phi)jppines by an individual citizen of the
Philippines whaisreaiding outeide ofthe Philippines
including overseas contract workera refèrred to in
Subsection (G) of Section 23 hereof; and
‘(c) Onthe taxable income defined inSection
31 of this Code, other than income subject to tax
under Subsections (B), fC), and (D) of this Section,
derived for each taxable year from all sources within
the Philippines by an individual alien who is a
resident of the Philippines.
“(2) Rates of Tgx •• Taxable Income of
*“°’ ua!c. — The tax shall be computed in
accordanee with and at the rates establiahed io the
foEowing schedule:
 “(a) Tax Schedule Effective January 1, 2018 pay received by such minimum wage eamerø øhall
uutîI December 31, 2022: likewise be exempt from income M

‘ß) Rate o/ f’oz on. income o[ Purel y

•&er 2•zso,oo0 but not wee P4£ło,ooo .............2G orthe exœas Self•employed Indiuidualø ond7or Professionals
,P4moOpbroaoœrP8ß0.Œs ---- P30,OŒD+A6*8be
Wlsose Gross Moles or Gross Receipt ord Œker
Non•operating Income Does Noi Exceed łhe Value-
°œ r P800,0g0 b»t »ot as z P2,0o0,o00 ...............Pia0,000 * 3Oø or tlæ
added Tax (V T'lireshold as Provided in lsee i n
109(BB). - Self-employed individuals andfor
professionals shall have the option to avaflof an
eight percent (8°ñ) tax on groaø aalee or gro8a
receipts and other non-operatizig income in excees of
Tzro hundred fifty thousand pesos (P2ń0,000) inlìeó
"Tax Schedule Effective January 1, 2023 and onwards: of the graduated income tax rates under Subsection
(A)(2)(a) of tbiø Section and thepezœntage taxxmáer
Section 116 of this Code.

“(c) ffote of Tax for Mixeds Gruzo ie Earners.

•œ'er e*m,ooo bra n»c one eaoo,ooo .......... res.æo + in or th» — Taxpayers earning both compensaÔon inmme and
excess over Pd00,0O0
income from business or practice of profession shall
•Oœz I•800.000 bat Doc oser P*,000.000 ............. Pł03,ó00 * 25% o£tbe be subject to the following taxes:
ezœss oeer P80O,000
•œ«r P2,ono,om 1»n not one ea,ooo,ooo. ..... reis,soo + ao•x «its
eg over P2,004,0O0 ‘(l) All Income from Compensation — The
ratea prescribed under Subsection (A)(2)(a) of this
“CŁYer g8,000,000 .................................................................. P2.202,50d + 35% oftbe
exœss oeez 98,000,000 Section

for married individuals, the husband and “(2) AU Income from Business or Practiœ of
wife, subject to the provimon of Section 51(D) hereof, Profession —
shall compute separately their individual inmmetax
based on their respective total taxable income: ‘(a) If Tatal Gross Salea andfor (Gross Receipts
Provided, That if any income cannot be definitely and Other Non-operating Income Do Not Exceed the
attributed to or identified as income exclusively VAT Threshold asProvided in Section 109(BB) of this
earned or realized by either of the spouses, the same Code. — The rates prescribed under Subsection
shall be divided equalljr between the spouses for the (A)(2)(a) olthiø Section on taxable income, or eight
purpose of determining their respective taxable percent(8%) income taa based on groøø sales or groas
in‹Dme. receipts and oŁher non-operating income in lieu of
the graduated income tax rates under Subsection
‘Provided, That minimum wage eaznera as (A)(2)(a) of thiø Section and the percentage tax under
desned in Section 22(iiti) ortei Code aaăil be exempt Section 116 of tbiø Code.
Õom the payment of income tax on their taxable
income: Provided, JrtWr, That the holiday pay,
 °(b) lf TotalGzoas isa1es anéfor Groas Receipts
and Other Non-operating Income Exceeds the
VAT Threshold asProvided inSection 109(BB) ofthis
Gode. — The rates prescribed under Subsection
(A)(2)(a) of this Sections
‘ (B ) Rate of Fax on Certain Pacs iue
“(1) fsterests, Royayies, Prizes, anB Œlier
Bizini»gs. — Afînel taa at therate of twentypercent
(20%) ishereby imposed uponthe amount ofintereat
Iromany cuzxency banltdeposit andjriëld or ans Other
monetary benefit trou depoait aubetitutes and from
trust fuods and mnilar arrangements; royalties,
except onbooks, as well as other lîterary worka and
musical compositions, which ahallbe imposed a final
tax of ten percent (10%); prizes (ezcept prizes
amounting to Ten thousand pesos (P10,000) or leea
which ehallbe subject to taa under Subaection (A) of
Section 24; and other winnings (except winnings
amounting to Ten thousand pesos (P10,000) or fees
f omPhiii$pine clartés«eepstakes end rottochien
ahall be exempt), derived from sourœs witbin the
Philippines: 'ouided, hotrœer, Thatinterestincome
received by an individuel taxpayer (except a
nonreaidentindividual)from a depoaitory bank under
the expanded foreign currency depoait syatem shall
be subject to a final income tax at the rate of fifteen
percent (15°Æ) of such interest income: Prouided,
/ufther, Thatinterest income from long-team deposit
or inveatment in the form of eavings, common or
individualtrustfunds, deposit substitutes, inveatznent
management accounts and other investments
evidenced by certificates in such form prescribed by
the Bangko Central ngPilipinas (8SP) shallbe exempt
from the tax imposed under this Subsection:
Prouided. ;fi holly, That should the holder of the
œrtifieate pre-terœinate the deposit or inveatment
befoze tbe fîftÎt (5'^) yeaz, afjrM tacahall be iœposeü on
the entire income and shall be deducted and
withheld by the depository bank from the proceeds of
the long-texm deposit or inveaianent certificate baaed
on the remaining maturity thereo2
"(2) Cash ond/or ) noperty Diuiöends. - A
insl tax at the rate of ten percent (10%) ahaI1 be
imposed upon the cash andfor property div:idends
actually or constructively received by an individual
from a domestic corporation or from a joint stock
company, insurance or mutualfuod companies and
regional operating headquarters of multinational
companies, or on the share of an individual in the
distributable net income after tax of a partnership
(ezcept a generalprofesaionalpartnership) of which
he is a partner, or on the share of an individual in
the net income after tax of an association, a joint
account, or a joint venture or consortium taxable as
a corporation of which he is a member or co-venturer.
’( T) Capital Oaies from Safe o[Shores o/fitncè
not Oaded *n UN ff a0k.échange. — Theprovisions
of Section 39(B) notwitlistanding. a final tax at the
rate nt fifteen perœnt (15%) ie hereby imposeilupon
the net capital gains realized during the taxable year
from the sale, barter, exchange or othez disposition
of shares of stock in a domestîc corporation, except
shares sold, or disposed of through the stock
ezchange.
SEC. 6. Section 25 of the NOtC, as amended, is hereby
further amended to read as follows:
”IEC. 25. f'az on Nori.resideuI étiez
“(A) Nouresident Alie›t Xngaged in Trade or
Buster Wilhin the Philippines. -

“(R) Nonresident Ælien Rudiuidu‹il Net En
goged in Trode or Business Within tire
Philippiztes.
•‹e i Amen iuiduai Employed by Regio„„ i or
Areo Beodquarters and Regional Operoiing
headquarters ofMuli:r“na0onal Companies. — There
ehall be leTied, collected and paid for each taxable
year upon the gross income received by every alien
individual employed byregionalor area headquarters
andre erating headquarters eatablished in
the Philippines by multinational compapies as
salaries, wages, annuities, compensatiôn,
remuneéation and other emoluments, such as
honoraria and allowanœs, f'rom euch regional or area
headquartera and regional operating headquarters,
a tax equal to fifteen percent (159i) of such grpss
income: Proc›lded, howec›er, That the same tax
treatment ahall apply to Filipinos employed and
occupying the same position ae those of aliens
emplo red bjr these multinational companies. For
purposes of this Chapter, the term ‘mu1tinat¡pna}
company'means a foreign Bzm or entity engaged in
international trade with affiliates or subsidiaries or
brnoeh offices in the Asia-Pacific Region and other
foreign markete.
“(D) Alien IWioiôual Empfoyed by shore
Banking Units. - There ahall be levied, collected
and paid for each taxable year upon the gross
income reserved b)r eeery alienindividual employed
by offshore banking nuits established in the
Philippines a6 salaries, wages, annuities,
compensation, remuneration and othez emoluments,
-ch ashonoraria an£l allowanœs, from suçh pgb}tpre
banking unite, atax equal tofiiteen pement (15’ñ) of
such groas income: f'rouided, Rtvet›er, That the lame
tax treatment shall apply toFilipinos employed and
occupying the same position as those of aliens
employed by thèse offshore banking units.
11
‘ (E) AU Indiuidual ffmployed by Petroleu.m
être Cnam thor ozid Jubcontrector. — An alien
individual who is apermanent accident of a foreign
country but who is employed and aaaigned in the
Philippines by a foreign service contraetor or by a
foreign service aubcontraetor engaged in petroleum
operations in the Philippines sh*ll be liable to ataa
of fikeen perdent (15•A) of the salaries, wages,
annuities, compensation, remuneration and other
emoluments, such as honoraria and allowances,
received from auch contractoz or aubcontraetor:
Rouidèd, Amener, Tbattbe same tsa treabnent aball
applyto aFiIipino employed and occupying the same
positiop as an alien employed by petroleum serviœ
contractor and subcontractor.
‘Any income earned from all other sources
within the Philippines by the alien emp@rees referred
to under Subaectiona (C), (D), and (E) hereof shall be
subject to tire pertinentincome tax, ae the case may
be, imposed under this Code.
”(£’) The preferential tai treatment providedin
Subsectiona (G), (D), and (E) of this Section ehaJl not
be applicable to tegional headquarters (RHQs),
regional operating headquarters (ROHQe), offshore
bankingunits(CtBUs)orpetroleum éerviœ contraeters
and aubcontractors registering with the Securities
an Escbange Coææission (SJ2C) after Jaouary
I, 2018: Prouided, hozc euer, Tbat esJstiog RB
s/ROII a, OBIJs or petroÎeoæ service contractors
and subcontractorspresently availing of preferential
tax ratea for qualified employees shrill continue
tobe entitled to availof the preferentialtax rate for
present and future qualified employees.”
SEC. 7. Section 27 of the NfftC, as amended, is hereby
further amended to read asfollows:
‘IEC. 27. Rates of Income Fax ou Domestic
 oføtockinadomemÔcœ rpmaóoDexoept8bareseold
ordïeposedoftbrougòt6eetocáexeImnge.

‘(C) Government-of ned or -Controlted

Cozporotiows, Jennies or ž strwnentali ties. — The
proviøionø ct existing øpeciai or general laws to the
œntrary notø'ithstanding, allcorporations, agencies,
or inøtrumentalities owned or controlled by the
Government, except the Government Service
(SSS), the Philippine łiealthlnøuranœ Corporation
(PHIG), and the local water districts øhall pair øuch
rate of'táxupontheir taxable income as are imposed
bg this 'Sećtion upon corporätione or associaÔons
engaged in a eiiáilar buøineeø, indüatry, or activity.
SEC. 8. Section 31 of the NIÏtC, aø amended, is hereby
further amended to readasfollnwa:
“SEC'. 31. Y£ DòleIncoz e De/ízred. — The
term 'taxable income’means the pertinent items of
gross inmme specified in this Code, lesø deductions,
if any, authorized for such types of income by this
Code or other special lays.°
SEC. 9. Section .32 of the NOtC, as aoie0ded, ishereby
further amended toread'ae follows:

’(D)ÆoMs o/ )bs on

“(1) interest /rom deposits end fśe/d or onş

otheròfonetory'Bmefihmm Deposit Eubuãtutes
from it Pu.rids end Similar Arrangements, end
2Ioy — Afìn.st taa at the mte of te'entyperœnt “(1) a z x
(20%) is herebjr imposed upon the aœountofintereat
on currency bank deposit and yield or any other
monetary beneÖt from deposit substitutes and from
truat funds and similar arrangements received by “(a) x x x
domestic corporations, and royalties, derived from
sources within the Philippines: bonded, however,
Thatintezeøtincomederived by adomesticonporation “(e) IN Month. Pay and, Œh.er Benefits. -
from a depository bank under the expanded foreign Großs benefits received by officials and employees of
currency deposit syatem shall be subject to a final public andprivate entities: Provided, however, That
income tax at the rate of fiíteenperœnt(15%)ofauch the total exclusion under this subparagraph ahall not
intereatin‹xime. exceed Ninety thousand pesos (P90,000) which eha}l
cover:
“(2) Capital Oates from the State of Sf«yreø of
Stock Not binded in iR Jtocù Esent nge. — A final ‘Gi Be•efitø received broificials and employees
tax atthe rate of£fftøenperœnt(15%) shallbeimposed of the national and local government pursuant to
on net capital gains realized during the taxable year ïtepublic Act No. 6686;
from the cafe, exchange or other diøpoaition oføbares
 °(n3 Benefits received by employees pursuant
to Presidential Decree No. 851, as amended by
Memorandum Order No. 28, dated Auguat 13, 1986;
‘(öi) Benefits received by offieiala and
employees not œveredby PzesidentialDecreeNo. 851,
as amended by Memorandum Order No. 28, dated
Auguat 13, 1986; and
further amended to read asfollows:
“(w) Other benefits such as productivité
incentives and Cluiatmas bonus."
SEC. 10. Section 33 of the NIRC, as amended, is hereby
further amended to read as follows:
‘SEC. 33. Special Treatment of Ariège
“A) Inc ••' •’•• • *•= - Effective January
1, 2018 and onwarda, a Hna1 tax of thirty-five
percent (35%) is hereby imposed on the groaned-up
monetarymlue offringe benefit furnished or granted
to the employee (except rank and file employees
as definedherein)by the employer, whether an
individual or a corporation (unless the fringe
benefit is required by the nature of, or necessary to
the trade, business or profession of the employer, or
when the fringe benefit is for the convenience or
advantage of the employer). The taa herein imposed
ispayable by the employer which tax shall be paid in
the same manner aapmvided:for under Section 57(A)
of this Code. The grossed-up monetary value of the
fringe benefit shall be determined by dividing the
actual monetary value of the fringe benefit by sixty-
five percent (65%) effective January' 1, 2018 and
onwards: Provided, ftomeuer, That fringe benefit
furniahedto employees and taxable u0der Subsections
(B), (G), (D), and (E) of Section 25 ahall be taaed at
the applicable rates imposed thereat: Provided.
if rther, That the greeted-up value of the fringe benefit
shall be determined by dividing the actual monetary
value of the:bfinge bene6t by the di:fference between
one hundred percent(l00•ñ) and the applicable rates
of income tax under Subsections (B), (C), (D), and (E)
of Section 25.
SEC. 11. Section 34 of the NDtC, as amended, is hereby
“SEC. 34. Deductions [rom Gross licorne. -
Except for taxpayers earning compensation income
ariaing :from peraonal services rendered under an
employer-employee relationabip where no deductions
shall be allowed under this Section, in computing
taxablë income subject to income taa under Sections
24(A); M(Aj; 26; 27(A), (B), and (C); and 28(A)(1), there
shnJl be allowed the tollowing deductions from gross
‘ (A) Expenses. —
‘(l) Ordinary and Necessary f 'rade, Business
or Professional Expenses. —
‘(a) I• General. — z z :x
‘ (L) Optimal Standard Dedmtion (OSD). —
Inlieu of the deductions allowed underthe preœding
Subsections, an individual subject to tax under
Section S4, other tlian a nonreaident alien, may elect
astandard deduction mari amount not exœedingfortjr
pement (40%) of his gross sales or grosa reeeipte, as
the case may be. In the case of a corporation aubject
to taa under Sections 27(A) and28(A)(1), it may elect
a standard deductiminanamountnotexceedingforty
percent(40%) ofits gross inmme ae defined inSection
32 of this Code. Unless the taxpayer signifies in lbs
return Iris intention to elect the optional standard
 • •v _ -
deduction, he ahallbe ‹xinaidered aa having availed
bîrogelfoft6e deducÔormsDowediùit6epr‹x›edîog
SP Suciieleetionwhenmadein thereturn
ahall be irrevocable for the taxable year for which
the return ie made: Provided, That an individual
whoisentitled toand claimedfnr theoptionaletandard
deduction shall not be required to submit with his
tax return such financial statements otherwise
required under this Code: Prouidrd, further, That a
general professional partnership and the partners
standard deduction only once, either by the general
pmfeesionalpartzierahip or the partners comprising
the partnership: Prouided, lnally, That exœptwhen
the Commissioner otherwise perlnits, the said
individual shall keep such recordapertaining to his
grèce sales or gross receipts, or the said corporation
shnjJkeep auch remrds peztaining to his gross inmme
as definedinSection32ofthis Godeduring thetaaable
year, asmay be reguired by therules andregulations
promulgated by the Secretary of Finance, upon
recommendationof the Gommiaaioner.
"Notw*tÎtstattdîag t)ze proviaione of tite
preœdîog Subsecôoosz, zz.”
SEC. 12. Section 35 of the NIRC, as amended, is hereby
repealeiL
SEC. 13. Section 51 of the NDtC, as amended, is hereby
further amended to read as follows:
“AEG. 51. Individuel Rettirns. —
NIJtC, as amended, is hereby inserted to read asfollows:
*(2) ’l'lte folloariog laôiviüuala aIæII ztot rte
requized to life aa laϾe taxcetuzo:
‘(a) Anindividualwhoae taxable income doea
not exceed Two hundred filter thousand peaos
(P250,000) under Secti‹m24(Aj(S)(a): TYovided,'I'hat
a citizen of the Philippines and any alien individual
engaged inbusiness or practice of pzofeeaion within
the Philippines shall file an income tax return,
regardless of the amount of groes income;
‘(5) The income tax return (ITR) shall consist
of a maximum of four (4) pages in paper form or
electronic form, and shall only contain the following
iaaf orma0oo:
‘(A) Personal profile and information;
“(8) Total grosa sales, receipts nr income from
compensationforaerviœs rendered, conduct oftrade
or business or the exercice of a profession, except
tuco ie subjeet to final tax aa provided under this
Code;
“(C) Allowable deductions under this Code;
“(D)Taxab1e income as defined in Section 31of
this Gode; and
“(E)Income tax due andpayable.
SEC. 14. Anew section designated as Section 51-A ofthe
“SEc. 5l-A susstin filip o/ducon rer
Ref uros b y Em plo yees Receiutng Purel y
Compensation Zitcome. — Individuel taxpayers
receixdng pureiy compensation income, regardlesa of
amount, from only one employer in the Philippines
'' . . - ûB _ -
for the calendax year, the iocome tax of which has
beenwii:hJield covrectly by the eaidemployer (tax due
equala tax withheld) ahall not be required to file an
annual income tax return. The certi6cate of
withholding Bled by the respective employers, duly
atamped 'reœived’ by the BIR, aball be tantamount
to the aubatîtuted filing ofincome taa retuzzis by said
employees.‘
SEC. 15. Section 52 of the NIRC, as amended, is hereby
further amended to read asfollows:
“SEC. 52. Corporation Returns. -
‘(A) 2tequiremerits. — Every corporation
subject to the tax hereiñ imposed, except foreign
corporañons not engaged in trade or business in the
Philippines, ahall render, in duplicate, a true and
accurate quarterly income tax return and final or
adjustment retazrn in accordance with the proviaione
of Chapter XII of this TiHe. The income tax return
ahallixinsist of a maximum of four (4) pages inpaper
formor electronic form, be filedbjr thepresident, vice-
preeidentor other principal offieer, abéll be aworn to
by such officer and by the treasurer or assistant
treasurer, and shall only contain the following
information:
‘(1) Corporate profile and information;
“(2) Gross aales, receipts or income from
services rendered, or conduct of trade or buainees,
except income subject to final tax as provided under
this Code;
“(3) Allowable deductions under this Code;
‘(4) Taxable income as deBned in Section 31
of this Code; and
‘(S) Income taa due andpayable.
‘ T ouided, That the foregoing prôvi ions ahall
not affect the implementation of Republic Act No.
10708 or 3ŒfI‘A
IEC. 16. Section 56 of the NIRC, as amended, is hereby
further amended to read asfollows:
”SEC. 56. Payr'tent and Assesumeist o/Jncome
f’ox/or Jndtciduols ond Cozporotions. —
"(A) Payment of Fax. -
“(1) z x x
'(S) Installment of Po meet. - When a tax due
is in exceas of Two thousand pesos (P2,000), the
taxpayer other than acorporation, may elect to pay
the tax in two (2) equalinstallments, in which case,
the firat installment shall be paid at the time the
return ia fled and the second inetallmenton or before
October 15following the eloae of the calendar year, if
any installment isnot paid on or before the date fixed
for itspayment, the whole amount of the tae:unpaid
becomes due and payable together with the
delinquency penalties."
SEC. 17. Section 57 of the NTRC, as amended, is hereby
further amended to read as follows:
‘SEG. 57. Wîthhotding of Tax at isource. -
‘ (8) Withholding o[CrediIable ’I'axat iSource.
— The Secretary of Finance may, upon the
recommendation of the Commissioner, require the
withholding of a tax on the items of income payable
to natural or juridical persons, residing in the
Philippines, by payor-corporation/persona as
provided for by law, at the rate of not less than
 ooeTjezœot(l'a) butsotæazetlæathlrt -twoperœztt
(32%) tbezeo:f, wbicb ekall rte credite‹I agaî•at the
ineome tax liabîlity of the taxpayer for the taxable
year: Provù2ed, That, beginning Januarjr 1, 2019,
the rate of witbholding ebaE not be less then one
perœnt(II) bttt not more tban fifteenpercent (15%)
ofthe income payment.
SEC. 18. Section 58 of the NITtC, as amended, is hereby
further amended to read as follows:
“SEc. 58. Return and Pa ymenl of fases
TPiifihefd at Source. —
taxable yeaz otz oubefôce May 15 o£tbe sæae taxable
yeaz.z z z
f’ns by Indiuiduais. - The amount of estimated
income as defined in Subsection (G) with respect to
which a declaratiiinisrequired under Subsection (A)
shall be paid in four (4) installments. The first
installment shall be paid at the time of declaration
and the second and third shall be paid onAugust 18
and November 15 of the current year, respectively.
Thefourthinstallment ahallbe paid on or before May
15 of the following calendar year when the final
adjusted income tax return is due to be filed.

