RR No. 18-2025: Amending Pertinent Provisions of Revenue Regulations No. 25-2003, as Amended, to Implement Section 149 of the National Internal Revenue Code of 1997, as Further Amended Under Section 18 of Republic Act No. 12214, Otherwise Known as the “Capital Markets Efficiency Promotion Act”

Key points

1. Ad valorem rates. Section 4 sets the tax on the net selling price at 4% up to ₱600,000.00, 10% over ₱600,000.00 to ₱1,000,000.00, 20% over ₱1,000,000.00 to ₱4,000,000.00, and 50% over ₱4,000,000.00. Hybrid vehicles pay 50% of the applicable rates, and purely electric vehicles are exempt.
2. Tax-exempt removals. Section 9 is amended to exclude pick-ups from the exempt removals. The exempt removals are for export, delivery to tax-exempt persons or entities, use exclusively within a freeport zone, test runs, and purely electric vehicles, each subject to conditions.
3. Electric and hybrid vehicles. The BIR classifies vehicles using the Department of Energy list of recognized electric vehicles, without prejudice to post-verification assessment.
4. Sworn statement on pick-ups. Manufacturers, assemblers and importers file an updated sworn statement on all pick-up brands and models as of June 30, 2025. It goes to the CIR, Attention: Chief, ELTRD, within fifteen (15) working days from the Regulations’ effectivity.
5. Inventory list and transitional exception. A notarized inventory of on-hand pick-ups (CBU, CKD, SKD) as of June 30, 2025 is due within fifteen (15) working days from effectivity, and failure to submit means no inventory is deemed to exist. Excise Tax does not apply to units on the timely inventory list, or in transit with import entries filed with the BOC on or before June 30, 2025 and withdrawn on or after July 1, 2025.

Who is affected

• Manufacturers, assemblers and importers of automobiles, including pick-ups

Deadlines and effectivity

• Pick-ups no longer exempt starting July 1, 2025
• Sworn statement and inventory list: within fifteen (15) working days from effectivity
• Inventory and sworn statement as of June 30, 2025