RMC No. 61-2019: Circularizes Republic Act No. 11256, entitled “An Act to Strengthen the Gross International Reserves (GIR), Amending for the Purpose Sections 32 and 151 of the National Internal Revenue Code, as Amended, and for Other Purposes”

Key points

1. Income exclusion under Section 32. Income from the sale of gold under RA No. 7076 is excluded from gross income. This covers sales of gold to the Bangko Sentral ng Pilipinas by registered small-scale miners and accredited traders, and sales of gold by registered small-scale miners to accredited traders for eventual sale to the BSP.
2. Excise tax exemption under Section 151. Gold sold or eventually sold to the BSP under Section 32(B)(7)(i) is exempt from excise tax. If excise tax was paid before the sale to the BSP, the taxpayer may file a claim for refund or credit with the Commissioner.
3. Sales through accredited traders. The sale of gold by registered small-scale miners to accredited traders for eventual sale to the BSP gets the same tax treatment and privileges as a direct sale to the BSP. All gold sold to the BSP by accredited traders is presumed purchased from small-scale miners.
4. Implementing rules. Within sixty (60) days after effectivity of RA No. 11256, the BSP Governor, the Secretary of Environment and Natural Resources, the Secretary of the Interior and Local Government and the Commissioner of Internal Revenue recommend implementing rules to the Secretary of Finance. The rules include registration and accreditation requirements of small-scale miners and traders.

Who is affected

• Registered small-scale miners
• Accredited traders of gold
• Bangko Sentral ng Pilipinas

Deadlines and effectivity

• Implementing rules recommended within sixty (60) days after effectivity of RA No. 11256