QuestionsQuestions (Republic Act No. 11256)
RA 11256 aims to strengthen the country’s gross international reserves (GIR) by amending the National Internal Revenue Code to provide tax exemptions for the sale of gold to the Bangko Sentral ng Pilipinas (BSP), particularly under the framework of the People’s Small-scale Mining Act (RA 7076).
RA 11256 amended: (1) Section 32 (Gross Income; exclusions from gross income) to exempt certain income derived from the sale of gold to BSP; and (2) Section 151 (Mineral Products) to exempt BSP-sold gold from excise tax (with a refund/credit option if excise tax was already paid).
Income derived from two gold-sale arrangements under RA 7076: (1) sale of gold to BSP by registered small-scale miners and accredited traders; and (2) sale of gold by registered small-scale miners to accredited traders for eventual sale to BSP.
Section 3 expressly provides that the sale of gold by registered small-scale miners to accredited traders for eventual sale to BSP enjoys the same tax treatment and privileges as the direct sale of gold by miners to BSP under the Tax Code.
Registered small-scale miners (as defined under RA 7076) and accredited traders, who sell gold either directly to BSP or to traders for eventual sale to BSP.
Gold which is sold, or eventually sold, to the BSP in accordance with Section 32(B)(7)(i) is exempt from the payment of excise tax.
The taxpayer may file a claim for refund or credit with the Commissioner for the excise tax paid, as stated in the proviso in Section 151(C).
Both are covered. Section 32(B)(7)(i)(1) includes sale of gold to BSP by registered small-scale miners and accredited traders. Section 32(B)(7)(i)(2) also covers miners selling to accredited traders for eventual sale to BSP, and Section 3 grants tax treatment similar to direct sale.
Gold sold to BSP by accredited traders is presumed to have been purchased by the traders from small-scale miners.
It eases evidentiary burden by presuming the source of the gold for BSP transactions—i.e., that accredited traders’ BSP-registered sales came from small-scale miners—supporting eligibility for the tax exemptions.
Within sixty (60) days after the effectivity of the Act, the listed officials must recommend the rules and regulations for implementation.
They must include registration and accreditation requirements of small-scale miners and traders to avail of the tax exemptions under the Act.
All laws, executive/administrative orders, rules, regulations, and other issuances inconsistent with RA 11256 are revoked, repealed, or modified accordingly.
If any provision is declared unconstitutional, it does not affect the validity of the other provisions of the Act.
It takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.
Section 32(B)(7)(i) excludes the relevant income from gross income (thus exempt from income tax under that title), while Section 151(C) exempts the gold itself (sold or eventually sold to BSP under the specified conditions) from excise tax.