Summary
RMC No. 30-2023 reiterates the basis for computing the Total Landed Value of imported automobiles under RR No. 25-2003, for processing eATRIG applications and computing Ad Valorem Tax.
Key points
- Total Landed Value. It covers the higher of the market value in motor vehicle reference books or the dutiable value under Sec. 201 of the Tariff and Customs Code, plus customs duties paid, plus all other charges arising from the importation. The BIR uses the U.S. Auto Red Book Online Price Digests for market valuation.
- Valuation basis for Ad Valorem Tax. An importer who is also an automobile dealer uses the Wholesale Price. An importer for personal or company use, or one not engaged in business as dealer, uses the Retail Price.
- Dealer requirements. The importer must hold a Permit to Operate as Importer and Dealer for excise tax, have a dealership agreement with foreign suppliers or manufacturers, and keep a showroom or registered storage or warehouse. The importer must also import in bulk or at least twelve (12) units in a twelve-month period, and import the units for sale to customers.
- Importers not meeting the requirements. Ad Valorem Tax is computed on retail price.
Who is affected
- Importers of automobiles
- Importer-dealers of automobiles
Deadlines and effectivity
- Minimum of twelve (12) units in a twelve-month period for dealer treatment
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.