RR No. 9-2023: Provides rules and regulations governing the imposition of Excise Tax on perfumes and toilet waters as provided under Section 150(b) of the Tax Code of 1997, as amended

Summary

RR No. 9-2023 sets the rules for Excise Tax on perfumes and toilet waters under Section 150(b) of the NIRC of 1997, as amended.

Key points

1. Rate and base. The tax is twenty percent (20%) of the wholesale price, net of Excise and VAT, for local products. For imports, it is 20% of the value of importation used by the Bureau of Customs, net of Excise Tax and VAT.
2. Who pays and when. The manufacturer or producer pays before removal from the place of production, using eBIRForms or Form 2200-AN via eFPS with tax type XG. Importers pay the Bureau of Customs before release from customs custody, and a person found with untaxed goods pays on demand.
3. Toll manufacturing. The brand owner pays the Excise Tax before removal from the toll manufacturer’s premises. A toll manufacturer may file and pay for the brand owner if the contract allows, but the brand owner determines the tax base.
4. Permits and registration. Manufacturers, brand owners using toll manufacturers, importers and toll manufacturers must apply for permits from the Excise LT Regulatory Division with documents such as a surety bond of ₱100,000.00 initial coverage. Each production plant and warehouse gets a permanent assessment number.
5. Sworn statement and price accuracy. A notarized sworn statement of brands, wholesale prices and suggested retail prices is filed and updated by the end of June and December. Understating the suggested net retail price by as much as fifteen percent (15%) makes the manufacturer or importer liable for additional Excise and Value Added Taxes.
6. Controls and records. Each removal needs an Excise Tax Removal Declaration (BIR Form No. 2299), and shipments without it are prima facie evidence of illegal removal. Official Register Books are kept, with transcript sheets submitted by the eighth (8th) day of the following month, and inventory is taken every six (6) months.

Who is affected

• Manufacturers and producers of perfumes and toilet waters
• Importers
• Brand owners and toll manufacturers or subcontractors
• Persons in possession of untaxed perfumes and toilet waters

Deadlines and effectivity

• Sworn statement updates: end of June and December
• Updated sworn statement for price or cost changes: at least five (5) days before removal or release
• Transcript sheets of ORBs: on or before the 8th day of the following month
• Inventory list within fifteen (15) days from effectivity

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