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PERCENTAGE TAX

Percentage tax is a business tax imposed on persons or entities/transactions:

1. Who sell or lease goods, properties or services in the course of trade or business and are exempt
from value-added tax (VAT) under Section 109 (w) of the National Internal Revenue Code, as amended,
whose gross annual sales and/or receipts do not exceed Php 1,919,500 and who are not VAT-registered;
and
2. Engaged in the following industries/ transactions:
a. Cars for rent or hire driven by the lessee, transportation contractors, including persons who
transport passengers for hire, and other domestic carriers of passengers by land (except owners of
animal-drawn two-wheeled vehicle) and keepers of garages
b. International air/shipping carriers doing business in the Philippines on their gross receipts
derived from transport of cargo from the Philippines to another country
c. Franchise grantees of
radio and/or television broadcasting whose gross annual receipts for the preceding year
do not exceed Php 10,000,000.00 and did not opt to register as VAT taxpayers
gas and water utilities
d. Overseas dispatch, message or conversation transmitted from the Philippines, except those
transmitted by the Philippine government, any embassy and consular offices of a foreign
government, public international organizations enjoying exemptions pursuant to an international
agreement and new messages to a bona fide correspondent furnishing general news service
e. Banks and non-bank financial intermediaries performing quasi-banking functions
f. Other non-bank financial intermediaries (including pawnshops)
g. Person, company or corporation (except purely cooperative companies or associations) doing
life insurance business
h. Fire, marine or miscellaneous agents of foreign insurance companies
i. Proprietor, lessee or operator of cockpits, cabarets, night or day clubs, boxing exhibitions,
professional basketball games, Jai-Alai and racetracks,
including videoke bars, karaoke bars, karaoke televisions, karaoke boxes and music lounges
j. Winnings in horse races
k. Sale, barter or exchange of shares of stock listed and traded through the local stock exchange or
through initial public offering

Who are required to file Percentage Tax Returns monthly?

- Every person/entity subject to percentage tax as enumerated in items 1, 2.a, 2.b, 2.c, 2.e, 2.f, 2.g and 2.h
above.
- The return is filed either manual or electronic every 20th day following the end of each month.

Who are required to file Percentage Tax Returns quarterly?

1. Operator, manager or person in charge of:


a. cockpits, cabarets, day or night clubs, videoke bars, karaoke bars, karaoke televisions, karaoke boxes
and music lounges
b. boxing exhibitions
c. professional basketball games
d. Jai-alai and race tracks

2. Telephone and communication companies on their overseas dispatch, message or conversation originating
and transmitted from the Philippines
The filing of the return is either through manual or electronic filing every 20th day of the month.

Tax Rates
Coverage Basis Tax Rate
Persons exempt from VAT under Section 109 (W) Gross Receipts on sale or lease of goods, 3%
properties or services
Domestic carriers and keepers of garages Gross Receipts on transport of passengers by 3%
land (except those thru animal drawn two-wheeled
vehicles)
International Carriers:
International air/shipping carriers doing business in the Gross Receipts from transport of cargo from the 3%
Philippines Philippines to another country
Franchise Grantees:
Gas and water utilities Gross Receipts 2%
Radio and television broadcasting companies whose Gross Receipts 3%
annual gross receipts of the preceding year do not
exceed P 10,000,000 and did not opt to register as VAT
taxpayer
Overseas dispatch, message or conversation Gross Receipts 10%
originating from the Philippines
Banks and non-bank financing intermediaries On interest, commissions and discounts from lending
performing quasi-banking functions activities as well as income from financial leasing, on the
basis of remaining maturities of instruments maturities of
instruments from which receipts are derived:
Maturity period is five years or less 5%
Maturity period is more than five years 1%
On dividends and equity shares and net income of 0%
subsidiaries
On royalties, rentals of property, real or personal, 7%
profits from exchange and all other items treated
as gross income under Sec. 32 of the Tax Code,
as amended
On net trading gains within the taxable year of 7%
foreign currency, debt securities, derivatives and
other similar financial instruments
Other non-bank financial intermediaries Interest, commissions and discounts and all other 5%
items treated as gross income under the Tax
Code, as amended
Interest, commissions and discounts from lending activities,
as well as income from financial leasing on the basis of
remaining maturities of instruments:
Maturity period is five years or less 5%
Maturity period is more than five years 1%
Life Insurance Companies (except purely cooperative Total premiums collected 2%
companies or associations)
Agents of foreign insurance companies (except reinsurance premium):
Insurance agents authorized under the Insurance Code Total premiums collected 4%
to procure policies of insurance for companies not
authorized to transact business in the Philippines
Owners of property obtaining insurance directly with Total premiums paid 5%
foreign insurance companies
Proprietor, lessee or operator of the following:
Cockpits Gross receipts 18%
Cabarets, Night or Day Clubs videoke bars, karaoke Gross receipts 18%
bars, karaoke televisions, karaoke boxes and music
lounges
Boxing exhibitions Gross receipts 10%
Professional basketball games Gross receipts 15%
Jai-alai and race track (operators shall withheld tax on Gross receipts 30%
winnings)
Winnings on horse races Winnings or 'dividends' 10%
Winnings from double forecast/quinella and 4%
trifecta bets
Prizes of owners of winning race horses 10%
Sale, Barter, Exchange of Shares of Stock Listed and Trased through the Local Stock Exchange or Through Initial
Public Offering
Sale, barter, exchange or other disposition of Gross selling price or gross value in money of 1%
shares of stock listed and traded through the
Local Stock Exchange other than the sale by a
dealer of securities [Sec. 127 (A)]
Sale, barter or exchange or other disposition Gross selling price or gross value in money
through initial public offering (IPO) of shares of Proportion of disposed shares to total outstanding shares
stock in closely-held corporations [Sec. 127 (B)] after the listing in the local stock exchange:
Up to 25% 4%
Over 25% but not over 33 1/3% 2%
Over 33 1/3% 1%
DOCUMENTARY STAMP TAX

Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the
acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.

Tax Rates
Tax Document Taxable Unit Tax Due Per % of Taxable Base
Code Unit Unit
Section
174 Original Issue of Shares of P200.00 or fraction 1.00 .5% Par value of shares of
Stock with par value thereof stocks

Original Issue of Shares of Actual consideration for the


Stock without par value P200.00 or fraction 1.00 .5% issuance of shares of
thereof stocks

Actual value represented by


each share
Stock Dividend

P200.00 or fraction 1.00 .5%


thereof
175 Sales, Agreements to Sell, P200.00 or fraction .75 3.75% Par value of such stock
Memoranda of Sales, thereof
Deliveries or Transfer of
Shares or Certificates of
Stock

Stock without par value DST paid upon the original


25% issuance of said stock.
176 Bonds, Debentures, Certificate P200.00 or fraction .75 3.75% Par value of such bonds,
of Stock or Indebtedness thereof debentures, Certificate of
issued in foreign Countries Stock or Indebtedness
177 Certificate of Profits or Interest P200.00 or fraction .50 .25% Face value of such
in Property or Accumulation thereof certificate / memorandum
178 Bank Checks, Drafts, On each Document 1.50
Certificate of Deposit not
bearing interest and other
Instruments
179 All Debt Instruments P200.00 or fraction 1.00 .5% Issue price of any such
thereof instruments
180 All Bills of Exchange or Drafts P200.00 or fraction .30 .15% Face value of any such bill
thereof of exchange or draft
181 Acceptance of Bills of P200.00 or fraction .30 .15% Face value of such bill of
Exchange or order for the thereof exchange or order or the
payment of money purporting Philippine equivalent of
to be drawn in a foreign such value, if expressed in
country but payable in the foreign currency
Philippines
182 Foreign Bills of Exchange and P200.00 or fraction .30 .15% Face value of such bill of
Letters of Credit thereof exchange or letter of credit
or the Philippine equivalent
of such value, if expressed
in foreign currency
183 Life Insurance Policies If the amount of exempt Amount of Insurance
insurance does not
exceed P100,000.00

If the amount of Amount of Insurance


insurance exceeds 10.00
P100,000.00 but does
not exceed
P300,000.00
Amount of Insurance
If the amount of
insurance exceeds 25.00
P300,000.00 but does
not exceed
P500,000.00 Amount of Insurance

If the amount of
insurance exceeds 50.00
P500,000.00 but does
not exceed Amount of Insurance
P750,000.00

If the amount of
insurance exceeds 75.00
P750,000.00 but does Amount of Insurance
not exceed
P1,000,000.00

