RR No. 1-2025: Further amending Section 9 of Revenue Regulations No. 25-2003 relative to the documentary requirements to be submitted by Motor Vehicle Manufacturer/Assembler/Importer as basis for the BIR to determine whether the automobiles subject to Excise Tax exemption are hybrid or purely electric vehicles pursuant to the provisions of Republic Act No. 10963 (TRAIN Law)

Summary

RR No. 1-2025 further amends Section 9 of RR No. 25-2003 on the documents motor vehicle manufacturers, assemblers and importers submit so the BIR can tell whether excise-exempt automobiles are hybrid or purely electric, under RA No. 10963 (TRAIN Law).

Key points

1. Tax treatment. Purely electric vehicles are exempt from the excise tax on automobiles. Hybrid vehicles are subject to fifty percent (50%) of the applicable excise tax.
2. Basis of determination. Before removal from the plant or customs custody, the CIR refers to the Electric Vehicle Recognition List published by the DOE. The list classifies battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV).
3. BIR determination. The BIR decides whether an automobile is exempt or subject to 50% excise tax based on the DOE list published on its website. This is without prejudice to its authority for post-verification assessment.
4. Updates. The DOE gives the BIR a certified true copy of each updated list of recognized electric vehicles.

Who is affected

• Motor vehicle manufacturers, assemblers and importers

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