H. No.

"36
s. No. 1592

~rrfflia~

al:mips nft4~ Jlfilippiul?S

l ~~

•
Begun end held In Metro ~la, on Monday, twenty-fourth
dey of July, two 1l1ousa:nd seventeen.

(REPUBLIC ACT NO. 10 9 6 3]

.
AN ACJr AMENDING SECTIONS 5, 6, 24, 25, 27, 81, 82, 38, 34,
51, 52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101,
106, 107, 108, 109, 110, ll2, 114, 116, 127, 128, 129, 145,
143, 149, 151, 155.171, 174, 175, 177, 178, 179, 180, 181,
182, 183, 186. 188, 189, 190, 191, 192, 198, 194, 195, 196,
197, 282, 286, 287, 249, 25'. 264, 269, AND 288; CREATING
NEW SECTIONS 51-A. 148-A. 150-A, triO-B, 287-A.

I 264-A. 264-B,AND 265-A;AND REPEALINGSECJrlONS

85, 62, AND 89; ALL UNDER REPUBLIC ACT NO. 8424,
OTHERWISE KNOWN AS THE NATIONAL INTERN.AL
REVENUE CODE OF 1997, AS AMENDED, AND FOR
crtHERPURPOSES

Be it ~cted by the S.natt and House of R•pruentartvu of the

Phlllppbia in Ccngrm aumrblul:
 2
SECTION l. Tille. - TbisActshallbeknownastho'"l'ax
&form for Acceleration and Inclusion (TRAIN)".
SBC. 2. Declorolion ofPo~. - It ie he..,by dedared the
policy of the State:
(a) To enhance tho progressivity oC tho tax system through
tho ratiooa.lization of tho Philippine internal revenue tax 8)'1tem,
thereby promoting su.etainable and inclusive economic growth;
(b) To provide, aa much as Jl<)ESible, an equitable relief to a
greater number oftaxpayers and their familiee in order to improve
levels of disposable income an.d increase economic activity; and
(c) To ensure that tne goverrunentis able to provide for the
needaof tbooe UDder itejurisd.iction and care through the provision
of ootter infrastructure, health, education, jobs, and aocial
protection for the people.
SEC. 3. Section5oftbeNationallntema!RevenueCodoof
1997 (NIRC), as amended, is hereby furtbnr amended to read aa
follows:
"SEC. 5. Power of ehe Commi..wn.er to Oblain
Information., ond to S1<mnwn, E:iomiM, and Toke
Testimony of Persons. - ln ascertaining the
oorrectnessof any return, or in malcing a return when
non.e has been made, or in determining the liability
of any person for any internal revenue tax. or in
collecting an,y such liabilit;y, or in evaluating tax
oompli.anoe, the C<>m missioner ia autbori1.ed:
"(A) x x x
"(B) To obtain on a regular ho.sis from any
person other than the person whose internal
revenue tax liability is subject to audit or
investigation. or &om a:ny office or officer of the
national.and local govemment:t, government agencies
and instrumentalities, including the Bangko Sentral
ng Pilipinas and government-owned or -controlled
corporations, any information such as. but not limited
to, oost.s and volume of production, receipt& or sales
and gross incomes of taxpayers, and tbe names,
addre.sses. and financial statemeoteof oorporatione,
mutual fund companies, insurance companies.
recional operating beadquartuw of multinational
oompanies,joint 9000unts, associations, joint veoturce
or consortia and regiatered partnerehlps, and their
members: Provided, That the Cooperative
Development Authority shall submit to the Bureau a
tax incentive report, which shall include information
on the inoome tax, value-added tax, and other tax
incentives availed of by cooperatives registered and
enjoying incentives under Republic Act No. 6938, as
amended: Provided, {urtlwr, That the information
submitted. by the Cooperative Development Authority
to the Bureau al1all be submitted to the Departmeot
of Finance and ehall be included in the database
created under Republic Act No. 10708, otberwiae
known as 'The Tax Incentives Management and
Transpareocy Act(TIMTA)'.
"xxx.•
SEC. 4. Sectioo 6 of the NIRC, as amended. ia hereby
further amended to ..,ad as follows:
"SEC. G. Power of tke Commissioner to
Make Asse86ments and Prescribe Additionol
Requirements for Tax Administration ond
Enforcement. -
"(A) Ezomination of Returns ond
Determinatum. of To.:c Ihu. - After a return has
been filed as required under the provisions of this
Code, the Commissioner or bis duly authorized
rep~ntstive may autbori7;i the examination of any
taxpayer and the assessment of the correct amount
of tax, notwilhstanding any law requiring the prior
authorization of &QY government agency or
instrumentality: Provided, kouxwer, That failure to
file a return shall not prevent the ComnWisioner from
authorizing the examination of an,v taxpayer.
"xx x
 • 5
"(B) xx x
"(C) x""
"(D)xxx
"(B) Authoril:t of tlw Commi..>on.u to
Prescribe&all'lopeit}< Valua. - The ('.ommiuioner
is here)iy a)lthomed to"divi4e the Philippi.Dea-into
different zones or ereaa and shall; upon mandiitory
mnsuJtation with compewmappraiaen both from the
private and puhlic sectma, and with prior notice to
affected taxpayers, determine the £a;r market value
ofrealptop81'tiea locatedin each zone or area, subject
to automatic adjustment once every three (8) yeata
tluoughrulee and.regulations ie&uedby the Secrebu:y
ofFinance bueci OD the current Philippine valuation
standanls: Prollided, That no adju..otmcnt in zonal
valuation ahall be valid unless publiahed in a
newapaperofgeneralcireulatioointheprovince,city
or municipality concerned!. or in the absence thereof;
shall be poeted in the provincial capitol, city or
municipal ball and in two 00 otbermnspic>v)ua puhlic
places therein: Prouilkd, fi,u1Jier, That the basis of
any valuation, including the :reconla of consultations
done, shall be public records open to the inquiry of
any taxp11Y91'. For p1.U]l0888 ofcomputing any internal
revenue tu, the value o! I.be properly ahall be,
whichever is the higher of:
"(l) the fair market value as determined by the
Commisfrioner; or
"('Z) the fair market value 88 abowu in the
schedule of values of the PTovincial and City
A.aeesaora:
SEC. Ii. Section 24 of the NIRC, 88 •mended. ii hereby
further amended to read aa f(!llows:
"SEC. 24. ln.collll! Thx Jlata. -
W Bates ofIncome To:tonlndWidual CUizen.
and Individual Ruiden.tAli.en. oftJwi Philippina. -
"(l) Anincome tax is hereby imposed:
. "(() On the taxable inoome defined in Section
.' 31 of tlµa Code, other than income subject to tax
J under Subsections (B), (C), and (0) of this Section.
deri~ for each taxabla year from all aouroee within
and wi.t hout the Philippines by every individual
citizen of the Pbilippinea residing thettin;
"(b) On the taxable income cle1i.ood in Sec:lion
31 of thi.a Code, other than income luhject to tax
under SnMect;one (B), (C), and (D) of tbis Section,
derived for each taDble year from all eouzces within
tbEt Philippines by an individual citizen of the
Philippine& who-is residing outside of the Philippines
including overseas con.tr-act workere referred to in
Subaection (C) of Section 28 hereof; and
"(c) On the taxable income de.fined in Section
31 of this Code, other than income aubject to tax
under Subsections (B), (C), and (0) of this Section,
deri....d for each tazahl. ye:u from an .......;. witbia
the Philippines by an. individual alien who ia a
resident of the Philippines.
"(2) Bales of Tax on Taxablt In.come of
lndiuidu.ols. - The tu shall be comp11ted in
aoconlan.ca with and at the rates eatabliahed in the
~ICbednle:
 7