If the amount of
insurance exceeds 100.00
P1,000,000.00
184 Policies Of Insurance upon P4.00 premium or .50 12.5% Premium charged
Property fraction thereof
185 Fidelity Bonds and other P4.00 premium or .50 12.5% Premium charged
Insurance Policies fraction thereof
186 Policies of Annuities or other P200.00 or fraction .50 .25% Premium or installment
instruments thereof payment or contract price
collected

Premium or
contribution collected
P200.00 or fraction .20 .10%
Pre-Need Plans thereof
187 Indemnity Bonds P4.00 or fraction .30 7.5% Premium charged
thereof
188 Certificates of Damage or Each Certificate 15.00
otherwise and Certificate or
document issued by any
customs officers, marine
surveyor, notary public
and certificate required by
law or by rules and regulations
of a public office
189 Warehouse Receipts (except if Each Receipt 15.00
value does not exceed
P200.00)
190 Jai-alai, Horse Race Tickets, P1.00 cost of ticket .10 10% Cost of the ticket
lotto or Other Authorized
Number Games Cost of the ticket
Additional P0.10 on
every P1.00 or fraction
thereof if cost of ticket
exceeds P1.00
191 Bills of Lading or If the value of such 1.00 Value of such goods
Receipts(except charter party) goods exceeds
P100.00 and does not
exceed P1,000.00

If the value exceeds Value of such goods


P1,000.00 10.00

Freight tickets covering


goods, merchandise or
effects carried as Exempt
accompanied baggage
of passengers on land
and water carriers
primarily engaged in
the transportation of
passengers
192 Proxies(except proxies issued Each proxy 15.00
affecting the affairs of
associations or corporations,
organized for religious,
charitable or literary purposes)
193 Powers of Attorney(except Each Document 5.00
acts connected with the
collection of claims due from
or accruing to the Government
of the Republic of the
Philippines, or the government
of any province, city or
Municipality)
194 Lease and other Hiring First 2,000 or fractional 3.00 .15%
agreements or memorandum part thereof
or contract for hire, use or
rent of any land or tenements For every P1,000 or
or portions thereof fractional part thereof in 1.00 .1%
excess of the first
P2,000 for each year of
the term of the said
contract or agreement
195 Mortgages Pledges of lands, First 5,000 20.00 .4% Amount Secured
estate, or property and Deeds
of Trust Amount Secured
On each P5,000 or 10.00 .2%
fractional part thereof in
excess of 5,000
196 Deed of Sale, instrument or First 1,000 15.00 1.5% Consideration or Fair
writing and Conveyances of Market Value, whichever is
Real Property (except grants, higher (if government is a
patents or original certificate of party, basis shall be the
the government) consideration)

Consideration or Fair
Market Value, whichever is
higher (if government is a
party, basis shall be the
For each additional 15.00 1.5% consideration)
P1,000 or fractional
part thereof in
excess of P1,000
197 Charter parties and Similar 1,000 tons and below P500.00 for the Registered gross tonnage
Instruments first 6 months
Plus P50 each
month or
fraction thereof
in excess of 6
months

P1,000 for the


1,001 to 10,000 tons first 6 Registered gross tonnage
months Plus
P100 each
month or
fraction thereof
in excess of 6
months

P1,500 for the


Over 10,000 tons first 6 Registered gross tonnage
months Plus
P150 each
month or
fraction thereof
in excess of 6
months
198 Stamp Tax on Assignments At the same rate
and Renewals or Continuance as that imposed
of Certain Instruments on the original
instrument.

Deadline

The Documentary Stamp Tax return (BIR Form 2000) shall be filed in triplicate (two copies for the BIR and one copy
for the taxpayer) within five (5) days after the close of the month when the taxable document was made signed,
issued, accepted or transferred; upon remittance by Collection Agents of collection from sale of loose stamps. The
Documentary Stamp Tax shall be paid upon filing of the return.
Who are required to file Documentary Stamp Tax Declaration Return?

a) In case of constructive affixture of documentary stamps, by the persons making, signing, issuing, accepting or
transferring documents, instruments, loan agreements and papers, acceptances, assignments, sales and
conveyances of the obligation, right or property incident thereto wherever the document is made, signed, issued,
accepted or transferred when the obligation or right arises from Philippine sources or the property is situated in the
Philippines at the same time such act is done or transaction had;

b) By using the web-based Electronic Documentary Stamp Tax (eDST) System in the payment/remittance of
its/his/her DST liabilities and the affixture of the prescribed documentary stamp on taxable documents; and

c) By Revenue Collection Agent, for remittance of sold loose documentary stamps.