SEC. 21. Section 79 of the NIRC, as amended, in hereby

fuztber aœeztAeö to read as follows:

‘"Ibe return for finalandcreditable withholding “SEC. 79. Zncome Fax Colleeted al Source. —
taxes shall be filed and the payment made not later
than the last day of the month following the close of
the quarter during which withholding was made.”

AEG. 19. Section 62 of the NIRC, as amended, is hereby “(C) 7ù /unds or Gredits. —
zepeale‹L
SEG. 20. Section 74 of the NIRC, as amended, is hereby
further amended to read asfollows:
‘(2) Employees. - x x z
“SEC. 74. Declaration of Income Fax for

“ (A) in General. - 2xeept as otherwise ‘(D) Withho ldiug ou Basis of Average

provided in this Section, every individualsubject to Wages. - x x. z
income tax under Sections 24 and 25(A) of this Title,
who is reœiving self-emplojnnent income, whether it “(1) x x x
constitutes the sole source of his income or in
combination with salaries, wages and other fîxed or “(2) x x xi and
determinable ineome, shall make and file a
declaration of his estimated ineome for the current
“(3) x x x.
 ‘(E) Nonresfdenl AU. — x xx
SEC. 22. Section 84 of the NIRC, as amended, is hereby
further amended to read as follows:
“SEC. 84. Rafe of Estote fr — There ehnll be
lesieB, asseaeeé, collected aad pai4 tipozt tbe
tmosferof’tbeoeteatateas detemfiz›edioaaxedaoce
wàth Sections 85 and 86 of every deeedent, whether
resident or nonreeident of the Philippines, a tax at
therate of six pement (6%) based on the value of auch
net estate."
fac. 2(.Section 86 où the NIRC, as aoiènded, is hereby
further amended to read asfollows:
“gie. 86. Computatia« ofNet Jï!state. — fi'oz
the purpose of the tax imposed in this Chaptes, the
value of the net eatate ahall be determioed:
“tA) Deductions Allowed to the Estate of o
C*tfzes or a Resident. - In the caae of a citizen or
resident of the Philippines, by deducting I:rom the
value of the grosa estate —
“(1) Stsndord Deduciiort . — An amount
equivalent to five million pesos (P6,000,000).
“(2) For claims against the estate: Provided,
That at the time the indebtedness was incurred the
debt instrument was duly notarized and, if the loan
was contracted within three (3) years before the death
of the decedent, the administratoz or executor .shall
submit a statement showing the disposition of the
procède of the loan.
“(3) For elaims of the deeeased against
inaolvent pensons where the value of
‹Iecedeo€aiotemstt6ezeioieîocüidediotbesalueof
le osæeetat
“(4) for unpaid mortgages upon, or any
indebtedneas inrespect to, property where the value
ofdeœdent'a interest therein, undizninished by auch
mortgage or indebtedness, in included in the valùe of
the groes estate, but not including any income taa
upon income reœived after the death of the decedent,
or propertytaxesnota‹xxvedbeforehis death, or amy
estate taa. The deduction herein allowed inthe case
of claizas against the eatate, uopaid mortgages or any
indebtednesa shall, whenfounded upon a pmmise or
agreement, be limited to the extent that they were
contracted bono /ide and for an adequate and full
»onai‹Îerationinmoneyor money's worth There ahaI1
aleobe ded dlomes ineurred duÖngthe eettlement
of the estate arising from fîree, atorms, ehipwreck,
or other caaualtiea, or from zobbery, theft ou
embezziement, when auchlosses are not compensated
for by insurance oz otheræise, and if at the time où
the filing of the return such losses have not been
claimed as a dednetion for the income tax purposes
in an income tax return, and provided ttiat auch
losses were incurred not later than the laat day for
the payment of the estate tax as preseribed in
Subsection (A) of Section 91.
“(5) Property Preuiovsly Taxed. - An amount
equal to the value gpecified below nt amy property
forming part of the gross estate aituated in the
Philippines of any pereon who died wàthin five (5)
years prior to the death ofthe deœdent, or transferred
to the decedent by gill within five (5) yeara prior to
his death, where such property can be identifîed as
having been reœived by the decedentfrom the donor
by gift, or from ouch prior decedent by gift, bequeat,
devise or inheritance, or which can de identiiäed as
having been acquired in exehange for property ao
reœived:
 ”Oae buodzeö pexcent t100%) o£tbe yaJue, I£
the death of the decedent, or if the property was
tranaferred to him bar gift, within the same period
hty perœnt (80%) of the value, if the prior
deœdent died more then one (1) year but not more
thantwo (2) yeare prior to the death of the decedent,
orifthe property was tranaferred to himby gift p¡
the same period prior to his death;
“Sixty percent (60%) olthe value, if the prior
decedent died more than two (2) yeara but not more
thanthree (3) yearsprior to the death oftbe deœdent,
out theprppertywaetranaferred to hiiô by gift within
the same periñd prior to tirsdeath;
‘T’orty perdent (40%) of the value, if the prior
deœdent died more than three (3) years but not æore
than four (4) yearsprior to the death of the deœdent,
orifthe property was traneferredto him by gift within
the same period prior to his death; and
"Twenty percent(20%) ofthe value, if the prior
decadent died more than four (4) yeara but not more
tean five (5) years prior to the death of the decedent,
or ifthepmpert¡r waetransfezredto him by gijj;within
the same period prior to his death
H'hese deductiona ahall be allowed only where
a donor’s taa, or estate tax imposed under this Title
waa finalljr deterœined and paid by or on behalf of
ouch donor, or the e8tate of such prior deeedent, as
the case may be, and only in the amount finally
determined as the value of such property in
determining the value of the gift, or the gross eatate
of such prior decedent, and onljr to the extent that
themlue of auchpropertyisincludedinthe deœdent’s
gross estate, and only ifin determining the value of
the estate of the prior decedent, no deduetion was
allowable under paragraph (5) in zeepect of the
property or properties given in exchange therefor.
Where a deduction wae allowed of any mortgage or
otbezlienin deterœöéngthe don&s tax, or the eatate
taa of the prior deœdent, which waa paid inwhole or
in part prior to the decedent’s death, then the
deduction allowable under said Subseetion shall be
reduced by the amouat ao paid. Sueh deduction
allowable ahallbe reduœd by an amount whichbeara
the same ratio to the amounts allowed as deductions
under paragraphe (2), (3), (4), and (6) of this
Subsection as the amountotherwiaededuetible under
said paragraph(ii) bears to the value of the decedent’e
estate. Wherethe property referred to consiste of too
ormore items, the aggregate value of auchitems shall
be usgd for the pv:rpoae ofcomputing the deductiom
‘(6) Trous/ers for Wbfic lyse. — The amount
of allbequeets, legacies, devises or tranefers to or for
the uae of the Government of the Republic of the
Philippines, or any political aubdiviaion thereof, for
exclusively public purposes.
”(7) f’he Pamrf2 Bo m.e. - An amount
equivalent to the current fair market value of the
decedent’a family home: f'rotizfed, however, That if
the saidcurrent fair market value exceeds Tenmillion
peeos (P10,0O0,000), the exeess ahall be subject to
“(8) Amount Received by Beirs Under Republic
Act No. 4917. - Any amount received by the heirs
from the decedent'a employee ae a consequence of the
death of the decedent-employee in accordance with
RepubEeAct No. 4917: Provided. That such amount
is included in the grose estate of the decedent.
“Q) Deduciious Af towed Io Nonresideni
Estates. - In the case ofa nonreaident n0t a citizen of
the Philippines, by deducting from the value of
that part of his grosa eatate which at the time ofhis
death iseituated inthe Philippines:
‘(1) Stowdard Deduetion. - An amount
equrmlentto Eive hundredthousandpesoe(P500,000);
“(2) Thatpmportion ofi2ie deduetions apecibed
in paragraphe (2), (3), and of Subaection
this Section which the value of auchpartbears to the
value of his entire gross estate wherever aituated;
“(4) 7'ransfers for Public Use. - The amount
of allbequeets, legacies, devices or transfers toor for
the use of the Government of the Republic of the
Philippines or any political subdivision thereof, for
exclusively public purposes.
“(C) Sknre in the Conjugal PropeR y. - The
net ahare of the surviving apouse in the conjugal
part;nerehip property as diminishedbytbe obligations
properly chargeable to such property ahall, for the
purpose of this Section, be deducted from the net
estate of the decedent.
‘(D) 'Pox Credit for E tate 7'oxes Paid to a
“(I) In Gemraf. — The tax imposed by this
Title shallbe credited with the amounts of any estate
tax imposed bar the authority of a foreign country.
“(2) £imrtotions or Credit. - The amount of
the credit taken under this Section ehall be subject
to each of the following limitations:
“(a) The amount où the creditin respect to the
tax paid to any country ahall not exceed the same
proportion of the tax againat which euch nedit ts
taken, which the deœ sœtestate aituatedwithin
auch countrr taxable uoder this Title beara to hia
entire net eatate; and
‘(b) The total amount of the credit shall not
ezceed the same proportion of the tax against which
such credit is taken, which the decedent’s net estate
situated outside the Philippinea taxable under this
Tifle bears to hia entire net eatate.”
IEC. 24. Section 89 of the NIRC, as amended, is hereby
repea1e‹:L
i5EC. 25. Section 90 of the NIRC, aa amended, is hereby
further amended to read asfollows:
‘SEC. 90. £stnte d’or 2teticrns. -
‘(A) ffequ*rements. — In all cases of transfère
suliject to the tax imposed herein, or regardlesa of
the gross value of the eatate, where the said estate
constate of registered or regrettable property such as
neal property, motos vehicle, shares of atock or other
similar property for which a clearance from the
Bureau oflntemal Revenue isiequired as acondition
preœdentfor the tranafer of ownership thereo£inthe
name of the transferee, the executor, or the
administrator, or any of the legal heirs, as the case
may be, shall file a return under oath in duplicate,
eehïngGm:R:
‘(1) x x x
 (3 Suc6partof8urôîoÆrmaÔonæeœæyat
the time be asœrtainable and auch aupplemeotal dgta
as maybe neceasary to eetablieh the correct taxea.
’Provided, houieuer, That eatate tax returns
showing a gross value exceeding Five million pesoa
(P5,000,000) abéilbe supported with a statement duly
certified to by a Certified Public Accountant
containing the fhllowing:
‘(B) Time for Piling. - For the purpose of
determining the estate taxpzoñded for in Section 84
ofthis Code, the estatë taxretuini requirèd uàder the
preceding Subeection (A) shallbe filed witbin one (1)
yearfrom the deœdent’s death.
SEG. 26. Section 91 of the NIRC, as amended, is hereby
further amended to read as follows:
“SEC. 91. Payment of f’or. -
"(A) Time of Payment. - z x z
‘(C) Payment by Jristoflctent. — In case the
available cash of the estate is insufficient to pay the
totalestate tax due, payment bar installment shall be
allowed within two (2) years from the statutory date
for its payment without civil penalty and interest.
' “SEC. 100. Trumper for Less 77ton Adequate
"(D) Ainbifity /or P‹ayment. — z z x.
S£iC. 27. Section 9† of the NlltC, as amended, is hereby
further amended to read as follows:
•SEc. s7. Payment of 7'ox An2ecedeni fr tfi
Tr' ansfer of phares, Bonds or Rights. - x x x..
W a bank has knowledge of the death of a
person, who maintained a bank deposit account alone,
or jointly with another, it abnll allow anjr witbfiraWal
from the said deposit account, subject to a final
withholding tax of six percent (6%). For thispurpose,
allwithdrawal clips sbnll contain a statement to the
effect that all of the joint depositors are atill lieing at
the time of withdrawal by any one of the joint
depositors and such statement shall be itnder oath
by the card depositors.”
SEC. 28. Section 99 of the NIRC, as amended, is herebg
further amended to read as fo0ows:
’(A) InGenerà.— TbeMxforeac6miendar
yearsballbesiiperceot(6%)computedontbebæi
oft6etoüU gûïsioexces6ofTmo6uodredfdtF
tbousaodpesos(P gift made during.
t6ecalendaryesr.
“(B) Anjr contribution in cashor in kind to any
candidate, political party or coalition of parties for
campaign purposes shallbe governed by the Section
Code, as amended.”
SEC. 29. Section 100 of the NIRC, aa amended, is hereby
further amended to read asfollows:
and Pull Consideration. — Where property, other
than real property referred to in Section 24(D),
 is tranaf:erred for less than an adequa.te and full
consideration in money or money's worth, then the
amouztt bjr æhich theføirmarket ofthep¢ppe
exceeded the vølue of the oonaideration shall, for thè
purpose of the taximpoeedbythisChapter, be deemed
a gift, and ehah beincluded in Øzoputing the amouøt
of (;iftø made during the calendar year: Provided,
haweuer, That a sale, exchange, or other transfer of
property made in the ordinarjr course of business
(a transaeÒon which is a box fide, at arm’s length,
andfree from any donative intent), will be considered
as made for an adequate and full conaidezation in
money or money's worth.”
further amended to read asfollows:
'sEC. 30. Section 101 of the NIRC, as amended, is hereby
further amended to read asfollows:
“SEC. 101. Exemptionof Certain. Gifts. - The
following gif1;e or donations øhall be exempt from the
tax provided for in this Chapter:
“(A) In the Case of Gifts Made by a ReMdent. -
“(1) Giftsmade toor for the uae oftbe National
Government or any entity created by any of its
agencies wlúch is not conducted for profit, or to any
poliócal subdivision of the said Government; and
“(2) Giks in fnvor of an educational andfor
charitable, religious, cultural or social welfare
corporation, institution, accredited nongovemment
organization, trust or philanthropic organizaóon or
research institution or organisation: Provided,
houieuer, That not more than thirty percent (30°Æ) of
said gifts shall be used by such donee for
admìnistraŁion purposes. For the purpose of thìs
exemption, a'non-pmfit educational and/or charitable
corporation, institution, accredited nongovernment
organizaóon, trust or philanthropic organization
and/or research institution or organization’ ia
a school, colle ge or university and/or
charitable corporation, accredited nongovernment
or reaearchinatitution or orgørii*ation, inm@Wtt'd
as a nonatock entity, paying no dividends, governed
bytrusteeø whoreceive noœmpenaatiøn, anddevoting
allitøincome, whether øtudents’fees or gifts, donation,
subsidies or other forms of philanthropy, to the
accomplishment and promotion of the purposes
enumerated in its Articles of IncotporatioiL
Sec. 31. Section 106 of the NIEC, aø amended, is hereby
‘SET. 106. Value-odded Tax on Sale of Goods
or Properties. —
“(A) 2tote and Bose o/ f’oz. — There shall be
levied, asseeeed and collected on evezy sale, barter or
exchange of goods or properties, a value-added tax
equivalent to txrelve percent(12%) of the groes selling
priœ or groes value in money ofthe goods orprepezties
cold, bartered or exchanged, such tax to be paid by
the seller or transferor.
“(1) x x z
“(2) The following sales by VAT-registered
persons shall be subject to zero percent (0%) rate:
)fixport IfiaIes. - ’Ï'be tecot ‘expos”t sales’
means.-
“(1) The sale andactual shipment of goods from
the Philippines to a foreign country, irrespective of
any shipping arrangement that may be agreed upon
which may influence or determine the transfer of
ownership of the goods so exported and paid ïõr in
aœeptable foreign currency or itø equivalent in goods
or aerriœs, and aœonntedfor in aecoi&nœ with the
rulea and regulations of the Bangko Sentzal rig
p¡yp (ggp);
‘(2) Sale and delivery of goods to:
‘(i) Reglstereil ezttezpziaes witlño a sepazate
custoœs tezzitarjr as pzovided uo‹Ier special Iaws; aad
‘(ii) Registered enterprises within tourism
enterprise zones as declared by the Tourism
andEnterpéee ZoneAutbority(I’fEZA)
subjectto the provisions under RepublicAct No. 9593
or The Tourism Act of 2009.
"(3) Sale of saw materials or packaging
materials to a nonresident buyer for delivery to a
resident localexport-orientedenterprise to be uaedin
manufacturing, proceeaing, packing or repacking in
the Philippines of the said buyer’s goods andpaid for
in acceptable foreign currency and accounted for in
accordance with the rules and regulations of the
Bangko Sentralng Pilipinaa (BSP);
“(4) Sale of raw materials or packaging
materials to export-oriented enterprise whose export
sales exceed seventy percent (70%) of total annual
“(5) Those considered export sales under
Executive Order No. 226, otherwise known as the
Omnibus Investment Code of 1987, and other special
1awsi and
“(6) The sale of goods, supplies, equipment and
fuel to persons engaged in internationalshipping or
international air transport operations: Provided,
That the goods, supplies, equipment andfxielaballbe
ueed for international shipping or air transport
operation.
M , That aubpatJagrap (3) (4),and (5)
hereof sball be subjeet to the twelve pement (12°A)
value-added tax and no longer be conaidered export
ealea eubject to zero pement (0ñ) VAT bal M§On
satisfaction of the foHowing C ndifiOO8'
“(1) The siiccesaful eatablishment and
determine the eifectivity of Item CO. 1, £lÏf applim
filed from Januatjr 1, 2018 shall be proœased and
muetbe ac idea withinninew leo) ea fr°m t*•
of the VAT refund application; and
‘(2) All pending VAT refund claims as of
December 31, 2017 shall be fully paid iO Cff4h by
December 31, 2019.
’Prouided, That the Department of Finance
shall eatablish a VATrefund center inthe Bureau of
InteznalRevenue (8IR) and inthe Bureau of Custom6
(BOG) that will handle the proeessing and grnntiog
ofcash refunds of creditable input tax.
‘An amount equivalentto five perdent (5%) Of
the total VAT collect;ion of the BIR and the BOCfrom
theimmediately preceding year shallbe automatically
appropriated annualiz and shall be treated as a
special account in the General Fund 0t & t receipts
for the purpose of funding 8 fOF VAT
tfund: sold, That any unused fund, at the end
of the year shall revert to the General Fund.
•prouided, Lr, That the BIR and the BOC
shall be required to submit to the Gongreaaional
Oeereight Committee on the Comprehenaive Tax
eeiorm Program (coccrsri q°arte*l *ep°'t °*
all pending claims for refund and any unused fund.

