Question & AnswerQ&A (BATAS PAMBANSA BLG. 84)
Articles subject to tax under Title IV of the Code, articles subject to tax under Section 203, .22 caliber firearms and ammunitions sold directly to the Armed Forces or government agencies maintaining peace, exported articles, and articles sold by registered export producers to other registered export producers, traders, or foreign tourists are exempt from percentage taxes.
The annual occupation fee is ten pesos per hectare or fractional part thereof, paid on the date of registration of the mining claim and every year thereafter until a lease is granted.
The mining claims shall be open for relocation and lease by qualified persons unless the delinquent fees plus a 25% surcharge per year are paid and occupation resumed before relocation.
Rentals vary by mineral type: 5 pesos/hectare for coal-bearing lands for the first 10 years, then 10 pesos/hectare thereafter; 50 pesos/hectare for quarry resources; 10 pesos/hectare for other mineral lands, payable annually in advance.
Royalties are at least 20 centavos per ton for coal; 3% of market value for non-metallic minerals and quarry resources; and 5% of market value for metallic minerals at the time of removal.
Lessees, owners, or operators who sell their minerals, mineral products, or quarry resources locally are subject to sales tax.
Gross output is the actual market value of minerals or mineral products without deducting mining or preparation expenses but deducting ocean freight and insurance for C.I.F. sales and adjusted for mineral concentrates not traded on commodity exchanges.
A fine of up to five thousand pesos and imprisonment of up to three years, plus surcharges and interest for late payments. False or fraudulent returns carry fines up to ten thousand pesos and imprisonment up to five years.
No, mining taxes paid under Title VII cannot be credited against sales tax or other tax liabilities as per Section 9.
All charges and fees under other laws on minerals, mineral products, and quarry resources are abolished and replaced by the taxes imposed under this Act, as stated in Section 10.