RR No. 24-2018: Further amends Section 9 of Revenue Regulations No. 25-2003 relative to the determination by the Department of Energy whether the automobiles subject to Excise Tax exemption are Hybrid or Purely Electric Vehicles pursuant to the provisions of RA No. 10963 (TRAIN Law)

Summary

RR No. 24-2018 further amends Section 9 of RR No. 25-2003 on how the Department of Energy-related determination applies to Hybrid and Purely Electric Vehicles for Excise Tax under RA No. 10963 (TRAIN Law).

Key points

1. Tax treatment. Purely Electric Vehicles are exempt from the Excise Tax on automobiles. Hybrid Vehicles pay fifty percent (50%) of the applicable Excise Tax rates.
2. Certificate of Conformity. Before vehicles leave the manufacturing plant or customs custody, the manufacturer, assembler or importer submits to the Excise Large Taxpayer Regulatory Division (ELTRD) a Certificate of Conformity (COC). The DENR-Environment Management Bureau issues it, and it shows the fuel feed classification.
3. Certificate of Non-Coverage. For a purely Electric Vehicle, a Certificate of Non-Coverage (CONC) is presented instead of a COC. It states the vehicle has no tailpipe emission and is not covered by RA No. 8749 (Philippine Clean Air Act).
4. BIR determination. The BIR decides whether the vehicle is exempt or subject to 50% Excise Tax based on the CONC or COC. To validate them, DENR-EMB gives the BIR a certified true copy of each COC and CONC issued for new locally-manufactured or imported HEVs or EVs.

Who is affected

• Motor vehicle manufacturers, assemblers and importers

Deadlines and effectivity

• COC or CONC presented before removal from the manufacturing plant or customs custody

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