Definition of Hybrid Electric Vehicle
- Hybrid Electric Vehicle (HEV) defined as a motor vehicle powered by electric energy combined with gasoline, diesel, or other motive power.
- For excise tax purposes, HEVs must be capable of propelling themselves from a stationary position solely with an electric motor.
Excise Tax Rates on Automobiles
- Excise tax imposed on automobiles based on manufacturer’s/ importer’s selling price, net of excise and VAT.
- Updated tax rate schedule effective January 1, 2018:
- Up to PHP600,000: 4%
- Over PHP600,000 up to PHP1,000,000: 10%
- Over PHP1,000,000 up to PHP4,000,000: 20%
- Over PHP4,000,000: 50%
- Hybrid vehicles taxed at 50% of the applicable rates subject to conditions in Section 9(E).
- Imported automobiles not for sale taxed based on total landed value including transaction value, customs duty, and other charges.
Tax-Exempt Removals and Special Provisions
- Purely electric vehicles exempt from excise tax.
- Hybrid vehicles subject to 50% of excise tax rates.
- Prior to removal from manufacturing plant or customs, the Department of Energy (DOE) must verify and certify the classification of vehicles as hybrid or purely electric.
- Certification furnished to the Commissioner of Internal Revenue.
Validation of Selling Price by BIR
- Bureau of Internal Revenue (BIR) to validate manufacturer’s/importer’s selling price within three months after the new rates' imposition.
- Initial classification in tax brackets to be based on this validation.
- BIR to revalidate prices annually to determine correct tax bracket classification.
Transitory Provisions for Compliance
- Manufacturers/assemblers/importers must file updated sworn statements for each brand/model as of the day before effectivity.
- Sworn statements submitted to the Chief, Excise Large Taxpayers Regulatory Division (ELTRD) within seven working days.
- Verification of sworn statements per existing rules.
- Submission of notarized inventory lists of completely built-up (CBU), completely knocked-down (CKD), and semi-knocked down (SKD) units on hand.
- Inventory list submitted to Chief, Excise LT Field Operations Division (ELTFOD) within seven working days.
- Failure to submit inventory list construed as having no inventory on hand.
Repealing Clause
- All inconsistent regulations, rulings, or orders or portions thereof are revoked, repealed, or amended accordingly.
Effectivity
- Regulations effective January 1, 2018, upon complete publication in the Official Gazette or a newspaper of general circulation.