Question & AnswerQ&A (BIR PREVENUE REGULATION NO. 13-94)
The regulation implements the provisions of Section 151, Chapter VII, Title VI of the National Internal Revenue Code, as amended by Executive Order No. 273 and Republic Act No. 7729, imposing excise tax on minerals and mineral products.
The regulation covers metals (ferrous and non-ferrous), non-metallic minerals including mineral fuels (coal, petroleum, natural gas), quarry resources, and precious and semi-precious stones in their raw form.
Minerals are defined as all naturally occurring inorganic substances found in nature whether in solid, liquid, gaseous, or any intermediate state.
All lessees, concessionaires, owners or operators of mines, processors, licensees or permittees of quarries/mines, producers or manufacturers of mineral products, whether natural or juridical persons, are liable for the excise tax.
A tax of Ten pesos (P10.00) per metric ton is levied on coal and coke.
Excise tax on metallic minerals is based on the actual market value at the time of removal, with the rate varying: 1% for the first three years, 1.5% for the fourth and fifth year, and 2% from the sixth year onward. Gold and chromite are taxed at 2%.
Gross output refers to the actual market value of minerals or mineral products or bullion from each mine or mineral lands operated as a separate entity without deductions except as provided.
A permit must be secured from the Revenue District Officer, application must state details such as kind, quantity, destination, consignee, and loading vessel, accompanied by a provisional invoice for mineral concentrates, and proof of exportation must be submitted within 30 days from export.
Violations are subject to pertinent penalties under Title X of the National Internal Revenue Code, as amended.
They must maintain an Official Register Book (BIR Form No. 2222) containing daily entries of minerals extracted and removed, submit monthly transcript sheets, and preserve such records for the period prescribed by Section 235 of the Tax Code.