"(a) Tax Schedule Effective January l, 2018 pa,y received by such :minimum wage eamen ahall
until December Sl, 2022:
likewise be exempt from income tax.
"!'lot - nao.ooo -··---··..··-·-·- °" "(b) Rate of Toz 01'· Income of Purdy
-0... ~000 but - ..., Pf00,000 ---· 20ll oftilo-
Eklf-emp~yed Indiuiduala and/or ProfWJwnol$
- Pla0,000
-0... P.a<i,000 but-..., P800.000 - ....... P30,000+16" al Ille Whose Gross Salea '" Grou Receipl.s on.4 Oiiier
. esotM owr P400.000 Non-operolin1 Income Does Nol Exceed the
"<Mt Plll0.000but ... ...,1'2.000.000 - P180.000+IOl'°fllle Value-added 7hr (VA.17 ThreshlJld as Provided in
_._paoo,ooo Ekcti.on 109(BB). - Self-employed individuals
•o- PS.000,000 bot..,...., Pa.000.000.... P4G,OOO+l2"alllle and/orprofessinnala shall have the option to avail of
. . . . . O'l'tt Pl.000.000 an eight percent (8%) tax on gr088 aalee or g._
.. "o-Pl.-000 ---·-----·-·-·--oo•o J'S.'10.000+1&,.a(llle
- - 1'8,000.000
receipts and other DOD-operatinf ineome in excesao!
-r.o hundred fiAy tbou8and ~ (1'260,000) ~lieu
'Tax Schedule Etfed:i•eJanuary 1, 2028 and onwards: of the graduated income tu ratea llllder S•abeection
°Not- """"000 _ , , , _ _ _ _ _ _ °" (A)(2)(a) ofthis Section and the percentage tax UDder
Section 116 of this Code.
~ naG.OCQhi:ooc...a"P400,000 ___ ltKflltM.._.
.... nao.ooo "(c) Bau of Ta.: {or Miz«I. lna>me Earners.
-0...- P400,000 bat notCMr" Paoo,(X)I) --·- · PU,400 + 2°" o6&ht
- ...... r.00,000 - Taxpayexs earning both compensation income mid
income from busineas or practice ofprofession ahall
"O..t l'I00,000 but - ..., 1'11.000.000 - PI02,IOO + ll&,. of Ille
. . . . . O\'tl' ~000
be subject to the following taxes:
·o- 1'2,000,000 lM DOt OYer Pa,000,000.... P<Oa,IOO + l!Oi6 altluo
•._..over 1'2.000.000 "(l) All.Income from Co111penaation - The
"°"'' Pa,000,000 ... _. ......... - ............ _,,_, Pl.102.800+16"
....,. . _ PS.000.000
"* i:atee prescribed under Subsection (J\)~)(a) of this
Section.
"For manied individuals, the huaband and
"(2) All Income from Buaineaa or Practice of
wife, subject to the provision of Sect.ion 5l(D) heieo~
shall compute separately their individual ineome tax Profession -
based on their respective total taxable income:
...
Pn>ui<kd, That if any income oanaot be ddi.oilely I "(a) ffTotal Gross Salee and/or Groa Receipta
attributed to or identified as income exclusive!)' and Other Noll-Opelating Income Do Not Exceed the
eamecl or realized by either ofthe lpOU8e8, the aame l VATThresbold as Provided in Section 109(BB) of this
ehall be divided equally 'between the apouaea for the Code. - The rates prescribed 1111der Subeection
purpose of determining their respective tuable (A)(2)(a) of thia Section oo taxable income, or eight
income. percent (8%) income 1.8% based on l"ON eales or groaa
receipts and other non-operatinf inllome in lieu of
"Prouided, That minimum wage earners as tho graduated income tax rates under Subsection
dolined in Section 22(BB) ofthis Code aba1l be exempt (A)(2)(a) ofthis Section and the percentaae tax undor
&om t.he payment of income tax on their taxable
Section 116oftltiaCode.
income: Provided, {u.rl.Jr.er, That tho holiday pay,
 8 9
"(b) IfTotal Groaa Sales and/or G!OIBReoeipla
an.d Other Non·operating Income Exceeda the
VA:r'I1>reabold aa IWrided in Section 109(BB) oLtbil
Code. - The ratea pieaczibed under Subaection
CAX2)(a) of tbia Secti<>n.
"(B) Rote of Toz on Certain Passive
l7U::Dme: -
"(I) l.nWeat.s, Ro,alties. Priza, and OIMr
WiMings. - A final tax at the rate of twenty percent
(20%) is bezeby imposed upon the amount ofinterest
from any currency bank deposit and yield or any other
moaetary beoofit from deposit aubetitutea and from
.. trust funds and similar arranaementa; royahiea,
except on boob. aa well as other literazy works and
mll8ical compocitiona, which shall be impoeed a final
tax of ten percent (10%); prizes (except prizes
amounting to Ten thousand pesoe (Pl0,000) or le3ll
which shall be aubject to tax under Subeection (A) of
Section 24; and other winninp (euept winnfop
a.moanling to Tan thou:.sandpeaoe (Pl0,000) or 1-
&om Pbilippina Charity Swetimu. and Louo which
ahaU be exempt), derived from aourcea wit.bin the
Philippinee: Provi&d, however, That interest income
received by an individual taxpayer (except. a
nonresident individual) irom a depoaitory bank under
the expanded foreipl c:m:reiw:y depoeit system ahaU
be aubject to a final income tu at the rate of fifteen
percent (15%) o£ such interest income: Pro~
{urlh.er, That interest income from long-term depocit
or invet<tme.n t in the form of savings, common o.r
iodividwtl truatfund.o, depoeit.w..titl.lte.,.invcetmcnt
management accounts ud 0th.e r investments
evidenced by certificates in such form prescribed by
the Bangko Senlzal ng Pi1ipinaa (8fil') shall be exempt
from the tax imposed under this Subsection:
Prouided, finally, Tha,t should the bolder of the
certificate pre-terminate the depoait or investment
before the fifth (6"') year, a final tu aball be imposed
on the entire income and abaU be deducted and
witbheld by the depositary bank from the proceeds of
the Jong-term depoeitor in-ent certi6':atA> baled
on tbe remainina: maturity tbereof:
"(2) Cash. and/or ProJMrty Dividends. - A
final tax at the rate of ten percent (10%) shall be
impoeed upon the auih and/or property dividenda
actn•Uy or conatrudively received by an indmdual
from a domeatic corporation or from a joint stock
company, insurance or mutual fund companies and
regional operating headquarten of multinational
companiea, or on the share of an individual in the
distributable net income after tax of a partnership
(emepta general pro(.....00,,al partnerahip)of which
be is a partner, or on the share of an individual in
the net income after tax of an aaeociation, a joint
account, or a joint venture or conaortium taxable aa
a corporation of which be is a meJ11berorco-venturer.
"(C) Capital Gain.s from Sak ofShares of Si«Jt
not 7Todai .... the Stack~ - The provision&
of Section S9(B) notwithstanding, a final tax at the
rate of fifteen pen:ent (15%) i.a hereby impoeed upon
the net capital gains reallied duxi.ng the taxable year
from the sale, barter, exchange or other d.ispoaition
of shares o£ atock in a domestic corporation, euept
shares sold, or disposed of through the atock
exchange.
"xx x.•
S&:. 6. Section 25 of the NIRC, aa amended, ia hereby
further amended to read as follows:
"SBC. 25. Tax on Nonresident Alien
I ruliui.du.al. -
"(A) NonresUkm Alien. Enga{/ed in Trade or
&siMss With.in IM Philippinu. -
"xx x
 10
.·
"(.B) Non.Tnilkni Al~n. ln.dfoiduol Not
En.g~ed in Trade oT Biuin.a.. Within. th4
PmlippWs. -
"(C) Alien..bsdiuidual Employ«l by &gi.on.ol OT
Area Head.quarters on.d Btponal Operaling
Heodqumlers o{Mulli.nalional C<Jmponi4 - Thexe
ahall be levied, collected and paid for each taxable
year upon the gross income received by every alien
individual employed by regional or area bcadquarten
and regional operating headquarten established in
the Philipp~& by mult\llational companies as
s alaries, wage~. annuitiei, compensatioi:i..
remunetation and other emolument&, s uch as
banararia and allawancea. mmauchregiooalnr area
headquarters and regional operatina beadquartera.
a tu equal to fifteen percent (16") of such P"OA
income: Provided. however, That the 88.me tax
treatment shall apply to Filipinoe employed and
occupying the eame position ea thoae of alie1JJ1
employed by these mu:ltinational comparuea. For
purposes of this Chapter, the term 'multinational
company' means a foreign firm nr entit;y engaged in
intemational trade with affiliat.es or aubaidiariea or
brancli offices in the Asia-Pacific Region and other
foreign markets.
"CD) Al~n IndWidual Bmp/qyed b)I Offshore
BonJrilllI Un.Us. -
There eball be levied, collected
and paid for each taxable year upon the gross
ina:ime rea>ived by evezy alieo individual amplQYed
by offshore banking -unite eatabliahed in the
Philippines as salari es, wages, annuities,
compenaatian, remaneralion aDd other emoluments,
such as bonorariaandaDowanca. from such olfshore
banlringunite, a tax equal tofifteenpercent(l5") of
such groes income: Provided, however, That the eame
tax treatment aball apJ>4' to Filipinoe employed and
occupying the same poaition aa those of alielJJI
employed by these offshore banking unite.
·.
11
"(E) AUen.buUviduol E~ by Pdl'okum
Sovi« ConSroctor CJ1ld Subcon.troctor. - An alien
individual who ia 8 perm •MDt remdent of 8 f'omlPl
countzy but who ia employed and aHi1Ded in the
Pbilippinea by a fmejgJ> service contractor or by a
J foreign '8rvice subcontractor enpced in petroleum
I
operations in the Philippi.Dea shall be liable to a tax
of fifteen percent (15%) of the aalaries, wages,
., annuities, compenaation, remuneration and other
A emolument.a, such 88 bonoraria and allowances,
re<:eived from such contractor or subcontractor:
Provided, /wwelJa", That the same tax treatment shall
apply to aFilipino employed and oc:eupyinc the 88m8
poai~ as an alien employed by petroleum service
contractor and subcontractor.
•Any income euned from all other aourcea
within the Philippines by the alien employees referred
to under SiJbeections (C), (D), and (E) berecii ahail be
aubject to the pertinent income tu, aa the case lllllJ'
•
be, imJ><-d under this Code.
"(F) The preferential tax treatment proridecl in
Subsections (C), (D), and (E) of this Section aha1l not
be applicable to regional headquarters (RHQs),
regional oPerafing bead.quart.era (ROHQs), offshore
bankingunits(OBus)orpetroleumierW:econtractors
and suhcontractnre registering with the Securities
and Exchange Commiaaion (SEC) after
January 1, 2018: Prollilkd, how-r, That existing
RHQa/ROHQs, OBUa or petroleum 1errice
c:ontractore and subcontractota pre8&lltly availiJlg of
p:refenmtial tax r.tl<!• fu£ qllAlif;ccl emploteco oball
continue to be entitled to avail ofthe preferentW tax
rate for present and future qualified employeea.•
SEc. 7. Section 27 of the NIRC, aa amended, is hereby
further amended to read 88 follows:
"SEC. 27. Bales of In.rome Tax on Domestk
C<JrporotWn.s. -
 ·' .. ·..
·w 111 0eneroz. - x x x
"xxx
"(C) Govern.me11lt-ow,.ed or -Con.trolled
CorporatiD118, ~or lnstru.mentalitW;. - The
provisions of existing special or general laws to the
contrary notwithstanding, all corporations, ageJJCies,
or instrumentalities owned or controlled by the
Government, except the Government Service
hisurance 8yetem (GSIS), the Social Security 8yetem
(SSS), the Philippine Health Insurance Corporation
(PHIC), and the local water districts ehall pay such
rate ottil 'WOn their tanble jncome as are imp<?eed
by tbia ·~n .upoI\ corporations or a asociatl~ne .
engaged in a smiilar business, indllstry, or activity. '
"(D) Rates of Tax on. Certain. Passive
Jn.comes. -
"(I) In.term from Deposits an.d Yield or an.JI
other Mon.etary Bene/il from Deposit Subslitu.le8 and
from Trost FUnds and Similar ArraniJemen.ts, and
llo.)lalties. - Afinal taxattherateoftWentypercent
(20%) is hereby imposed upon the amount ofinterest .
on c=ency bank deposit arid yield or any other
· monetary benefit from deposit aubstitutes and from
trust funds and similar arrangements received by
domestic CO?pOratione, and royalties, derived from
sources within the Philippines: Proui.ded, hcwever,
Thatintereatincomederivedbyadomesaccorporation
from a depository bank under the expanded foreign
cunoncy clepoeit eyetem ah4ll be aubjcct to a final
income tax at therateoffifbeenpercent(l5%) ofsuch
interest income.
"(2) Capital Gai,.. from the Sale of.Shares of
Skx:k Not Traded in. the StockE>:dumge. - A final
tax at the rst.e offifteen perr.ent (15%) shall beimpoeed
on net capital gains realized during the taxable year
from the aale, exchange or other disposition ofshares
.·.
ofstock in a domestic CO?pora.tion except eh.ares sold
or disposed ofthrough the stock exchange.
SEC. 8. Section 81 of the NIRC, aa amended, is hereby
farther amended to read as follows:
"SEc. 31. Ta=ble In.come Defined. - The
term 'taxable income' means the pertinent it.ems of
gross income specified. in this Code, less deductions,
if any, authorized for such types of income by this
Code or other special laws.•
• SEC. 9. : sed;\on .82 of the NIR9, as amend~d. is .hereby
further amended to read a.s follows: ·
"SEC. 32. Gross I n.come. -
·w 0en.eraz Definition. - x x x
"(B) Exclusio1'S from Gross In.come. - x x x
"(l) xxx
"(7) Miscellan.eous Items.-
"(a) xxx
"(e) 13'1' Mon.th.Pay and Otker Benefits. -
Gl068 benefits received by officials and employees of
public ""d privQtc entitiea: Provi.<kd, however, Tha~
the total exclusion under this subparagraph shallnot
exceed Nmety thousand pesos (P90,000) which shall
cover:
"(i) Benefits .received by officials and employees
of the national and local government pursuant to
Republic Act No. 6686;
 ·oo8eJMllite received by employeee plD'8Wl.Dt
to Preaidential Decree No. 851, u amel)ded by
Mcmarandum Order No. 28, dated August 18, 1986;
"(iii) Benefit& received by officials and
elllp]ayeMDOtcovered by freeidential Decree No.851,
aa amended by Memorandum Onier No. 28, dated
Aucuat 18, 1986; and
further amended to read u follows:
"(iv) Other benefite such u productivity
incentive& and Chrialma.e bonus."
SBC. 10. Section 88 of the NIRC, aa amended, is hereby
furlberameMed toreadaafollowa:
"SEC. 88. Special Treolmenl of Fri~ge
&M{it. -
W Imposition of To%. - Effective
January 1, 2018 and onwsrda, a final tax of
thirty-five percent (86%) is hereby impoeed on the
sr-ed·up monetary value offringe benefitfl=iabed
or granted t.o the employee (except rank and file
elllployeee as defined herein) by the employer, whether
an ·individual or a corporation (unleaa the fringe
benofit is roq uirod by tho nature of, or neceaaary to
the trade, busineaa or profeaaion of the employer, or
when tho fringo beno1it ia for the convenience or
advantage of the employer). Tbetax herein imposed
is pa.yable by the empl01er which tax ehall be ,Paid in
the aame manner 81pnwidodforllllderSection57(A)
ofthiaCode. Tho sroesed·up monetary value of the
fringe benefit aball be determined by dividing the
actual monetary value of tbe fringe benefit bysi:l'.ty·
five percent (65%) ef!'ective January l, 2018 and
onwards: Prouid«i, howeuer, That fringe benefit
~to employeee and taxable under&ibeectioas
(B), (C), (l>), and (E) of Section 25 shall be taxed at
the applicable ralff impoeed thenlat: Prouided.
{l.rrlMr, That tbe croeeed·"P value ol'the fringe benefit
shall be detenxUned by clividinc the actual monetary
value ofthe ftinp benefit by the difrmence between
ooe hundred pucent (100%) and the appW:.ble rates
ofincome tax WlderSw-ctiona (JI), (C), (D),and(E)
ofSection 25.
SBC. 11. Section S4ofthe NIRC, u amended, is hereby
"SBC. 34 • .Dedudioiu from Gr= bu:om.e. -
Except for texpa;yen earning compensation income
arising from penonal services rendered under an
employer-employee rebtimship where no ded.ur:tioos
ahalJ be allowed under this Section, in computing
taxable income subject to income tax under Sections
24(A); 25(A);26; 27(A), (B);and (C); and ?.8(A)(l), tbete
ahalJ be allowcd the foJlowinc deductiona from gross
income:
