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BATAS PAMBANSA BILANG. 84BATAS PAMBANSA BLG. 84 - AN ACT
AMENDING CERTAIN SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE OF
1977, AS AMENDED, GOVERNING THE TAXATION OF MINERALS AND MINERAL
PRODUCTS AND FOR OTHER PURPOSES
Section 1.
Sec. 202 of the National Internal Revenue Code of 1977, as amended,
is hereby further amended to read as follows:
"Sec. 202.
Articles not subject to percentage tax on sales. — The following shall
be exempt from the percentage taxes imposed in Section s 194, 195, 196,
197, 198, 199 and 201:
"(a) Articles subject to tax under Title IV of this
Code.
"(b) Articles subject to tax under Sec. 203 of
this Code.
"(c) .22 caliber firearms and cartridges as well as
other forms of ammunition sold or delivered directly to the Armed
Forces of the Philippines or any government instrumentality or agency
engaged in maintaining peace and order for their use or issue.
"(d) Articles
shipped or extorted by the manufacturer or producer, irrespective of
any shipping arrangement that may be agreed upon which may influence or
determine the transfer of ownership of the articles so exported.
"(e) Articles sold by 'registered export producers'
to (1) other 'registered export producers' (2) 'registered export
traders' or (3) foreign tourists or travelers, which are considered as
'export sales'.
"Any percentage or specific tax paid under this Title or Title IV,
respectively, on domestically manufactured or in imported raw materials
used in the manufacture of finished products exported shall be allowed
to be credited against other tax liabilities of the
manufacturer-exporter: Provided, however, That the amount of the tax on
the raw material, part, accessory, or other article shall be indicated
as separate item in the sales invoice.
"Sales to foreign tourists paid in acceptable foreign currency directly
made by manufacturers or producers shall be considered export sales if
the articles purchased are actually brought out of the Philippines by
the buyers upon their departure."
Sec. 2. Section of the same Code is hereby amended
to read as follows:
"Sec. 253.
Occupation fee. — A locator, holder, or occupant of a mining claim
shall pay to the Commissioner of Internal Revenue or his duly
authorized representatives on the date of the registration of the
mining claim in the Office of the Mines Regional Recorder concerned,
and on the same date every year thereafter an annual occupation fee of
ten pesos per hectare or fractional part thereof, until the lease
covering the mining claim shall have been granted. For this purpose the
Office of the Mines Regional Recorder shall submit to the revenue
district officer of the place where the mining claim is located or at
its nearest office a complete list of all mining claims registered with
it, indicating therein the name/s of locator/s, area in hectares,
location, and date registered, Thirty per centum of all the fees
collected under this Section shall accrue to the province, and seventy
per centum to the municipality in which the mining claims are located:
Provided, That in case the mining claims are located in a chartered
city, the full amount shall accrue to the city concerned. Failure to
pay the occupation fee herein required within thirty days after demand
shall cause the mining claims to be open for relocation and lease by
other persons qualified to locate and lease the same under the
provisions of Presidential Decree No. 463, as amended, otherwise known
as the Mineral Resources Development Decree of 1974, in the same manner
as if no location of the said mining claims had ever been made, unless
the locator, holder, occupant, his heirs, executors, administrators or
legal representatives, shall have paid the delinquent occupation fees
plus a surcharge of twenty-five per centum for every year of
delinquency and have resumed occupation of the claims before relocation
by other persons.
"No lease shall be granted on any
mining claim until the occupation fees and surcharges required to be
paid under this Section shall have been fully paid: Provided, however,
That nothing herein contained shall be construed to extend the period
within which application for lease of mining claims shall be filed from
the date of recording of the mining claims in the Office of the Mines
Regional Recorder, as provided for under Presidential Decree No. 463,
as amended."
