Question & AnswerQ&A (Republic Act No. 11256)
Republic Act No. 11256 aims to strengthen the country's Gross International Reserves (GIR) by amending certain provisions of the National Internal Revenue Code related to taxation on gold sales.
Sections 32 and 151 of the National Internal Revenue Code of 1997, as amended, are further amended by Republic Act No. 11256.
Income derived from the sale of gold to Bangko Sentral ng Pilipinas (BSP) by registered small-scale miners and accredited traders, as well as the sale of gold by registered small-scale miners to accredited traders for eventual sale to BSP, are exempt from taxation.
Gold sold, or eventually sold, to Bangko Sentral ng Pilipinas in accordance with the Act is exempt from excise tax. If excise tax was paid before sale to BSP, the taxpayer may file for refund or credit with the Commissioner.
Registered small-scale miners who sell gold to accredited traders for eventual sale to BSP enjoy the same tax treatment and privileges as direct sales to BSP under the Tax Code, notwithstanding other laws.
All gold sold to BSP by accredited traders is presumed to have been purchased from registered small-scale miners.
The Governor of BSP, the Secretary of Environment and Natural Resources, the Secretary of the Interior and Local Government, and the Commissioner of Internal Revenue shall recommend the rules and regulations to the Secretary of Finance.
The rules must include provisions for the registration and accreditation requirements of small-scale miners and traders to avail tax exemptions under the Act.
All laws, executive/administrative orders, rules, regulations, or other issuances inconsistent with the Act are revoked, repealed, or modified accordingly.
The Act took effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.