RR No. 6-2012: Clarifies the taxation on the sale of gold and other metallic minerals to Bangko Sentral ng Pilipinas and other persons or entities

Key points

1. Excise Tax. Metallic minerals are subject to 2% Excise Tax based on the actual market value of the gross output at removal if locally extracted, or the value used by the Bureau of Customs if imported. Possessors must show proof of payment, or they are assessed.
2. VAT. Sale of metallic minerals, except sale of gold to the BSP, is subject to 12% VAT if the value exceeds the threshold set by the 1997 Tax Code and existing issuance. Sale of gold to the BSP is subject to 0% VAT if the seller is a VAT registered taxpayer.
3. Income Tax and withholding. Sellers pay Income Tax under Section 24 (A) for individuals and Section 27 (A) for corporations. Buyers withhold 5% of gross payments and remit it, and a seller who cannot show proof of withholding and remittance has the related costs and expenses disallowed.
4. Buyers as collection agents. All buyers of metallic minerals collect the 2% Excise Tax and the 5% Creditable Withholding Tax. Existing penalties apply to buyers who fail to withhold or pay.
5. BSP obligations. The BSP collects the 2% Excise Tax on the actual market value of gold sold to it, regardless of the purchase price paid. It is not liable for Excise Taxes if the seller shows proof of payment, and it withholds and remits Creditable Withholding Taxes regardless of who sells.
6. BSP filing dates. The withholding tax return is filed and paid within 10 days after each month end, except December taxes due on or before January 15 of the following year. If the BSP uses EFPS, BIR Form No. 1601-E is filed and paid on the 15th day of the following month.

Who is affected

• Sellers and possessors of gold and other metallic minerals
• Buyers of metallic minerals
• Bangko Sentral ng Pilipinas

Deadlines and effectivity

• BSP withholding return: within 10 days after each month end
• December withholding: on or before January 15
• BSP under EFPS: 15th day of the following month