RR No. 1-2018: Provides the revised tax rates on Mineral Products pursuant to the provisions of RA No. 10963 (TRAIN Law), amending for the purpose Revenue Regulations No. 13-94

Key points

1. Coal and coke. Domestic and imported coal and coke are taxed per metric ton at P50.00 from January 1, 2018, P100.00 from January 1, 2019, and P150.00 from January 1, 2020 onwards. Coal under Coal Operating Contracts (Presidential Decree No. 972) and coal exempted under other laws are subject to these rates from January 1, 2018.
2. Non-metallic minerals and quarry resources. Locally extracted ones pay 4% of the actual market value of the gross output at the time of removal. Imported ones pay 4% of the Bureau of Customs value, net of Excise Tax and VAT. Locally extracted natural gas and liquefied natural gas are exempt.
3. Metallic minerals. Copper, gold, chromite and other metallic minerals pay 4% on the same bases, depending on whether they are locally extracted or imported.
4. Indigenous petroleum. The tax is 6% of the fair international market price on the first taxable sale, barter, exchange or similar transaction, paid by the buyer before removal from the place of production. The price is set in consultation with an appropriate government agency.
5. Indigenous petroleum scope. It covers locally extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and similar naturally associated substances. Coal, peat, bituminous shale and stratified mineral deposits are excluded.

Deadlines and effectivity

• Coal and coke rates: January 1, 2018, January 1, 2019, and January 1, 2020 onwards