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RMC No. 93-2026: Circularizing the Implementing Rules and Regulations of Republic Act No. 12253 Otherwise Known as the “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act”

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Summary

RMC No. 93-2026 circularizes the Implementing Rules and Regulations (IRR) of RA No. 12253, the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, covering the royalty, the windfall profits tax and related rules.

Key points

  1. Coverage. The IRR primarily applies to all large-scale metallic mining operations in the Philippines, unless otherwise provided. Patented mining claims under the Philippine Bill of 1902 that are privately owned and expressly excluded from any mineral agreement or FTAA are not subject to the Section 151-A taxes, except as the Supreme Court may otherwise determine.
  2. Royalty under Section 151-A. Operations within mineral reservations pay 5% of the gross output. Operations outside mineral reservations pay a margin-based royalty from 1.0% (margin over 0% but not over 15%) up to 5.0% (margin over 60%), with a minimum royalty of one-tenth (1/10) of one percent (1%) of gross output if the margin is zero or less. The BIR collects it, and it is not creditable or refundable even if the minerals are exported.
  3. Royalty return and payment. The mining contractor or operator files the return and pays within sixty (60) days after the end of the calendar quarter when the products were removed. A bond approximating the royalty due on the quarter’s removals is filed, subject to a final royalty adjustment return, and any balance is paid or any excess credit carried over.
  4. Windfall profits tax under Section 151-B. Operations under a mineral agreement or FTAA pay, in addition to other taxes, a windfall profits tax on net income at rates from 1.0% (margin equal to 30% but not over 40%) to 10.0% (margin over 75%). The optional standard deduction under Section 34(L) is not used, and the tax is not deductible from taxable income. The return and payment are due on or before April 15, or the 15th day of the fourth month after fiscal year close.
  5. Separate taxable entity and ring-fencing. Each contractor, per mineral agreement or FTAA, and each operator under the same agreement is a separate taxable entity, registered under a distinct branch TIN extension. Ring-fencing bars consolidating income and costs across mining projects, and offsetting losses or deductions between them, only when computing the royalty and windfall profits tax.
  6. Shares, local tax and audit. LGUs get a share of forty percent (40%) of the national government’s gross collection from the preceding fiscal year from excise taxes on mineral products, royalties and similar charges. The local business tax rate for mining contractors cannot exceed fifty percent (50%) of one percent (1%) of gross output, and 10% of royalty from operations within mineral reservations accrues to the MGB. The BIR and BOC may examine and audit all sales and exports of minerals, mineral products and raw ores.

Who is affected

  • Large-scale metallic mining contractors and operators
  • Local government units (share of collections)

Deadlines and effectivity

  • Royalty return and payment: within sixty (60) days after the end of the calendar quarter of removal
  • Windfall profits tax: on or before April 15, or the 15th day of the fourth month after fiscal year close
  • Issued August 13, 2026

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.