under special laws or international agreements to
which the Philippines ie a signatory effectively
eubjecta auch sales to zero rate.
‘zz x.”
SEC. 32. Section 107 of the NITtC, as amended, is hereby
further amended to read asfollows:
“SEC. 107. Value-added f’m on Importation
“() ..In General. - There shall be levied,
assesaed and collected on every importation of goods
avalue-added taxequivalent totæelve perœnt (12%)
baæd on the totalmlue uædby the Bureau ofCustoms
in detezmxining tariff and customa dutiea, plus
customa duGes, exciae taxes, if any, and other
charges, such tax to be paid by the importer prior to
the release of sueh goods from cuatnma eustody;
Prouided, That where the customs duties are
determioed on the basta of the quanÔty or volume of
the goods, the value-added tax shall be baaed on the
landed cost plus exciae taxes, if any.
“(B) 7'rons/er o f Goods b y fax-exem.pt
Perdons. — z z z”
AEG. 33. Section 108 olthe NIRC, aa amended, is hereby
further amended to read asfollows:
“SEC. 108. Value-added Tas on Safe o[
lseruices and Use or Lease of Proper & . -
“(A) ftote ond Base f 7-- - There ahall be
levied, assessed and collected, a palue-added tax
equimlent to twelve percent (12%) of grosa receipts
derived from the aale or exchange of services,
including the use or leaee of properties.
“The phraae 'sale or exehange of
services’ means the performance of all kinds of
services in the Philippines for others for a fee,
remuneration or eoneideration, in»luding thoee
performed or rendezed by construction and service
contractors; stock, real eatate, commercial, customs
andimmigration brokers; leæors ofproperty, whether
persorinl or real; warehouaing services; lessors or
distributors of cinematographie films; personc
engaged in milling, proœasing, manufacturing or
repacking goods for others; proprietors, operators or
keepers of hotels, motels, zesthouses, peneionhouses,
inna, records; proprietors oroperators of restaurants,
refreshment parlons, cales and other eaÔng places,
including clubs snJ caterers; dealers in eecurities;
lendinginvestors; tranaportationcontractors on their
transport of goods or cargoes, including pensons who
transport goods or cargoes for hire andother domeatic
eommon carriere bar land relative to their transport
of goods or cargoes; common carriers by air and sea
relative to their transport of passengere, goods or
eargoes from one place inthe Philippines to another
place in the Philippines; sales of electricity by
generation companies, transmission by any entity,
and distribution companies, including electric
oooperatives; services off:razichise grantees of electric
uti1ities,telephotie and telegraph, radio andtelevision
broadcasting and allother franchise graotees ezcept
those under Section 119 of this Code and non-life
ineurance companies (exeept their crop insurances),
including surety, fidelity, indemnity and bonding
mmpanies; and similar ærviœs tegardless ofwhether
or not the performance thereof calls for the exercice
or use of the physical or mental faculties. The
phrase ’sale or exchange of services’ shall likewise
‘(1) The leaae or the use of or the right or
privilege to use any copyright, patent, design or
model, plan, secret formula or process, goodwill,
trademark, trade brand or other likeproperty or right;
 36
‘(2) The lease ot the use of, or the right to use
8 F 88uetrial, commeTfial ou 8clentiffe equipment;
"(3) The supply of scientifie, teehnical,
industriel or commercial knowledge or information;
“(4) The supply of any assistance that is
ancillar3é and subsldiafjr to and is furnished as a
means of enabling the application or enjoyzuent of
any each property, or right as is mentioned in
subparagraph (2) or anjr such knowledge ou
information as is mentioned in aubparagraph(3);
.'(S) The suppljr of: services by a nonteeident
peraon or his employee in connection with the use or
P*oPeM or ri8hts belonging to, or the installation or
operation of any branil,machineryor other apparatua
pumhased from euch nonresident person;
“(6) The suppler of technical advice, assistance
or services rendered in connection with j;echnicaj
management or administration of ang scientifîc,
induntrîal or commercial undertaking, venture,
projector se.Leme;
“(7) The lease of motion picture films, films,
tapes and dises; and
“(8) The lease or the use of or the right to use
radio, television, satellite t:ransmiseion and cable
television time.
"Lease ofproperties shall be subjeet to the tax
herein imposed irreepective of the place where the
°8leaae or liœnaing agreement was executed
ifthe property is leased or used in the Plñlippines.
'The term ‘gross receipts’ means the total
Amount of money or its equivalent representing
the eontraet price, compensation, service fee,
reotMorroyæIty,ioWudIngfbeamouotcAargedfôr
adsnnœdpaymenteaet ally oreonatructiseJy zeœixed
during the taxable quarterfor the services perfnrmed
or to be performed for another person, excluding
value-addedW
“{B) Tronsnetions Sut¡Jeet to Zero Percmi (0%)
2tote. — The following services performed in the
Philippines by VAT-regieteredpersonseballbe su1:ject
to zero percent (0%) rate:
‘(l) Processing, manufacturing or repacking
goods for other pereons doing bueineee outside the
Philippines which gooda are aubaequenily exported,
where the services are paid for in acceptable foreign
currency and accounted for in accordance with the
rules and regulations of the Bangko Central rig
"t2) Serviœs other thanthoee mentimed in the
preceding paragraph, rendered to a person engaged
in bueineaa conducted outaîde the Philippines orto a
nonresident person not engaged in business who is
outside the Philippines when the aervicea are
performed, the consideration for which ispaid for in
acceptable foreign eurrency and accounted for in
accordance with the rules and regulations of the
Bangko Sentral ng Pilipinas (B8P);
“(3) Services rendered to persona or entitiee
whose exemption under speciallaws or international
agreements to which the Philippines is a signatory
effectively aubjects the supply of auch ærviœs to zero
pement(OU) rate;
“(4) Services rendered to persons engaged in
tatemaôosal slñpplag or iatematäoaaJ airDaziepozt
operaôoos, io¢ludîBg leases0fpzopezÿjrforuae tlzezeof:
ProuiBed, That theae services sliall be exclusive for
international shipping or air transport operations;

”(5) Services performed by subcontractors
andfor contractors in processing, converting, or
manufacturing goods for anenterpz4ae whose export
salea exceed seventy percent (70•A) of total annua}
‘(6) Transport of passengers and cargo by
domestic air or sea vessels from the PhilippineB to a
‘(7) Sale of power or fuel generated through
renewable sources of energy auch as, but not limited
to, biomass, solar, wind, hydropower, geothermal,
. ocean energjr, and other emerging energy sources
using technologies auch as fuel cells and hydrogen
:hiels.
(8) SerwicesrendereŒto:
“(i) Registered enterpriaes witbin aseparate
cuetoms territory asprovided under special law; and
‘(nQ Registered enterprises within tourism
enterpziee zones as declared by the TIEZA subject to
the provisions under Republic Act No. 9593 or
The 'tourism Act of 2009.
‘R•ooided, Thnt subparagraphs (B)(1) and
(B)(5) hereof shall be subject to the twelve percent
(12•ñ) value-added tax and no longer be subject to
zero percent (0%) VAT rate upon satisfaction of the
°&-
“(1) The successful establishment and
implementationof anefihanœd VAT refund syatem
that grants refïin‹ls of neditable input tax within
ninety (90) days f:rom the filing of the VAT refund
application with the Bureau: Prouided, That, to
aeter=ine the e$e titre«fitem no. 1, ailapplications
filed from Jranu 1, 2018 ahaJJ be processed and
!
3s '
muatbe de»iaed wiibini inch(eo) daP 6 »ntbeaiing
of the VATrefund application; and
"(2) All pending VAT refund claime as of
December 31, 2017 shall be fully paid in each by
December 31, 2019.
“Provided, That the Department of Finance
shall establish a VAT refund center in theBuzeau of
Internal Revenue (BIR) andintbe Bureau of Gustome
(BOG) that will handle the processing and granting
of each refunds of creditable input tax.
‘An amount equivalent to five pement (S'il) of
the total value-added taa collection of tite BIR and
the BOC from the immediately preœdingyear ahall
be automatically appropriated annually and ahallbe
treated aa a special account in the General Fund or
as truatreœipts for the purpose of fundingclaims for
VAT Refund: Ptovided, That any unused xind, at
the end of the year aballrevert tothe General Pund.
‘Moulded, ther, That the BIR and the BOC
shall be required to submit to the COCCTRP a
quarterljr report of allpending claims for refund and
any unused fun‹L”
SEC. 34. Section 109 of the NIRC, aa amended, ie hereby
further amended to read asfollows:
‘SEc. 109. Eveopt Transaciio•a.
(1) SubJectto the provisions of Subsection(2) hereof,
the following transactions ahall be exempt from the
value-addedtax:
 4o
(D) Importation of profeaøional inøtrumentø
and implements, tools of trade, occupation or
employment, wearing apparel, domestic animals. and
personal end household effects be1oziging toperaonø
mmingto settle inthePhilippines or Filipinos or their
families and descendants who are now residents or
citizens of other countries, such parties hereinafter
referred to aø overeeaa Filipinos, inquantities and of
the class suitable to the profession, rank or position
of the persons importing said items, for their own
use and not for barter or sale, aœompanying euch
persons, or arriving withìn a reasonable time:
Provided, That the Bureau of Customs may, upon
tÎte proüttction of satźsfãctozy evżüesae.that eu,cb
persons are actually coming to settle in the
Philippines and that the goods are brought from their
former place of abode, exempt øuch goods from
payment of duties and taaes: boarded, after, That
vehicles, veeaels, aircrafts, machineriee and other
similar gooda for use in manufacture, shall not full
witbintbis elaø•ü iinłion and aballtherefore be subject
to duties, taxes and other charges;
‘(E) Services subject to percentage tax under
Etle V;
“(F) Services by agricultural contract growers
and milling for others of palay into rice, corn into
grits and sugar cane into raw sugar;
‘((i) Medical, dental, hospital and veterinary
services except those rendered by professionals;
“(H) Educational services rendered by private
educaóonal institutions, duly accredited by the
Department of Education (DepEd), the Commission
on Higher Education (CHED), the Technical
Education and Skills Development Authority
(TESDA) and those rendered by government
educationalinstitutions;
"(I) Services rendered by indis4dualø pursuant
to anemployer-employeerelationship;
“(d) Services reordered by regional or area
headquarters established in the Philippines by
multinational corporations which act aø auperviaory,-
communicat;ions and coordinating centers for their
a&liateø, aubeidiaries or branćheø intheAaia-Pa‹úfic
gegion and do not earn or derive income Õom the
Philippines;
‘(K) Transactions whirh are exempt under
international agreements to whirh the Philippines is
aøignatory or under apeciallaws, exoept those under
Presidential Decree No. 529;
‘(L) Sales by agricultural cooperatives duly
registered with the Cooperative Development
Authority to their members as well as sale of their
produce, whether in its original etate or processed
form, to non-membeze; their importaÔon of direct
fărm inpute, machineries end equipment, including
øpare partø thereof, tobe uœddirectly and exclusively
in the production andfor proceeeing of their produœ;
”(M) Qroas receipts 6oæ leztóżztg acóvtÒes by
credit or multi-purpœe cooperatives duly registeud
with the Cooperative Development Authority;
“(N) Sales by non-agricultural, non-electric and
non-credit cooperatives duly registered with the
Cooperative Development Authority: Provided, That
the share capital contribution of each member does
not exceed Fifteen thousand peeos (P15,000) and
regardleaB of the aggregate capital and net surplus
ratably distributed among the members;
“(O) Export aalea by peraonø who are not
VAT-registered;
 “(P) Sale of rear properties not primarily held
for sale to customers or held for lease inthe ordinary
couree of trade or business or realproperty utilized
for low-met and socialized housing as defined by
RepublicAct No. 7279, otberwiaeieinwnastlie Urban
Development and Housing Act of 1992, and other
related lawa, residential lot valued at One million
fwe hundred thousand peaos (P1,500,000) andbelow,
houae and lot, and other residential dwellings valued
at Two million five hundred thousand pesos
(P2,500,000) aod below: J rouùfed, ’l'batbegîoozuag
January 1, 2021, the VATexemptinn ahall only apply
to aale ofrealpzppertiesnot primarilyheldforsale to
customers or held forleéseinthe ordinaryeourseof
trade or businesB, sale of real pmpertjr utilized for
socialized housing as defined by Itepublic Act No.
7279, aale of house andlot, and other residential
dwellings with selling price of not more than Two
million pesos (P2,000,000): Prouided. ther, That
every three (3) years thereafter, the amount
herein stated shallbe adjusted to itepresent value
using the Consumer Price Index, as published by
the Philippine Statistics Authority (PSA);
“(Q Lease of aresidential unit with a monthly
miital not exieedingFiiteenthoiisandpeeos(Pl5,000);
‘(R) Sale, importation, printing or publication
of books and any newspaper, magazine, review or
bulletinwhich appears atngular intervals withfixed
prices or subscription and sale and which is not
devoted principally to the publication of paid
advertiaements;
“(S) Transport of paasengera by international
carriere;
“(T) Sale, importation or lease of passenger or
cargo vesaela and aircraft, including engine,
equipment and apare parts thereof for domestic or
international transport operations;
“((I) Iz¢portation of fuel, goods and supplies bP
pereons engaged in international shipping or air
transport operations: R-ovidcd, That the fuel, goods,
and auppliea ehnll be used for international chipping
or air transport operations;
“(V) Services of bank, non-bank financial
IatemtedJarieapezfozœîog quaei-baoJôogfuoctîooe,
and other non-bank financialintermediaries;
“(W) Sale or lease of goods and services to senior
citizens and pernons with disability, asprovided under
Republic Act Nos. 9994 (Expanded Senior Citizens
Actof20l0) and 10754(AnAct Expandingthe Benefîte
and Privilèges of Persoñs With Disability);
respectively;
‘(R) Transfer of property pursuant to
Section 40(C)(2) of the NDtC, as amended;
“(Y) Association dues, membership fees, and
other asseasments and charges collected by
homeowners associations and condominium
‘(Z) Sale of gold to the Bangko Sentral ng
Pilipinas (BSP);
“(AA) Sale of drugs and medicines prescribed
for diabetes, high cholesterol, and hypertension
beginning January 1, 2019; and
“(8B) Sale orlease of goods or properties or the
performance of services other than the transactions
mentioned in the preœding paragraphe, the groes
annual sales and/or reœipts do not ezœed the amount
ofThree million pesos (P3,000,000).
 SOC. 35. Section 110 of the NIRC, as amended, is bezeb9
further amended to read ac follows:
’IEC. 110. Œlm‹?rM(r, -
“(A) Creditable Input 'Tax. -
"(2) x x x
"Provided, That the input tax on goods
purchased or imported in a calendar month for uae
in trade or business for which deduction for
depreciation is allowed under this Code shall be
spread evenly over the month of acquisition and the
fifty-nine (59) succeeding months if the aggregate
acquisition cost for such goods, excluding the YAT
component thereof, exceeds One million pesos
(Pl,000,000): Provided, Nowever, That if the
estimated uaeful life of the capital good is less than
five (5) years, as used for depreciation purposes, then
the input VAT shall be spread over such a shorter
period: mottled, further, That the amortisation of
the input VAT shall only be allowed untilDecember
31, 2021 after Which taxpajrers with unutilized input
VAT on capital gOOds purchased or imported shall be
allowed to apply the same as scheduled until fully
utilized: Prot'ided, finoll y, That in the case of
purchase of services, lease or use of properties, the
input tax shall be creditable to the purchaser, leesee
or liœnaee uponpayment oftbe œmpensation, rental,
royalty or lee.
SEG. 36. Section 112 of the NIRC, as amended. ts hereby
further amended to read as follows:
‘SOC. 112. ffr/izn6s or 2'm Credits o[ Input
’(G) Period wilhin wlrich Refund of ! •
Taxes ehall be Mode. - In proper cases, the
Commiasionersballgrant arefundlör creditable input
taxes 'within oinety (90) days from the date of
eubmiséîon oftbe ofllciaf reœipts or lnvoiœs andother
documents in support of the application filed in
aeeordance with Subsections (A) and (B) hereof:
Prouided, That should the Commisaioner find that
the grant of refund is not proper, the Gommiaaioner
muat atate in writing the legal and factual basis for
the deninl.
M caae offiillor partial denial of the claim for
tax refund, the taxpayer affected may, within thirty
(30) daya fzom thereceiptofthe decision denying the
cleim, appeal the decision with the Court of Tax
Appeals: Provided, however, That failure onthe part
ofanjr official, agent, or employee of the BIRto act on
the application within thenine@(90)-day period ehall
be punishable under Section 269 of this Code.
SEM. 37. Section 114 of the NIRC, as amended, is hereby
further amended to read as fol1ows.-
“SEc. 114. Reture and Pa yment of
‘(A) In General. - Every pereon fiable topay
the value-added tax imnoaed under this Etle shall
öle a quarterly return ofthe amountof his groae sales
or reœipts within twenty-five (2ii) daya following the
close of each taxable quarter prescribed for each
taxpayer.- T'rouided, howeuer, That VAT-regiatered
pensons ahalt pay the ealue-added tax on a monthly
baais: f'rooided, @t‹ally, That beginaing January 1,
2023, the fîling and payaient required under thia
Subsection shell be doœ withiotwenty-love (SS) days
following the cloee of esrh taxable quarter.
‘(C) HTtliholdiny of Value-added Töx. - The
Govemment or any of its political subdivisions,
instrumentalities or ageneies, including
govemment-owned or -eontrolled corporations
(OOCCs) shaft, before makingpajnnenton aecoimtof
eachpurchaae of goods and services which are subject
to the value-added tax imposed in Sections 106 and
108 ofthis Code, deduct and withholdthe value-added
tax imposed in Sections 106 and 108 où this Code,
deduct and witbhold a final value-added tax at the
rate of five perœnt(5m) of the gross payaient thereof:
Prooided, That beginning Janunry 1, 2021, thë VA’f
witholding system under thia Subsection shall shift
from hmm to a nedîtable system: Prouided, fier,
That the payment for lease or use of properties or
property righte to nomeeident owners shall be subjeet
to twelve percent (12%) withholding tax at the time
of payaient: Prauided, 3noify, That payments for
purchases of goods andservices arising from pmjects
funded bjr Œficial DeeelopmentAssiatanœ (ODA) as
defined under Republic Art No. 8182, otherwîse
kitown as the ’OffiÖal DevelopmentAasîatanœ Act of
1996’, aa amended, ahall not be aubject to the final
e'ithholding tax system asimposed in thisSubsection
For purposes of thie Section, the payor or person in
control of the payment ahall be eonaidered as the
witbholding agent.
IEC. 38. Section 116 of the NIRC, as amended, ishereby
further amended to read asfollows:
‘SEC. 116. 7'nz ou Personas Exempt from
Value d 2’er(V . — Any person whoae sales oz
receipts are ezempt under Section 109 (8B) of this
Code from the paymentofvalue-addedtax and who is
not aVAT-registeredpersonehallpay a taxequisalent
to three percent (3%) of his groes quarterly aales or
receipts: Provided, That moperatives, and begitming
January 1, 2019, self-employed andpmfeeeionalswith
total annual gross sales andfor gross receipts not
exceeding Five hundred thousand pesos (P500,000)
shall be ezempt from the three percent (3%) grose
receipts tax herein imposed.”
SEc. 39. Section 127 of the NIRC, aa amended, is hereby
fxœther amended to read as foltows:
‘SEC. 127. Z'‹ax on dale, Barder or Exchange
lo cal Stock Exchange or through initial Public
O feNng. -
“(A) Tgy on Hate, Barter or Mackay ge of Shares
ofstocle L isted and Tran:led tlsnougk ltte Lonal lSioek
Exchange. — There shall be levied, asseaeed and
collected on every sale, barter, exchange or other
disposition ofsharee of stoeklisted andtraded through
the local stock exchange other than the aale by a
dealer in securities, a taa at the rate of aix•tenths of
one percent (6/10 of 1%) of the gross selling price or
gross value in money of the shares of stock sold,
bartered, exchanged or otherwise disposed which ehall
be paid by the seller or transferor.
 4s
SEC. 40. Section 128 of the NIRC, as amended, ie hereby
ftirtlier amended to read ac folloWs:
"Sse. 128. 2teturns ond Po yment o[
Percentoge 2’‹zxes. —
‘(A) x x x
‘(1) a z x
‘(2) Pensons Retiri g nom Business. — x x x
‘(3) Deteririinaiion o‘f Correct Sates° or
Receipts. - x x. x.
"x x x.”
SEC. 41. Section 129, Chaptes 1 of Title VI of the NOtC,
as amended, ta hereby furtber amended to read asfollows:
’TWLET9-EACISETAÆESONGERTAIN
GOODSAND SERVICES
°C8APTER 1— GENERAL PROVISIONS
‘SEC. 129. Gods and Services Subject to
£oise S'‹aoc. — Excise taxes apply to goods
manufactured or produced in the Philippines for
domestic sales or consumption or for any other
disposition and to things imported as well ascervixes
performed in the Philippines. The excise tax imposed
herein shgll be in addition to the value-added tax
imposed under Title IV.
for purpoees of thisTitle, excise taxea herein
imposed and baaed on weight or volume capacity or
and other phyaical unit of measurement ehall be
referred to as ’epecifie tax’ and an excise tax herein
imposed end based on sellingpriœ or other apecified
value ofthe good or aerviœper:formedsballbe refërzed
to ac 'ad valorem tax.’ "
SEC. 42. Section 145 of the NDtC, as amended, ie hereby
further amended toread asfn1loca:
•szo. i4s. Cïgars ond Cigarettes. -
“(A) -zz z
‘(E) Cigarettes Thru by Zfand. - There ahall
be levied, assessed and collected on cigarettes
packed by hand anexcise taa based on the following
aébedules:
‘Effective on January 1, 2018 until June
30, 3018, Thirty-two pesos and fiitP °enta*os
(P32.50)perpaek;
“Elleetive on July 1, 2018 until December
31, 2019, Thirty-five pesos (P3S.00) per
‘Effective on January 1, 2020 untîl
December 31, 2021, Thirty-seven pesos and ftfty
centavos (P37.50) per pack; and
‘Effective on January 1, 2022 unttl
December 31, 2023, Fortypesos (P40.00) per pack.
H'he rates of tax imposed under this subsection
shall be increased by four percent (4%) every year
ef:festive on January 1, 2024, through revenue
regulations issued by the Secretary ofFinance.
Duly registered cigarettes packed by hand
ahalloa1y bepackedin twentiee and other packaging
combinations of not more than twenty.
‘‘Cigarettes packed by hand’ shall Hter tothe
manner of packaging of cigarette aticke using an
individualpereon’s hands andnot through any other
means such as a mechanical devioe, machine or
equipment.

