RMC No. 28-2012: Publishes the full text of the Implementing Guidelines of the Memorandum of Agreement between the BIR and MGB

Key points

1. Basis and coordination. The BIR and MGB jointly promulgate the guidelines to implement their Memorandum of Agreement of January 7, 2004. Both agencies issue implementing issuances, designate coordinating officials, maintain an information exchange system, and meet as often as necessary to resolve discrepancies in the exchanged information.
2. MGB database and TINs. The MGB submits its updated database of mining and/or quarry contractors, permittees and operators with their TINs for a one-time BIR validation, in soft and hard copies. It also reports annual additions and requires BIR-validated TINs in statistical report forms and mining applications.
3. Documents for mining permits. The MGB requires mining contractors, permittees and operators to present, for permit issuance or renewal, proof of Excise Tax payment authenticated by the BIR, ITRs and Business Tax Returns for the preceding operating year(s), the Certificate of BIR Registration and proof of ARF payment for each place of extraction. They also present a Tax Clearance Certificate and Certificate of No Delinquent Accounts or Outstanding Liabilities, or a copy of the received written request if not issued within fifteen (15) working days.
4. Other MGB data for the BIR. The MGB gives the BIR an annual list of large-scale metallic mining contractors with volume and value of gross output within ninety (90) days after each year-end. It also provides a Directory of Mines and Quarries as of December 31, an annual list of sanctioned companies, the Annual Report on Taxes, Fees and Royalties within one month of receiving the report form, and a quarterly summary of Mineral Ore Export Permits within two months after each quarter.
5. BIR validation and data. The BIR performs a one-time validation of the TINs in the MGB database and checks TINs on the report forms the MGB submits. It gives the MGB the annual Excise Tax on minerals collection report before the end of July of each year, plus other data, subject to the limitations in Section 270 of the Tax Code.
6. Tax clearance. The BIR processes and issues the Tax Clearance Certificate and the Certificate of No Delinquent Account or Outstanding Tax Liabilities within fifteen (15) working days upon request. If the BIR does not issue the clearance within that period, processing of the mining application or renewal proceeds.

Who is affected

• Mining applicants, contractors, permittees and operators
• Mines and Geosciences Bureau

Deadlines and effectivity

• MGB database for validation: within thirty (30) days from issuance of the guidelines
• Tax Clearance: within fifteen (15) working days upon request
• BIR excise tax collection report: before the end of July of each year
• MOA entered into January 7, 2004