QuestionsQuestions (BIR REGULATIONS NO. 9-2003)
To amend certain provisions of Revenue Regulations No. 1-97 and No. 2-97 to prescribe rules and procedures for establishing the current net retail price of new brands and variants of alcohol and tobacco products for excise tax classification.
Sections 244 and 245 of the National Internal Revenue Code of 1997 (Code) in relation to Sections 141 to 145 of the same Code.
They are classified according to the taxpayer’s suggested net retail price to determine the specific tax classification, pending establishment of the current net retail price.
After three (3) months from the initial removal of the new brand to the market, a survey or other approved alternative activity is conducted in 20 major supermarkets/retail outlets in Metro Manila (nationally marketed brands) or five (5) major outlets in the region (brands marketed only outside Metro Manila) to determine the actual net retail price excluding excise tax and VAT.
By (a) BIR revenue officer survey; (b) submission of authenticated price list by the store owner/operator; (c) authenticated and validated information from an informer; (d) direct purchase with a valid receipt/invoice showing description and retail price; or (e) shelf photographs with built-in day-date features.
The approved current net retail price prevails. Any deficiency in specific tax due is assessed and collected, inclusive of increments, as provided for by the Code.
The suggested net retail price prevails.
(1) The office in charge of registration submits to the Commissioner within five (5) days after lapse of the third month following introduction of the new brand/variants a list of brands whose current net retail prices must be determined; (2) the Commissioner issues Mission Orders to authorized representatives and regional offices to conduct the specified activities; (3) results are consolidated and submitted for approval of the Commissioner and Secretary of Finance, and once approved, the taxpayer is notified of the official current net retail price.
Periodically every two (2) years through survey or any other appropriate activity, unless earlier ordered by the Commissioner.
No. Even if current net retail price increases, the tax classification of the new brand remains in force until altered or changed through issuance of an appropriate Revenue Regulations.
The text excerpt shows variants headings but does not provide the full rule for “Variants of Existing Brand” in the displayed portion; however, the text explicitly provides the rule for “Variants of New Brand” and indicates classification is based on current net retail price for new brands/variants.
Variants of a new brand are classified according to their current net retail price determined in the same manner as a new brand, provided the tax classification shall not be lower than that of the highest tax classification of the new brand and any existing variant thereof.
It applies to all brands duly registered and introduced in the market beginning January 1, 1997 whose current net retail price was not determined for the last two (2) years from the effectivity of the regulations; a determination or re-determination must be conducted immediately upon effectivity.
All regulations, rulings, orders, or portions thereof inconsistent with these regulations are revoked and/or modified accordingly.
After fifteen (15) days following publication in a newspaper of general circulation.
For nationally marketed brands, survey is in 20 major supermarkets/retail outlets in Metro Manila; for brands marketed only outside Metro Manila, survey is in five (5) major supermarkets/retail outlets in the region.