Summary
RMC No. 105-2018 clarifies the payment of Excise Tax on domestic coal under RR No. 1-2018, which revises mineral product rates under the TRAIN Law and amends RR No. 13-94.
Key points
- Who is liable. The producer is generally liable, since the tax attaches to the product. If the producer does not pay the Excise Tax on locally-produced coal, it is collected from the first buyer/possessor under Section 130(A)(1) of the NIRC.
- Producer as collecting agent. The producer collects the tax from the first buyer/possessor and shows it separately on the invoice, outside the selling price. The tax due to the BIR is extinguished once the producer remits it.
- Filing and remittance. The producer files via the Electronic Filing and Payment System and remits using BIR Form 2200 M within ten (10) days from the sale, transfer or disposition, with documents proving the transfer. The producer remains subject to the administrative and reportorial requirements.
- Tax from January 1, 2018. Excise Tax on domestic coal for domestic consumption is collected from the first buyer/possessor effective January 1, 2018. The amount for January 1, 2018 to November 30, 2018 is remitted on or before December 31, 2018, without surcharge and interest if settled within that period.
- Production data and export. The producer gives the BIR data on production, volume of removal and sale for January 1, 2018 to November 30, 2018. A separate issuance will cover coal removed for export.
Who is affected
- Producers of domestic coal
- First buyers/possessors of domestic coal
Deadlines and effectivity
- Remit within 10 days from sale, transfer or disposition
- Collection effective January 1, 2018
- Remit by December 31, 2018 for January 1 to November 30, 2018
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.