w~. -
"(1) Ord.inmy and. Necessary Trade, Bu.sin.us
or Professional E~nsu. -
"(a) Jn General. - x ,x x
"(L) Opticnal Ston.dard Ded.w:#Qn (OSD). -
In lieu of the deductions allowed under the preceding
Subsections, an indiviclual subject to tu under
Soction24 oth.>rtlwu oonreaident.W..n. mt11•lod
a atandeni deduction in an amount not exceeclinrbt:r
percent (40%)ofhia croee sales or groea receipts, as
the case m.ay be. ln the caae of a corporation subject
to tax under Sections 27(A) and 28(A)(l), it m.ay elect
a etandMd deduction in an amount note•• ttdingbty
percent (40%) of iteer- income 81 defined inSection
32.oftha Code. Unleaa the tupayenignifiesin hia
return hia intention to elect the optional standard
 .· ' '
deduction, be ahall be conaidered . . havinJ availed
himaelf of the deductiona allowed in the preceding
Si>beectioaa Such election when made in the retum
ahall be inevocable for the tuahle year for which
the return is made: ProviMd, That an individual
wboisentitled toaodclaimedfurtheoptionaletaJld.ard
dedaction shall not be r equired to 1ubmit with his
tax retum such financial statements othertri.ae
required under this Code: ProuUJed, {urlhu, That a
general profesaional partnership and the partnezs
compriaing such parlnenhip may avail a!tbe opticml
standard deduction only once, either by the general
professionalpart:nerahip or the partners comprising
thepartDersbjp: ProWkd,firw,ll;y, Tbatexceptwben
the Commissioner othenrise permits, the aaid
individ~ shall .keep such recorda pertaining to his
groea aales or 1f018 receipte, or the aaid cotporation
shall keep 8UCh records pertaining to his groaa illmme
as defioedinSection 32olthis Code during the tuahle
year, oa may be required by the rules and regulatione
promulgated by the Secretazy of Finance, upon
recommendatign of the Comminioner.
•Notwithatanding the provisions of the
preceding Subsections, "" x.•
SEC. 12. Section 85 of tho NIRC, as amended, is hereby
repealed.
SBC. 13. Section 51 of the NIRC, as amended, is hereby
further amended to read as follows:
"SEC. 5L ln.d<Wfual Returns. -
"(l) xxx
"X :r :r
•· .·
"Cl) The following indhiduala ahall not be
required to file an income tax return=
"(a) AD individual whoee taxable income doN
not exceed Two hundred fifty thousand Peso•
(P260,000) widerSection24(A)(2)(a): Prouic/.rd, That
a cit:iun of the Philippines and any alien individual
engaged in buainessor practice ofprofession within
the Philippines shall file lll1 income tax return,
reprdless of the amount ofgroec income;
"Xxx
"(5) The income tax return (ITR) shall consist
of a maximum of.four (4) pages in paper form or
: · ele<:tronic form, and aball only contain the fol.lowing
in!oimation:
"(A) Personal profile and information;
"(B) Total grosa sales, receipte or inoame from
compensation for aenicea rendered, conduct oftrade
or business or the exercise of a profeasion. except
income subject to final tax as provided under this
Code;
"(CJ Allowable deductions under this Code;
"(D) Tuable income as defined in Section 31 of
thia Code; and
"(E) Inoome tax due and payable.
"xx s.."
SBc.14_ Anewsectiondesignatedas8edion5l·Aofthe
Nll!.C, aa amended, is hereby .inserted to read aafollowe:
"SEc. 61-A. &beli"dedF'i/ineoflN:oml Tax
Reiurns b1 Emplo;yees Receiuing Pu.rel1
Compensation Jncotrll. - Individual taxpayers
reoeiving purezy compenaation ioa>me, regardleaaof
amount, from only one employv in the Philippines
 tor the calendar year, the income tu al which baa
been withheld a:uec:d) by1be eaid emploJer (tu due
equala tax withheld) shall not be requi:ecl to file an
LD.llual income tax return.. The certificate of
.,.;thhnlding filed by the reapecti99 employera. duly
etamped 'received' by the BIR, ahall be tantamount
to the eubslituted filing ofinoome tax return. by said
emp!Qyees."
SEC. 15. Section 52 of the NIRC, aa amended, i.a hereby
further amended t.o read as follows:
"SEC. 52. Corporation Return8. -
"(A) Requiremtr&ts. - Every corporation
subject to the tu hereiil impoeed, except' foreign .
corporations not engaged in trade or bu.sincsa in the
Philippines, shall render, in duplicate, a true and
accurate quart.erly income tu return and final or
adj-entretumin aocordance with the proviaiona
of Chapter m of this Title. The income tu retum
ahall consist of a maximum of!our (4) pagea in paper
form or elecaonicWrm. be filed by the preaident, W:e-
presidentor other principal aflicer, ahall be eworn to
by euch officer and by the treasurer or aeaistant
treasurer, and shall only contain the following
information:
"(l) Corporate profile and information;
"(2) Gross sales, receipts or income from
aervices rendered, or conduct of trade or bwrinees,
except inoome subject to final tu aa provided under
this Code;
"(S) Allowable deductions under tbia Code;
"(4) Taxable income as defined in Section 81
of tbia Code; and
"(5) Income tu due and payable.
"Provided, That the futqoing proN!olle ehall
not affect the implementalion of Republic Act
No.10708orTIMTA
SEC. 16. Section 56 of the NIRC, as a.mended, i.a hereby
further amended to read aa followe:
"SEC. 56. Pa;ymm.t and. Assusment ofJn.come
'1b% for In.diuid=l.s and Corporalio1'8. -
"(A) Payment of Tax. -
"(l) xxx
"(2) Installment of PDYmmL - When a tax
due ia in excess ofTwo tbouaand pa-. (P2,000). the
taxpayer other than a corporat:ioa, ma.y elect t.o pay
the tax in two (2) equalinstallmente, in which caae.
the mat installment shall be paid at the time the
return iafiled and !be eecond inetellmenton or before
October 15followingtbe cloeeoftbecalenderyear,i!
any installment is not paid on or before the date fixed
for ite payment, the whole amount of the tu unpaid
becomes due and payable together with the
delinquency penalties.•
SEC. 17. Section 57 of the NIRC, 118 amended, is hereby
further amended to read 118 follows:
"SEC. 57. Withlwldi1111ofTazot Source. -
"(A) xxx
"(B) WilMD/ding ofCrtditobk Ta.xot Source.
- The Secretary of :Finance may, upon the
reocmm~ndati.on of the C'-OTDmiesiooer, requjie the
withholdjng of a tax on the iteme of income pllfable
to natural or juridical pcreone, residing in the
Philippines, by payor·corporation/persona aa
provided for by law, at the rate of not leas than
 . .. 20
ODe peroeut(l")but DOtmoretban thirl;y-wo percem
(32") thereof. which ahall be credited apinat the
income tax liability of the taxpayer fur the t:uable
year: ProuUkd, That, beginning J auu.ai:y l, 2019,
the nite of withholding shall not be leaa than one
~(l") but not mare than fifteenpm:ent(15")
of the income payment.
"(C) xxx."
SBo. 18. Section 58 of the NIRC, as amended, is hereby
further amended to read as follows:
"SEC. 68. Return and Payment of Taus
W"uMeld ~Source. -
"(A)xxx
"x xx
"The return fur final and creditable withholding
taxes shall be filed and the paym.e nt mad.o not later
than the last day of the month followiDg the c1oee of
the quarter during wbich withholding waa made."
SEC. 19. Section 62 of the NIRC, as amended, is hereby
repealed.
SEc. 20. Section 74 of the NIRC, aa amended, is hereby
further amended to read as followa:
"SEC. 74. Declarotio11 of Income Tax for
lndividuoh.-
•(A) In General. - Except as otherwise
provided in this Section, every individual subject to
income tax under Sections 24 and 25(A) of tbis Tille,
who ia receivingaelf-employmentincome, whether it
constitutes the sole so1ll'Ce of his income or in
combinaticn with salaries, wages and other fixed or
determinable income, shall make and file a
declaration of bis estimated income for the current
.·. II
t:uable year on or beJOre May 15 aithe ~taxable
year. xxx
"(B) lldurn.an4Po;ymmtof&timd:edlncomt
To.x by Jndiuiduals. - The amount of eotimated
income aa defined in Subeedinn (C) witb respect to
which a declaration is xequired under Subeeet:ion (A)
shall be paid in four (4) inatallmente. 1he first
in.stallment aball be paid at the time of dedazation
and the eecond and third shall be paid on August 15
and November 15 of the current year, respectively.
The fourth installment shall be paid on or bemre May
15 of tbe following calendar year whon the fi.nJIJ
acijusted income tax return ia due to be filed.
"(C) XXL"
SEC. 21. Section 79 of the NIRC, aa amended, ia hereby
further amended to read as followa:
"SEC. 79. Income To.x Collected ai Source. -
"xxx
"(C) Refund$ or Credits. -
f'
L
• "(l) Employer. - x x x
"(2) Employees. - x xx
"x xx
"(D) Withh.oldin.g on Basis of Average
Wages. - xxx
"Cl) xxx
"(2) x x x; and
"(3) XXL
 =
"(E) Nonresidtm.t AZUM. - x x x
SEC. 22. Section 84 o:f the NIRC, aa amended, is hereby
further amended to read u follows:
"SBC. 84. &u cf EstaU Tax. - There Will
be levied, ueeeeed, collected and paid upon the
transferaftheneteatateasdeterminedinac:ordance
with Sections 85 and 86 of every decedent, whether
resident or nonresident of the Philippines, a tax at
the rate af six percent (6%) baled on the value ofll1Cb
net estate.•
SBC. 23·. Section 86 of u,;, N!RC, aa amended, is hereby
further OJ11ended to read as follows:
"SBC. 86. Compu.tatio" of Net Estate. - For
the p1UJ>08e of the tax imposed in this Chapt.er, the
value ofthe net estate shall be determined:
W Deductums Allowed to the Estak of a
Citi.zitn or a ResUkrit. - In the case of a citizen or
resident of the Philippines, by deducting from the
value of tho sross estate -
"(l) Sta""4rd Deduction. - An OJ11ount
equivalent to Five millionpetOS (PS,000,000).
"(2) For c1aima against the estate: Prouided,
That et the time the indebtedness was incurred the
debt instrument was duly notarized and. if the loan
was conlracted within three (3) yeaza before the death
ofthe dea!dent, the administrator or executor shall
submit a statement showing the disposition of the
proceeds of the loan.
"(S) For claims of the deceased against
i.naolvent persona where the value of
decedent's inlmut tbenin is included in the value of
the II"* estate.
"(4) For unpaid mortgagee upon, or any
indebteclneea in noipect to, p?Operty where lbe value
of clecedellt'ainl:enattherein, UJ1diminisbed by such
mortgage or indebtedness, is included in the valile of
the groea estate, but not including fU1J' income tax
upon income received after the death of the decedeot,
or property taxes notaocrued before his death, or any
estaU! tax. The deduction herein allowed in the case
ofclaims against the eatate, wipaid inortgape or any
indebtedness shall. when founded upon a promise or
agreement. be limited to the extent that they were
contracted booo fUk and for an adeqQate and full
considerationinmooeyormooey'aworth. Tbereshall
aleo be dedllctedloeees incurred duxingthe settlement
of the eetate arising from fires. atorm.s, shipwnck,
or other casualties, or from robbery, theft or
embezzlemBDt, whenSllCblosseearenotcompenaated
for by inau:raru:e or otherwise, and if at the time of
the filiDc of the retmn ruch loeeea have not been
claimed aa a deduction for the income tax puzposea
in an income tax retmn, and provided that such
losses were incmred not later than the Wt clay fm
the payment o! the estate tax aa prescribed in
Subsection (A) o£Section9l.
"(5) Property Preui.ously '.ll=d. - An amount
equal to the value specilied below of any property
forming part of the gross estate aituated in the
Philippines of any person who died within five (5)
years prior to the death of the decedent. or transfemd
to the dcct:dent by g11\ within live (5) yean prior to
his death, when aucb p roperty can be identified as
having been received by t.bc decedent from the donor
by gift, or &om such prior decedent by gift, bequeat,
devise or inheritance, or which can be identified as
having been acquired in exchange for property so
received:
 "One hunched percent (100%) of the valuo, if
the prior decedent died wilbin one (1) year prior to
the death of the decedent, or ii the propeit1 wu
transf'ened to him by gift, within the same period
prior to his daath;
"Eighty percent (80%) ofthe value, ii the prior
deoedent died more than one (l) year but not more
than two (2) years prior to the death ofthe decedent,
ar ifthe property was transferred to him by eift within
the same period prior to hie death;
•sixty percent (60%) of tho value, ii the prior
decedent died more than two (2) yeam but not more
thantbree (8) yeanprior to thedeathof tbedeoedent,
orif lhe property was transCerred to hilli by eift within
.. the same perioCI prior to hia death; ·
"Forty percent (40%) of the value, ii the prior
decec!ent died more than tbzee (8) years but not more
than four (4) yeanpriorito tbe death of the decedent,
or if the property was transferred to him by eift within
the same period prior to hie death; and
"Twenty pettent (20%) ofthe value, if the prior
decedent died more than four (4) years but not more
than five (5) years prior to the death of the decedent,
or if the property was tzanslimed to him by eift within
the aame period prior to his death.
"1'hese deductiana eba1l be allowed only where
a donor'a tax, or estate tax impaeed under this Title
was finally determined and paid by or on behalf of
euch donor. or the estat.! of oucl> prior doccd..nt, u
the case may be, and oDly in the amount finally
determined as the value of euch property in
determining the ...lue oftbe gift, ortbe groesestate
of such prior decedent, and only to the extent that
tbevalueofsw:hpropenyfsincludedintbed.......Jen~a
gross estate, and only ifin determining the value of
the estate of the prior decedent, no deduction was
allowable under paragraph (5) in reapect of the
properfy or propertie• given in exch•nr. thciefor.
Where a deduction was allowed of any mortgage or
other Henin detmniningtbe clooar'a tu, or the eetate
tax of the prict decedent. which wu paid in whole or
in part prior to th~ decedent's death, then the
deduction allowable under said Subeection ehall be
~uced by the amount ao paid. Such deduction
allowable shall bereduoed by an amount wbichbean
the aame ratio to the amounta allowed aa deducliona
under paragrapha (2), (8), (4), and (6) of this
Subeectlon as the amo11llltotherwise deductible under
said paragraph (5) bean to the value of tbe decedent:a
estate. Wheni the ptq>erty merred to eonsiata oftwo
.or more item.a, the agp:-egate value of such items ahall
be ueed for the purpbee.ofoomputing the deduction..
"(6) Trotisfers for Public Use. - The amount
ofall beque.ta. lepiee, deviles or trans:6m to or fur
the uae of the Government of the Republic of the
Philippines, ar any political aubdiviaion theieof, for
excluaivelypuhlicpurposes.
"(7) The Family Home. - An amount
equivalent to the current fair market value of the
deoedent'a family home: Provided, however, Tbatif
the aaid carrent&ir market value exceed.a Tenmillion
pe80ll (Pl0,000,000), the exoeaa shall be subject to
estate tax.
"(8) Amolllll&ceived by Heirs Ulldu &publi.c
Act No. 4917. - Any amount received by the heirs
from the deoedent.'s employee as a OODllCCIUellCe of the
death of the deoedent-employee in accordanoe with
RepublicActNo.4917: l'rouilkd, Tbatsuchamount
is included in the eroea estate ofthe decedent.
"(B) Deductions Allowed to Nonruident
&tata. - In the case of a nonresident not a cit:U.en
of tbe Philippines, by deducting ttolD the value of

