RR No. 6-2025: Implementing Section 135 on Petroleum Products Sold to International Carriers and Exempt Entities or Agencies and the new Section 135-A on Refund of Excise Tax on Petroleum Products of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066

Key points

1. Exempt sales. Petroleum products sold to international carriers directly importing them, for use outside the Philippines, are exempt from Excise Tax. Exemption also covers entities or agencies under tax treaties and international agreements, provided their country exempts Philippine carriers, entities or agencies from similar taxes, and entities exempt by law from direct and indirect taxes.
2. International carriers. Products sold to them must be stored in a bonded storage tank accredited by the Bureau of Customs. Carriers claiming exemption must comply with registration requirements for importation.
3. Supplier refund claim. A supplier files a written claim with the CIR within two (2) years after payment of Excise Tax, with proof of sale to the carriers or exempt entities. The CIR decides within ninety (90) days from submission of complete documents.
4. Denial and reconsideration. A denial states its legal and factual basis. The taxpayer has fifteen (15) days from receipt to request reconsideration, limited to questions of law, and the CIR decides within fifteen (15) days. Failure to request in time makes the decision final.
5. Appeal to the CTA. The taxpayer may appeal to the Court of Tax Appeals within thirty (30) days after the 90-day period lapses without action, from receipt of a denial of the reconsideration request, or after the 15-day period lapses without action.
6. Refund and audit. Refunds are made on warrants drawn by the CIR without COA Chairman countersignature, and are subject to COA post audit. If disallowed, only the taxpayer is liable for the amount. Officials who deliberately delay processing are punishable under Section 269(J).

Who is affected

• Suppliers of petroleum products to international carriers and exempt entities or agencies
• International carriers and exempt entities or agencies

Deadlines and effectivity

• Applies to refund claims filed starting April 1, 2025 onwards
• Refund claim: within two (2) years after payment
• CIR decision: within ninety (90) days from complete documents
• Appeal to CTA: within thirty (30) days