“(G) Cigars died by Mat•hiTte. — There
ahall be levied, aasesaed and collected on cigarettes
packedbyma‹:lxine a tax at the rates presc@bedbelow:
”Effective on January 1, 2018 until June
30, 2018, the taa on all cigarettes packed by
machine ahall be Tbirty-two pesoe and fifty centavœ
(P32.50) per paeki
"Effective on Julr 1, 2018 until December
31, 2019, the tax on all cigarettes packed by
machine shall be Thirty-five peeoa (P35.00) per
pack;
“Effective on January 1, 2020 until
December 31, 2021, the tag on all cigarettes packed
by machine shall be Thirty-seven pesos and fifty
centavos (P37.50) per pack; and
‘Effective on Jan uarjr 1, 2022 until
December 31, 2023, the tax on all cigarettes packed
by machine shall be Forty pesos (P40.00) per pack
H'he rates of taximposedunder thisSubsection
ahall be increased by four percent (4%) every year
thereafter effective on January 1, 2024, through
revenue regulations issued by the Secretary of
IEC. 43. Section 148 of the NIRC, as amended, is
hereby further amended to read asfollows:
‘SEC. 148. Mgnufaciured Oil» and Other
Ils. — There shall be collected on refined and
manufaetured minerai oils and motor fuels, the
following excise taxes which shall attachto the goods
hereunder enumerated asaoon asthey are inexistence
as auch:
si
BecLive ùaouazjr 1, Z018
”(a) Lubriotting eiie and greaeee, ineluding but
not limited to, baaeate‹:L for lube oils and greaaes,
higheacuum distillates, anomalie eatracte andotber
similar preparaÔons, and additivea for lubûcating
oilsand greases, whether aueh additives erepetroleuœ
based or not, per liter and k:ilogram, reepectieely, of
volume capacity or weight, Eight peeoa (P8.00):
lo ided, That lubricating oils and greasea prodnœd
from basestoeLs and additivea on vrhich the ezcise
taxhas akeady been paid shall no longer be subjeet
toexeise tax: f'rotided, plier, Tbatlocally produœd
or imported oils previpusly taxed as such but are
aubaequently reproceaaed, refined or recycled ehell
likewiee be aubject to the tax impoeed under this
Subsectîon;
“(b) Proœssed gas, per liter ofvoiume capacité,
Eight pesoa (P8.00);
”(c) Waxes and petrolatum, per kilogram,
Eight pesos (P8.00);
‘\d) Ondenatured alcohol tobe need formotive
power, per liter of volume capacity, Eight pesos
(P8.00): Provided, That unless otherwise provided
by speciallaws, ifthe denatured alcohol ismixed with
gasoline, the exciee tax on which has akeady been
paid, only the alcohol content shall be subject to the
tax herein prescribed. For purposes of this
Subsection, the removal of denatured alcohol of not
leas than one hundred eighty degrees (180°) proof
(ninety percent (90%) absolute alcohol) shall be
deemed to have beenremovedfor motive power, unless
SONORE,
“(e) Naphtha, regular gasoline, pyrolysis
gasoline and other similar products of distillation,
per liter of eolume capaeity, Seven pesos (P7.00):
Provided, however, That naphtha and
pyrolyais gasoline, when used ae a raw material in
the production of petrochemical products, or in the
refining ofpeteoleum products, or asreplacementfuel
for natural-gaa-fired-combined cycle power plant in
lieu of locally-extracted natural gaa during the
non-availability thereof, subject to the rules rind
regulations to be pmmulgated by the Secretary of
Finance, per liter of eolume capacity, zero (PO.00):
Moulded, /i -ther, That the production of petroleum
products, Whether or not they are classified as
products of distillation and for use solely for the
production of gasoline ahall be exempt from excise
tax: Pror’ided. finally, That the by-product including
fuel oil, dieeel fuel, kerosené, pyrolyais gasoline,
liquefied petroleum gases, and einiilar oils hav:iñg
more or less the same generating power, whirh are
produced in the proeeeeing of naphtha into
petrochemical products shall be subject to the
applicable excise tax specified in this Section, except
when suchbjr-products m transferred to any of the
localoilrefineries through sale, barter or exchange,
for the purpose of further processing or blending into
fini.*bedpzoductswhic1iare eulijeet toexcise tax under
this Section;
‘(i) Unleaded premium gasoline, per liter of.
volume capacity, Seven pesos (P7.00);
‘(g) Aviation turbo jet fuel, gas, per
liter of volume capacity, Four pesos (P4.00);
‘(h) kerosene, per liter of volume capacity,
Three pesos (P3.00): Proud, That kerosene, when
used as aviation fuel, shall be subject to the aame tax
on aviation turbo jet fuel under the preceding
• high vacuum
paragraph (g), such tax to be assessed on the user
thereon
per liter of volume capacity. Two pesoa and fifiZ
liquefied petroleum gas, per kilogram,
Onepeso (PI.00): d, Tbat liquefiedpetroleum
gusw6eousedas raw matetinl in the productio° °
petrochemical products, subject to the rules and
regulations to be promulgated by the Secretary of
taaed sero (P0.00) per ltilogram:
“Prouid d, Finally, Tbatliquefiedpetroleum a>
used for motive power the taxed at the equimlent
rate as the excise tax on diesel fuel oil;
(k) Asphalts, per kilogram, Eight pesos (P8.00):
(}) Buolrez fuel oil, ao6 ozt sim az J'ue1 oils
having more or less the same generating power, per
liter of volume capaciw,Two pesos and fiftY •
(P2.50): Provided, lix/weuer, That the excise taxes
paid on the purchased basestock (hunker) used in the
manufacture of excisable articles and forming p
thereof shall be credited against the excise tax due
therefrom; and
Petroleum coke, per metrié ton, Two pesos
andfifty centavos (P2.50)a PtD Vided,
perfleum coke, when used asfeedstock IO anypomer
generatingfacility, per metric ton, ze*° (PO.00).
Effective January 1, 2019
"(a) Lubo‹=m oils and greases, inch @g @ t
not limited to, basestock for lube oils and greases,
tes, aromatic extracts and other
prepam6oos, ana additives for lubriea °
and greases, whether such additives are petroleum
 based or not, per liter 6]d]ogcazo, respect fireljr, of

“(i) Diesel fuel oil, and on similar fiiel oils volume capacity or weight, Nine pesos (P9.00)°

having more or less the same generating power, Provided, That lubricating° and greases produced
 54
from baseatocke and additives on whieh the excise
tax has already been paid shall no longer be aubjeet
toexciae tax: TYordIet, after, Thatletaliy pzoduœd
or imported oila previoualy taxed as euch but are
aubeequently zeproœaaed, rerefined or recycled ahall
likewise be aubject to the tax imposed under this
Subsectioœ
“(b) Proœaaed gas, per liter of volume capacité,
Nine peaos (P9.00);
‘(c) Waxes and petrolatum, per kilogram,
Ninepeeos (P9.00);
‘(d) Ondenatured alcohol tobe usedfor emotive
power, per liter of volume ‹opacity, Nine peaos (P9.00):
Provided, That unleas otherwise provided by special
1awa, if the denatured alcohol ismixed with gasoline,
the excise tax on which hae akeady been paid, only
the alcoholcontent shall be subject to the tax herein
pzeacribed. For purposes of this Subsection, the
removal of denatured alcohol of not lees than one
hundred eighty degrees (180°) proof(ninety percent
(90%) absolute alcohol) shallbe deemed to have been
removed for motive power, unless shown otherwise;
“(e) Naphtha, regular gasoline, pyrolyais
gasoline, and other similar produets of distillation,
per liter of volume capacity, Nine pesos (P9.00):
Prouided, howeuer, That naphtha and pyolysis
gasoline, when used as a raw material in the
production of petrochemical products, or in the
reflniog of petroleum pnxlucts, or as replaœment fuel
for natural-gas-fired-combined cycle power plant in
lieu of locally-extracted natural gas during the
non-availability thereof, aubject to the rules and
regulations to be promulgated by the Senetary of
Finance, per liter of volume capacity, zero (PO.00):
Trooided, her, That tire production of petroleum
products, whether or not they are olassified as
products of distillation and for use solely for the
55
production of gasoline shall be exempt from excise
Provided, linall y, That the by-product including
fuel oil, diesel fuel, kerosene, pyzolyais gasoline,
liquefied petroleum gases and similar oils haxdng
znoxe oz leee the same generating power, which are
produced in the processing of naphtha into
petrochemical products shall be subject to the
applicable excise tax specified inthis Section, exoept
when such by-products are transferred to any of the
local oilrefineries through sale, barter or exchange,
for the purpose of further proœasing or blendinginto
6niahedproductswhich;ueaulijectto excise tax under
this Section;
°(f) Ualgaded premiiun gasoline, per liter of
volume capacity, Nine pesos (P9.00);
“(g) Aviation turbo jet fuel, aviation gas, per
liter of volume capacity, Four pesos (P4.00);
"(h) kerosene, per liter of volume capacity,
Four pesos (P4.00): Provided, That kerosene, when
used as aviation fuel, aballbe subject to the same tax
on 'aviation turbo jet fuel under the preceding
paragraph (g), such tax to be assessed on the user
“(i) Dieael fuel oil, and on aimilar fuel oils
having more or leas the same generating power, per
liter ofvolume capacité, Four peeœ andfifty œntavos
(P4.50);
‘(g Liquefied petroleum gas, per kilogram,
'I\eopeaos(f'2.00). /'/ouùÎed, Tbatliqueöe6petzoleura
gaa when used aa raw material in the production of
petrochemical products, subject to the rules and
regulations to be promulgated by the isenetary of
Finance, per kilogram, zero (P0.00): Provided,
$noffy, That liquefiedpetroleum gaa uaed for motive
power shall be taxed at the equivalent rate as the
excise tax on dieselfuel oil;
 s6
’(k) Asp1isÏte,perIôlogr Vioepeeos(]/B.Qp);
“(I) Bunker fuel oil, and on simiJar fuel otis
having more or less the same generatingpower,per
filer ofvolume capacité, Four peeoa and lilly œntavos
(P4.50): f'ropided, homeoer, That the excise taxes
paid onthe purehased baseetock (bunker) used inthe
manufaeture of excisable articles and iorming part
thereof shslJ be credited againet the ezcise tax due
therefrom; and
‘(m) Petroleum coke, per metricton, Fourpesos
and fifty centavos (P4.50): f'ropided, however, That,
petroleuñt coke, when used asfeedstock to anypomer
generating facility, per metric ton, pro (PO.00).
ecñseJaDuaz 1,2020
‘(a) Lubricating oils and greases, including but
not limited to, baseatock for lube oils and greases,
high vacuum distillates, aromañc extracts and other
similar preparations, and additives for lubricating
oils and greases, whether such additives arepetroleum
based or not, per liter and kilogram, respectively, of
volume capacity or weight, Ten pesos (P10.00):
Provided, Thatlubrieating oils and greases produced
from basestocJts and additives on which the excise
tax6 æ aIreadybeenpaiŒ sfiaJl nolorgerbe6ubjed
to excise tax: Provided, Jrtfier. Thatlocallyproduced
or imported oils previously taxed as such but are
subsequently reprocessed, rerefined or recycled shall
likewise be subject to the tax imposed under this
“(b) Proœssed gas,per liter of Polume capacité,
Ten pesos (Pl0.00);
“(c) Waxes and petrolatum, per kilogram, Ten
pesos (P10.00);
power, per liter of volume capacity, Ten pesos
(PI0.00): boarded, That unlees otherwise provided
by speciallaws, ifthe denatuzed almholis mixed with
gasoline, the excise tax on which has already been
paid, only the alcohol content shrill be subject to the
tax herein prescribed. For purposes of this
Subsection, the removal of denatured alcohol ofnot
less than one hundred eighty degrees (l80•) proof
(ninety percent (90%) absolute alcohol) shall be
deemed tohave beenremoved for motivepower, nut.e e
shown otherwise;
(e) Naphtha, regular gasoline, pyolysis
gas‹:line ‘änd other products of distillatipn,
per liter of volume capacitjr, Ten pesos (P10.00):
Prooided, forever, That naphtha and pyiolysis
gaaoline, when used as a raw material in the
production of petrochemieal products, or in the
refîning of petroleum products or asreplaœmentfuel
for natural-gas-fired-combinedcycle power plantin
lieu o[ locally-extracted naturel gas during the
non-availabiliÿJr thereof, subject to the rules and
regulations to be promulgated by the Secretarjr of
Finance, per liter of volume capacity, zero (P0.00):
Prouided, fier, That the production ofpetroleum
pzoducts, whether or not their are elassified as
produets of distillation and for use aolely for the
production of gasoline shall be exempt fiom excise
taa. Pro’uuled, dinahy, That the by-productincluding
fuel oil, diesel fuel, kerosene, pyrolyais gasoline,
liquefied petroleum gases and similar oils having
more or less the same generating power, whieh are
produced in the processing of naphtha into
petrochemical products ehall be subjeet to the
applicable ezcise tax apecified in this Section, ezcept
when such by-produits are transferred to any of the
local oil refineries through sale, barter or exchange,
for thepurpose offurther proceseing or blendinginto
fîniohed produite which are subject toeaciaetaxunder
thia Section;
 “(I) Unleaded premium gasoline, per liter of
volume capacity, Ten peaos (Pl0.00);
“(g) Aviation turbo jet fuel, aviation gas, per
liter of volume eapacity, Four pesos (P4.00);
“(h) Beroeene, per liter of volume capacity,
Five pesos (P5.00): Provided, That kerosene, when
used as aviationfue( shallbe subject to the same taa
on aviation turbo jet fuel under the preceding
paragraph (g), such tax to be asaeaaed on the user
there‹d;
- ”(i) Diesel fuel oil, and on aimilar fuel oila
having more or less the aame genèrating power, per
Six peaos (P6.00);
“(j) Liquefied petroleum gas, per kilogram,
Three pesos (P3.00): Provided, That liquefied
petroleum gas when used as raw material in the
production of petrocliemicalpzoducts, subject to the
rules and regulations to be promulgated by the
Secretary of Finance, per kilogram, zero (P0.00):
Prouided ,h Thatliquefied petroleum gas need
for moñve power shall be taxed at the equivalent rate
as the eaeise tax on diesel fuel oil;
“(k) Asphalts, per kilogram, Ten pesos
(P10.00);
‘(I) Bunter fuel oil, and on similar fuel oils
having more or lees the same generating power, per
liter of volume capacity, Siapeeos (P6.00): Woviéed,
keener, That the exciee taxes paid on the purchased
basestock (bunker) used in the manufacture of
excusable articles and forming part thereof shall be
credited against the excise tae due therefrom; and
“(m) Petroleum coke, per metric ton, Six pesos
(P6.00): Provided, fiowei er, That, petroleum coke,
when used aa feedstock to any power generating
Tetroleum pzoducte, including naphtha, LPG,
petroleum colre, refinery fuel and other products of
diatillation, when used as input, feedatock or asraw
material in the manufacturing of petroehemical
products, or in the refîning ef petroleum producte, or
asreplacement fuel for natural-gas-fzred-mmbined
cycle power plantin lieu oflocally-extractednaturel
gasduring the non-availability thezeot Sect to the
rules and regulatione to be promulgated by the
Secretary of Finance, per liter of volume capacity,
zero (PO.00): f'rooided, That the by-productincluding
fuel oil, diesel fuel, kerosene, pyrolysis gasoline,
liquefied petroleum gases, and eimilar oils having
more or less the same generating power, w1iich are
produced in. the péoeessing of naphtha into
petröehemical produets shall be subject to the
applicable excise tax epecîfied in this Section, except
when auch by-products are tranaferred to any of the
local oil refzneries through sale, barter or ezcliange,
f:or the purpoee of furtlier proœselng or blending into
finiahedpzoducts which areaubject toexcise tax under
this Section.
‘Tor the period covering 2018 to 2020, the
facility, per metric ton, zero (P0.00).
echeduledincreaeein the exñse tax onfuel asimposed in this
Section shall be suspended when the average Dubai crude oil
price based on Mean of Platts Singapore (MOPS) for three (3)
montha prior to the scheduled increase of the month reaches or
exceeds Eighty dollars (USD 80) per barrel.