that part of bis gross estate which at the time of bis
death ia situated in the Philippines:
"(l) Siandard Deduclion. - An amount
equivalenttoFiwhundredthousandpeeoe(Pl500.000);
"(2) Thatproportionofthedeductionaepecified
in paragraphs (2), (3). and (4) of Subaection (A) of
this Section which the value ofsuch part bean to the
value of bis entire gross estate wherever 1ituated;
"(S) Property Prwiou.sl1 '.lh:wl. - x x x
t
Ii
"(4) Tra:M{l!rs for PublU: Use. - The amount
of all bequesls. legacies. deviaee or tranaCe:e to or for
the uae of the Government of the Republic of the
Pbilippinea or any polliical subdivision thereof. for
exclusively public purposea.
·cc, Share"' tJie Co'fli1111al Propu11. - The
net share of tbe surviving apouae in the conjugal
partruttahip property as diminished by the obligations
properly chargeable to such property shall, for the
purp- of this Seclion. be deducted from the net
estate of the decedent.
"(D) 7\J.x Credil for E#aU Tcuea Paid lo a
Fonip Co...wy. -
"(l) In Genuol. - Tbe tax imposed by this
Tit.le shall be credited with the amounts of any estate
tax imposed by the autbor:it;yofa foreign country.
"(2) Limilations on. Credit. - The amount of
the credit t:alten under this Section shall be eubject
to each ofthe following ilimitationa:
27
"(a) The amount of the credit in ..upect to the
tax paid to any COW1ley ahall not eueed the same
proportion of the tax against which auch credit ia
taken, wbichthedeoedent'eneteetateeituatedwithm
such country taxable under this Title bean to hia
entire netestate; and
"(b) The total amount ot the credit ehall not
exceed the eeme proportion ofthe tax against which
such credit ia taken, which the decedent'a net eetate
aituated outside the Philippines taxable under this
• Titlebearatobiseoti?e netestate.•
SEC. 24. Section 89 of the NIRC, u amended. ia hereby
repealed.
SBlc. 25. Section 90 of the NIRC, u amended. is hereby
further amended to read as followa:
"SEC: 90. Estate 7hx &turns. -
·w Requirtmen.ts. - In all casea of trana!cre
subject to the tax imposed herein, or rega.rdleas of
the gtese value of the estate, where the said estate
COllSlists of registered or rt?giatrable property rucli as
real property, motor vehicle, abarea of stock or other
similar property for which a clea.rance from the
BureauofIntemal Revenue is required as aoondilion
precedent far the lnmsfer ofownerabip thereofin the
name or the transre:ree, the uecutot, or the
ad.m.inistntor, or any or the legal bein. u the case
may be, shall file a return under oath in duplicate,
aetting forth:
"(l) Xlll:
"(2} XX1

