RMO No. 37-2000: Prescribes the guidelines and procedures in the computation of the share of Local Government Units in the 2% Special Privilege Taxes collected by the BIR from Mini-Hydroelectric Power Developers

Key points

1. Tax base. The 2% Special Privilege Tax is based on gross receipts of the developer from the sale of electric power and from transactions incident to generating, transmitting and selling electric power.
2. Payment. The tax is payable to the Commissioner of Internal Revenue or his duly authorized representative on or before the 20th day of the month following the end of each calendar or fiscal quarter.
3. Reporting by the LGU Treasurer. The Treasurer of the LGU informs the Chief, Revenue Accounting Division (RAD) of actual collections paid to the BIR. This is based on certifications of the Revenue Collection Officers (RCOs) of the RDO concerned. Evidence of payments goes to the Chief, RAD, with certifications from the Revenue District Officer, Chief of the Finance Division and the mini-hydroelectric power company.
4. Non-payment. The LGU Treasurer informs the BIR, through the RCO of the RDO, of any taxpayer who fails to pay. RCOs receiving this information coordinate with the Chief, Finance Division and the Chief, RAD to enforce collection.

Who is affected

• Mini-Hydroelectric Power Developers
• Local Government Units and their Treasurers

Deadlines and effectivity

• Tax payable on or before the 20th day of the month following the end of each calendar or fiscal quarter