RMC No. 40-2020: Publishes the full text of the Implementing Rules and Regulations of RA No. 11256 (An Act to Strengthen the Country’s Gross International Reserves, Amending for the Purpose Sections 32 and 151 of the National Internal Revenue Code, as Amended, and for Other Purposes)

Key points

1. Income tax and excise tax exemption. Income from the sale of gold to the Bangko Sentral ng Pilipinas (BSP) by registered Small-Scale Miners (SSMs) and accredited traders, and from sales by registered SSMs to accredited traders for eventual sale to the BSP, is excluded from gross income and exempt from Income Tax and Withholding Taxes. Excise Tax is not levied on these sales. Excise Tax paid beforehand may be claimed as a refund or credit with the Commissioner of Internal Revenue.
2. TIN and reporting. The BIR issues a TIN to SSMs and traders, which tags the exemption. The BSP reports the details of sales transactions to the BIR monthly.
3. Proof required by the BSP. The BSP needs no further proof from registered SSMs or accredited traders beyond the documents in Sections 9 and 12 of the IRR.
4. Liability if exemption does not apply. If the BIR finds the exemption inapplicable to a person purporting to be a registered SSM or accredited trader, that person is primarily and solely liable for deficiency taxes.

Who is affected

• Registered Small-Scale Miners (SSMs)
• Accredited gold traders
• Bangko Sentral ng Pilipinas (BSP)