Summary
RMC No. 20-2023 clarifies Section 5 of RMC No. 63-2022 on the tax base for computing excise tax on imported automobiles for resale under Section 149 of the Tax Code of 1997, as amended.
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Key points
- Three primary taxable bases. The excise tax rates for automobiles apply on one of three bases: the declared manufacturer’s or importer’s selling price net of excise and VAT, 80% of the actual dealer’s price net of excise and VAT, or the total cost of importation and expenses divided by 90%.
- When the third base applies. The third base, total cost of importation and expenses divided by 90%, applies only where the net importer’s selling price is lower than the cost of importation and expenses as defined in RMC No. 63-2022.
Who is affected
- Importers of automobiles for resale
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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