Authority and Legal Basis for the Tax Revision
- The revision is issued under the authority of Section 290-B of the National Internal Revenue Code, as amended.
- The President directed the amendment to Section 199(b) of the National Internal Revenue Code of 1977.
New Tax Rate and Scope of Application
- A percentage tax of 33% is levied on the fair international market price of indigenous petroleum.
- The tax applies only once, on the first taxable sale, barter, exchange, or any transaction transferring ownership of indigenous petroleum.
- The buyer or purchaser is responsible for paying the tax within 15 days of actual or constructive delivery.
Definition of Terms
- "First taxable sale, barter, exchange or similar transaction" means the transfer of indigenous petroleum in its original state to the first taxable transferee.
- "Indigenous petroleum" includes locally extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas, and similar or naturally associated substances.
- The definition expressly excludes coal, peat, bituminous shale, and/or stratified mineral deposits.
Determination of Tax Base
- The fair international market price will be determined according to regulations set forth by the Minister of Finance.
- Such regulations are formulated on the recommendation of the Commissioner of Internal Revenue and in consultation with an appropriate government agency.
Enforcement Provisions
- Enforcement mechanisms include provisions from Section 12 and relevant parts of Chapter II, Title IV of the National Internal Revenue Code.
Repealing Clause
- Any general or specific laws, decrees, or orders inconsistent with this Executive Order are repealed or modified accordingly to avoid conflicts.
Effectivity
- The Executive Order takes effect on August 1, 1984.
Signatories
- The order was signed by President Ferdinand E. Marcos and by Juan C. Tuvera, Presidential Executive Assistant, solidifying its legal force.