NOTE: Wherever one party to the taxable document enjoys exemption from the tax imposed, the other party who is
not exempt will be the one directly liable to file Documentary Stamp Tax Declaration and pay the applicable stamp
tax.

Where is the Documentary Stamp Tax Declaration Return filed?

In the Authorized Agent Bank (AAB) within the territorial jurisdiction of the RDO which has jurisdiction over the
residence or principal place of business of the taxpayer or where the property is located in case of sale of real
property or where the Collection Agent is assigned. In places where there is no Authorized Agent Bank, the return will
be filed with the Revenue Collection Officer or duly authorized City or Municipal Treasurer where the taxpayer's
residence or principal place of business is located or where the property is located in case of sale of real property or
where the Collection Agent is assigned.

What are the documents/papers not subject to Documentary Stamp Tax? (sec. 9, RR No. 13-2004)

- Policies of insurance or annuities made or granted by a fraternal or beneficiary society, order, association or
cooperative company, operated on the lodge system or local cooperation plan and organized and conducted
solely by the members thereof for the exclusive benefit of each member and not for profit
- Certificates of oaths administered by any government official in his official capacity or acknowledgement by
any government official in performance of his official duty
- Written appearance in any court by any government official in his official capacity
- Certificates of the administration of oaths to any person as to the authenticity of any paper required to be
filed in court by any person or party thereto, whether the proceedings be civil or criminal
- Papers and documents filed in court by or for the national, provincial, city or municipal governments
- Affidavits of poor persons for the purpose of proving poverty
- Statements and other compulsory information required of persons or corporations by the rules and
regulations of the national, provincial, city or municipal government exclusively for statistical purposes and
which are wholly for the use of the Bureau or office in which they are filed, and not at the instance or for the
use or benefit of the person filing them
- Certified copies and other certificates placed upon documents, instruments and papers for the national,
provincial, city or municipal governments made at the instance and for the sole use of some other branch of
the national, provincial, city or municipal governments
- Certificates of the assessed value of lands, not exceeding P200 in value assessed, furnished by the
provincial, city or municipal Treasurer to applicants for registration of title to land
- Borrowing and lending of securities executed under the Securities Borrowing and Lending Program of a
registered exchange, or in accordance with regulations prescribed by the appropriate regulatory authority:
Provided, however, That any borrowing or lending of securities agreement as contemplated hereof shall be
duly covered by a master securities borrowing and lending agreement acceptable to the appropriate
regulatory authority, and which agreement is duly registered and approved by the Bureau of Internal
Revenue (BIR)
- Loan agreements or promissory notes, the aggregate of which does not exceed Two hundred fifty thousand
pesos (P250,000), or any such amount as may be determined by the Secretary of Finance, executed by an
individual for his purchase on installment for his personal use or that of his family and not for business or
resale, barter or hire of a house, lot, motor vehicle, appliance or furniture: Provided, however, That the
amount to be set by the Secretary of Finance shall be in accordance with a relevant price index but not to
exceed ten percent (10%) of the current amount and shall remain in force at least for three (3) years
- Sale, barter or exchange of shares of stock listed and traded through the local stock exchange (R.A 9648)
- Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any
agreement, contract, charter, or any evidence of obligation or indebtedness, if there is no change in the
maturity date or remaining period of coverage from that of the original instrument.
- Fixed income and other securities traded in the secondary market or through an exchange.
- Derivatives: Provided, That for purposes of this exemption, repurchase agreements and reverse repurchase
agreements shall be treated similarly as derivatives
- Interbranch or interdepartmental advances within the same legal entity
- All forebearances arising from sales or service contracts including credit card and trade receivables:
Provided, That the exemption be limited to those executed by the seller or service provider itself.
- Bank deposit accounts without a fixed term or maturity
- All contracts, deeds, documents and transactions related to the conduct of business of the Bangko Sentral
ng Pilipinas
- Transfer of property pursuant to Section 40(C)(2) of the National Internal Revenue Code of 1997, as
amended.
- Interbank call loans with maturity of not more than seven (7) days to cover deficiency in reserves against
deposit liabilities, including those between or among banks and quasi-banks

What are the implications of failure to stamp taxable documents?

