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RMC No. 129-2024: Circularizing Republic Act No. 10659, entitled “An Act Promoting and Supporting the Competitiveness of the Sugarcane Industry and for Other Purposes”

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Summary

RMC No. 129-2024 circularizes RA No. 10659, “An Act Promoting and Supporting the Competitiveness of the Sugarcane Industry and for Other Purposes”, on VAT treatment of refined sugar.

Key points

  1. Zero-rated refined sugar. Under Section 106(A)(2)(a)(1) of the NIRC, VAT zero-rated applies to refined sugar withdrawn from warehouses for actual physical export to the world market.
  2. Refined versus raw sugar. Refined sugar has a sucrose content by weight, in the dry state, corresponding to a polarimeter reading of 99.5° and above. Raw sugar corresponds to a reading of less than 99.5°.
  3. Implementing regulation. The BIR, in consultation with the Sugar Regulatory Association and industry stakeholders, will issue the regulation to implement the provision.

Who is affected

  • Exporters of refined sugar

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.