RMC No. 95-2025: Circularizing Republic Act No. 12235 Entitled “An Act Amending Sections 134 and 168 of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended”

Summary

RMC No. 95-2025 circularizes RA No. 12235, which amends Sections 134 and 168 of the NIRC on denatured alcohol, together with the Veto Message of President Ferdinand R. Marcos, Jr.

Key points

1. Section 134, denatured alcohol. Ethyl alcohol of not less than one hundred eighty degrees (180°) proof (ninety percent (90%) alcohol by volume), imported or local, is exempt from the excise tax under Section 141 when suitably denatured under Section 168 and unfit for oral intake. It remains subject to tax under Section 106(A), and under Section 148(d) if used for motive power.
2. Reprocessed spirits. Alcohol that was denatured but later made fit for oral intake after further processing is taxed under Section 141. The person in possession of the reprocessed spirits pays the tax.
3. Section 168, denaturing. Denaturing of such alcohol in the Philippines is done before removal from the premises of duly registered distilleries and compounding plants where the rectifying facilities are located. It follows BIR rules, which include the denaturant formulations.
4. Safeguards. The BIR requires confirmatory testing before the denatured alcohol is removed. It also designates BIR representatives to monitor the denaturing process.

Who is affected

• Distilleries and compounding plants
• Persons in possession of reprocessed spirits

Deadlines and effectivity

• Issued October 27, 2025

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.