The untaxed document will not be recorded, nor will it or any copy thereof or any record of transfer of the same be
admitted or used in evidence in court until the requisite stamp or stamps have been affixed thereto and cancelled

No notary public or other officer authorized to administer oaths will add his jurat or acknowledgment to any document
subject to Documentary Stamp Tax unless the proper documentary stamps are affixed thereto and cancelled.

What is Electronic Documentary Stamp Tax (eDST) System? (sec. 5 (1), RR No. 7-2009)

The eDST is a web-based application created for taxpayers and the BIR that is capable of affixing a secured
documentary stamp on the taxable documents as defined under the appropriate provisions under Title VII of the
National Internal Revenue Code of 1997, as amended, thru the use of a computer unit, any laser printer with at least
1200 dpi resolution, and Internet Explorer 7.0 It is also capable of providing a 3-layer watermark on stamps for added
security.
Is DST Law applicable on Electronic Documents? (sec. 10, RR No. 13-2004)

The DST rates as imposed under the Code, as amended by R.A. 9243 shall be applicable on all documents not
otherwise expressly exempted by the said law, notwithstanding the fact that they are in electronic form. As provided
for by R.A. 8792, otherwise known as the Electronic Commerce Act, electronic documents are the functional
equivalent of a written document under existing laws, and the issuance thereof is therefore tantamount to the
issuance of a written document, and therefore subject to DST.

What are the inclusions of a debt instrument? (sec. 5, RR No. 13-2004)

Debt Instrument shall mean instruments representing borrowing and lending transaction including but not limited to:

- debentures,
- certificates of indebtedness,
- due bills,
- bonds,
- loan agreements, including those signed abroad wherein the object of the contract is located or used in the
Philippines,
- instruments and securities issued by the government or any of its instrumentalities,
- deposit substitute debt instruments,
- certificates or other evidences of deposits that are drawing instrument significantly higher than the regular
savings deposit taking into consideration the size of the deposit and the risks involved,
- certificates or other evidences of deposits that are drawing interest and having a specific maturity date,
- promissory notes, whether negotiable or non-negotiable, except bank notes issued for circulation.

IS ANY DOCUMENT, TRANSACTION OR ARRANGEMENT ENTERED INTO UNDER FINANCIAL LEASE


SUBJECT TO DOCUMENTARY STAMP TAX? (RMC NO. 46-2014)

Financial lease is akin to a debt rather than a lease. A nature of an obligation than a lease of personal property. The
mere act of extending credit is already a means of facilitating an obligation or advancing in behalf of the lessee
certain property in lieu of cash in exchange for a definitive amortization to be paid to the lessor with profit margin
included. Section 179 of the NIRC, as amended, covers all debt instruments. Therefore, being a nature of an
obligation, any document, transaction or arrangement entered into under financial lease is subject to DST under such
Section of the NIRC, as amended.
EXCISE TAX

Excise Tax is a tax on the production, sale or consumption of a commodity in a country.

Applicability:

- On goods manufactured or produced in the Philippines for domestic sale or consumption or for any other
disposition; and
- On goods imported.

Types of Excise Tax:

1. Specific Tax refers to the excise tax imposed which is based on weight or volume capacity or any other
physical unit of measurement
2. Ad Valorem Tax refers to the excise tax which is based on selling price or other specified value of the
goods/articles

Manner of Computation:

1. Specific Tax = No. of Units/other measurements x Specific Tax Rate


2. Ad Valorem Tax = No. of Units/other measurements x Selling Price of any specific value per unit x Ad
Valorem Tax Rate

MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND RELATED CODAL SECTION:

1. Alcohol Products (Sections 141-143)

a. Distilled Spirits (Section 141)


b. Wines (Section 142)
c. Fermented Liquors (Section 143)

2. Tobacco Products (Sections 144-146)

a. Tobacco Products (Section 144)


b. Cigars & Cigarettes (Section 145)
c. Inspection Fee (Section 146)

3. Petroleum Products (Section 148)

4. Miscellaneous Articles (Section 149-150)

a. Automobiles (Section 149)


b. Non-essential Goods (Section 150)

5. Mineral Products (Sections 151)

PERSONS LIABLE TO EXCISE TAX:

In General:

a. On Domestic or Local Articles

- Manufacturer
- Producer
- Owner or person having possession of articles removed from the place of production without the
payment of the tax

b. On Imported Articles

- Importer
- Owner
- Person who is found in possession of articles which are exempt from excise taxes other than
those legally entitled to exemption