Sec. 3. Sec. 254 of the same Code is hereby
amended to read as follows:
"Sec. 254
Rentals and royalties on mineral lands under lease. — For the privilege
of exploring, developing, exploiting and disposing of the minerals from
the lands covered by lease, there is hereby imposed upon the lessee,
rentals and royalties as follows:
"(a) Rentals —
"(1) On coal-bearing public lands, an annual rental
of five pesos per hectare or fraction thereof for each and every year
for the first ten years, and ten pesos per hectare or fraction thereof
for each and every year thereafter during the life of the lease.
"(2) On public lands bearing quarry resources, an
annual rental of fifty pesos per hectare or fraction thereof for each
and every year during the life of the lease.
"(3) On all other mineral lands containing metallic
and non-metallic minerals under existing mining laws or decrees, ten
pesos per hectare or fraction thereof for each and every year during
the life of the lease.
"The rental shall be paid in
advance to the Commissioner of Internal Revenue or his duly authorized
representative on the date of the granting of the lease and on the same
date every year thereafter during the life of the lease. Thirty per
centum of all the rentals collected shall accrue to the province, and
seventy per centum to, the municipality in which the mining claims are
located: Provided, That in case the mining claims are
located in a chartered city, the full
amount shall accrue to that city.
"(b) Royalties —
"(1) On coal, such royalties as may be specified in
the lease, which shall not be less than twenty centavos per ton of one
thousand and sixteen kilograms at the time of removal.
"(2) On all
non-metallic minerals and quarry resources, a royalty tax of three per
centum of the actual market value of the annual gross output thereof at
the time of removal.
"(3) On all metallic minerals, a royalty tax of five
per centum of the actual market value of the gross output thereof at
the time of removal.
"A lessee, owner or operator who sells his minerals, mineral products
or quarry resources locally shall be subject to sales tax."
Sec. 4. Sec. 255 of the same Code is hereby
amended to read as follows:
"Sec. 255.
Royalty taxes collectible on minerals, mineral products or quarry
resources extracted or produced from all mineral lands not covered by
lease. — The royalty taxes above prescribed shall be collected on all
minerals or mineral products or quarry resources extracted or produced
from all mineral lands not covered by lease."
Sec. 5. Sec. 256 of the same Code is hereby
amended to read as follows:
"Sec. 256.
Time, manner and place of payment of royalties. — The royalty taxes
shall be due and payable upon the removal of the minerals or mineral
products or quarry resources from the locality where mined.
"Before removing any mineral or
mineral products or quarry resources subject to the royalty tax, the
person liable to the said tax shall file, in duplicate, a return
setting forth the quantity and the actual market value of the mineral
or mineral products to be removed and pay the royalty taxes due thereon
to the revenue district officer, collection agent, or the treasurer of
the city or municipality of the place where the mine is located except
as hereinbelow provided.
"However, the output of the mine may be removed from such locality
without the prepayment of such royalty taxes if the lessee, owner, or
operator shall file a bond in the form and amount and with such
sureties as the Commissioner may require, conditioned upon the payment
of such royalty taxes. It shall be the duty of every lessee, owner, or
operator to make a true and complete return in duplicate setting forth
the quantity and the actual market value of the minerals or mineral
products or quarry resources removed during each calendar quarter, of
the balance, if any, in cases where payment are made upon removal, and
pay the royalty taxes due thereon within twenty days after the end of
each quarter to the revenue district officer, collection agent, or the
treasurer of the city or municipality of the place where the mine is
located.
"In case the royalty taxes are
not paid within the period prescribed above, there shall be added
thereto a surcharge of twenty-five per centum, the increment to be a
part of the tax and the entire unpaid amount shall be subject to
interest at the rate of twenty per centum per annum. Where a false or
fraudulent return is made, there shall be added to the royalty taxes a
surcharge of fifty per centum of their amount, and the entire unpaid
amount shall be subject to interest at the rate of twenty per centum
per annum. The amounts so added shall be collected in the same manner
and as part of the royalty taxes."
Sec. 6. Sec. 257 of the same Code is hereby
amended to read as follows:
"Sec. 257.