‘Provided, That the Deparonent of Finance sballperform

an annual review of theimplementation ofthe excisetax onfuel
and shall, based onpJections provided and recommendations of
the Development Budget Coordination S omal ttee, as reconciled
from the conditions as provided above, recommend the
implementation or suspension of the excise tax on fuel:
Provided, fur u'r, That the recommendation shall be green on
a yearly basis: Pr»vd. hmt!s, That any auspeneion of the
increase in exciee tax ahall not result in any reduction of the
exciée tax being imposed at the time ot the suspension.”
 60’
SEC. 44. A new section designated as Section I4ß-A
under Chapter V of the NDtC, as amended, is hereby inserted
toread asfollows:
‘SEC. 148-A. Mandal or y 2'fart i eg of AH
Petroleum. Products. - In accordance with rules
and regulations to be issued by the Secretary of
Finance, in consultation with the Commissioner of
Internal Revenue and Commissioner of Guatoms and
in coordination with the Secretary of Energy, the
Senetary of Finance øhall require the use of an
official fuel marking or similar technology on
petroleum products that are refined, manufactured,
or importèd into thePhilippines, and that are sheet
to. the payment of taxes and duties, øuch as but not
limited to, uoleadedpremíum gasoline, kerosene, and
dieøel fueloil after the taaes and dutiea thereon have
beenpaid. The mandatory marking of allpetroleum
products nhaJJ be in accordance with the following:
“(a) O I ôforbers. — There shall be a liat
of chemical additives and corresponding quantitative
ratio as identified by the Secretary of Finance as
official fuel markers. The official fuelmarkers shall
be distinct and, to the greatest degree possible,
impossible to imitate or replicate: Provided. That
the official fuel marker muat be unique to the
Philippines and that its chemical composition and
quanôtatiee ratio must persist for at least three (3)
years from their applicaõon or administration to the
unmarked fuel;
“(b) The person, entity, or taxpayer who owns
or entezs the petroleum pzoducte into the country, or
the person to whom the petroleum products are
consigned shall cauee and accommodate the marking
of the petroleum products with the offieialmarking
agent;
“(c) Internal revenue or customs officers shell
be on site to administer the declaration of the tax
and dutieø imposed on the petroleum producte and to
si
the petroleum products w 5Q QO f1OR TOWN the
nfficiø] marker or which contain the official marker
but are diluted beyond the acceptable percentage
approved by the Secretary of Finance are found in
the domesticmarket or in the possession of anyone,
or under any eid;uationw1iere ßaid petroleum products
are subject to duties and taaes, it shall be presumed
that the same were withdrawn with the intention to
emdethepa ment ofthetaxes andduties due thereon;
(e) The use of Õaudulent marker on the
petroleum products shall be considered prima foeie
evidence that the aame have been withdrawn or
imported without the payment of taxes and duties
due thereon;
—The government ehallengage onljr onefuelmazking
provider who ehall, under the supervision and
direction of the Commisøionera of Intej•øøl Revenue
and Customs, be responsible for providing, mo
storing, and administering the fuel markers, pr
vide equipment and deviœs, conduct field and
eonÕrmatory tests, and perform such other acts
incidental or necessary tothe proper implementation
of the provisions of this Act: Provided, That the fuel
markingprovider shallprovide anend-to-endsolil łior
to the Government, including the establiahmeTft and
operation ok tesÕng facilities that are centred to
ISO 17025;
# Vc outspertalningt0ì6epæocmementof
the ofbcial fuelmarkers shallbe borne by the rebner,
manufacturer or importer, of petroleum products,
as the case may be: Provided, That the government
may subsidize the cost of oØtcial fuelmarkers in the
firøt year of implementation;
_ +r -=•=- =.--› -.. • -.
 “(h) Cf 3farb*ng Progrès Tunis. — In
addition to any appropriation to implement this
Section and the laat paragraph of Section 171 of this
Act, fees or charges collected in relation to the fuel
marking program may be recorded as truat reœipte
of the implementing agencies, andshall be exclusively
disbursed todefray the coetof eervicea or equipment
required to fuIiy implement the aaid program, subject
to rulea and regulations to be issued by the DOF-
DBM-COApermanent committee;
‘(i) The marking of petroleum products shall
be mandatorywithinhve (5) years from the effectivity
of this Act; and
‘ij) The term 'random field teet’ shall refer to
periodic random inspections and tests performed to
establish qualitative and quantitative positive reeult
offuel traificking, wlñch are conducted onfuels found
in warehouses, storage tanLs, gas stations and other
retail outlets, and in aueh other properties or
O*A OIÖO#
of persons engaged in the aale, delivery, trading,
transportation, distribution, or importation of fuel
intended for domestic market.
‘be term'confirmatory tests’ shall refer to the
accurate and precise analjrtical teat of the teeted
unmarked, adulterated, or diluted fuel using adevice,
tool or equipment which will validate and confirm
the result of the field test, that is immediately
conducted in an accredited testing facility that is
certified to ISO 17025.”
SEC. 4S. Section 149, Chapter 6 of 'Ntle VI of the NIRC,
as amended, is hereby further amended to read as follows:
“CIJAPTER V1 —EXCISE TAX ON MISCELLANEOUS
ARTICLES
“SEC. 149. Automo biles. - There shall be
levied, assesaed and eollected an nd oaforem tax on
automobiles baaed on the manulacturer’s or
importer’a eellingpÔœ, net of exerce "°d *>
M œ M ŒŒ efoIbwingmAedl :
'jjBè‹;dwJænuaryI,S018
ce/
pesns (P600,ti00)
“£fver Six hundred thousand peeos
(P600,000) to One million
peeos (P1,000,@0) Ten pezcent (105)
’CherOne.eûHWo pèse(Fl,000,000)
to Four million pe«oa (P4,000,000) T ee°lrP"ree°t t *1
“Over Four million peeos (P4,000,000) Pe cent t *)
’Prouided, That hybrid vehicles shall be
subject to lilly perœnt (5O•A) of the applicable excîse
taa rates on automobiles under this Section:
Prouided, /urtker, That purely electric vehicles and
picJ¢-ups ahaII be ezeæpt 6oæ ezcise taz ozt
‘As used in this Section —
“(a) Automobile shall mean any four (4) OF
more wheeled motor vehicle regardless of seating
capacity, which is propefled by gasoline, diesel,
electricity or anyothermotivepower.- f'rotiided, Thn+
for purposes of this Act, buses, trucks, can° • .
jeepneysfjeepneysubstitutes, single cab chassis, and
sped afipurpœ eseüdess6Älnotbeœ m üdered as
aubmobûes.
”(b) Truck/cargo van shall mean a znotor
vehicle of any configuration that is exclusively
deaignedfor the carñageofgoods and with any
of wheels an6 axles: Provided, That pick-ups shall
be considered as trucks.
* 64
‘(c) Jeepneybeepney aubatitntes ehellmean as
'Philippine jeep or jeepney' whieh are of the jitney
type locally designed andmanufactured generallyjlxnzt
surplus parte and components. It ehall •lso include
jeepney subatitutee that are manufactured from
brand-new eingle cab chassis or cowl chasers and
locally customized rear body that has continuous
aideway row seats with open rear door and without
retractable giasa windows.
“(d) Bus ahall mean a motor vehicle of any
configuration with grosa vehicle weight of4.0 tons or
more with any number of wheels and axlea, which is
generaI1ymccepte.dand specially designed for mass or
public transportation
“(e) Single cab chassis shall mean a motor
vehicle with complete engine power train and chassis
equipped with a cab that has a maximum of two (2)
Oaoza and only one (l) row of seats.
“tfi Speeialpurpoae vehicle ahallmean a motor
vehicle designed for specific applications such as
cement mixer, fire truck, boom truck, ambulance
and/or medical unit, andoff-road vehicles for heavy
industries andnot for recreañonal activities.
“(g) llybrid electric vehicle ahall mean a motor
vehicle powered by electric energy, with or without
pmxieionfor off-vehicle cbarging, in comliination w-¡th
gasoline, diesel or any other motive power: Provided,
That, for purposes of this Act, ahybrid electric vehicle
must be able to propel itself from a stationary
condition using eole1y electric motor.
’Provided, That in the case of imported automobiles
not for aale, the tax imposed herein ahaE be baaed on
the total landed value, including transaction value,
customs duty and allother charges.
"Automobiles uaed exclusively within the
freenort zone shall be eaempt from excise tax.”
6]
i5EC. 46. Anew section designated ae Section 150-A under
Chapter VI, Title VI of the NIRC, as amended, ishereby inserted
to read asfollows:
‘IEC. 150-A Non- S•r tees. — Thème
shen be levied, asaeaæd and œllected a taaequivalent
tofrveperœnt(5%)baeedon the gross reœipts derised
from the performance of services, net of ezcise tax
andvalue-added tax, oninvasive cosmeticpzoœdures,
surgeries, and body enhancements directed aolely
towarda improving, altering, or enhancing the
patient’e appearanœ anddo not meaningfiillypromote
the proper function of the body or present or treat
illrieee ou lease.- ProuiBeä, That this taa rhahnot
apply to procedures neeessary to ameliorate .a
deformity arising from, or directly related to, a
congenital or developmental defeft or abnormality, a
personalinjury resulting from anaceidentor trauma,
or diaöguring disease, tumor, virus or infection:
Prouided, cher, That caees or treatments covered
by the National Health Insurance Program ahallnot
be eubject to thia tax.”
SEC. 47. Aries section designated as Section 150-B under
Chapter VI, Title VI of the NIRC, as amended, is hereby inserted
to read as follows:
‘SEC. 150-B. E!weeterted Beuerages. -
“(A) filaI:ea zidB aseofT •= — ZEecöve Jaauazy
1, 2018:
“(1) A tax of Síx pesos (P6.00) per liter of
volume eapacity shall be levied, assessed, and
collected on sweetened beverages uaingpurely calotie
sweeteners, and purely nou-caloràe sweetenezs, or a
mix of caloric and nou-caloúc sweetenern: f!rovided,
That this tax rate shall not apply to aweetened
beverages ualng high fruetose corn eyrup: Troriôed,
Wr, That sweetened beveragee uaing purely
coconut sap sugar and purely ateviol glycoaides shall
be exempt from this tax; and
 “(2) Ataa of Twelve pesos (Pl2.00) per liter of
volume capacity shell be levied, assessed, and
collected on sweetened beverages uaing purely high
fructoae corn ejnmp or incombination with anjr calorie
or non-caloric sweetener.
“(B) De[initiou of 'Perms. — As used in this
Aet:
‘(1) isweetened beuerages (SBs) refer to non-
aleoholic beverages of any consôtution (liquid,
powdez, or concentrates) that are pre-paeknged and
sealed in aecordanee with the Food and Drng
Administration(FDA)atandarda, that contain valerie
and/or nön-ealoric sweeteners added by the
manufacturers, andshall include, but not be limited
to the followûng, as deacribed in the Food Category
Syatem b'om Codex Alimentarius Food Category
Deacriptors (Godex Stan 192-1995, Rev. 2017 ou the
latest) as adopted by the FDA:
“(a) f3weeteoeü3uiœ &rIoIœ;
“(b) Sweetened tea;
“(c) All carbonated beverages;
“(d) Flavored water;
Energy and aports drinks;
“(f) Other powdered drinks not classified as
milk, juiœ, tea, and coffee;
“(g) Cereal and grain beverages; and
“(li) Other non-alcoholicbeveragea that contain
added augar.
“(2) Colorie soeeñmer refers to a aubetanœ
that is sweet and includes sucrose, fructoae, and
glucose that produœs a œrtain aweetneas;
‘(3) Bigh, fruntose core syrup refers to a eweet
eaccliaride mixture containing fructoae and glucose
which is derived from corn and added to provide
aweetneas to beverages, and which includes other
similar fructose syrup preparations; and
“(4) Nomealaric sweeix'ner repère to a aubetanœ
that are artificially or chemically proceased that
produœs a certain aweetness. Thèse are eubatanœa
whieh can be directly added to beverages, euch aa
aspartame, sueraloae, saceharin, acesulfame
potassium, neotam e, cyclamates and other non-
nutritive aweeteners approved bjr the Godez
Alimentarius and adopted bg the FDA
‘(C) £wfusions. — The following products, aa
described in the food category syetem from Codez
Alimentariua Food Category Descriptors (Codex Stan
192-1995, Rev. 2017 or the latest) as adopted by the
FDA, are excluded £rom the scope of this Act:
“(1) All milk products, ineluding plain ntiJk,
infànt forœula milk, föllow-on milk, growing upmilh,
powderedr»illr. zeady-to-drinkmiIL andflavored milk,
fermented milk, soymilk, and fiavored soyinilk;
“(2) One Hundred Percent (100%) Natural
Fruit Juices - Original Lquid resulting from the
pressing of fruit, the liquid resulting I:rom the
ieconstitution of natural fruit juice concentrate, or
the liquid resulting I:rom the restoration of water to
dehydrated natural fruit juice that donot have added
sugar or caloric sweetener;
“(3) One Hundred Percent (100%) Natural
Vegetable Juieea — Originalliquid resulting from
the pressing of vegetables, the liquid resulting from
 the reeonstitutiOH Of natural vegetable juice
concentrate, or the liquid reaulting from the
restoration of water to dehydrated nappy gg jg
juice that do not have added eugar or caloric
sweetener;
‘(4) MealReplaœment andMedimlly
Beverages — Any liquid or powder drink/product for
oralnutritionaltherapyförpersonswho ‹=n netaba›rb
O£•metabOliz8 die Outrieot8 @Om
y fQQd be9grageg,
or as a source of necesaary nutrition used due to a
medicalconditionand anoralelectrolyte solution for
infants and children formulated to prevent
dehydration due to illness; and
‘(S) Ground coffee, instant soluble coffee, and
pre-packagedpowderedcoffee products.
’ (D) ming of Return and Payment oùâge
7’os otrd Pesait y. —
“(1) Filing Of Return and Payment of Excise
Tax ooDomestlc andImported Sweete dJp . forzntoindicate on the label the equivalent of each
— The piœiaion of Sections 130 and 131 of the NIRC,
ä m £0 te, *hill apply to sweetened beverages.
“(2] Peoalty. — Üpozz öoal ôadJags bJr tbe
Commissioner of Internal Revenue and/or Customs
that any manufacturer or importer, in violation of
this Section, misdeclares or misrepresents in the
acorn statement provided in Section 130(c) of the
NIRC, aa amended, any pertinent data or information,
the penaltjr of summary canceiiationor withdrawal
of the permit to engage in business asmanufa r or
importer of sweetened beverages asprovided imder
Section 268 of the NIRC, aa amended, shall be
impose‹L
ÿ H@°£BÖ°°• aBsociation or partnerghip
liable for any olthe acts or omissions in violation of
thia Section ahall be Oned treble the amount of
deficiengy taxes, surcharges, andinterest which may
be aseeaaed pursuant to this SectiolL
“Any person liable for anjr of the acts or
omissions prohibited under this Section ehall be
criminalljr liable and penalized under Section 254 of
the NIRC, ae amended. Any person who willfully
aids or abets in the commission of any such act or
omission shall be criminally liable in the same
manner as the principal
knot a citizen of the Philippines, the offender
ehall be deported immediately after serving the
eénteñee without further proceedings for deportation.
’ (E) !Speeific Responsibilit y of the Food and
Drug Administration (P’DA). - Starting June 1,
2018, the FDA shaH require aH manufacturers and
importers ofsweetenedbeveragee covered by this Act
to indicate on the label the type of sweetener used,
and on sweetened beverages in powder
serving per liter of volume capacity.
“The FDA shall' also conduct post- marketinj
surveillance of the sweetened beverages on displays
in supermarkets, groceries or retail stores andfor
inspection of manufacturing sites to determine
compliance with the requirements of this Section.
Violations of the provisions of this Act, including but
not limited to, jDislabeling or misbranding, shall, to
the extent applicable, be punishable under existing
laws.
“(F) Dut y f ‹ fie Commissioner to Eusure
Payment of *-- - It shall be the duty of the
Commissioner, among other things, to prescribe a
materially unique, secure and nonremovable
identification, such as codes, stamps or other
markings, to be firmljr and conspicuously affixed on
and form part of the label of all excisable sweetened
beverages.
 70
for thispurpose, the abovementioned control
measure shall be caused by the Commissioner to be
printed with adequate security features to enaure the
payment of excise taa on aweetenedbeveragea.
“(Ce) Review • * mplem.entotio ri of the
isweetened Beverage fax. - At the etart of the
implementationof the augar aweetened beverage tax
and everjr year thereaRer, the Department ofHealth,
Department of Science and 'Technology, and
Departinentof Finance shallreview the impactofthese
provisions ozt its bealtb objectives witb tbe vtew to
making recommendations on the tax rate on these
beverages."
SEC. 4B. Section 151 of the NIRC, as amended, is herebY
lurther amended to read asfollowa:
“SEC. 151. 3fineral ProdMs. —
"(A) Notes o/ f'ns. — There shall be levied,
assessed and collected onminerals, mineral products
and quarrjr resources, excise tax as follows:
further amended to read aa follows:
“(1) On domestic or imported coal and coke,
notwithstanding any incentives granted in any law
or special law:
‘Mective January 1, 2018, Fifty pesos (P50.00)
per metrie ton;
' ective January 1, 2019, One hundred pesos
(Pl00.00) per metric ton; and
àectîve January 1, 2020, One hundred fiky
peaos (P150.00) per metrie ton.
“(2) On all nonmetallie minerals and quarry
resources, a tax of four percent (4%) based on the
actual market value of the groas output thereof at
‘ 71
the time of removal, in the case of those locally
extracted or produced; or the value uaed by the
Bureau of Guatoms indetermining tazi8and
duties, net of excise tax and value-added tax in the
case ofimportation.
‘x x x:
‘(a) Copper and other metallic minerals,
four percent (4é); and
“(h) Gold and cbromite, four perœnt (4°f•).
*(4) On indigenous petroleum, a tax of cit
perœnt (6%) ofthë Phr intemationalmarketprice
thereof, on the :àrat taxable sale, barter, exchange or
such aimilar transaction, such tax to be paid by the
buyer or purchaser before removal from theplace of
production. x x æ
SEC. 49. Section 155 of the NIRC, as amended, ta hereby
‘SEC. 155. orters
to ProuiBe f7temselues with Courir:mg or dfeterin8
Deurr:es to Delermiœ Volume of Product:ion and
Jmportotinn. — Manufacturers of cigarettes, altoholir
products, oil products, and other articles subject to
excise tax that can be similarly measured shall
provide themselves with such neeessaiy number of
suitable counting or metering devices to determine
as accurately as possible the volume, quantity or
number of the articles produœd by them under rules
and regulations promulgated by the Secretary of
Finanœ, upon remmmendation ofthe Gommieaioner:
Prouided, That the Depart;ment of Finance shall
maintain a registry of all petroleum manufacturers
and/or importers and the articles being manufactured

