Bureau of Internal Revenue

 

The Bureau of Internal Revenue (BIR) issued the following:

Revenue Memorandum Circular (RMC) No. 105-2018, 17 December 2018, clarifying the payment of excise tax on domestic coal pursuant to the provisions of Revenue Regulations (RR) No. 1-2018, amending for the purpose RR No. 13-94.

Coal produced under coal operating contracts entered into by the government pursuant to Presidential Decree No.972 as well as those exempted from excise tax on mineral products under other laws shall now be subject to the following rates:

Effective	Rate
01 January 2018	P 50.00 per metric ton
01 January 2019	P100.00 per metric ton
01 January 2020	P150.00 per metric ton

The RMC also provides rules to be enforced should domestic products be removed from the place of production without the payment of tax. The owner or person having possession thereof shall be liable for the tax due thereon since the excise tax on coal is a tax levied on the product.

RMC No. 99-2018, 7 December 2018, clarifying certain issues relative to the RR No. 17-2011, as amended, which implements Republic Act No. 9505, otherwise known as the “Personal Equity and Retirement Account (PERA) Act of 2008.”

Below are the salient points of the RMC:

• The Qualified Employer’s Contribution to the employee’s PERA, regardless if it is in the form of benefit or is given to all or only some employee, is not subject to fringe benefit tax. 
• An employer who contributes to the employee’s PERA is not entitled to any 5% tax credit. Instead, the employer may claim a deduction of the actual amount of his/its Qualified Employer’s Contribution from his/its gross income to the extent of his/its contribution provided that it does not exceed the maximum allowable PERA contribution of an employee.
• Employers are not affected by penalties for early withdrawal by employees from their PERA and neither will early withdrawals result in penalties on the transfer of funds from a PERA administrator to another.
• PERA Contributors are not disqualified form substituted filing of their income tax returns by reason of PERA contributions provided that they meet the conditions set forth in RMC No. 1-2003 for substituted filing.
• PERA transactions are subject to the applicable Stock Transaction Tax.

 

 

Attached are the full text of the issuances.

Revenue Memorandum Circular No. 99-2018

Revenue Memorandum Circular No. 105-2018

 

_{DISCLAIMER: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although R.G. Manabat & Co. endeavors to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.} 

_{For any queries, you may contact any member of the InTAX Editorial Board or send your questions to ph-inquiry@kpmg.com.}