28
"(3) Such partaf llllCh information u ZD.a,r at
the lime be &&ti I aj11,,},J., aodsuclUIUppJementa! data
u may be neee 11 ry to e•hliah the coned tuea.
"Prouided, however, That eatate tax returns
showing a gross value exceeding Five million p~
(P5,000,000) aball be supported with a atatement duly
certified to by a Certified Public Accountant
containing the following:
"(B) Time for Filing. - For the purpoee of
detuminiJJgthirestatetaxp~forinSection84.
of this Code. the estate taxretum ~wider the
pteeeding Subsection (A) ahall be filed within one (1)
year from tbedececkmt'adeath.
S EC. 26. Section 91 of the NIRC, u amended, ia hereby
further amended to :read as follmn:
"S&C. 91. Payment of Ta:<. -
"(A) Time of PaylTWU. - :r :r :r
"(B) Extension of 7itM. - :r :r :r
"J::r x
"(C) l'tqmenl by~- - In cue the
a vailable cash ofthe estat.e ia insufficient to PllJ' the
total estate tax due. payment byinstallmentahall be
allowed within two (2) years from the statutory date
for ite payment without civil penalty and interest.
"(D) Liability for Payment. - :r :r x
•.
SSC. 2'7. Section 9'I of the NIRC, u amended. is bereby
further amended to read aa followa:
"SEc. 97. PoyrMll& of 7bx JlnUc:ecien& IO lhe
TroM{u of Shan$, Bond$ or Rifhi.. - x " L
"If a bank has knowledge of the death of a
peraoo, who maintejned a bankdepoait aooount alone,
or joint\y with another, it shall allow any withdrawal
from the said deposit account, eubject to a final
withholding tax of siJt percent (6%). For thia purii-.
all withdrawal slips shall contain a statement to the
effect that all of the joint depositors are atill living at
the time of withdrawal by any one of the joint
depoaitora and such statemenfahall be wider oath
by the said depositors."
Ssc. 28. Section 99 of the NIRC, u amended, i.s hereby
furtber amended to read.as followa:
"SEc. 99. Rate of Tcu h:;oble b:; Donor. -
"(A) In General. - The tax for each calendar
, year ah.all be six percent (6%) computed on the basis
or
of the total gifts in e:rceee Two hundred fifty
thou.sand pesos (P250,000) ezempt gift made during.
the calendar year.
"(B) Any contribution in cash or in kind to any
candidate, political party or coalition of part:iee for
campaign purposes shall be gowmecl by the Election
Codo, aa aJnorulocl..•
SBC. 29. Section 100 of the NIRC, u amended., ia hereby
further amended to read as follows:
. "SEC. 100. Transfer for Less Than Adequau
ond lihll Consideration.. - Where property, other
than real property referred to in Section 24(D).
•.
'
llO
io transfeaed fur leaa than an adequate and full
oontideratian in money or money'a worth, then the
amountbywhichtbefairinatblvalue altbep~
nceeded the value of the ,.,,,,mderation ahall. mr the
purpoee althe tu impaied by this Cb.apter, be deemed
a gift, and shall be included in computing the amount
of gifbl made during the. calendar year: Proui<kd,
however, That a aale, exchange, or other Ransier of
property made in the ordina?y course of buainua
(a transaction which ia a boM {Uk, at arm'e Jencth,
and free from ao,y donative intent). will be oonsidered
aa made for an adequate and full consideration in
money or monefa worth.~
further amended lo read ae follows:
SBc. 30. section ioi of the NIRC, aa amended, io hereby
further •mended to read aa follows:
"SBC.101. &aempti.on.ofCutaU. Gifts. - The
following gifbl or donetions shall be exemptfrmn the
tax provided for in this Chaptu.
"(l) Gifts made to or for the use of the National
Government or any entity created by any of its
agoocies which is not conducted for profit, or to ao,y
political subdivision of the said Government; and
"(2) Gifts in favor of an educational and/or
charitable, relipoua, cultural or aocial welfare
corporation, in.stitution, a=edited nongovemment
organization. trust or philanthropic organization or
research institution or organization: Prouiihd,
however, That not more than thirty percent (30%) of
aaid gifts shall be U,sed by 1uch don.e e for
administration purposes. For the purpose of this
e:remption, a 'nan-profit educational and/or cbarjtab!e
coi:poration, institution, w:credited nongovernment
organization, truat or philanthropic organization
and/or research institution or organization'
ia a school, college or university and/or
31
charitable corporation, accredlted nongoven:unent
argmUzstioc, tru.tor pbilantbropic orga:alzation and/
or reaearch inl'tibrtinn oro:pnizaDon. iDLu:porated
.a.a a non.etock entity, p aying no dividends. governed
bytrusteeewhoreoeiveDOCXllllpetmtim, andcleYlltizlg
allitamcmne, whether students' feea or gi1ls,_ donetion,
subsidies or other forma of philanthropy, to the
accompliahment and promotion of the purposes
ennmerateod in itaArticleaof lnoorporatlon.
-Xxx.•
SBC. 31. Section 106 of the NIRC, as amended, io hereby
"SEC. 106. Value-odJkdToxonSakofGooda
or Propmiu. -
"(A) Rau and Base of fu. - There shall be
levied. naeaeed and oollected on eveey asle, barter or
exchange of goods or properties, a value-added tax
equivalent lo twelve pel'Cellt (12%) of the groas aelling
price or~ value in money atthe goods or propertiea
sold, bartered or exchanged. auch tax to be paid by
the seller or transferor.
"(l) x lt lt
"(2) The following sale. by VAT-registered
persons shall be subject. lo zero percent(°") rate:
"(a) Export SaUx:. - 'T'hA tAnn 'exp0rt sales'
means:
"(l) Tbe aale andadual abipmeni<i goods from
the Philippines lo a foreign country, irrespective of
any shipping arrangement that may be agreed upon
which may influence or determine the transfer of
ownersbip of the goods so exported and paid fur in
acceptable beign CUJ"rellCf or ita equivalent in good.a
.· .• •,
or 80nices, and accounted for in accordance with the
rules and regulatiom of the Ba.ngko Sentral ng
Pilipin.as (BSP);
"(2) Sale and delivezy of eoods to:
"(i) Regiatered enterprises within a eoparate
customs territory 8.8 p?OVided under special laws; and
"(ii') Regiatered enterpriaes within tourism
enterprise zones as declared by the Tourism
Infraatruc:ture and Enterprise Z-oneAutbority (1'IEZA)
subject to the provisions "UDder Republic Ad No. 9598
or Tbe Tourism Act of 2009.
"(3) Sale of raw materials or packaging
materiale to a rumresident bllfer for delivery to a
neid.entlocal~enterpriae to be ueedin
manufecturing, procesgjng, paclting or repaclting in
the Philippines of the said bl.lYer'a goods and paid for
in aoceptable foreign currency and accounted for in
aa:ordance with the rules and regulations of the
BanpoSentral Di Pilip;inaa OISP);
"(4) Sale of raw materials or packaging
meteriala to export.ariented enterprise whole export
sales exceed seventy percent (70%) of total annual
production;
"(5) Those coneidered export salea under
Executive Order No. 226. otherwise known ae the
Omnibus lnvestmant Coda of 1987. arul othtt special
laws; and
"(6) The sale of goods, supplies. equipment and
fuel to peraons engaged in int.emational &hipping or
international air transport operations: Prouitkd,
That the goods, supplies, equipment and fuel shall be
used for international shipping or air transport
operations.
"ProWkd, 'lbatlnlbparagraph8 (8), (4), and (15)
hereof shall be eubjed: to the twelve percent (12%)
value-addod tax and no longer be OOlllideredexport
ealee subject to zero percent (0%) VAT rate upon
eatiotju:lfon of the following ....,ditioua:
"(l) The succeSBful eetabliehment and
implementation of an enhanced VAT refund ayetem
that grants relwids or creditable input tax within
ninety (90) days from the filing of the VAT refund
application with the Bureau: Proui<kd, That, to
determine the offe<:tivit;y of item no. 1, all applicatione
5.led from Januazy 1, 2018 ah.all be proceased and
must be decided within.n inety (90) dayafrom the filing
of~VATrefundapplicatioo; and
"(2) All pending VAT refund claims ae of
December 31, 2017 shall be fully paid in cash by
December 31, 2019.
"Provilkd, That tho Department of Finance
shall establieha VATi:efundcenterin theBu:reaunf
lntnn•IBevenue(BlR)andintbeBureaua£Customa
(BOC) that will handle the Pf'Oa!ssing and granting
of cash. refunds ofcreditable
. input tax.
•An amount equivalent to five percenl; (5%) of
the total VAT collection of the BIR and the BOC from
the immediately preceding year shall be aulomaticalq
appropriated annually and ah.all be treated as o
special account in the General Fund or as truat
receipts for the purpose of funding claima for VAT
refund: ProWUd, Tlla~ aey unused fwid, at tbc cud
of the year shall revert to the General Fund.
"ProWkd, furllrq, That the BIR and the BOC
shall be required to submit to the Conpessional
Oversight Committee on the Comprebauaive Tax
Reform Program (COCCTRP) a quarterly report o!
all pending claima for refund and any unuaedfund.
·• ' .·.
"(b) Salee topemana oreatmee w1-e examption
under apecial Jaws or intem.ational acnemante to
which the Philippines is a oignatory effectivel;y
subjects aucli sales to zero rate.
•:xx x..
SSC. 32. Section 107 of:the NIRC, aa amended, is he.reby
further amended to read a.a follows:
"SEC. 107. Value.added T<U o,. Importmion
ofGoods. -
"(A) ,In. GeneraJ... • - Theze ehall be le.vied.
uaened and coll......., on every importation of goode
a value-added tax equivalent ID twem peroent (12%)
baaed Oil the talal value ueed by the BureaurLCulllmna
in determining tariff and custom• dutiee, plus
cuatoma duties, excise taxes, if &.DJ', and other
chezgee, such tax to be paid by the importer prior to
the release of such goods from custom• custody:
Pro11Ukd, That where the cuatoma duties are
determined on the basis ofthe quantity or volume of
the goode, the value-added tax ahal1 be ha.sod on the
landed cost plua excise taxes, if any. · co<iperatives; servic:eS of franchise grantees of electric
"(B) Transfer of Goods b;y Ta:L·eumpt
Persons. - x x L •
SBc. 33. Section 108 of the NIRC, aa amended, is hereby
further amended to read as follows:
"SBC. 108. Value-added TO% Oil Sale of
Sutn«s and Use or~ of Propertia. -
"(A) Rate and Base of Tax. - There shall be
levied, aaaessed and collected, a value-added tax
equivalent to twelve percent (12%) of groea receipts
derived from the sale or exchange of services,
including the use or lease of properties.
"The phrase 'eale or uchange of
...-.ices' means the perlomance of all kind.a of
aervicea in the Philippine• for othsre for a fee,
remuneration or conaideration, including those
performed or rendered by conatruction IUld. eervioe
contractors; stock. real estate, commercial, customs
and immigration brokers; leaeors ofpxq>erty, whether
personal or real; waxehouai.ng services; le880rs or
distributors of cinematographic films; persons
engaged in milling, proceeaUig, manufacturing or
repacking goods for others; proprietors, opsratore or
keepers of hot.els. motels,~. pension houses,
inns, reaorta; proprietors or aperatora of teetau:ranl8,
1'9freshment parlors, cafee and other eating places,
including clubs and catereJs; dealere in eecurities;
lenrlinginvestoo>, ~tioncoolztlClaraon their
t..ansport of goods or cargoes. including penone who
- transport goods or augoee for hire and oCher domeetjc:
f,
common carriers by land relative to their transport
of goode or cargoes; common ca.rrien by air and sea
relative to their transport of pasaengera, goods or
(. cargoes from one place in the Philippines to another
place in the Philippines; sales of electricity by
generation companies, transmiseion by any entity,
and distribution companiee, including electric
utilities; telephooe and telegraph, radio and television
broadcasting and all other franchise granteee except
those under Section 119 of this Code and non-life
insurance companies (except their crop insurances),
including surety, fidelity, indemnity and bonding
companjea; and similar aervioes regardlees ofwhether
oc DOt \he~ t.hcroo£...U. for the eurei9A
or use of the physical or mental faculties. The
phrase 'sale or exchange of eervices' ahall likewi&e
include:
"(l) The lease or the use of or the right or
privilege to use any copyright, patent, design or
model, plan, secret formula or proce88, goodwill.
trademark, trade brand or other like property or right;
 '
86
"(2) The leaee or the use o{. or the right to uae
of an,y industrial, commercial or rjentjfic equjpment;
"(3) The aupply of scientific, technical,
indus1rial or com.mettial knowledge or information;
'(4) The aupply of an.y aaaiatance that ia
•ncillary and subeidi uy to and ia fumiahed as a
meam of enabling the application or etijoyment of
any such property, or right aa ia mentioned m
subparagraph (2) or any such knowledge or
information as is mentioned in subparagraph (8);
• . "(5) The supply gf service• bf a DC?mesident
pereon or his employee in cmmection with the use of
property or righte beloagiDg to, or the iDstallation or
y
operation ofan,y brand, maclrii>ery or other apparatua
purchased from such nomesident penon;
'(6) The ~ply of b>chnjca! advice, assi.st:aDce
or aervices reDdeied in connection with fPcbnical
management or administration of any acientific.
it
i
ind~trial or commercial undertaking, venture,
proiector !!Cheme;
"m The lease of motion picture films, films,
tapes and~ and
"(8) The lease or the use of or the right to use
radio, tele'rision, satellite tranmni.ssion and cable
television ti.me.
"Lease of properties shall be subject to the tu
herein imposed im!apedive of the place when! the
contractoflease or lioeruriDgagreement was executed
ii the property is leased or used in the Philippmes.
"The term 'gross receipts' means the total
amount of moDey or its equivalent representing
the contract price, compensation, service fee,
87
rental or royalty, incl'1ding the amount cbarce<I for
m aterja!a wpplied wi:lh the ~and depolit& and
ad•anoed""11MJJl8artu•'lyor~receiwd
dm:inc the tuahle quarter for the eervioes pedom.ed
or to be performed for another person, e:rcl:udiDg
value-added tax.
"(B) 7hln.sadions Subjtd lO Zero Perom.I (0%)
Rate. - The following aenicea performed in the
Philippines by VAT-registered pez8008 shsll be lllbject
to iero percent (0%) rate:
"(l) Processing, manufacturing or repacking
:
gooiis for other~ doiDJ bnain- outside the
Philippinea which goods are eubeequently erported.
where the services are paid !orin acceptable fonicn
currency and accounted for in accordance with the
rules and regulations of the Bangko Sentral ng
Pilipinss (lJSP);
"(2) Servicee other than tboee men+" I...! in the
p:ecediDg paragraph, rendered to a pereon engaged
in businen conducted outside the Philippines or to a
nonresident person not engaged in business who is
outside the Philippines when the services are
performed, the consideration for which is paid for in
acceptable foreign currency and accounted for in
accordance with the rules and re.g ula6an• of the
BaDgko Sentralng Pilipinss ()3SP);
"(8) Services rendered to pereone or entities
"hose exemption und= opcciol IAwo or int4n>atiooal
agreements to which the Philippines is a signatory
' effediveq eubjec:ta the suppl,y of. such aervicea to zero
peroent{O%) rate;
"(4) Services rendered to persons engaged in
international shipping or international air transport
operatlons, including leases ofproperty for use thereof:
Provided, That these eenicee shall be exclusive for
international shipping or air tra.neport aperatione;
 ·. ..
88
"(5) Service• por!ormed by aubcontracton
and/or contracton in proceui.ng, conftl'ting, or
llWl\lfacturing aooda !Dr an enterprile "booe export
aalea exi:eed aeveiUy peicent (70%) of total annual
production;
"(6) Tranaport of p-.igera and cargo by
dnmestic air or aea - l a from the Philippines to a
foreign country; and
"(7) Sale of power or fuel generated through
renewable eourcea of energy auch aa, but not limited
to, biomaaa, aolar, wind, hydropower, geotbermal,
ocean enezv, a.nd other amercing energy eources .
using technologiea such u fuel cells and by~
fuels.
"(8) Services rendered to:
•ro Registered enterprises within a separate
cuatoms territor,y u provided under special law; and
"(d) Regi.stol'lld enterprises witbi.n tourism
enterprise zones aa declarod by tbe TIEZA subject to
the provi.aione under Republic Act No. 9593 or
The Tourism Actof 2009.
"Prouided, That aubparagrapha (B)(l) and
(B)(5) hereof ahall be subject to the twelve percent
(12%) valuo·added tax and no longer be aubject to
zeroparcent(0'6) VAT rate upooaatiafaction of the
foll.....U.g conditioa.a:
"(1) The a ucceaaful eetabliahment and
implemeotationof aoPnhao~d VAT refund system
that grant& refund.a of craditable input tax within
ninety (90) days &om the filin& of the VAT refund
application with the Bureau: ProWkd, That, to
determine tbe e1fectivity ofitem DO. l, all applications
filed from January 1, 2018 ebalJ be p>OeeSl!ed and
I
muet be decided within aioecy (90) clayafrom. the filing
of the VAT refund application; and
"(2) All ponding VAT refund claims ae of
December 81, 2017 ahell be fully paid in cash by
December 81, 2019.
•Proui&d, That the Department of Finance
ahall establiah a VAT refund center in the Bureau of
In"'mal Revenue (Bm) and in the Bureau ofCustoms
(BOC) that will baod.le the proceseing and granting
of caah refuncla of creditable input tu.
•An amount equivalent to five percent (5") of
the total value-added tu ooJJection of the BIR and
the BOC Crom the immediately prece<tingyear &ball
be automatically appropriated annually and shall be
treated u a epecial account in the General Fund or
aa truetroocipta for th& purpoeo offunding c1aim.s !Dr
VAT Refund: Provided., That any unuaed fund. at
tho end of tho year ahall revert to the General Fund.
•Prouidtd, fu.rtlaer, That the BIR and the BOC
shall be required to eubm.it to the COCCTRP a
quarterly report of allpeoclingcWma for refund and
any unused fund.•
SSC. 84. Section 109 of the NIRO, 88 amended, is hereby
further amended to read 88 follows.:
"SEC.109. Exempt Tronsoclions.
(I) Subject CO tile provis!ODB of Subsect!on (2) hereof,
the following transactions ahall be exe.mpt &om the
value-added tu:
"(,/\) xxx
"(B) xx x
"(C) xxx
r. .·
(D) Importation of profeuional inatrwnenta
and implemente, toola of trade, occupation or
employment, wearins apparel. domeetic animals, and
peraonal and household efl'eda beloopng to peraona
coming to eettle in the Philippines or Filipinai or their
familiu and deaoend•nta who are now residents or
cilizena of other countriee, such parties hereinafter
rUen-ed to aa oveneaa Filipinoe, in quantities and oI
the claaa IUitebla to the profession. rank or position
of the penona importing l8id items, for their own
use aDd not lor baJUr or aalo, accompanying such
persona, or arriving within a nuuonable time:
ProuUkd, That the Bureau of Customs may, upon
the productipn of aatia!actot)'. evidence.that ~
.P•reone are actually coming to settle in the
PbilippineaaDd lhattbe goods are brougbtfrom their
former place of abode, uempt auch goods from
payment of dutiea and taxes: Prouided, {url}&er, That
vehicles, veaeele, aizaafte, machinerioa and o!Mr
similar goods for uee in manufacture, eball not fall
wilhinthla claMjfic<ilioo and shall tborefore be eubject
to dutiea, taxes and other char(ea;
"(E) Services subject to pm:entage tax under
TitleV;
"(F) Service& by agricultural contract growers
and milling for others of palay into rice, corn into
grite and sugar cane into raw sugar;
"(G) Medical, d.e ntal, hospital and veterinary
eervicee except those rendered by profeaaionals;
"(B) Educational eervic:e& rendered by private
educational inatitutiona, duly accredited by th.e
DepartmentofEducation(DepEd), tbeCommisoiou
on Higher Education (CHBD), the Technical
Education and Sliille Development Authority
(TESDA) and thoae rendered by government
educational institutions;
..
"(I) s.m.- m:idered by individual.t p'ID'8ll3llt
to an employer-employee relatjonebip;
"(J) Servkea rendered by rec:ional or area
beadquartera eatabliabed in the Philippines by
multinational corporatiom which aot aa auperviaory,
a>mmuni.cationa and coordinaW.. centers for their
aftiliatea,.ub«idia.W or braxicbeain the&ia-Pacific
Region and do not earn or derive income from the
Philippines;
"(K) Tranucticma which are exempt under
intematiaaal apeementa to wbk:b the Philippines is
a signatory or under ipeCial lawa, exi:ept those under
Presidential Dec.ee No. 529;
·~ Salee by agricultural cooperatives dul,y
registered with tb.e Cooperative Development
Authority to their membera aa well aa sale of their
produce, whether in ita original atate or processed
form, to non-member&; their importation of direct
farm inpute, machineries and equipment, including
spare parta tbereo(, to be uaed directly and exclusive\y
in the production andforproceeeingoftbei:rproduc:e;
"(M) Grose roeeipte from lending activities by
cteditormulti-purpoae cooperatives duly registered
with the Cooperative Development Authority;
"(N) Salee by nm•agricultural, non-electric and
non-credit cooperativea duly registered with the
Cooperative DevelopmentAuthoritr. Provided, That
the ahan capital contn"bution of each member does
• not exceed Fifteen thousand peeoa (Pl 5,000) and
regardleaa of the aggregate capital and net surplus
ratably distributed amour the members;
"(O) Export aalee by persona who are not
VAT-repwed;
 ••.
"(P) Sale of realpropcrtiea not prim•r'13' held
for sale to cuatmnera or held for 1eaaein the ordinary
couno oftncle or busine11 orroalpzopertyu+mucl
for low-<Oat and. socja!ittcl bouaing 88 defined by
BepublicActNo. 7279,othawialcnawnaatbeUrban
Development and Houai:nr Act of 1992, and other
related. Jaws, residential lot valued at. One million
five hundred thoUS8Dd peaoe (Pl,500,000)ancl below,
houae and lot, and other meidential dwellings valued
at Two million five hundred thousand. pesos
(1'2.500,000) ancl below: Prollid«l, That ~nnninr
January l, 2021. the VAT exemption shall only epp\y
to eale olreal pzoperties not primaril,y beldfauale to
c:ustomen or held for 1e&ae in the ordinary.murae of
trade or buai:nesa, sale of real propedy utillied for
socialized housing as defined. by Republic Act
No. 7279, sale of house and lot, and other residential
dwellings with selling price of not more than
Two million pesos (P2,000,000): Prouided,
(u:rlMr, That every three (3) yeua thereafter, the
amount herein stated &ball be ailjusted to its present
value uaiDg the Consumer Price lnclex, as published
by the Philippine Statist:icaAuthority (PSA);
•cQ) Lease of a residential unit with a monthly
rental notexooeding Fifteen thousand pesos (Pl5,000);
"(R) Sale, importation, Printi.nr orpublication
of boob and any newspaper, mqazine, review or
bulletin which appean at. recular intervals with fixed
prices or subscription and aale and which is not
devoted principally to the publication of paid
advertiaementa;
"(S) Traneportofpaaaenren by international
carrien:
"fl') Sale, importation or lease of p888ell(er or
cargo veesels and aircraft, including engine,
equipment and spare parts thereof for domestic or
international transport opemtiona;
.·
"(U) Importation offuel, goods and supplloa by
pereons engaged in international ahippinJ or air
t:ra.nsportoperations: PrvuWd. That the fuel, goods,
and suppliea shall be Wied for int.ematiooal abippinr
or air transport operationa;
"(V) Services o! bank, non-bank financial
intermecliariespeifonningquaei·bankingfunc:tions,
and other non-bank financial intennediariea;
"(W) Sale or lease al goods and servioe8 to senior
c:itimns and pel9CIDS wi1h disab.Diy, as pro9ided uoder
Republic Act Nos. 9994 (!Upended Senior Citimns
Ad.ci20.10) and.10754 (An Ad.E:rpsndinrthe Benefits
and Privileges of Pereoils With Disability),
respectivezy;
"(X) Transfer of property pursuant to
Section 40(C)(2) ofth& NlRC, aa am.ended;
"(Y) Associ•tion duee, membership ree., and
other assessments and chazgea collected by
homeowners associations and condominium
corporations;
"(Z) Sale oI gold to the Bangko Sentral ng
Pilipinaa (BSP);
"f/>A) Sale of drugs and medicine$ pret=Ded
(or diabetes, high cholesterol, and hypertension
beiiinninrJanuar:v l.2019;and
"(BB) Sale or lease or goods or properties or the
performsnce of services other than the transactions
mentioned in the pteeeding paragmpba, the poee
annual sales and/or receipts do not exceed the amount
of Three million~ (PS,000,000).