an‹Vor imported bp them: Prouided, cher, That
the Department of Finanœ ahallmandate the creation
of a real-time inventoz2r of petroleum articles being
such petroleum manufacturers andfor importers:
Provided, fiirall y. That importers of finished
petroleumproducte .ehaD alsoprovide themselves with
Bureau-accreditedmetering devices to determine as
accurately as possible the volume of petroleum
products imported by them.
requirement aliallbe œmplied with before
commencement of operations.°
SEC. 50. Section 171 of the NIBCi as amended, is hereby
further amended to read aa follows:
“SEC. l7l. Authorit y of infernal fteuenue in
isearehing for and f estfn gtaxable Articles.
— Any interoalrevenue olficer may, inthe discharge
ofhis oflt‹ùal dutiea, enter any houae, building orplaœ
where articles subject to tax under this TiHe are
produeed or kept, or are believed by him upon
reasonable grounds to be produced or kept, so far as
maybe neeessary to examine, teat, discover or seize
the same.
be may also stop and search any vehicle or
other means of transportationwhen uponreasonable
grounds he believes that the same carries any article
on which the eacise tax haa not been paid.
“Subject to rules and regulations to be issued
by the Secretary of Finance, the Commissioner of
Internal Revenue or bra authorized representatives
may conduct periodic random field teets and
con6rmatory teatsonfuelrequired tobe marked under
Section 148-A found in warehouseB, atorage tenor.a,
gas stations and other retailoutlets, and in auch other
properties of persons engaged in the sale, delivery,
trading transportation, distribution, or importation
of fuelintended for the domeBñc market: Provided,
73
‘(a) Random field testing shall be conducted
in the presence of revenue or customs offieera, fuel
markingprovider, and the authorized repreeentative
of the owner of the fuel to be teated: JOURS, ät an
employee aaaigzted or working at the plaœ where
therandozn field testis conducted aballbe deemed an
authorized representativeof the owner;
‘(b) All field tests shall be properly filmed or
video-taped, anddocumented; and
“(c) A sample of the randomlytestedfuel shall
be immediately obtained by the revenue or customs
o&cer upon discovering that the same is unmarked,
adulterated, or diluted:
‘Provided, Jrtlier, That confirmatory fuel •Gt
certificates issued by fuel testing facilities shall be
valid for any legal purpose from the date of iasue,
and shall constitute admissible and conclusive
evidence before any court.”
SEC. 51. Section 174 of the NBtC, as amended, is hereby
further amended to read asfollows:
‘SEC. 174. lstamp tax on Original IssuR OJ
Shares of istocb. - Oa every original isaue, whether
on organisation, reorganization or for any lawful
purpose, of shares of stock by anjr &SOfiA OO,
company, or corporation, there shall be collected a
documentary stwnp taa nf Two pesos (P2.00) on each
Two hundred pesos (P200), or fractional part thereof,
of the par value, of such sharea of stock: toppled,
That in the case of the original issue of sharee of
stock without p ar value, the amount of the
doeuinentarjr stamp tax herein prescribed ahall be
based upon the actual consideration for the issuance
of such shares of stock Provided, Aker, That in the
case of stock dividends, on the actual value
represented by each share.’

SEC. 52. Section 175 of the NDtC, as amended, is hereby
further amended to read asfollows:
“SEC. 175. Stømp 7'm on males, Agreemeirts
to Ascii, f einoronda of Safes, Deliveries or H•mfw f
iSharemor Certi fy •i'* •h.. — On all sales, or
agreemeñts to sell, or memoranda of sales, or
deliveries, or transf:er of shares or œrtißcates of atock
in any association, company, or corporation, or
transfer of such securities by assignment in blank,
or by delivery, or by any paper or agreement, or
memorandum Or other evidenceB Of transfer or sale
whether enötling the holder in any manner to the
benefit of suchetotk, or tosecuretbe future parent
of money, or for the future trnrsfer of any stop
there shall be collected a documentary stamp tax of
One peso and fifty eentavos (PI.50) on each Two
hundred pesos (P200), or fractional part thereof, of
r the par value of such etock:R•ovided, That onljr one
tax øhall be co1lectedonea»h sale or transfer of stock
'/ from one person to another, regardless of whether or
not a certifieate of stock is issued, indorsed, or
delivered inpursuance of such eale or transfer: 3nd
Provided, ;furtRr, That in the case of atock without
par value the amount of the documentary stamp tax
herein prescribed aball be equivalent to lifter percent
(50%) of the documentary etamp tax paid upon the
original issue of said stock.”
SEC. 53. Section 177 of the NOtC, as amended, is hereby
further amended to read as follows:
“SEC. 177. Slamp Tax ou Certi ficat es of
Profits or Interest in Propert y or Accumulations. -
On all certificates of prohta, or any certificate or
memorandum showing interest in the property or
accumulations of any association, company or
corporation, and on all transfers of such certificates
or memoranda, there shall be collected a documentary
75
øtamp tax of One peøo (P1.00) oneach Two hundred
peeos (P200), or fractional part thereof, of the face
value of auch certificates or memorandum-"
SEC. 54. Section 178 of the NIRC, as amended, iø hereby
further amended to read aafollows:
”SEC. 178. Jtnmp 'Pot or Bank Checks,
Œafts, Certify- p• •f osit not Boring Interest.
and Other Instruments. — On each bank check,
draft, or certificate of deposit not drawing interest,
or order for the payment of any aumofmoney.drawn
upozi or issued by any b trust romping, or anF
person or persons, companies or corporatißßß, at t
or ondemand, there shall be collected adoeumental2r
mùmnptauKofT6reepeeos(P3.OO)"
i"sEG. 55- Section 179 of the NDtC, as amended, iø hereby
further amended to read as follows:
‘REG.179. Stamp Tax on All Debt
Instruments. - On every original isøue of debt
inetrumente, there shall be collected adocumentary
øtamp tax of One peso and fifty centavos (Pl.50) on
each Tao hundred pesos (P200), or fractional part
thereof, of the iseue price of any such debt
instruments: Prouided, That for such debt
inatrumentø with terms of lees than one (1) year, the
documentary stamp taa to be collected øhall be of a
proportional amount in accordance with the ratio of
its term in number of days to three hundred eixty-
five (365) days: Prouíóed, Jrtker, That only one
documentary atamp tax shallbe imposed oneither loan
agreement, or promissory notes iasued to secure
such j
 76 77

IEC. 56. Section 180 of the NIRC, as amended, is hezeby ÛEC. 59. Sectîozt 183 oftlte MIBC, aa aœezzded, is bereby
further amended to read asfoliows: furtber amended to read as follows:

"i5EC. 180. éta in p Par on Off Bâffs o/
£'!mkange or Oro/ts. — Ozt ail bille of ezcliaoge
(between points within the Philippines) or drafts,
there shall be collected a documentary etamp taa of
Sizty centavos (PO.60) on each Two hundred peaos
(P200), or I:ractionalpart thereof, ofthe face value of
any such bill of exchange or draft.”
“SEG. 188. Stamp ton on fié/e Insurance
Poficies. — On all palières of insurance or other
iostzuœezzte bar whatever oaœe the aaœe æay be
called, whereby any insurance shall be zuade or
renewed upon any1i:fe or liTes, there shallbe collected
a one-time documentary atamp tax at the following

SEC. 57. Section 181 of the NIRC, aB amended, is hereby
further iamended to read asfoEows:
‘SEC. 181. lstamp Fax Upon Aeceplance o[
Bills of Exchange and Otfiers. — Upon any
aeeeptanœ orpajnnentof any billof exchange or order
for the payment of money purporting to be drawn in
aforeign country but payable inthe Philippines, there
’lft6e œoouot ofioeuraoce dQee Aot exceed
P1Œ,Œ0
N the amount of ineurance exceede
P100,0ñ0 but doei not eaceed P300,000 P20.00
M the amount où insuranee exceeds
P3oo,ooo 6ut doee not o«eea psoo,ooo P50.00
°ï the amount où insurance eaceeds

sliaJl be collected a documentary stamp tax of Sixty equivalent of such face value, if
centavos (PO.60) on each Two hundred peeos (P200), expressed in foreign
or :fractîonal part thereof, of the lace value of any
sucb bill of exchange, or order, or the Philippine
equivalent of sueh value, if expressed in foreign
eurrency.”

IEC. 58. Section 182 of the NDtC, as amended, is hereby

further amended to read asfollows:

“SEC. 182. . Stomp f'oz on Foreign Bills of

Eohonge ond Letters o/ Credit. — On all foreign
bills of exchange and letter of credit(uicludingorders,
by telegraph or otherwise, for the payment of money
isaued by express or steamship companies or by any
person or persons) drawn in but pajrahle ont of the
Philippines in a set of three (3) or more according to
the custom of merchants andbankers, there shall be
collected a documentary stamp tax of Sixty centavoa
(P0.60) on each Two hundred pesoa (P200), or
fractional part thereof, of the face vame of anjr such
bill of exchange or letter of nedit, or the Philippine
 P600,000 but does not exceed P750,0o0 P100.oo
"if tfie amount où ineuranœ exceeds
Pf50.000 but äoes not exœed P1,000,000 P160.CO
°If the amount of insurance exceeds
P200.00"

SEG. 00. Section 186 of the NDtC, as amended, is hereby further amended
to read as follows:

“SEC. 186. Siamp Tax onPol‘ ’ •f •••‘ and Pre-Need Plans.

— On all policier of annuities, or other instruments by whatever
name the same majr be called, whereby an annuity may be made,
transferred or redeemed, there shall be collected a documentary
atamp tax of One peeo (Pl.00) oneach Two hundred pesos (P200), or
fractional part thereo( ofthe premium or installment payment on
eontract price collected. Onpre-need plane, the documentary stamp
tax shall be Forty centavos (P0.40) on each Two huodred pesos
(P200), or fractional part thereof, of the premium or contribution
collected.”

78
SEC. 61. Section 188 of the NfRC, as amended, is hereby
further amended to read as follows:
‘SEC. 188. S!tomp ’Tox on Certs“fìcates. - On
each certificate of damage or otherwise, and on
every other certificate or document iøaued by any
customs officer, marine surveyor, or other person
acting as such, and on each certificate isaued by a
notary public, and on each certificate of any
deacriptionrequiredby law or by rules or regulations
of a public oífiœ, or which is iseuedfor the purpose of
giving information, or establishing proof of a fact,
and not otherwise specified herein, there shall be
collected a documentary stamp tax of Thirty pesos
(P30.00).”
SEC. 62. Section 189 of the NIRC, as amended, is hereby
further amended to read aa follows:
“BEC. 189. Stamp fax on Warehouse Receipts.
- On each warehouse receipt for property held in
storage in a public or private warehouse or yard for
any person other than the proprietor of such
warehouse or yard, there shall be collected a
documentary atamp tax of Thirty pesos (P30.00):
Provided, That no tax aball be collected on each
warehouse receipt issued to any one peraon in any
one calendar month covering property the value of
which does not exceed Two hundred peeos (P200).”
SEC. 63. Section 190 of the NIRC, as amended, is hereby
íiirther amended to read asfollows:
‘SEC. 190. lstamp Tax on Jai-mat. Øorse Race,
Tickets, Lołi:o or Oil Authorîard Numbers Games. -
On each jai-alat, horse race ticket, lotto, or other
authorized numbers games, there shall be collected
a documentary etamp tax of Twenty œntavos (PO.20):
Provided, Thatifthe coat of the ticket ezceed Onepeøo
(P1.00), an addìtìßnaltax of Twenty œntavoa (PO.20)
on every One peso (Pl.00), or fractional part thereof,
shall be eollecte‹Ł”
79
SEc. 64. Section 191 of the same Code, aø amended, iø
hereby further amended to read aø follows:
•sEc. 191. Smmp Ter on Bill oł I diu8 or
2teceípts. — On each eet of billø of lading or receipts
(exœpt chapter p ) Jr and goodø, merlÊiandiøe or
ef:fects ehipped from one port or place in the
Philippines (ezœpt onferries acroes rivers), or to any
foreignport, there aball be collected a documentary
stamp tax of Two pesos (P2.00), if the value of such
goodø ezceedø One hundredpeßo8 (P100) and does not
exceed One thousand pesos (P1,000); Twenty pesos
(P20.00), if the value exceeds One thousand pesoa
(Pl,000): Prot›ided, However, That freight tickets
covering gooda, merchandise or effects carried às Ä
an aniedbãggage ofpaaøengers onland and water
carriers primarily engaged in the transportation of
passengers are hereby exempt.”
SEC. 65. Section 192 of the NIRC, as amended, re hereby
further amended to read as follows:
‘SEC. 192. Stamp 'T'as on Proxies. - On each
proxy for voting at any election of officers of any
company or associaóon, or for any other purpose,
except proxies issued affecting the aHairs of
associations or corporations organized for religious,
charitable or literary purposes, there ahallbe
a documentary atamp tax of Thirty pesos (P30.00).”
SEC. 66. Section 193 of the NIRC, as amended, iø hereby
further amended to read asfollows:
"SEC. 193. lsmmp 2’oron Powers ofAttor r y.
— On each power of attorney to perform any act
whatsoever, except acts connected withthe collection
of claims due from or accruing to the Government of
the Republic of the Philippines, or the government of
any province, city or municipality, there ehall be
collected a documentary stamp tax of Ten pesos
Rio.oo).”
 IEC. 67. Section 194 of the NIRC, as amended, is hereby
further amended to read ac follows:
"BEC. 194. Stamp Tae on Leases ozrd Other
Biring cements. — On each lease, agreement,
memorandum, or contract for hire, use or rent of any
lands or tenements, or portions thereot there ahaJl
be collected a documentary stamp tax of Six peaos
(P6.00) for the firat Two thousand peaos (P2,000), or
fractional part thereof, and an addl DH8l Two peaoa
e 2.00) for every One thousand pesoa (Pl,000) or
fractional part thereof, in eacesa of the first Two
thousand pesos (P2,000) for each year of the term of
said contract oragreement.”
IEC. 68. Section 196 of the NOtC; as amended, is hereby
further amended to read as follows:
“SEC. 195. Amp fax on Mortgages, Pledges
crib&eds o/ Trust. - On every mortgage or pledge
oflands, eetate, orpreperty, realorpereonal, heritable
ormovable, whateoexer, where the same sbéllbe made
ae a security for the pay zient of any definite and
certain sum of money lent at the time or previously
due and owing or forborne to be paid, being payable,
and on anjr conveyance of land, eatate, or property
whatsoever, in trust or to be sold, or otherwise
converted into money which shall be and intended
onl y as security, either by express stipulation or
otherwise, there shall be collected a documentary
stamp tax at the following ratea:
‘(a) When the amount secured does not exceed
Five thousand peaos(P5,000), Porty pesoa (P40.00).
‘(b) Oneach Five thousand pesos (P5,000), or
fractionalpart thereofin exceas ofFive thouaand peeos
e s,ooo), an addiñonal tax of Twenty pesoa (P20.00).
Sac. 69. Sectiozt 196 oftke NIRC, aa aœesded, is bereby
further amended to read as folloWs:
‘SEc. 196. Stomp f’az O H DEe ds o[ Soie,
C!onueyanees and Do- • f 2teol Property.
On allconeejrancee, donations, deed*, ents,
or waitings, other than grants, patents or original
«ttamtrs clad ti‹›oi=« dWthe Government,
y}j¢r¢by )and, tenement, orotheriea(@ sold aha.11
be granted, assigned, transferred, donated or
otherwise conveyed to thepurchaser, or purchasers,
or to any other pereon or persons designated by such
pure.ha.eer or purchasers, or donee, there shall be
collected a docximentary atamp fox, at the rates
herein below prescribed, baaed OF the co deration
contracted to be paid for such realty or on its fair
market value determined in aceordanee with
beetiow 6(E) of this Code, whichever is higher:
f'ropided, That when one of the contracting parties
is the Government, the tax hexein imposed shall be
based on the actual consideration:
‘(a) Whenthe consideration, or value reœived
or contracted to bepaid for suchrealty, after making
proper allowanœ of any encumbranœ, does not exœed
One tbousand peeos (Pl,000), Fifteen pesos(P15.00).
“(b) For each additional One thousand pesos
(P1,000), ox I:ractionalpaxt thereof in excesa of One
thousand peeos (P1,000) of such consideration or
value, Fikeen pesos (Pl5.00).
"Transfers exempt from donor’s tax under
Section 101(a) and (h) of this Code shall be exempt
from the tax imposed under this Section.
‘When it appears that the amount of the
documentary atamp taxpayable hereunder has been
zeduœd by anin‹x›rreetstatementoftheœnsideration
in any eonveyance, deed, instmiment or whiting
subject to auch tax the Commissioner, provincial or