Definitions. — When used in this Title —
"(a) The term 'gross output' shall be interpreted as
the actual market value of minerals or mineral products or of bullion
from each mine or mineral lands operated as a separate entity without
any deduction from mining, milling, refining, (including all expenses
incurred to prepare the said minerals or mineral products in a
marketable state) as well as transporting, handling marketing, or any
other expenses: Provided, however, That if the minerals or mineral
products are sold or consigned abroad by the lessee or owner of the
mine under C.I.F. terms, the actual cost of ocean freight and insurance
shall be deducted: Provided, finally, That in the case of mineral
concentrate not traded in commodities exchanges in the Philippines or
abroad such as copper concentrate, the actual market value shall be the
world price quotations of the refined mineral product content thereof
prevailing in the said commodities exchanges, after deducting the
smelting, refining and other charges incurred in the process of
converting the mineral concentrates into refined metal traded in those
commodities exchanges.
"(b) The term
'minerals' shall mean all naturally occurring inorganic substances
(found in nature) whether in solid, liquid, gaseous, or any
intermediate state.
"(c) The term 'mineral products' shall mean things
produced and prepared in a marketable state by simple treatment such as
washing or drying, but without undergoing any chemical change or
process or manufacturing by the lessee, concessionaire or owner of
mineral lands.
"(d) The term 'quarry resources' shall mean any
common stone or other common mineral substances as the Director may
declare to be quarry resources such as, but not restricted to,
markable, granite, volcanic cinders, basalt, tuff and rock phosphate:
Provided, they contain no metal or metals or other valuable minerals in
economically workable quantities."
Sec. 7. Sec. 258 of the same Code is hereby
repealed.
Sec. 8. Sec. 259 of the same Code is hereby
amended to read as follows:
"Sec. 259
Specific penalties. — Anyone liable to make a return of the actual
market value of the output of mines or to pay the royalty taxes
required in Sec. 256, who refuses or neglects to file such return,
or to pay such royalty taxes at the time or times specified therein;
and any lessee, owner, or person in charge of any minerals, mineral
products and quarry resources upon which the royalty taxes imposed in
this Title are applicable, who removes, in violation of the first
paragraph of said Section , or who allows or procures the unlawful
removal from the mines of any such products, upon which the royalty
taxes have not been paid; and any person who abets or aids in the
unlawful removal of minerals, mineral products or quarry resources
shall be fined not more than five thousand pesos and imprisoned for not
more than three years.
"Anyone required by this Title to
make, render, or file a return of the actual value of the output of
mines who makes, renders, or files a false or fraudulent return with
intent to defeat or evade the payment of the royalty taxes, as the case
may be, shall be fined not more than ten thousand pesos and imprisoned
for not more than five years."
Sec. 9. The provisions of Section s 194, 195, 196,
197, 199, and 201 of this Code, to the contrary notwithstanding, the
mining taxes on minerals and mineral products paid under Title VII
shall not be allowed as a tax credit against any sales tax or other tax
liabilities.
Sec. 10. The takes herein imposed shall be in lieu
of all charges and fees imposed on minerals, mineral products and
quarry resources under existing general or special laws, which charges
and fees are hereby abolished.
Sec. 11. The Minister of Finance upon
recommendation of the Commissioner of Internal Revenue and in
consultation with the Minister of Natural Resources, shall promulgate
the necessary rules and regulations for the effective enforcement of
this Act.
Sec. 12. All acts, laws, decrees, executive
orders, rules and regulations, or parts thereof, which are contrary to
or inconsistent herewith, except those granting tax incentives, are
hereby repealed, amended or modified accordingly.
Sec. 13. This Act shall take effect upon its
approval. However, the rates prescribed in Sec. 3 of this Act shall
take effect as follows:
(a) On non-metallic minerals and quarry resources,
fifty per centum of the rate prescribed therein until March 31, 1981,
and thereafter the full rate shall be imposed.
(b) On all metallic minerals, fifty per centum of the
rate prescribed therein until March 31, 1981, and thereafter the full
rate shall be imposed.
Approved: September 19, 1980.
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