SBC. 35. Sect"nn llOoftbe ND!.C, aaamaoded. i8bereby
further amended to rud.u followa:
further amended to read as fullawa:
"SEC. 110. 7lJ% Credit$. -
·w Creditable Input Tax. -
"(l) xxx
"(2)xxx
"(a) xx x
"(b) X<X X
• Prouided, That the input tax on 1ood1
purchased or imported in a calendar month for uec
in trade or business for which deduction for
depreciation is allowed under thia Code shall be
spread evenly over the month o! acqulaition and the
fifty-nine (59) succeeding months if the anresato
a.cqui.aition cost for such goods, excludin1 the VAT
component the.reo!, exceeda One million pesos
(Pl,000,000): · Prouided, however, That it the
estimated ueeful life of the capital good ia leas than
five (6) years, as used for de_preciation purpoeea, then
the input VKr shall be spread over such a aborter
period: Provided, further, That the amormation of
the input VAT shall onl,y be allowed until Decembe.r
31, 2021 after which taxpayers with unutiliz.ed input
VAT on capital goods purcbaaed or imported aball be
allowed to apply the same as scheduled until fully
utilized: Provided, finally, That in th.a case of
purchaae of services. lease or use of properties, the
input tax shall be creditable to the purchuer, leeeee
or licen- uponpaymentofthe compenaatioo, rental,
royalty orfee.
SBc. 36. Section 11.Z <IE the NIRC, aa amellded. ia hereby
"SBC.112. &fun.tU or 7bz CntliU of lnp.U
nu. -
"CA) xxx
"(B) xxx
"(C) Period within which Refund of Input
Taxes shall be M1Jtk. - Lu proper cases, the
('«nmjaajooereball~arefundforaeditahleinput
wea within ninety (90) days from the date of
aubmialim ofthe allicial receipla or illvoicee and odier
docaments in support of the application filed in
accordance with Subeectiom W and (B) hereof:
Provided, That should the Comm iujoner find that
the grant of refund is not proper, the Commj-ioner
must state in wriliDlr the legal and factual baaia for
the denial
"In case offull or partial denial of the claim for
tax refund, the taxpayer aJJectecl may, within thirty
(SO) days from tbereceiptoftlio deciaion denying the
claim, appeal the decision with the Court of Tax
Appeals: Prol!ided, howeuer, That failure on the part
of any official, agent. or employee of the Bm to act on
the application within the nillety (90)-da.y period shell
bepnniehable under Section 269of thia Code.
-Xxx.·
S&c. 37. Section 114 of the NIRC, aa a.mended, is hereby
further amended to read as follows:
"SEC. 114. Return and PoymerLt of
Volue-added TG%. -
"(A) InGen.eral. - Everyporeonliabletopay
the value-added tax imposed under this Title shall
'. ..
file a quarterly nitum oftbe amoumafhia ll'088 aaJea
or receipts within twenty·five (25) days following the
c1oee of each taxable quarter preecribed for each
ta:rpayer: Provid«J, however, 'lbt VAT-:ecistered
perllOD8 aluill PllY the value-added tu on a mcmtbl;y
basi.a: ProlJUkd, {iMlly, That beginning January 1,
2028, the filing and payment required undor this
Sub-9nn sball be done within twenty-five (25) ~
following the clOM! ofeach tuahJe quart.er.
"xx x
"(B) xx x
"(C) Withholdi,;g ofValue-added Thx. - The
Government or a.ey of ite political subdivisions,
instrumentalitiea or agencies, including
government-owned or -controlled corporations
(GOCCa)sball, befotemakingpa;rmentonaccountof
each purchase of goods and services which aro subject
to tho value-added tax imposed in Sectiona 106 and
108 mthis C<xle. deduct and withhold the value-added
tax imposed in $ecrinns 106 and 108 of this Code,
deduct and withhold a final value-added tax at the
rate Otfive percent(6%)"of the gross payment thereof:
Provid«J, Thatbr.cinningJanuazy l, 2021, the VAT
wjtho!dingayatem under lhia Subsection ahallahift
from final to a C2:11ditable system: Provided, further,
That the payment for lease or use of properties or
property rights tn nonresident ownerssball be subject
to twelve percent (12%) withholding tax at the time
o! P"1"'=t: l'roWkd, finoJ~, ThAt Pa.YD>Onte far
purclwiea of goods and services arising from projects
funded by Official DeVlllapment.Assistance (ODA> as
defined under Republic Act No. 8182, otherwise
known as the 'Official DevelopmentAssistanai Ad.of
1996', 88 amended, shall not be subject to tho final
withholding tax sy&tom asimpoeed in this Subsection.
For purposes of this Section, the payor or poreon in
amaol of the P81Dlettt shall be considered 88
withholding agent.
.· •·
47
SEc. 38. Section 116 oftbe NlRC, u amomled. ia hereby
furtbor amended to read as followe:
"SBC. 116. Ta.x o" Perso..a E:umpt from
v~ Thx(VAT,). - Anypenon whoeeaalea
or receipts are exempt under Section 109 (BB) ofthis
Code from the payment ofvalue-added tax and wbois
not a VAT-registered penonaballpllY a tax equivalent
to thzee pe?CeDt (3%) of hie gross quarterly sales or
receipts: Provi<kd, Tbatoooperali•.., and begninin&
January l, 2019, eel!-e:mployedandprofeaijooalawith
total annual gross sales and/or gro8a receipts not
exceedinr Five hundred thousand pe808 (P500,000)
ahall be exenuit from the ~ percent (3") g!0!'8
i:eceipts tax berein.impoeed."
SEC. 39. Section 127 of the NIRC, aa amended, is bereby
furtheramended to read as follows:
"SEC. 127. Tax: 01' Sak, Barter or Ezchan.ge
of Shm-es of Stoek Li8Ud. and Traded through lhe
Local Stock ~e or thro"lfh ln.itial Public
Offering. -
"(,A) Tax on. S<lle, Barter or E:cchange of
Shares ofStoclc Listed and Traded thro1J8h IN Local
Stock~- - Tbeni aball be levied, asae11ed
andoollededon every aale, barter, exchange or other
disposition ofshares ofstock listed and traded through
tbe local stock exchange otber than tbe sale by a
dealer in aecuritie6, a tu at tbe rate of six-tenths of
one percent(6110of I") of the gross eellingpric:e or
gross value in money of the shares of stock sold,
·. bartered, ex.changed or otherwise dispoeed which sball
be paid by tbe eeller or tranaferor.
"xx x.·
the
 SBc. 40. Secfton 128 of the N1RC, u amended, ;,, hereby
further amended to read as follows:
"SEC. 128. Returns ond Poymcnl of
Percentage T= -
"(A) xxx
"(l) xxx
•(2) Person.s Retiring from Biu;iluu. - xx x
"(3) De~rminotion o] Correct SGlet" <!'
~ipts. - xx x
Sile. '1. Section 129, Chapter 1 of Title VI of the NIRC,
u amended, is hereby further amended to read 88followa:
"TITLE VI -EXCISE TAXES ON CERTAIN
GOODS AND SERVICES
"CHAPTER l ·- GENERALPROVlSJONS
"SEC. 129. Goods on.d Services Subject to
E:ccin Taxes. - Excise taxes apply to gooda
ma.nllfactured or produced in the Pbilippinea !or
domestic sales or consumption or for any other
clispoaition and to things imported as well 88 eervicea
performed in the Philippines. The exciae tax impoeed
herein aball be in addition to the value-added tax
impoeed underTnle IV.
"For purposes of this Title, excise taxes herein
impoeed and based on weight or volume capacity or
an,y other physical unit of measurement shall be
referred to as 'specific tax' and an excise tax herein
impoeed and based on seliling price or other epeci.6ed
value ofthe good Ql'eervice performed shall bo referred
to a.e 'ad valorem tax.' •
Sze. 42. Section 145 of the NIRC, u amended. ;,, hereby
£urther amended to read 88 filllowe:
"SBC. 145. Ci/JanondCiiantta. -
"(A) Cigars. - x x x
"(B) Cigwetta Packed by Hand. - There
shall be levied, assessed and collected on cigarettes
packed by hand an excieo tax based on the following
schedules:
"Effective on January 1, 2018 until
Jwie ao,' 2018, Thirty-two peaoe and fifty centavos
(P32.50) p_er pack;
"Effective on Jul,y 1, 2018 until
December 81, 2019, Thirty-6va puoe (P85.00) per
pack;
"Effective on January l , 2020 until
December 31, 2021, Thirty-seven peeoe and fifty
centavos (P87 .50) per pack; and
"Effective on January 1, 2022 until
December 31, 2023, Forty peaoe (P40.00) per pack.
'The rates oftax impoeed under this subeection
shall be increased by four pezcent (4%) every year
effective on January 1, 2024, throueh revenue
regulations issued by the Secretary of Finance.
"Duly registered cigarettes packed by band
shall ooly be packed in twentie9 and other paclraging
combinations of not more than twenty.
• 'Cigarett.es packed by hand' ahal1 refer to the
manner of packaging of cigarette sticks using an
individual person's hands and not through an,y other
means such as a m.echanical device, ma.c hine or
equipment.
 -·
"(CJ CigaTetUs Pochd by Ma.cJWic. - Tbeze
ahall be levied, a ed and collected OD c:iprettea
pacbd by marhjne a tax at the ratee preeczibed below:
"Effective on January l, 2018 until
June 80, 2018, the tu on all cigarette• packed by
machine aball be Thirty-two pe808 and fif\y oenta""8
(PS2.50) per pack;
"Effective on July l, 2018 until
December S l, 2019, the tax on all cigarettes packed
by machine ahall be Thirty-five pe808 (P35.00) per
pack;
. .
"Effective on January 1, 2020 until
December Sl, 2021, the tax Oil all c:iprettea pack:ed
by machine ahail be Thirty-seven ~ and fif\y
centa909 (P37.50) per pack; and
"Effective on January l , 2022 until
December 31, 2023, the tax on all cigarette. pack:ed
by machine shall be Forty pe808 (P40.00) per pack.
"The rates oftaximpoeed under this Subeection
ahall be increased by fou.r percent (4%) every year
thereafter effective on January 1, 2024, throuch
..,___
•uuwce.
.
revenue regulations issued by the Secretary of
SBC. 43. Section 148 of the NlRC. as amended, is
hen!by further amended to read as follows:
-S!C. 148. Man..foctured OU. and Other
Fil&. - There shall be C10llected OD refined and
manufactured mineral oils and motor fueb, the
following excise taxes which shall attach to the goods
heraunder enumerated as ax>n as they are in e:Dsrenre
as such:
'
"E!fectiveJanumy 1, 2018
"(a) I"'"· •ting ailaand p n-. inchMtincbut
not limited to, i.-tock for Iv.be oil.I and peues,
high vacuum clilmll•ta, llIOIDAW: exlncle and other
aimilar preparations. and additives for lubricating
oila and greases, whether such additivel are petroleum
baaed or not. per liter and kilogram, respectively. of
volume capacity or weight, Eight peeos (P8.00):
Provided, Thatlubricating oils and gxeaaea produced
from baaestocks and additives on which the excise
tax has already been paid shall no Ionaer be subject
to excise tu: Provided. further, That JocaUy produced
or imported oils previous.13 taxed as 1~ but are
subiequently reproceaaed. refined or recycled shail
likewise be subject to the tax impoeed under this
Subsection:
'(b) Pro< d gas, per liter of wlume capaci1;y.
Bi&ht pe808 (PB.00);
"(c) Waxes and petrolatum, per kiloeram.
Eight peaos (PB.00):
"(d) OndenaturedalCIOhol tobeusedformotive
power, p·er liter of volume capacity, Eight pesos
(P8.00): Prouidro, That ~81 otherwise provided
byapeciallaws,ifthedenaturedalcoholilmixedwith
gasoline, the excise tax on which has already been
paid, only the alcohol content shall be subject to the
tax herein presc:rihed. For pu.rpoaes of this
Subsection. the removal of denatnred alcohol of not
Iese than uoe hundred eighty dci;rooe (180") proof
(ninety percent (90%) aheolute alcohol) shall be
deemed to have beenremowdmr molive power, unless
shown othenrise;
"(e) Naphtha. regular gaeoline. pyrolysis
gaaolille and other similar producta of distillation,
per liter of volume capacity, Seven pesos
(P7.00): Provided, howeuer, That naphtha and
• '
p~ gasoline, when uaed aa a raw material in
the p10cbu:tion of petrochemical producla or in the
refining alpetroleum p?Oducta, or aa repl.,..;mmflle.\
for natural-pe·fized~ cycle power plant in
lieu of locall,y-extracted natural JU durinc the
non-availability thereof. aubject to the rulaa and
regulatione to be promulgated by the Secretuy of
~ce, per liter of volume capacit;y, zero (P0.00):
Provided, further, That the production ofpetroleum
producta, whether or not they are claaeified aa
products of distillation and for use aolecy for the
production of gasoline shall be exempt from excise
tax=Provided,firwlly, That the by-productiDcluding
fue~ oil, die&el fuel. ~. pyro~ gaeolihe,
liq~ petrolefun P.8"5> and ailliilar oils )laving
more or less the same generating power, which are
produced in the processinr of naphtha into
petrochemical products shall be 1ubje<:t to the
applicable excise tax specified in tbia Section. u.c:ept
whensuchby-prodw:tsaretranafened toaeyofthe
local oil refineries th?Ough sale, barter or es:change,
for the purpose offurtherproc:essingor blending into
fini•bed p?Oducta wlrich are Sllbject to exci8e tax under
this Section;
"(() Unleaded premium gasoline, per liter of
volume capacity, Sevenpesos(P7.00);
"(g) Aviation turbo jet fuel, aviation pa, per
literofvolumecapacity, Four~(P4.00);
"(b) Ke'°""""- pP.T HtP.r n( vnlum~ Cllp•cit:y,
Tbreep-.(P3.00): Provided, Tbatkeroeene,wben
u.eed 88 aviation fuel. shall be subject to the aame tax
on aviation turbo jet fuel under the preceding
paragraph (g), such tax to be aaaeseed on the uaer
therecr.
"(i) Diesel fuel oil. and on similar fuel oils
having more or less the same gonorating power,
per liter of volume capacity, Two p.ie and fifty
centavos (P2..50);
"Gl Liquefied petroleum gas, per kiJocram.
One peso (PLOO): Provided, That liquefied petroleum
gas when used as raw material in the production of
petrochemical products, subject to the rules and
regulations to be promulgated by tho Secretary of
Finance, shall be taxed zero (P0.00) per kilogram:
•Provided, fi=lly, ThatliqucfiA!d petroleum ga.s
used for motive power shall be ~at the equivalent
rate aa the eu:ise tax on diesel fuel oil;
·oo Aspballs. per kU>gJam. Eichtpeaoe (PS.00);
"(!) Bunker fuel oil, and on similar fuel ails
having more or less the sam.e gen.orating power, per
liter alvolume capacity, Two~ and fift;y centavos
(P2.50): Provided, ho~ver. Tbat the excise taxes
paid on the purchased baseslock (bunker) ueed in the
manufacture of excisable article1 and forming part
thereof shall be credited against the excise tax due
therefrom; and
"(m) Petroleum cnke, per metric ton. Two pesos
andfiftycentavos·(P2.50): Provided, however, That,
petroleum coke, when usedaafeedstock to 81l,)'power
generating facility, per metric ton, ze10 (P0.00).
"Effective January l, 2019
\a) I uhricatingoilsand greases. including but
' not limited to, ba.sestock for lube oils and greases,
high vacuum distillates. aromatic extractl and other
similar preparations, and additives for lubrl...,ting oils
and greases, whether such additive• are petroleum
baaed or not, per liter and kilogram, respectively, of
volume capacity or weight, Nine pesos (P9.00):
ProvUkd, Thatlubricati.og oils and greases produced
, from baaeatoclr.a and additives on which the excise
tax baa alread,y been paid ahall no lnnger be subject
to exci8e tax: Prooided, fl,lrther. That locally pzoduced
or imported oila previoualy taxed aa such but are
subeequentl:y reproceeeed, rerofined or recycled ehall
libwiee be eubjact to the tax impoeed under this
Subeeetion.
"(b) Pl• m~gu,perliteroholumecapacil;y,
N"tnepeam (P9.00);
"(c) Waxes and petrolatum, per kilogram,
N"inepe-(P9.00);
"(cl) On denatured almhol to be ll8ed (or m.oav..
power, per liter of volume capacity, Nine pesos (P9.00):
Provided, That unlese otherwise provided by special
Jawa,iftbedcnatured aJcobolia mixed with gal!Cl!ine,
the exc:iae tax on which baa a.I.ready been paid, only
the alcohol content aball be eubject to the tax herein
prescribed. For purposes of tbia Subaeetion, the
removal of denatured alcohol of not le88 than one
hundred eighty dogreoa (180") proof (ninety percent
(90%) absolute alcohol) shall be deemed to have been
removed for motive poWler, unless shown otberwjse;
"(e) Naphtha, reruJar gasoline, pyrolyeia
gasoline, and otbor 8imilar products of diatillation,
per liter of volume capacity, Nine peeoe (P9.00):
Prouided, howeuer, That naphtha and p}'?Olysis
gasoline, when uaed as a raw material in the
production of petrochemical products, or in the
refining cl petroleum producta, or aa replacement fuel
for natural-gu-fued-combined cycle power plant in
lieu of locally-extraeted natural gaa during the
non-availability thereof. subject to the rules and
regulations ID he promulgated by the Secretary of
Finance, per liter of volume capacity, zero (P0.00):
ProWkd,fl,lrther, Thattbeproduclionofpetroleum
products, whether or not they are classified aa
products of diatil.latioo and for uae aolel;y for the
production or guoline eball be exempt from excise
tax: ProWi«J, {Will1. That the by-pzodur:tincluding
fuel oil, dleeel fuel, kezoeene, p}'?Ol,ysia ga.eoline,
liquefied petroleum paee and aimilar oile having
more or Iese the ea:me rencrati.nc power, wlllch are
produced in the proceaainr of naphtha into
petrochemical product& shall be eubject to the"
applicable exci8e tax tpecified in this Sedion, euept
when l'UCh by·prod~ are tranafezred to 81r! clthe
local ail refineries throup ea.le, barter ot exchange,
for the P"'P'* of farther pt.,. -i11gor blendinginlD
finiahedproducta whidlJre subjectID excise tax under
tbia Section;
J
• "(/) U~aded premium paoline, per liter of
volume cap~. N3na pe-(P9.00);
"(g) Aviation turbo jet fuel, aviation gas, per
lit.er or volume capacity, Four peeoa (P4.00);
or
"(h) Keroaene, per liter volume capacity,
Four peaos (P4.00): ProWkd, That kerosene. when
l188d ae aviation fuGl, ahaJl be subject to the 68llle tax
on aviation turbo jet fuel under the preceding
paragraph (g), such tax to be 888e88ed on the user
thereoe
"(i) Diesel fuel oil. and on similar fuel oils
having more or leas the same generating power, per
lit.er ofvolume capacity, Four peeos and fifty centavos
) (P4.50);
) "(j) Liquefied petroleum gas, per li:ilogram,
Twopeeoe (P2JIO): Provid«l, That liquefiedpetroleum
gae when l188d aa raw material in the production of
petrochemlW prodw:te, aubjecl to the rules and
regulatione to he promulgated by the Secretary
or Finance, per kilQlnJD, zero (P0.00): ProuUJed. .
/WJU1. Thatl.iquefiedpetroleumgaaueedformoliw
power shall be taxed at the equivalent rate as the
exciM tax OD diMel fuel oil;
t'
.·
'
"(I) Bunker fuel oil. and on .umJar fuel oils
having more or 1- the ea.me generating power, per
liter ol volwne capacity, Four pe808 and fifty centa"""'
(P4.60): Provided, howwer, That the exci.ae taxes
pm oo tbe purcha.9ed be a etock (bunker) used in die
manufacture of excieable a.rticlu and bming part
thereof shall be aedited against the exci.ee tex due
therefrom; and
"(m) Petroleum coke. per metric Inn, Four pe90S
and fift;y centavoe (P4.60): ProWkd, howwu, That,
petzoleum ~. when Uled·aa fo.ed.stock to any JlO'l'er
generating faC:ilitr, per metric ton,~ (P0.00). ·
"Effective Janwuy 1, 2020
"(a) Lubticating oila and greaaee. including but
not limited to, ba.seatoclc for lube oils and greases,
high vacuum di.etillatea, aromatic extracts and other
similar preparation.s, and additives !or lubricating
oils and i:rea-. whether such additivea are petroleum
based or not, per liter and 'kilogram, respectively, of
volume capacity or weight, Ton pesos (Pl0.00):
Provided, That lubricating oils and greases produced
&om bOJM?stocka and add.i:tives on which the excise
tex bas already been paid ,s hall no longer be subject
toexcisetu: Provided,{urlher, Thatlocall,yproduced
or importAld oila pre'Oiousl,y taxed aa such but are
subsequently reprocessed, :rerefined or recycled shall
likowit& be aubject to the tax imposed under this
Sub6e<:tion.
"(b) Proceaeed gas. per liter of volume capacity,
Ten pe808 (l'l0.00);
"(c) Waxes and pell'olatum, per lcilogram. Ten
pesos (Pl0.00);
.,
51
"(d) On d.enatuzed akabol to be uaed far motive
power, per liter of 'Volume capacity, T~n peaos
(Pl0.00): ProWkd. That unleaa othenriae provided
by epecial1a..., if tbe denatured alcobolia miJed with
gaeoline, the exciM tax on which baa &heady been
paid, only the alcobol. c:onWnt ahall be subject to the
tax herein preecribed. For purposes of this
Subeection. the removal of denatured alc:obol aC not
lea than one hundred eighty degreu (180') proof
(ninety percent (90") abeolute alcohol) shall be
deemed to ha'lle b~uemcn>ed fur motivepower, unless
shown othertri9e;
• ~) Naphtha, -reg_ul.ar gasoline, pyrolysis
gaeoline and other siJllilar products aC cWtillation,
per liter aC volume capacity, Ten peaoa (Pl0.00): .
ProuUkd, however, That nepbtha and pyrolysis
gaeoline, when uaed aa a raw material in the
production of petrochemical products, or in the
refining aC petroleum products or as replacement fuel
for natural-gaa-fired~mbined cycle power plant in
lieu of locally-extra.c ted natural gas during the
non-availability thereof, subject to the rules and
regulatione to be promulgated by the Secretary of
Finance, per liter of 'llolume capacity, 7.ero (P0.00):
ProWWJ,[url.her, Th.attheproduct.ionofpetroleum
products, whether or not they are classified as ·
products of d.istillati.o n and for use eolely for the
production of gasoline shall be exempt from excise
tax: Provided,fin.aJly. That the by-productincluding
fuel oil, diesel fuel, keroeene, pyrol,ysi.a gasoline,
liquC!Md petroleum paes and similar oils having
moro or looo the ea.mo pnor-ating powe:r. which 8.1'8
produced in the processing of naphtha into
petrochemical prod11cts shall be subject to the
applialble excise tax specified in this Section, except
when such by-product& are transferred to any af the
local oil refiDeriea through aale, barter or exchange,
far the purpoee of further prooessinir ar blendinginto
finished produda which are subject to ezcise tax under
this Socti.on;
r 159
"If) Unleaded pnmium ga.aoline, per liter of
volume capecity, Ten peeos (Pl0.00);
"(g) Aviation turbo jet fuel, aviation gu, pe.r
liter of volume capacity, Four peeoe (P4.00);
"(h) Keroeene, per lit.er of volume capacity,
Five peaoa (P6.00): Providld, That lteroeene, when
used as a'riatioo fuel, ehall be subject to tbe aame tax
on aviation turbo jet fuel under the preceding
paragraph (g), auch tax to be asseeeed on the wrer
lbereol;
. •(i) ~eael fuel oil, aJi4 on similar fuel ~ile
having more or leas the same generating power, per
liter of volume capacity, Six pesos (P6.00);
"(j) liquefied petroleum gu, per kilogram.
Three peao1 (PS.00): Proui<kd, That liquefied
petroleum gas when uaed as raw material in the
production of petrochemical ptOdw:ta, subject to the
rules and regulations to be promulgated by the
Secretuy of Finance, per kilogram, zero (P0.00):
Proui.l:kd, finally, That liquefied petroleum gas used
for motive power shall be taxed at the equivalent rate
as the exclae tax on d.ieeol fuel oil;
"(lQ Asphalt&, per kilogram, Ten pHos
(Pl0.00);
"(!) Bunker fuel oil, and on similar fuel oils
having mo<e or looo the oamo gen.orating powRr, I""'
liter of volume capacity, Six pesos (P6.00): Prouiikd,
however, That the oxciae taxes paid on the purchased
baaestock (bunker) used in the manufacture of
excisable articles and forming part thereof shall be
credit.ed against the excise tax due therefrom; and
"(m) Petroleum coke, per metric ton, Six~
(P6.00): ProWkd, howwu, That., petroleum coke,
when used u feedstock to 8llY power generating
facility, per metric ton, mro (P0.00).
"Petroleum producta, indnding naphtha, U'G,
petroleum coke, refinery fuel and other p~w:ta of
distillation. when uaed as input, feedstock or u raw
material in the manufacturing of petrochemical
products. or in the refining ofpetroleum prodw:ta, or
asreplacementfuelfornatural·gaa·fired-combincd
cycle power plant in lieu oflocally-extracted natural
gasduriilg the non-aY'8ilability thereof. aubject to the
rules and regulatiom to be promulgated by the
Secretazy of Finance, per liter of volum.e capacity,
zero (P0.00): Prooided, Thatthe by-ptOduct inc!ucting
fuel oil, di-1 fuel, kerosene, pyrolyllia peoline,
liquefied petroleum gases, and similar oil8 having
m.o re or leas the same generating power, which are
pro·duced in the processing of naphtha into
petrochemical products &hall be subject to the
applicable exclBe tax epecified in th:ia Section. cxoopt
when such by-products are transferred to any ofthe
local oil l8fineriea tbzough sale, barter or exchange,
for the purpoeeof!urtherpm es ·'*If OI' blendincinto
furlalwl produda which areStJbject to exdee tu under
this Section.
"For the period covering 2018 to 2020, the
scheduled inaea.ee in the excise tax on fuel 88 im~
in this Section ahall be suspended when the average
·Dubai crude oil price based on Mean of Platts
Singapore ()\{OPS) for three (S) months prior to the
scheduled i.DC'ease afthe month reaches or exceeds
Eighty dollars (USD 80) per barrel.
"Prouid«l, That the Department of Pinance
ahall periacm an annual review ofthe im,plementatimi
ofthe exciae tax on fuel and shaJl. baaed on projections
provided and recommendations of the Development
Budget Coordination Committee, as reconciled from
the conditions aa provided above, recommend the
implementation or suspension of the exclae tax on
fuel: Prouided, {urlher, That the recommendation
shall be given on a yearly basis: ProuUUd, finally,
That &DJ' wspenaion d the increase in exciee tu eball
not result in any reduction of the excise tax being
impmed at the time of the suspenaion."