city Treasurer, or other revenue officer ahall, from
the assessment rolls or other reliable source of
infbrmation, asseas the property of ite true market
value and collect the proper tax thereon.‘
SIG. ’f0. Section 197 of the NDtC, as amended, is hereby
further amended to read asfollowa:
"sEC. 197. istamp Tax ou Chanter Portées and
Similar I ristniments. — On every chanter partjr,
contract or agreement for the chartes of any chip,
vessel or etreamer, or any letter or memorandum or
other writing between tlxe captain, maater or owner,
or other pereon acting as agent of and ahip, vesael or
eteamer, and any othër pereon or persöna for Or
relating to the chanter of any such ship, vessel or
etreamer, and on any renewal or tranafer of aucb
charter, contract, agreement, letter or memorandum,
ttrere shall be collected a documentary stamp tax at
the following ratea:
Ifthe registered gross tonnage of the ahip,
vessel or steamer dœs not exeeed one thousand
(1,000) tons, and the duration of the chanter or
contract dœsnet exœed cix (6) montbs, One thouaand
pesoa (P1,000); and for each month oi fraction of a
monthin exceas of six (6) months, an additional tax
of One hundred pesos (PIOO) shall be paid.
“(b) Iftbe registered gross tonnage exceeds one
thousand (1,000) tons and does not exceed ten
thousand (10,000) tons, and the duration of the
charter or contract does not exceed six (6) months,
Two thousandpesos (P2,000); aztd for each month or
f:raction of a month in excess of aix (6) montha, an
additional tax of Two hundred peaoa (P200) shall be
pp
“(c) If the registered grose tonnage exœeds ten
thousand (10,000) tons and the duration of the
chanter or contract does not exceed six (6) months,
83
Three thousand pesos (P3,000); and for each month
or fraction of a month inexceas of six (6) months, an
aÂditlooal tax of Tbzee buodzeé peaos (P300) •iaaIt
bepaitL“
SEC. ’fl. Section 232 of the NIRC, as amended, is hereby
further amended to read as foEowa:
“SEC. 232. Beeping of Books o/ crounfs. —
’ (A) Co!rporations, Companies, Partnerships
or Persons Required to Beep Boohs o/ Accounts. —
All corporations, companies, partnerships or persons
required by law to pay internal revenue taxes shall
keep And use relevant and appropriate set of
of Finance wherein all transactions and results of
operations are ahown and f-rom which all taxes due
the Government may readiljr and accurately be
ascertained and determined any time of the year:
Ti•ouided, Tbatcorporations, ‹ximpanies, partnerships
or persons whose groas annual sales, earnings,
receipts or output exceed Three million peaos
(P3,000,000), shall have their books of aceounts
audited andexaminedyeazlybyindepe:ndent Certibed
Public Accountants and their income .tax returns
accompanied with a duly accomplished Account
Iniiarmation Form (ALF) which shall contain, among
others, information lifted from certified balance
eheets, pro6t and loaa statements, schedules listing
income-producing properties and the corresponding
income therefrom and other relevant statements.
x x x.”
SEC. 72. Section 236 of the NIRC, as amended, ta hereby
further amended to read as follows:
“SEO. 236. Registration Requireinents. -
 ‘The registration chili certain the tazpayefa
name, atyle, place of reeidenee, business, and auch
othez information as may be required bjr the
Commiaeioner in the force preacribed therefor:
Provided, That the Com nis»ione shaft »implif;, the
buaineas registration and tax eompliance
requirements of self-employed individuels andfor
profeeeionals.
“zz x
“(G) Perdons Required to fiegïster for
Value- kfed fax. -
’(1) asa
“(a) His gross salee or receipts for the paat
twe re (12) months, other than thoae that are exempt
under Section 109(A) to (8B), have exceeded Three
millionpeaoa (P3,000,0O0); or
“(b) There are reasonable grounds to believe
that his gross sales or receipts for the next twelve
(12) months, other than thoae that are exempt under
Section 109(A) to(BB), willexceed Three millionpesos
(P3,000,000).
“(Hj Optimal Re tration f• *«la-Added tas
o[Exempt Pers«n. - (1) Any person who is not
required to register for value-added tax under
Subseetion (G) hereof may elect to register for
value-added tax by registering with the Revenue
District Office that haa jurisdiction over the head
off:ice of that person, and paying the annual
regiatration fee inSubaection (B) hereof.
"(2) Any person who elects to register under
this Subeection shall not he entitled to cancel his
registration under Subsection(F)(2)for the next three
(3) years.
"Provided, That any person taxed under
out I(2lR) andf(z)f°)I )iaJ° t e
who eleetedtopay ttie eigiitpercent(8R) tax ongross
aales or receipts eball not be allowed to avail nf this
option.
for purposea of Etle IV of this Gode, any
person who has regiatezed value-added tax as atax
type in accordanœ with theprovisions of Subsection
(C) hereof shall be referred to as a BAT-regiatered
person’ who ehall be assigned only one Taxpayer
IdentificationNumber (TIN).
SEC. 73. Section 237 of the NIRC, aa amended, is herebjr
further amended to read as follows:
‘i5EC. 237. Issuance o[ 2teeeipts or Sales or
t ommerciof montrez. -
“(A) Jssuonre. — All persons ant:¡ject to an
intezzml revenue tai sh.all: at the point of each sale
and transfer of merchandise or for services rendered
valued at One hundred pesos (PIOO) or more, iseue
duly registered receipts or aale or commercial
invoices, showing the date of transaction, quantitjr,
unit cost and description of merchandise or nature
of service.- Provided, however. That where thr xeee@I
is isaued to cover payment made as rentals,
commissions, compensation or fees, receipts or
invoi‹:ee shall be issued which shrill ahow the name,
business s azid address of thepurchaser,
customer or client: Provided, ther, That where
thepurchaser is aYAT-registeredpereon, iztaddition
to the information herein required, the invoice or
xeoeiptshallfurtherabowthe'PaxpayerIdentification
Number (TIN) of the purchaser.

tbinfive (5) years fzomthe e8'ectisity ofthis
Act and upon the eatablialiment ma oyatem capable
of atoring and prœeaeing the required data, the
Bureau ahaB requise taxpayers engaged in the export
of goods and aervieea, taxpayers engaged in e-
mmmeree, and taxpayers under the jurisdiction of
the Large Taxpayers Service to isaue electronie
receipts or aales or commercial invoiœa in lieu of
manual receipts OF 8ale6 Or commercial iOPOiTeB,
aubject to rules and regulations to be issued by the
Senetary of Finance upon recommendation of the
Commisaioner and after a public hearing ahall have
been heldfor thispurpoae: f'rouided, That taxpayers
not covered by the mandate of this provision may
iseue electronic receîpts or, salea or commercial
invoices, in lieu of manuäl reœipts, and salee and
commercial in7oices.
H'he original of each reœipt or invoiœ ahaJl be
issued to the purehaser, customer or client at the
time the transaction is effected, who, if engaged in
Business or in the exercice of profession, shall keep
and preaezve the same in his place of business for a
peüodofdœee(3)peaæsñomtbeWoæoft6etaxaMe
yeaæiowlüdim‹nbùiyoiceorreoeiptwasiæueQmIfb
the duplicata ehallbe kept andpreservedby theiseuer,
also in his place of business, for a like period:
Provided, Thatin caae of electroznc receipts or sales
or commercialinvoiœs, the digitalremrda ofthe aame
shall be kept by the purchaser, customez or client
and the issuer for the same period above stated.
be Commissioner may, in meritorious eases,
exempt any person subject to internal revenue tax
from compliance with the provisions of this Section.”
SEC. 74. knew section designated as Section 237-A under
Chapter II, Title IX of the NIRC, as amended, is hereby inserted
to read as follows:
“SEC. 237-A £leetronic dates Reporting
System. — Within five (5) years from the effectivity
..87
on the eetablishment of a system
capable a£atoöag aa‹I pzooeaaùagtbezequîz& 8^W
Bureau ahallrequise taxpayera engaged in the
export of goods and services, and tazpayere under
tbe jutjadicöon of tbe lazge Tazp ¥'B 8 W
electronically report their aales data to the Bureati
through the use of electronic point of aales systeme.
subject to rules and regulations to be issued b9 the
Secretary of finance as recommended by the
tire machines, fiscal devices, and ösJ memory
deviœs *hall be at the expense of the taxpayers.
•h*Jl comply with the provisions of Rep ND fi No.
10173, otherwise kooivn as the dataäPri° W Ach°
and Section 270 of the NIftC, as amended, on
unlawfuldisulgenœ oftaxpayerinformationM
other laws relating to the eonfidentiali-ty °8
OEIDAÀOR
H'he Bureau ahall aleo establish policier, riak
management approaches, actions, trainin88 d
tecbaologies to protect tbe cyber ezt izooœ ent,
orgaoüaÔoqanddataiocomphaoœ Repubû’
Act No. 10175 or the “Gybercrime Prevention Act °8
2012/'
SEc. 75. Secôon 249 of the NITtC, as amended, is hereby
further amended to read asfollowz:
“IEC. S49. (7tÙ TRiS . -
@) Jg •neroL — There shall be asseased
and collected on any unpaid amount of tax, interest
atthe rate of double the legalinterest rate foa• lO6OS
or forbearance of any money in the absence of an
express stipulation as set by the Bangko Sentral ng
p jpg t ¢ date prescribed for pays :¢ent until
the amount is tully aid: Prouided, That in no case
sliaI1 the deficiency and the delinquency interest
prescribed under Subsections (B) and (C) hereof, be
imposed eimultaneouely.
 aa ‘

‘(g) Oe y Interest. — Any deficiency in

the tax due, as the term is de6ned in this Code,
shall be subject to the interest prescribed in
Subeectim(A)hereof, whiéhintereat eballbe aeeeaaed (6) years but not more than Qu (10) years:
and collectedfmtn the date pzeeœibed fxir itepayment
until the full payment thereof, or upon isauanœ oIa “(1) x x x;
notice and demand by the Commissioner oflntemal
Ttevenue, whichever cornes earlier.

‘(3) x x x; or

‘(4) Printing of other fraudulent receipte or

IEC. 76. Section 254 of the NDtC, as amended, is hereby
further amendedto read asfollows:
p# Q,Title X o)the NDtC, asamended, is hereby inserted
“IEC. 2fi . Attempt to fiuode or De feat 'ax.
— Any person æho willfully attempte in any manner
to evade or defeat any tax imposed under this Code or
the payment thereof shall, in addition to other
penalties provided by law, upon conviction thereof,
be puniehed with a fine of not leee thanFive hundred
thousand peeos (P500,000) but not more than Ten
millionpeaos (PIO,000,0O0), and impz isonmentof not
leas than six (6) years but not more than ten (10)
years: Prouided, That the conviction or acquittal
obtained under this Section shall not be a bar to the
ftling of a civil suit for the collection of taxes."
SEC. 77. Section 264 olthe NIRC, as amended, ishereby
further amended to read as foLovrs:
“SEC. 264. Maiture or Refumal to Issue
Ref:eipts or Eales or Commercial Inverses, Vmtations
Related to ike Printing o/such Reeeipts or munis:es
“(a) z x x
sales or commercial invoices.”
SEC. 78. Anem «ecti ondeeignated asSection 26t-A under
ise les IS ystem (POS) Machines to the BFR ’8
required to tranamit sales data to the Bureau’s
electrooic salea reporting eyatefn but I6iL IO o s°•
shall pay, for each day of violation, a .penaltP
amounting to one-tenth of one pement (1f10 OU l%)
of the annual net income as reflected in the
taxpayer’s audited fînnneial atatementf‹›r th eemnd
year preceding the current taxable year for each day
of riolat‘ion or Ten thousand peeos (P10,000),
whichever is higher: Prouided, That should the
aggregate number of days of violation exeeed one
hundred eighty(180) aax• witbin a taxable year, an
additional penalty o-(permanent eloaure of the
taxpayer shaI1 be imposed: Prouided, /urth • ° t
if the failure to transmit is due to force majeure or
any causes bejrond the control of the taxpayer the
penalty shall not apply.”

“(b) Any peraon sha mmmits any of the acts

enumerate6hereunder ahallbe penalized with afine
 SEc. 79. A new section designated as Section GB under
Chapter II, Title K of the NIRC, as amended, is hereby inserted to
read asfollows:
" RG. 264•B. Turchase, Une, Possession, Ogre
or Offer to rich, Installment, Trons[er. Update,
Upgrade, &eepiug or Pleintaising of Sales
lsuppressîon Derices. — Any person who shaIl
purchaae, uee, poesess, cell or offer to cell, inatall,
transfer, update, upgrade, keep, or maintain any
software or device designed for, or is capable of:
(a) suppresaingthe creation of electronic records of
sale transactions that a taxpayer ta required to
keep under existing tax laws andfor regolatione; or
(b) modifying, hiding, or deleting electronié records
ofsales traztsactions and providing a ready meaàs of
access to them, shall be punished by a fine of notless
than Five hundred thousand pesos (P500,000) but
notmoze than TenmîEion peaos (Pl0,O00,O00), and
auffer imprisonment of not leas than two (2) years
but not more *h*a four (4) years: Prooided, That a
cumulative suppression of electronic sales record in
exeess of the azaount of Fifty million pesos
(PS0,000,000) shallbe œneideredaa emnomie sabotage
and shall be punished in the maximum penalty
provided for under this provision”
SEC. 80. Anew section designated ae Section 265-A under
Chapter II, Title R of the NIRO, as amended, is herebjr inserted
to read asfollows:
“SEC. 265-A. t feuses RelaI in g to 'uel Marking.
— All offenses relating to fuel marking shell, in
addition to the penalties imposed under Title X of
the NIRC, as amended, Section 1401 of Republic Act
No. 10863, otherwise known as the ‘Customs
Modernizañon and TariffAct(CMTA)’, and other
relevant laws, be punishable asfollows:
“(a) Any peraon who is found to be engaged in
the sale, trade, delivery, dietribuôon or transportation
of unmarlred fuel in commercial quantity held for
domestic uae or merchandise st "T*° °
cutter the penalties o:k
(l) For thefirst oflenae, a fine of Twomillion
dve hundred thouaand peeos (P2,500,000),
"(2) r‹ the æmndoffense, afineofFise million
peeos (P5,000,000); and
(3) For the tbird offense, a fine of Tenmîllion
pesos(P10,000,000)andN9nmti0n 88 n toengage in
any trade or business.
‘(b) Any person who causes the remômlof the
jj1 marking agent from marked fuel, and
the adulteration or dilution of fuelintended for sale
to the domestic market, or the koowing possession,
storage, transfer ce o8er for aale offuel obt6ioäed W
reault of such removal, adulteräÀOÖ O2• dilDtio
be penalized in the aame manner and extent as
provided for in the preceding Subsection.
“(c) Any person who commits ;jny of the acts
enumerated hereunder shall, upon conviction, be
puniahed by afine of not leas than One million pesos
(Pl,000,000) but not more than Five million p£•"°"
(P5,000,000), and amer imprisontnent ofnot]ees thao
four (4) jrearz but not more than eight (8) ÿ8H6
"(1) Making, importing, selling, using or
possessing fuel markers without express authority;
“(2) Making, importing, selling, using or
possessing counterfeit fuel markers;
“(3) Causing another person or entity to
commit any of the two (2) preceedin8 ^ *

‘(4) Cauaing the sale, distribution, aupply or
transport of legitimately imported, in-transit,
manufactured or procured eontrolledprectimoreend
eeeeo tlal ehemieals, in diluted, mixtures or in
conœntrated forzn, to any perron or entity penalized
in Subeections (a), (b), or (e) hereof, including but not
limited to, packaging, repackaging, labeling,
relabeling or conœalment of auch tranaactim through
fraud, destruction of documents, fraudulent use of
permite, misdeclaration, use of l'ront companiea or
mail fraud.
"(dj Any person who wñlfulljr inserts, places,
adds or attaches directly or indirectly, through any
overt or covert qet, whatever quanti@ of any un
igrked fuel, counterfeit additive or chemical in the
person, house, effects, inventory, or in the
immediate vicinity of aninnocent indiv:idual for the
purpose of implicating, incriminating or imputing the
commission of any violation of this Act shall, upon
conviction, be punished by a fine of not less than
Five million pesos (P5,000,000) but not more than
Ten million peaos (P10,000, 000), and auffer
imprisonment of not less than four (4) years but not
more than eight (8) years.
"(e) Any person who is authorized, liœnsed or
accredited under this Act and its implementingrules
to conduct fuel tests, who issues false or fraudulent
fuel test reaults knowingly, willfulljr or through grosa
negligenee, shall suffer the additional penalty of
imprisonment ranging from one (1) jrear and one (1)
day to toro (2) years and six (6) months.
"The additionalpenaltiesof revocation of the
license to practice his profession in ease of a
practitioner, and the closure oftbefiieltestingf:acidity,
majr also be imposed at the instance of the court.”
‘ 03
SEC. 81. Section 269 of the NIRC, as amended, ie hereby
further amended to read asfollowa:
‘SEC. 269. Vi»iaiions Commiued by
Crouernment En[ornem›ent fers. -$ *
“(a) x x x;
“(h) Having knowledge or information Of any
violation of this Gode or of anjr fraud committnd °n
the revenues collectible bar the Bureau of Internal
Revenue, failure to report such knowledge or
information to their superior offieer, or failure to
report as otherwise required by law;
”(i) x x x; and
‘(j3 Deliberate failure to act on the application
for refunds within the prescribed period provided
under Section 112 of this Act.
”Provided. Thattheprov:isionsof theforegoing
paragraph notwithstanding, any internat revenue
offices loz which a prima facie case of grave
misconducthas beeneatabliahed sball, aftm 8
andhearing of the administrative case andsubject to
Gvil Service Laws, be dismissed from the revenue
service: Prooided, rtW r, That the team ‘grave
misconduct’, asdefined inthe Civil Serviœ Law, aball
include the issuance offake letters of authority and
receipte, forgery of signature, uaurpation ofauthority
and habitual iæuanœ ofunreasonable aseessments.”
AEG. 82. Section 288 of the NIRC, as amended, ie hereby
further amended to read asfollows:
“iSEC. 288. Dis po si t io ri o f Incrementol
Beuenue. —