Others:

On Indigenous Petroleum

a. Local Sale, Barter or Transfer


- First buyer, purchaser or transferee

b. Exportation
- Owner, lessee, concessionaire or operator of the mining claim

TIME OF PAYMENT:
In General

a. On domestic products
- Before removal from the place of production

b. On imported products
- Before release from the customs' custody

PARTICULAR SECTION IN THE NIRC OF 1997, AS AMENDED


ALCOHOL PRODUCTS 141-143
TOBACCO PRODUCTS 144-147
PETROLEUM PRODUCTS 148
MISCELLANEOUS ARTICLES 149-150
MINERAL PRODUCTS 151
EXCISE TAX RATES:

A. ALCOHOL PRODUCTS
NEW TAX RATES based on Republic Act No. 10351 Remarks
PARTICULARS 2018
2013 2014 2015 2016 2017 onwards
A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX
1) AD VALOREM TAX RATE -
Based on the Net Retail Price
(NRP) per proof (excluding the 15% 15% 20% 20% 20% 20%
excise and value-added taxes);
and
Effective
1/1/2016, the
specific tax rate
2) SPECIFIC TAX - Per proof
Php20 Php20 Php20 Php20.80 Php21.63 shall be
liter
increased by
4% every year
thereafter
B. WINES, per liter of volume capacity
1) Sparkling wines/
champagnes, where the NRP
(excluding the excise and VAT)
per bottle of 750ml volume
capacity, regardless of proof is:
Php500.00 or less Php250 Php260 Php270.40 Php281.22 Php292.47
Effective
More than Php500.00 Php700 Php728 Php757.12 Php787.40 Php818.90 1/1/2014, the
2) Still wines and carbonated specific tax rate
wines containing 14% of alcohol Php30.00 Php31.20 Php32.45 Php33.75 Php35.10 shall be
by volume or less increased by
4% every year
3) Still wines and carbonated thereafter
wines containing more than 14%
Php60.00 Php62.40 Php64.90 Php67.50 Php70.20
(of alcohol by volume) but not
more 25% of alcohol by volume
4) Fortified wines containing
more than 25% of alcohol by Taxed as distilled spirits
volume
C. FERMENTED LIQUORS , per liter of volume capacity
1) If the NRP (excluding excise Effective
and VAT) per liter of volume 1/1/2018, the
capacity is: specific tax rate
Php 50.60 and below Php15.00 Php17.00 Php19.00 Php21.00 Php23.50 shall be
increased by
4% every year
More than Php 50.60 Php20.00 Php21.00 Php22.00 Php23.00 Php23.50 thereafter
2) If brewed and sold at Effective
microbreweries or small 1/1/2014, the
establishments such as pubs Php28.00 Php29.12 Php30.28 Php31.50 Php32.76 specific tax rate
and restaurants, regardless of shall be
the NRP increased by
4% every year
thereafter
NOTE:
IN CASE OF FERMENTED LIQUORS AFFECTED BY THE "NO DOWNWARD RECLASSIFICATION " PROVISION,
THE 4% INCREASE SHALL APPLY TO THEIR RESPECTIVE APPLICABLE TAX RATES

B. TOBACCO PRODUCTS
NEW TAX RATES based on Republic Act No. 10351 Remarks
PARTICULARS 2018
2013 2014 2015 2016 2017 onwards
A. TOBACCO PRODUCTS, per kilogram
1. Tobacco Products
(a) Tobacco twisted by hand or
reduced into a condition to be
consumed in any manner other Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
than the ordinary mode of drying Effective
and curing; 1/1/2014, the
(b) Tobacco prepared or partially specific tax rate
prepared with or without the use of shall be
any machine or instrument or Php1.75 Php1.82 Php1.89 Php1.97 Php2.05 increased by 4%
without being pressed or every year
sweetened; and thereafter
(c) Fine-cut shorts and refuse,
scraps, clippings, cuttings, stems, Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
midribs and sweepings of tobacco;
2. Chewing tobacco unsuitable for
Php1.50 Php1.56 Php1.62 Php1.68 Php1.75
use in any other manner
B. CIGARS, per cigar
3. Cigars Effective
(a) Based on the NRP per cigar 1/1/2014, the
(excluding the excise and value- 20% 20% 20% 20% 20% specific tax rate
added taxes), and shall be
increased by 4%
(b) Per cigar Php5.00 Php5.20 Php5.41 Php5.62 Php5.85 every year
thereafter
C. CIGARETTES , per pack
Effective
1/1/2018, the
specific tax rate
1. Cigarettes packed by hand Php12.00 Php15.00 Php18.00 Php21.00 Php30.00 shall be
increased by 4%
every year
thereafter
2. Cigarettes packed by machine,
where the NRP (excluding excise
and VAT) per pack is:
(a) Php11.50 and below Php12.00 Php17.00 Php21.00 Php25.00 Php30.00
(b) More than Php11.50 Php25.00 Php27.00 Php28.00 Php29.00 Php30.00
INSPECTION FEE - There shall be collected inspection fees on leaf tobacco, scrap, cigars, Cigarettes and other
manufactured tobacco and tobacco products as follows:
PRODUCT TYPE INSPECTION FEE
(1) Cigars P 0.50 per thousand pieces or fraction thereof
(2) Cigarettes P 0.10 per thousand sticks or fraction thereof
(3) Leaf Tobacco P 0.02 per kilogram or fraction thereof
(4) Scrap and other manufactured tobacco P 0.03 per kilogram or fraction thereof