60
SBc. <W. A new 1ection deei.1ll4ted u Section 148-A
under Chapter V of the NIRC, aa amended, ia hereby iDaerted
to read u followa:
"SIC. 148-A. Manclolory Marking of All
Peln>kum Produ.cta. - In accordance with rules
and regulationa to be ileued by the Secretary of
FUwioa, in coOIUltation with the Commisaioner of
Internal R.e-oenuo and CommissjmerofCustnmund
in coordination with the Secretary of Energy, the
Secretary of Finance ehall require the use of an
official fuel marking or similar technology on
peb'Oleum producta thatue refined, m•nnfacbtted,
or imported inllO the Philippines, and that are~
to the-payment of tax&1 and dutlea, such as but not
limited to. unleaded piemjum paoline. kero.ne, and
dieeel fuel oil after the taxea and duties thereon have
boonpaid. Themandatorymarlcingofallpetroleum
producta shall be in accordance with the following:
"(a,) O{ficiol Marirus. - There ehall be a liat
ofchemical additivee and correaponding quantitative
ratio aa identified by the Secretary of Finance as
official fuel markera. The oflicialfuelmarkera shall
be ,d istinct and, to the greatest degree po88iblo,
impo88ible to imitate or replicate: Proui<kd, That
the official fuel marker must be un.ique to the
Pbilippinoa and that ita chemical composition and
qUS11titativo rntio must peniat for at least three (3)
years from their application or administration to tho
unmarked fuel;
"(b) The person, entity, or tSipayerwhoowns
or enters the petroleum products into the country, or
the penon to whom the petroleum producte are
consignedahall cause and accommodat.e the mar!ring
of the petroleum product& with the oflicial mar!ring
scent;
"(c) internal re. .nue or c:uatmn. officers shall
be on aite to ad.miniatez the declaration of the tax
and dutice impoeed an Ibo petroleum products and to
- -.....~_...._ , : _ ..., __ -'•'-" · ~- · -- '-? -
.•
Sl
"(cl) Absence of Off•dal or Dilulio1' of IM
O{ficialMaT~r; Pra1U11ption.a. - In the event that
the petroleum producta which do not contain tho
official marker or which contain the official marker
but are diluted beyond the acceptable percentage
approved by the Secreta:y of Finance are found in
the domestic market or in the pc sseni:m of anyone,
orunder~liP••tionwbereaaidpetroleumproducta
are mbjed to duties and Wea. it shall be pteSUl!led
that the 1&111e were withdrawn with the intention to
evade tbe~ento!thetaxeeand duties due tbereoo;
"(e) Tbe use nf &audulent marker on the
petroleum producte aba11 be considered pri.m4 f~ ·
evidence lhat the aame have been withdrawn or
importld without the payment of taxea and duties
due thereon;
"(.J) Engagement of Fuel Marking Provider.
-The govemmentahall engage only one fuelm•r!ring
provider who shall, under the supervision 8lld
direction of the CommimonereoflnternalRevenue
and Customs, be r&aponaible for providing,
monitoring, and administering the fuel markers,
provide equipment l!Dd devices, cond\lct field and
confirmatory tests, and perform such other acts
incidental or nocoasary to the proper implementation
oftbeprovi.aionaofthiaAct: Provided., Thatlhefuel
marlcingprovidor ehall provide an end·to-endsolution
to the Govemmont, including the e$1;sb]isbmentand
operation of testing facilities that are certified to
ISO 17026:
"(8) All costa pertaining to the procurement of
the ol!icial fuel markers ahall be borne by the refiner,
manufacturer or importer, of petroleum products.
u the cue ma.y be: Prouilkd, That the government
may 511baidize the cost ofofficial fuel markers in the
first year of implementation;
 .- -.
Gt 6S

