AN ACT AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED,
AND FOR OTHER
PURPOSES
TITLE VI
EXCISE TAXES
ON CERTAIN GOODS
CHAPTER I
GENERAL PROVISIONS
SEC.
129. Goods Subject to Excise Taxes.
- 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. The excise tax imposed herein shall be in addition to the value-added
tax imposed under Title IV.
For purposes of this
Title, excise taxes herein imposed and based on weight or volume capacity
or any other physical unit or measurement shall be referred to as "specific
tax" and an excise tax herein imposed and based on selling price or
other specified value of the good shall be referred to as "ad valorem
tax".
SEC.
130. Filing of Return and Payment of Excise Tax on Domestic Products.
-
(A) Persons Liable
to File a Return, Filing of Return on Removal and Payment of Tax. -
(1) Persons Liable
to File a Return. - Every person liable to pay excise tax imposed under
this Title shall file a separate return for each place of production setting
forth, among others, the description and quantity or volume of products
to be removed, the applicable tax base and the amount of tax due thereon:
Provided, however, That in the case of indigenous petroleum, natural
gas or liquefied natural gas, the excise tax shall be paid by the first
buyer, purchaser or transferee for local sale, barter or transfer, while
the excise tax on exported products shall be paid by the owner, lessee,
concessionaire or operator of the mining claim.
Should domestic products
be removed from the place of production without the payment of the tax,
the owner or person having possession thereof shall be liable for the tax
due thereon.
(2) Time for Filing
of Return and Payment of the Tax. - Unless otherwise specifically allowed,
the return shall be filed and the excise tax paid by the manufacturer or
producer before removal of domestic products form place of production:
Provided, That the excise tax on locally manufactured petroleum products
and indigenous petroleum levied under Sections 148 and 151(A)(4), respectively,
of this Title shall be paid within ten (10) days from the date of removal
of such products for the period from January 1, 1998 to June 30, 1998;
within five (5) days from the date of removal of such products for the
period from July 1, 1998 to December 31, 1998; and, before removal from
the place of production of such products from January 1, 1999 and thereafter:
Provided, further, That the excise tax on nonmetallic mineral or
mineral products, or quarry resources shall be due and payable upon removal
of such products from the locality where mined or extracted, but with respect
to the excise tax on locally produced or extracted metallic mineral or
mineral products, the person liable shall file a return and pay the tax
within fifteen (15) days after the end of the calendar quarter when such
products were removed subject to such conditions as may be prescribed by
rules and regulations to be promulgated by the Secretary of Finance, upon
recommendation of the Commissioner. For this purpose, the taxpayer shall
file a bond in an amount which approximates the amount of excise tax due
on the removals for the said quarter. The foregoing rules notwithstanding,
for imported mineral or mineral products, whether metallic or nonmetallic,
the excise tax due thereon shall be paid before their removal from customs
custody.
(3) Place of Filing
of Return and Payment of the Tax. - Except as the Commissioner otherwise
permits, the return shall be filed with and the tax paid to any authorized
agent bank or Revenue Collection Officer, or duly authorized City or Municipal
Treasurer in the Philippines.
(4) Exceptions. -
The Secretary of Finance, upon recommendation of the Commissioner may,
by rules and regulations, prescribe:
(a) The time for filing
the return at intervals other than the time prescribed in the preceding
paragraphs for a particular class or classes of taxpayers after considering
factors such as volume of removals, adequate measures of security and such
other relevant information required to be submitted under the pertinent
provisions of this Code; and
(b) The manner and
time of payment of excise taxes other than as herein prescribed, under
a tax prepayment, advance deposit or similar schemes. In the case of locally
produced of extracted minerals and mineral products or quarry resources
where the mine site or place of extraction is not the same as the place
of processing or production, the return shall be filed with and the tax
paid to the Revenue District Office having jurisdiction over the locality
where the same are mined, extracted or quarried: Provided, however,
That for metallic minerals processed abroad, the return shall be filed
and the tax due thereon paid to the Revenue District Office having jurisdiction
over the locality where the same are mined, extracted or quarried.
(B) Determination
of Gross Selling Price of Goods Subject to Ad Valorem Tax.
- Unless otherwise provided, the price, excluding the value-added tax,
at which the goods are sold at wholesale in the place of production or
through their sales agents to the public shall constitute the gross selling
price. If the manufacturer also sells or allows such goods to be sold at
wholesale in another establishment of which he is the owner or in the profits
of which he has an interest, the wholesale price in such establishment
shall constitute the gross selling price. Should such price be less than
the cost of manufacture plus expenses incurred until the goods are finally
sold, then a proportionate margin of profit, not less than ten percent
(10%) of such manufacturing cost and expenses, shall be added to constitute
the gross selling price.
