RMC No. 42-2009: Publishes the full text of the DOF-DBM-DILG-DENR Joint Circular No. 2009-1 on the updated guidelines and procedures on the release of the share of Local Government Units from the collections derived by the national government from mining taxes

Key points

1. Information sharing. The four agencies are to establish and share information and an updated database on a timely basis to support processing and release of the LGU share.
2. BIR tasks. The BIR submits to the DBM, in coordination with DOF, the projected mining tax for the current year and the 40% LGU share on or before March 15 every year. It prepares a Joint Certification with the Bureau of the Treasury of actual quarterly mining tax collections and the schedule of LGU shares, to be sent to the BTr within 75 days after quarter end. It also determines the correct mining taxes collected the preceding year, using volumes and values from the Mines and Geosciences Bureau.
3. Distribution of the 40% share. Under Section 292 of Republic Act No. 7160, where the resources are in a province and one city, municipality or barangay, the split is 20 to the province, 45 to the component city or municipality and 35 to the barangay. Where they are in a highly urbanized or independent component city and one barangay, it is 65 to the city and 35 to the barangay.
4. Multiple locations. Where the resources lie in two or more provinces, cities or municipalities, or barangays, shares are computed 70 on population and 30 on land area. The Land Management Bureau masterlist of land area and the National Statistics Office census of population are the basis.
5. Release timeline. The share from the preceding fiscal year’s collections is released chargeable against the current year’s General Appropriations Act. The BIR submits its Joint Certification to the BTr by June 15 (first quarter), September 15 (second), December 15 (third) and March 15 of the ensuing year (fourth). The BTr validation and submission to DBM falls on July 31, October 31, January 31 of the ensuing year and April 30 of the ensuing year. DBM releases funds within February (third quarter) and within May (fourth quarter) of the ensuing year.

Who is affected

• Local Government Units with mining operations
• BIR, DOF, DBM, DILG, DENR, Bureau of the Treasury

Deadlines and effectivity

• Issued July 29, 2009
• Projection due March 15 every year
• Joint Certification to BTr within 75 days after quarter end