QuestionsQuestions (BIR REVENUE REGULATIONS NO. 5-2013)
RR No. 5-2013 plugs alleged revenue leakages by requiring advance payment of business (VAT/percentage) tax and income tax, and actual payment of excise tax where applicable, for sellers of jewelry, gold, and other metallic minerals sold to certain nonresident buyers.
The Regulations apply to sales to (1) nonresident alien individuals not engaged in trade or business within the Philippines, and/or (2) nonresident foreign corporations.
RR No. 6-2012 dated April 2, 2012 is referenced as imposing excise tax, VAT, and income tax on the sale of gold and other metallic minerals.
Excise tax (2%), VAT or percentage tax (12% VAT if above threshold; otherwise 3% percentage tax), and income tax (rate under Sections 24/25 for individuals and 27/28 for corporations), with advance (creditable) income tax payment required.
Two percent (2%) excise tax.
It is based on the actual market value of the gross output at the time of removal.
It is based on the value used by the Bureau of Customs (BOC) in computing tariff and duties.
Possessors of gold and other metallic minerals must show proof that excise tax has been paid; otherwise, they are assessed and may be held liable. Discovery creates a presumption of removal on the day of discovery.
Certified true copies of the Authority to Release Imported Goods (ATRIG) and the Import Entry and Internal Revenue Declaration and Official Receipt issued by the BOC.
Certified true copies of the Excise Tax Return (BIR Form No. 2200M) and the machine-validated deposit slip of the bank where payment and filing were made.
Advance payment of business tax (VAT at 12% or percentage tax at 3% depending on threshold), advance payment of income tax at 5% on gross payment, and actual payment of excise tax at 2% (where applicable), through the designated Revenue Collection Officers (RCOs).
If the gross selling price exceeds the Tax Code threshold amount (currently Php1,919,500 per RR No. 3-2012), it is subject to 12% VAT; otherwise, it is subject to 3% percentage tax.
No. RR No. 5-2013 states sellers must pay in advance regardless of whether they are duly registered with the BIR.
Five percent (5%) on gross payment.
Advance payments are credited against the actual business tax and income tax due for the taxable period. Advance VAT may be credited against VAT liability (for VAT-registered taxpayers). If under 3% percentage tax, the advance business tax is credited against the monthly percentage tax due. Advance income tax is credited against income tax due when filing quarterly and annual income tax returns.
BIR Form No. 0605, with a Revenue Official Receipt (ROR) validated by the RCO, is the evidence of advance business/income tax payment.
Excise Tax Return (BIR Form No. 2200M).
They must maintain records of transactions (date, seller name, seller’s TIN if available, and amount received) and require sellers to sign an order slip or similar document evidencing the amount received.
They must advise in writing the RDO with jurisdiction immediately after acquiring knowledge of the buying event, providing details such as name, nationality, passport number, intended number of days of stay, place/date/time of buying event, and TIN if registered.
The Regulations take effect immediately.