(C) Manufacturer's
or Producer's Sworn Statement.
- Every manufacturer or producer of goods or products subject to excise
taxes shall file with the Commissioner on the date or dates designated
by the latter, and as often as may be required, a sworn statement showing,
among other information, the different goods or products manufactured or
produced and their corresponding gross selling price or market value, together
with the cost of manufacture or production plus expenses incurred or to
be incurred until the goods or products are finally sold.
(D) Credit for
Excise Tax on Goods Actually Exported.- When goods locally produced or manufactured are removed and actually
exported without returning to the Philippines, whether so exported in their
original state or as ingredients or parts of any manufactured goods or
products, any excise tax paid thereon shall be credited or refunded upon
submission of the proof of actual exportation and upon receipt of the corresponding
foreign exchange payment: Provided, That the excise tax on mineral
products, except coal and coke, imposed under Section 151 shall not be
creditable or refundable even if the mineral products are actually exported.
SEC.
131. Payment of Excise Taxes on Importer Articles. -
(A) Persons Liable.- Excise taxes on imported articles shall be paid by the owner or importer
to the Customs Officers, conformably with the regulations of the Department
of Finance and before the release of such articles from the customs house,
or by the person who is found in possession of articles which are exempt
from excise taxes other than those legally entitled to exemption.
In the case of tax-free
articles brought or imported into the Philippines by persons, entitles,
or agencies exempt from tax which are subsequently sold, transferred or
exchanged in the Philippines to non-exempt persons or entitles, the purchasers
or recipients shall be considered the importers thereof, and shall be liable
for the duty and internal revenue tax due on such importation.
The provision of any
special or general law to the contrary notwithstanding, the importation
of cigars and cigarettes, distilled spirits and wines into the Philippines,
even if destined for tax and duty free shops, shall be subject to all applicable
taxes, duties, charges, including excise taxes due thereon: Provided,
however, That this shall not apply to cigars and cigarettes, distilled
spirits and wines brought directly into the duly chartered or legislated
freeports of the Subic Special Economic and Freeport Zone, crated under
Republic Act No. 7227; the Cagayan Special Economic Zone and Freeport,
created under Republic Act No. 7922; and the Zamboanga City Special Economic
Zone, created under Republic Act No. 7903, and are not transshipped to
any other port in the Philippines: Provided, further, That importations
of cigars and cigarettes, distilled spirits and wines by a government-owned
and operated duty-free shop, like the Duty-Free Philippines (DFP), shall
be exempted from all applicable taxes, duties, charges, including excise
tax due thereon: Provided, still further, That if such articles
directly imported by a government-owned and operated duty-free shop like
the Duty-Free Philippines, shall be labeled "tax and duty-free" and
"not for resale": Provided, still further, That is such articles
brought into the duly chartered or legislated freeports under Republic
Acts No. 7227, 7922 and 7903 are subsequently introduced into the Philippine
customs territory, then such articles shall, upon such introduction, be
deemed imported into the Philippines and shall be subject to all imposts
and excise taxes provided herein and other statutes: Provided, finally,
That the removal and transfer of tax and duty-free goods, products, machinery,
equipment and other similar articles, from one freeport to another freeport,
shall not be deemed an introduction into the Philippine customs territory.
Articles confiscated
shall be disposed of in accordance with the rules and regulations to be
promulgated by the Secretary of Finance, upon recommendation of the Commissioner
of Customs and Internal Revenue, upon consultation with the Secretary of
Tourism and the General manager of the Philippine Tourism Authority.
The tax due on any
such goods, products, machinery, equipment or other similar articles shall
constitute a lien on the article itself, and such lien shall be superior
to all other charges or liens, irrespective of the possessor thereof.
(B) Rate and Basis
of the Excise Tax on Imported Articles.- Unless otherwise specified imported articles shall be subject to
the same rates and basis of excise taxes applicable to locally manufactured
articles.
SEC.
132. Mode of Computing Contents of Cask or Package.
- Every fractional part of a proof liter equal to or greater than a half
liter in a cask or package containing more than one liter shall be taxed
as a liter, and any smaller fractional part shall be exempt; but any package
of spirits, the total content of which are less than a proof liter, shall
be taxed as one liter.
Harvard
Computer Systems, Inc.