Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 5-2013)
The regulation aims to prescribe the rules on the advance payment of business and income taxes and the actual payment of excise tax by those who sell jewelry, gold, and other metallic minerals to nonresident individuals or foreign corporations not engaged in trade or business within the Philippines.
Sellers of jewelry, gold, and other metallic minerals selling to nonresident alien individuals not engaged in trade or business within the Philippines and/or nonresident foreign corporations.
Excise Tax at 2%, Value Added Tax (VAT) at 12% or Percentage Tax at 3%, and Income Tax at prescribed rates under the Tax Code.
Two percent (2%) excise tax based on the actual market value or the BOC's value in case of importations.
Possession includes actual, current physical possession or inclusion in a person's or entity's inventory at any time.
Certified true copies of Authority to Release Imported Goods, Import Entry and Internal Revenue Declaration, Official Receipt, or Excise Tax Return and deposit slips where applicable.
When the gross selling price exceeds the threshold of Php1,919,500.
They must pay advance business tax (VAT or percentage tax), income tax at 5% on gross payment, and actual excise tax if applicable, through assigned revenue officers.
Advance payments are credited against the actual business tax and income tax due for the taxable period when filed.
They must maintain records of transactions, require order slips signed by sellers, and owners/operators of establishments where buying events occur must notify the RDO immediately with specific buyer details, failure to do so leads to penalties.
RCOs can collect advance payments of business and income taxes and excise taxes on the spot regardless of sellers' registration status and issue corresponding official receipts.
They are presumed to have been removed the day of discovery and the possessor shall be liable for excise tax payment.
They are subject to penalties under Section 275 and other relevant provisions of the Tax Code.
Special Investigation Division (SID) officers and Revenue Collection Officers (RCOs) who conduct inspections, collect taxes, and prepare reports for the RDO.
They are still required to pay taxes in advance and the SID officers will profile and endorse their business addresses for BIR registration and tax compliance.