Providing the Revised Tax Rates on Mineral Products pursuant to the provisions of Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law for the purpose of amending Revenue Regulations No. 13-94

22 Jan 2018

Tax Alert 12

The Secretary of Finance has issued Revenue Regulations (RR) No. 1-2018 dated 5 January 2018 to provide for the Revised Tax Rates on Mineral Products pursuant to the provisions of the TRAIN Law for the purpose of amending RR No. 13-94 which governs the imposition of excise tax on minerals and mineral products.

The revised tax rates are as follows:

Product  Excise Tax Date of Effectivity
Domestic and imported coal and coke   PHP50/metric ton 1 January 2018
PHP100/metric ton 1 January 2019
PHP150/metric ton 1 January 2020 and onwards
Locally extracted or produced nonmetallic minerals and quarry resources 4% based on the actual market value of the gross output thereof at the time of removal 1 January 2018  
Locally extracted natural gas and liquefied natural gas Exempt
Imported nonmetallic minerals and quarry resources 4% based on the value used by the Bureau of Customs (BOC) in determining tariff and customs duties, net of excise tax and value-added tax
Imported copper, gold, chromite and other metallic minerals 4% based on the value used by the BOC in determining tariff and customs duties, net of excise tax and value-added tax 
Indigenous petroleum 6% of the fair international market price thereof, on the first taxable sale, barter, exchange or such similar transaction

Coal produced under Coal Operating Contracts entered into by the government pursuant to Presidential Decree No. 972 as well as those exempted from the excise tax on mineral products shall be subject to the applicable rates above beginning 1 January 2018.

For indigenous petroleum, “first taxable sale, barter, exchange or similar transaction” refers to the transfer of indigenous petroleum in its original state to a first taxable transferee.

“Gross output” is generally interpreted as the actual market value of minerals or mineral products, or of bullion from each mine or mineral lands operated as a separate entity without any deduction from mining, milling, refining, (including all expenses incurred to prepare the said minerals or mineral products in a marketable state), as well as transporting, handling, marketing, or any other expenses.

You may access the full version of the Regulation through the website of the Bureau of Internal Revenue.

Contact us

Lyn Golez-Geronan

Tax Librarian, PwC Philippines

Tel: +63 (2) 845 2728 Ext. 2054

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