Amendment on taxation of minerals and mineral products

Locators or holders of mining claims must pay an annual occupation fee of ten pesos per hectare upon registration and yearly thereafter until a lease is granted.
The Mines Regional Recorder must submit lists of registered mining claims to the local revenue district officer.
Distribution of collected fees: 30% to the province and 70% to the municipality, or full amount to a chartered city.
Failure to pay fees within 30 days after demand opens claims to relocation unless delinquent fees plus 25% yearly surcharge are paid and occupation resumed.
No lease will be granted unless all occupation fees and surcharges have been fully paid.

Rentals for mining privileges are:
- Coal-bearing lands: 5 pesos/ha/year for first 10 years, then 10 pesos/ha/year thereafter.
- Quarry resources: 50 pesos/ha/year during the lease.
- Other mineral lands: 10 pesos/ha/year during the lease.
Rentals paid annually and revenues shared: 30% province, 70% municipality or full to chartered city.
Royalties imposed:
- Coal: at least 0.20 pesos/ton at removal.
- Non-metallic minerals and quarry resources: 3% of actual market value.
- Metallic minerals: 5% of actual market value.
Local sales of minerals are subject to sales tax.

Royalty taxes as prescribed are collectible on minerals and products extracted from mineral lands not under lease.

Royalties due upon removal of minerals from mining locality.
Persons liable must file a return detailing quantity and market value in duplicate and pay royalties to local revenue or city/municipality treasurer.
Output may be removed without prepayment if a bond is filed, guaranteeing tax payment.
Quarterly returns and payments are required within 20 days after quarter end.
Late payments incur a 25% surcharge plus 20% annual interest.
False or fraudulent returns result in a 50% surcharge and 20% annual interest.

Gross output refers to the actual market value of minerals or products minus preparation costs, except costs for ocean freight and insurance under CIF sales.
Minerals include all naturally occurring inorganic substances regardless of physical state.
Mineral products are marketable items prepared by simple treatment without chemical changes.
Quarry resources include common stones and minerals declared by the Director, excluding those with economically valuable metals.

Failure to file returns or pay royalties may result in fines up to 5,000 pesos and imprisonment up to three years.
Unlawful removal or aiding in removal of minerals without payment of royalties is similarly penalized.
Filing false or fraudulent returns carries fines up to 10,000 pesos and imprisonment up to five years.

Mining taxes paid under Title VII are not creditable against sales tax or other tax liabilities.

Taxes imposed under this law replace all other charges and fees on minerals and quarry resources under existing laws, which are thereby abolished.

The Minister of Finance, upon recommendation from the Commissioner of Internal Revenue and consultation with the Minister of Natural Resources, shall issue rules for enforcement.

All laws, decrees, orders, or regulations inconsistent with this Act are repealed, amended, or modified, except those granting tax incentives.

The Act takes effect upon approval.
Royalty tax rates on non-metallic minerals, quarry resources, and metallic minerals start at 50% of prescribed rates until March 31, 1981, after which full rates apply.