C. PETROLEUM PRODUCTS
PRODUCT TYPE TAX RATES
Lubricating oils and greases, including but not limited to base stock for lube P 4.50 per liter
oils and greases, high vacuum distillates, aromatic extracts and other similar
preparations, and additives for lubricating oils and greases, whether such
additives are petroleum based or not
Processed gas P 0.05 per liter
Waxes and petrolatum P 3.50 per kilogram
Denatured alcohol, if used for motive power [i.e. one hundred eighty (180) P 0.05 per liter
proof ninety percent (90%) absolute alcohol]. Provided, that unless otherwise
provided by special laws, if the denatured alcohol is mixed with gasoline, the
excise tax which has already been paid, only the alcohol content shall be
subject to tax
Naphtha, regular gasoline and other similar products of distillation P 4.35 per liter
Naphtha used as raw material in the production of petrochemical products or P 0.00 per liter
as replacement fuel for natural gas-fired combined cycle power plant, in lieu
of locally-extracted natural gas during the non-availability thereof
Leaded premium gasoline P 5.35 per liter
Unleaded premium gasoline P 4.35 per liter
Aviation turbo jet fuel P 3.67 per liter
Kerosene P 0.00 per liter
Kerosene used as aviation fuel P 3.67 per liter
Diesel fuel oil, and on similar fuel oils having more or less the same P 0.00 per liter
generating power
Liquefied Petroleum Gas ; Provided, that if used for motive power, it shall be P 0.00 per liter
taxed at the equivalent rate as the Excise Tax on diesel fuel oil
Asphalt P 0.56 per kilogram
Bunker fuel oil, and on similar fuel oils having more or less the same P 0.00 per liter
generating power

D. MINERALS AND MINERAL PRODUCTS


PRODUCT TYPE TAX RATES
On coal and coke Ten Pesos (P10.00) per metric ton
All mineral and mineral products (non-metallic), quarry Two percent (2%) bases on the actual market value,
resources in the case of those locally-extracted or produced;
and, in the case of importation or the value used by
the Bureau of Customs in determining tariff and
customs duties, net of Excise Tax and Value-Added
Tax.
On locally-extracted natural gas and liquefied natural gas P0.00
On indigenous petroleum Three percent (3%) of the fair international market
price thereof
NOTE:
In the case of mineral concentrates not traded in commodity exchanges in the Philippines or abroad, such as copper
concentrate, the actual market value shall be the world price quotations of the refined mineral products content
thereof prevailing in the said commodity exchanges, after deducting the smelting, refining and other charges incurred
in the process of converting the mineral concentrates into refined metal traded in those commodity exchanges.

On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and insurance shall be
deducted from the tax base.

E. AUTOMOBILES AND OTHER MOTOR VEHICLES


OVER UP TO RATE
0 P 600,000 2%
P600,000 P 1,100,000 P 12,000 + 20% in excess of P 600,000
P1,100,000 P2,100,000 P112,000+ 40% in excess of P1,100,000
P2,100,000 over P512,000 + 60% in excess of P2,100,000

F. NON-ESSENTIAL GOODS

Twenty percent (20%) based on the wholesale price or the value of importation used by the Bureau of Customs in
determining Tariff and Customs Duties, net of Excise and Value-Added taxes