‘(E) x z x
’ (F) Incremental Reueiruea from the fax
For:five (S) yeauÕom the effectivity of this Act, the
yearly incremental revenues generated shall be
automatically appropriated asfollows:
‘(1) Not more j;han aeventp percent (70%) tó
fund infrastructure projects aueh as, but not limited
to, the Build, Build, Build PrOJM and provide
infrastructure programs to address congestion
through maøs transport and new road networks,
minis infrastructure, øQorte fa.Cilitiea for public
schools, and potable drinking wane »upp1y in all
public places; and
‘(*I N°t more than percent(30%) tofungi:
“(a) Programs under ltepublic Act No. 10659,
otherwise known as 'Sugaronie IndustryDevelopment
Act of 2015’, to advance the seE-reliance of sugar
farmers that will increase productivity, provide
livelihood opportunities, develop alternative farming
systems and ultimately enhance farmers’ income;
“(b) S0CECÏ mitigating measures and
inveetmentø in: (i) education, (ü) health, targeted
nutrition, and anti-hunger programs for mothers,
*' and s°ung child ren, (tit) ß Ò•1 protection,
(iv) employment, and (v) housing that prioritize and
directly benefit both the poor and near-poor
‘(c) A øoeial welfare and benefits program
where qualified benefiÒazźea ehøll be pzœided with
a aocialbenefitø card to avail of the following eocial
benefits:
in the firat to seventh income decides of theNational
Household Targeting Syatem for P‹wertyT(eduction
(NHTS-PR), Pantawid Pamilyang Pilipino Program
andthe social pension program for aperiodof three
(3) yearø from the effectìvity of this Act: ï'rouided,
That the uncondiôonal cash trisneíèr shall be Two
hundred pesos (P200.00) per monthfor the firat year
and Three hundred pesos (P300.00) per month for
the eecond 3rear and third year, to beimplemented by
the Department of BociătWehare rind Development
(DSWD):
“(ii) F'uelvounherstoqualifiedfranchiae holders
of Public Utility Jeepneys (PUJa);
‘(iii3For minimum wage earners, unemployed,
and the poorest fiky perœnt (50%) of the populafion:
“(1) P*are discount from all public utility
vehicles (except trucks for hìre and school transport
serviœ) inthe amount equivalent totenperœnt(10%)
ofthe autbozizedfàre;
“(2) Discounted purchase of National Food
Authority(NFA)rice ï'rom accredited retailstores in
the amount equivalent to tenpercent(10%) of the net
retailpriees, up to a maximum of twenty (20) kilos
per month; and
‘(3) Free skills training under a program
implemented by the Technical Skillø ønd Development
Authority (l'ESDA).
’Provided, That beneßta or grants contained
in this Subsection shall not be availed in addition to
any other discounts.
 ‘(iv) Otbez social benefits programs to be
developed andimplemented by the giwemment. A#tbeendofd e(5) æsRomibse tY
oC thia Ant, all e• œazäźog »•g *° • •° er
Wotwitbetanding anypzoviaions herein to the
contrary, theincrementalrevenues from the tobacm
taxes uzider this Act shall be subject to Section 3 of

itepublic Act No. 7171, otherwise known as in Act SET. 8ri. n • rtorial Requirements. Ï'he ioterage0cy
to Promote the Development of the Farmer in the
Vîxgìnìa Tobacco Producing Provinces’, and øø ønittee created and the conœrned departsentøfagenciesf
Section 8 of RepublicAet No. 8240, otherwise known benefimarìeø under ø onf82 of this W shaft øu*mit to the
l'reeiõeztt of tbe Sesate o the Philippines, the Speaker O*
as ixActAmending Sections 138, 139, 140 and 142 ønd
of the National Internal Ttevenue Code, aø Amended, ÃOIIBO ofRepre•entBÕve8.
ø Approprìatiooø a detailed eport on the
and for Other Purpoæs’. tlte Bouae Coouoittee
ezpeodżŁuze oÎ’the øjø ønts earmarked hereon copy furnished

“An interagency committee, chairëd by- the the Ghăirpersonsof the Committee on Ways andMeanø of bAth

Departmetit ofBudget andManagement (DBM) and Rocaes of C osgreae. ozt a6aJ1likewisebepo•teğ ontbe
ofiìcial website of the agencies concerned.
oo-chaired by DOF and DSWD, and comprised of the
National Economic and Development Authority
(NEDA), Department of Transportation (DOTr),
Department of Education (DepEd), Department of
Health(DOH), Departmentoflæbor and Employitrent
(DOLE), National HouaingAuthority(NHA), 8ugar IØtemal
Begu1atoryAdministration(SRA), Departmentoftbe for its effective implementaóoœ
Interior andLocal Government (DIL(i), Department
e y provision of this
of Energy(DOE), NFĄ and TESDA, iø herebjr created SEc. 85. Sepnraòíïity -
to oversee the identification of qualified beneficiaries iø ø bøøquenjjy declared invalid or immns the other
remain in

and the implementation of these projects and
prògrams: ProoiBed, That qualified beneficiaries
nuder Subsection (e) hereof shall be identified using
the Nationnl ID System which may be enacted by
Congress.
lit1tizi sixty (60) days from the end of the
three (3)-year period from the ef:festivity of this Act,
the intera gency committee and respective
implementing agencies for the above programs shall
ptpvìsțons hereof which arenot affected thereby shall
WßfoœaodeÆed.
86. J?epeali;sg Clause. - 'Ï'lze îofloefia$ laws or
anŒor
provimons of laws are hereby repelled and the persons
ttøøøøøti nsajfected herein are made aubjectto theVAT p OØ
ofEtle IV of the NIP•C, aø amended:
(a) Section 3 of Presidential Decree (P.D.)
1972, ». 1985, as amended, Sections 4 ané 5 of
submit corresponding program aøseøømentø to the Executive Order No. (E. .) 1057ø s. 1985, aoü

COCCTRP. The NatíonalEzpenditure Program from Section 4 of E.O. 1064, •. 1985, insofar aø t6eYAT
2019 onwards øhallprovide line items thatcortespond taa exemption and tax credit is concerned,
to the allocations mandated in the provisions above.
 98
ß) Section 10, insofar as VAT exemption iø
conœrned, ofRepublic Act No. (R-A-) 6807 or AnAc(
Convertźttg the Møtí Gømmunitjr College intø a State
College to be known as the Davao Oriental State
College of Scienœ and Technology, Providing for a
Charter for this Purpose, Expanding ite Currie
Offerings, Redirecting itø Objectives, and
Appmpriating Funde Therefor;
(c) Seetions 18 and 19, insofar as vAT
ezemptioniø concerned, ofRfi 6847 or The Philippine
Sports CommîøøionAet;
.(d) . Section 8(d), last paragraph, insofăr as
VAT exemption isconcerned, ofRA 7278 or An Act
Amending CommonwealthActNo. 111, aø Amended
by P.D. 460, entitled An Act to Greate a Public
Corporation to be Known as the Bojr Scoutø of the
Philippines, and to Define its Powerø and Purposes,
bar Strengthening the Volunteer and Democratic
Character of the Boy Scouts of the Philippines and
for Other Purposes;
(e) Section 1, insofar as VAT exemption in
concerned, ofRR 7291 O2’AnAct Restoring the Tax
and Duty Incentives Previously Enjoyed by the
VeteransFederationofthePbí1ippine*u•derR epublie
Act Numbered Twenty-Six Hundred and Forty;
(1) Section 21, insofar as VAT exemption is
concerned, ofRR 7306 or the Charter of the People’s
Television Network, Inc.;
(g) Section 14, insofar as VA’I' exemption is
concerned, of hA. 7354 or the Poøtal Service Act of
1992;
(h) Section 9(e), inmfar as VATexemption is
concerned, of RR 7355 or the Manlihkba ng Bayan
(i) Section 21, insofar aø VAT exemption is
concerned, of BE 7366 or tire Law Creating the
National Gommiaaion for Culture and the Artø;
tj) Section 7(f), insofar aø VAT exemption is
œncezueé, oč RR 7371 oz Aa Act Conveztiog the
AklanAgricultural College into Aklan State Coßege
of Agriculture, and Appropriating Funds Therefor;
(k) Section 12, second sentence, inøof:ar asVAT
exemption is concerned, of RR 7373 or An Act
Establishing the Eastern Visayaa Science High
(I) Section 11(j), insofar as VAT exemptions
œscemeó, ofRA 7605œ the Cbaztezočtôe Pbilìppżœ
State College ofAeronautic.e;
(m) Section 126, inøof:ar as VAT exemption is
concerned, of RR 7653 or The New Central Bank
(n) Section 14, insofar as VAT exemption is
concerned, of RR. 7875 or the National Health
Insurance Act of 1995;
(o) Section 18, insofar aß VAT exemption is
concerned, andSection l8,1astparagraphofRÆ7884
or the Nabonal Dairy DevelopmentAct of 1995;
(p) Section 8, insofar as YAT exemption iø
concerned, R.A. 8160 or An Act Granting the
University of the Philippine a a Franchise to
Construct, Install, Operate and Maintain for
Educational and Other Ïtelated Purposes, Radio end
Television Broadcasting Stations Within the
University of the Philippines andin Such Other Areas
Within the Scope of its Operation;
 (y) Section exeœpdo°i°
(q) Sections 2 and 16,mao&r as VAT exemption 9083 or Aa Act Eetablielùog tbe
ie eoncerned, ofRW 8282 or The Social Security Aet eonœrned, of RH

of 1997; Rosa Science and Technology h School in

(r) Section 39, insofar as VAT exemption is Section f(f•') and ( , int° as vAT

concerned, of BP 8291 or The Governœent Serviœ exemption is concerner, of RH 9138 or An Act

Insuranœ Syetem Act of 1997;
E*mNIeblngtheG æ*# College;

(s) Section 4(e) and (f), insofar as VAT Seclûao 7(c). as YAT exemption is
tbe
exemption is concerned, ofRR 8292 or the Higher coztcezoecf, of RA 9141 OU A» Ach Coaaezôag
Education ModernizationAet of 1997;
Negroa Occidental A College into St

College to be loxown aS the Negros Occidental

(t) 8ecöozt 25, iosofaz as YA7 ezeæpÔon ia
Agricultural College;
coztcezoed, o:IRA 8492 or tbe NaÔosalIYfuseuœ Act
ofJ998;
Section‘16, iñsofar às VAT exemption M
Section 3(h), insofnr as VAT exemption is
coneerned, of RH. 8502 or the Jewelry Industry Act où 2008;
DevelopmentAct of 1998; (ce) Seci;ion 25(b) and (c), iris° aS Ÿ Ÿ

(v) Article 65, insofar as VAT eaemption and exemptionis conœrn'•A l )• asYATmro-
ty
sero rating ie coneerned, of regional or area raöogie roncerne¢ ofRA 9500 ortlie Unieerei of
the Philippines QF Of 2008;
headquarters and zem-rating of the sale or leaàe of

goods and propertjr and the rendition of services to (dd) Section 25(h) gd te), insofar as VAT
regional or area headquartere, and Article 67, insofar
as VAT exemption ia concerned, of R.A. 8756; exemption is concerned, and (d) ineo(;ty as VAT

Prouided, That exieting RRQs and ROHQe enjojdng zero-rating in copcerned, of c State College into

VAT exemption and sero-rating at the time of the con exting Mine°Polmch°i
effeetivity of TRAIN shaft not be a8ected; a State U niversity to be Known a8 the Min @BOäO

(w) Section 7(e), insofar as VAT exemption is

eoncerned, of RH. 9045 or An Act Creating the University of Science and Technology;
exemption
(ee) Section 17(C), iO60& as VA'Pasthe PDI is
œoœroeQofRA 3591, oth
Batangas State University;
Cbaztez, æ amended by Section 8 of RH 9576,

(x) Section 7(e), insofar aa YAT exemption is ot6ermïse]eoomn Act lncreasing the Maxim

concerned, of RR 9055 or An Act Converting the Deposit Insurance Coverage, and in Connefion

Ak1an State College of Agriculture into the Aklan Therewith, to Strengthen the Regulat° and

State University; Adiainietrative Authority, Capabîhty

g rporaöoo
of the Philippine Deposit Insurance
(PDIG), Amending for this Purpose p LCAfl
 102
Numbered Three Thousand Five Hundred Nżaety
)zte, æ Aazeztüeó, Otbezæżae Zztowu as tbe
PDIGCIuct=qmdforOMerPœpoæs;
(i'(l Sections 3 and 19, insofar as VAT
exemption is concerned, of RR. 9679 ør An Act
Further Strengthening the Home Development
Mutuøl Fund, and for Other Purposes;
(gğ) Section 23, insofar as VAT exemption is
concerned of the National Historical Commiaøion of
the Philippines, of RR 10086, or the Strengthening
Peoples’NationalismThrough Philippine HistozyAet;
(hbj Section 7(b) and (c), insofar as VA'f
exemption is concerned, and (d), inøofør as VAT
zero-rating is concerned, ofRA 9647 or the Philippine
N *<m****** hOD ** *;
(ii) Section 17, insofar as VAT exemption ia
concerned, o:f R.A. 7898, as amended by
R.A. l034B, Establishing the Revised AFP
Modernization Program and for Other Purposes;
(jj3 Section 56, insofar as VAT exemption ié
concerned, of RR 10801 or the Overseas Workers
Welfare AdministrationAct;
(km) Section 9(e)(2) and tj), withrespect to VAT,
of BE 7900 or the High-Value Grops Development
Act of 1995;
(11) Section24(e) ofBE 10068 or the Organic
Agriculture Act of 2010;
(mm) isection 14(b), with respect to VAT, RR
7308 or the Seed Industry Development Act of
1992;
103
(nn) Section 35 (b)(c), with respect to YAT, of
RR 8550 or The Philippine Fisheñes Gode gf 1998;
(n1 ›,••mnnr•= ø'=rß ^
to VAr, ofBx 1081f or the Philippine aalalEzport
Development andPmmotion Act of 2016;
(pp) Section 9(ß), (4), and (8), with respect to
VAT, of RR ß479 or the Downstream Oil Industry
DeregulaõoaAct o'f 1998;
(qq) Section 6(c) and (d), withrespect to VAT,
ofRjA7l03ort6eInopaodSteelloŒustryÀrË’
(rr) iseetion 10, with respect to VAT, of RR
7718 or An Act Amending RR No. 6957;
(es) Section 26(B)(3), wİth respect to VAT, of
RR 9275 or the Philippine Clean WaterAct of 2004;
(tt) Section20(d)(3) ofRR 7279 or theUrban
Development and Housing Act of 1992;
(uu) Section 20(d)(3) of RL A0884 or An Act
Strengthening the Balanced Housing Development
Program, Amending for the Purpose RR 7279, as
Amended, Otherwise Known as the Urban
Development and Housing Act of 1992;
(w) Section 14, with respect to VAT, of RA.
ß423or the Traditional and Alternative Medicine
of 1997;
(ww) Section 22(b) of R-A. 10747 or the Rare
Diøeaaea of the Philippines;
(xx) Section 45(a), (b), ønd (e), with respect to
YAT, of RR 9003 or the Ecological ßolid Waste
Management Act of 2000;
 (yy) Section 5(b), with respect to VAT, of
RA 107T1or the Philippine Green Jobs Art où zone;
(zz) Section 6, with respect to VAT, of RH
7459 ou the Investors and Inventions Incentivesoct
ofthe Philippines;
Aaaa) Section z4, insofar as VA'r exemption
oÎ' fouoüatiozts foz sciezttîôc aüoaztceæeats is
concerned, ofRA 2067, aa amended, or the Science
Act of 1958; and
(bbb). Sectäoñ 9, with respect to‘ vAT, of
RH 9511 ou the NaÔooal Ûzi8 0‹› ro¥ätttoa of tbe
Phi1ippineeA‹n.
Prouided, That the VAT obligations of geverziment-
o ned 8Od•COOtrOÎled Mrporatlons, gtate fini reitieg
W• a°d°ther 8overmneotiastrumentaj¡
whose VAT exemption hae been repealed under this
Act shall be chargeable to the Tax Expenditur fond
(TEF) provîded for in the annual General
Appropriations Ach: Prouided, Cher, That VAT
exemptim, VATzero-rating, nnä YAT credit granted
to atate universities and collèges on their purehases
and importations are hereby repealed and the
transactions affeeted herein are made aubjeet to the
VAT @£’O ns of Title IV of the NDtC, amended.
ÆOO p That, with respect to income taa, the
following lars or prOvis*ona of ]6ws ar e hereby
zepealed or amended:
(a) Section 33(A) ofRÆ 7277, as amended by
Rä. 10754 ou the Magna Carta for Peraons w¡th
DüabWÿ;
(b) Section 22{g) o:f RA ît0165 ou' tbe Foater
Care Act of 2012;
(c) secao» 4 oJ'RA iz6s o AaA•t P o a\og jbc
Chaz2t Sweepstalres, Ilozee Itaœs azid Lottezîea:
• Ss o. 4. Holding ofsweepstakes. — Tire Offiœ
shalj hold ebanty horse race aæeepatakes uoderauch
gbgulations as ahall be promulgated bythe Board in
accnrdance with Republic Aet Numbered Three
hundred and eme. Provided, however, That when
theholding of aaweepstakes raeeto deterœine pts
is impossible due to war, public calamity, or other
unforeaeen or fortuitous event or when there ie no
eufficient nunibez of horses to détermine the major
prizes, the Board of Direetore gray determiôe the
procedure to be followed in the distribution of prizes
inthe most just, equitable and ezpeditious manner.
The horse races and the sale of tickets in the said
aweepatakes shall be exempt from all taxes, except
that each ticket shall bear a twelve-œntavo iaternal
revenue stamp. The tickets »hslJ be printed by the
Govexznoent end shall be considered government
secuzities for the purposes of penalizing forgerjr or
(d) Section 5 ofRW 8756 orAnAct Presîding
for the Terms, Conditions and Liceneing
Requirements of Re onal or Area Headquarters,
Regional Operating Headquarters, and Regional
Warehouses of Multinational Companies, Amending
ter the Purpose GertainProvisioneofExecutive Order
No. 226 or The Omnibus Investments Code of 1987:
Provided, That existing Regional or Area
8ead9uarters, Regional OperatingHeadquarters, and
Regional Warehouses of Multinational Companies
enjoying the preferential income taa rate at the time
of the e8ectivity of:the TRAINehall not be a&cted;
(e) Section 2 of PC. 1354, s. 1978 or lmposing
Final Income Paz on 8ubeontractora and Alien
Employeea ofserviœ C‹ntractora and 8ubcontraetors
 eervice contractors and aubcontractora enjoying the
preferential income taa rate at the time of the
effectivity of the TRAIN shall not be affected; and

(I) Section 7 of P.D. 1034, s. 1976, or

Authorizing the Establishment of an Offshore
Balking System in the Philippines: Provided, That
service contractors and subcontractors enjoying the
preferential income tax rate at the time of the
effectivity of the TRAIN shall not be affected.

SEG. 87. ft••«’•’* y. - This Act shall take effect on

January 1, 2018 following its complete publication in the OJciof
Gamtte or in at leaat one (1) newspaper of general circulation

Approved,

QA O‘ROKO”P LIII PANTALEON D.

President of the Senate Speaker of the
ofRepresenit

This Act which is a consolidation of House Bill No. 5636

and Senate Bill No. 1592 was paesed by the House of
Representatives and the Senate on December 13, 2017.

LUTGARDO B. BAR8O CESAR S JA

Secretary of the Senate Secretary General
Howe ofRepresentatives

Approved: OEG 19 20#

ROD O ROA DUTERTE

President of the Philippines