"(h) Fuel MarldAg ProfIT0111 Puna.. - In automobiles based on the m.a .nu!ac:turer'a or
addition to any appropriation to implement thia importer'• eellingprice, netol em. - i 98lu&-edded
Section and the last paragraph of Section 171 of this tax. in sooardance with the followinc acbedule:
Act.. feee or charges oollected in relation to the fuel
marking program may be recorded u trust receipts
ofthe implementjng agencieA, andeball beexcl~ "Net muu!actmu'1 priool
cliabUl'Sed to defray the cost of aervicea or equipment ia\porte?'I ..n.mi price
required to fully implement the ea.id program, subject
"Up to Sa bundred tbounnd
to rulea and regulation& to be ieeued by the peooo (P600,000) Four porot•t (4!1)
DOF-DBM-COApermanentcommittee;
"Owr Six buched tbouu.od puo1
(!'600,000) to One milliDn
"(i) The marking of petroleum products shall - (Pl,000,000) TtD peRODt (lllll)
be mandatmywithinfive (5) yearafroui the elfectivil;y
of this Act; and ·
•o.er One millioc - (Pl,000,000)
lo Four millicm - (1>~000,000) Tnoqpe<entOOlil

"(j) The term 'randnm field test' ehall refer to

periodic random inspectione and teats performed to
"0..r Four million - (J'<l,000,000) Pi!b',...... (l!O!ll

estehlish qualitative and quantitative positive result
offueltrafficking, whic:hareconductedonfuelefound
in wmehouaes, storage tanka, gaa etetione and other
retail outlets, and in such other propertiea or
equipment, including mechanjsma oftransportation,
of pereons engaged in the sale, delivery, trading,
transportation, d.istrilbution, or importation of fuel
inte.n dedfordomesticmarket.
'The term 'oonfinnatory te8ta' shall refer to the
accurate and precise analytical teet of the tested
1U11Mrked, adulterated. or diluted fuel usinr a device,
tool or equipment which will validate and confirm
the result of the field test, that ie immediately
conducted in an ~ te8ting Cacility that ie
certified to ISO l 70'l5.~
SBC. ~- Section 149, Chapter 6 of Title VJ ol the NIRC,
u amended, is hereby further amended to read u follows:
"CHAPTER VI -EXCISE TAX ON MISCELLANEOUS
ARTICLES
"SEC. 149. Automobiles. - There shall be
levied. assessed and collected an ad vab>rem tax on
"Prouided., That hybrid vehlcles &hall be
aubjed to fifty percent (50%) ofthe applicable exci8e
t.ax rat.ea on automobiles under thia Section:
Proui.ded, {urfJr.er, Th.at purely elec:t:ric vehicles and
pick-ups shall be exempt from exc:iae tax on
automobiles.
•As used in this Section -
"(a) Automobile shall mean any four (4) or
more wheeled motor vehicle reprdle88 0£ seating
capacity, which is propelled by cuoline. diesel,
electricity ar any oilier motive power: Prouided. That
for purposes of this Act, buses, trudta, cargo vans,
jeep~ aubotitutoo. oiDele eab chsniB. ond
special-purpose .-elW:les shall not be considered as
automobiles.
"(b) Truck/carfO van &ball mean a motor
vehicle of any configuration that ie exclusively
designedfor the carriqe of goods and with any number
of wheels and axles: ProuUUd, That picl<·upa shall
be considered as trucks.
' r
•(c) Jeepneyljeepney subetitutee ahail mean 88
'Philippine jeep or jeepney' which are al the jitney
\ype locally designed and manufactured geoera]J,y flom
surplus parts and compononta. It shall alao inclwlo
jeepney 81lhatitutea that are manufactured from
brand·new single cab chau:ia or cowl chaasi.a and
locally cuslom.iud rear body that has omtinuoua
sideway row seats with open rear door and without
retractable glass wind.owe.
"(d) Bus shall mean a motor vehicle of any
~with groea vehicle weightot4.0 tom or
more with 8llf number of wheels and ax1ea, which ia
generally...icet>¥and opeci•liy d_.gned fnr masaor
public trallSpOrtatiou.
"(e) Smgle cab chaaaia shall mean a motor
vehicle with complete engine power train and chaaaia
equipped with a cab that has a maximum of two (2)
dOllr& and Oll]y one (1) row alaeata.
"(l) Special pur;pcee vehicle aballmeana motor
vehicle designed for apecific applications such 88
cement mixer. fire truck, boom truck, ambulance
and/or medical unit, andoff·road vehiclea for heavy
industries and not for recreational activitiea.
"(g) Hybrid electric vehicle ahail mean a motor
vehicle powered by electric 8llelCY. with or wit.bout
provieicm fnraff.veJrlde cbaJ1ing. in combination with
gasoline, ~or any other motive power. ProWkd,
That, ror purpooco of tblo Act, "b,ybrid el.octrio vomclo
must be able to propel itself from a stationary
oondition using solely electric motor.
"Prouided, That ill the cue ol imported automobile&
not for aale, the tax i.m~ be:rein ahail be baaed on
the total landed value, illeluding transaction value,
customs duty and all otber charges.
•Automobiles wed eicclusively within tho
&eeoort zone shall be exempt from excise tu."
SEO. 46. AnewsectiondeaignatedasSection 15().Aunder
Chapter VI, Title VI ofthe NIRC, as amended, is hereby inllerted
to read u follows:
"SBc.150-A. No1Wl#lll:ial &:rvices. - There
ahaD be levied, • ii, and aillech>d a texeqaivalent
to five percent (5%) baaed on the groesreceipta derived
from the performane& 0£ eervice.e, net of mci.8e tu
and value-added tex, on mvasive coameticpioceduroe,
surgeries, and body enhancements directed eolely
toward.a improving, altering, or enhancing the
patients appearance and do ootmemiingful1ypromote
the proper £unction of the body or prevent or treat
illneaa or. disease: Pro11Ukd, That this tu ahalI not
appl,y to procedures neceaaary to ·ameliorate a
deformity arisllig Crom, or directly related to, a
congenital or developmental defect or abnormality, a
pcreonalilljuryreeulting&omanaa:identortrauma,
or diafiauzing diseaae, tumor, virus or infection:
Provided, {r.irlltq, That cues or treatment. ooverod
by the National Health lnlunmce Program ahall not
be subject to this tax..
S&C. 47. AnewsectiondesignatedasSection 150-Bunder
.Chapter VJ, Title YI o£the NllRC, as amended. is hereby inserted
to read as follows:
"SEC. 150-B. SwttUMd &verogu. -
"(A) ~andBoset>{To:c. - EffectiveJanU8J)'
1,2018:
"(l) A talC of Su pesos (P6.00) per litor of
volume capacity shall be levied, assessed, and
col1ecnd on sweet.ened bevera.ges using purely c:alm:ic
aweetenera, and purely non-<:aloric sweeteners, or a
mix of caloric and non-caloric sweeteneni: Prouided,
That thia tax rate ahall not apply to sweetened
beverages using high fruc:toee com syrup: Prouided,
further, That sweetened beverages using purely
coconut sap sugar and purely steviol glycoeides shall
be exempt from this tax; a.nd

r "(2) A tax of Twelve peeoe (Pl2.00) per liter of
volume capacity ahall be levied, asaeaaed, and
collected on sweetened beverages usmg purely high
fructoee aim syrup or in ocmbination with an.y c:alatic
or non-caloric sweetener.
"(B) De/illition. of Terms. - As used in this
"(1) Sweeten.td beverages (SBs) refer to
non-alcoholic beverages o£ aoy constitution (liquid,
powder, or ooncentnte.) that are pre-piicbged and
aealed in accordance with the Food and Drllg
·Adm.inistration (FDA) standard., tbat contain calnric
and/or n6n-caloric sweeteners added by the
manufacturets, and shall include, but not be limitod
to tho following, as deacribod in the Food Category
System from Codex Alimentarius Food Category
Deaaiptors (Codex Stan 192-1995, Rev. 2017 or the
latest) aa adopted by the FDA:
"(a) Sweetened juice drinks;
"(b) Sweetened tea;
"(c) All carbonated beverages;
"(cl) Flavored water;
"(e) Energy and sported.rinks;
"(f) Other powdered drinks not clasaified 88
milk, juice, tea, and coffee;
"(g) Cereal and craio beverages; and
"(h) Other non- alcoholic beverages that contain
addodeugar.
..
17
"(2) Caloric sWUkMT refers to a IUbetanoe
that is sweet and includes aucroae, fructoae, and
clucceethat.produceeacertainsweetneu;
"(3) High (n.idoa conuyrup refere to a sweet
1&ccharide m:inme containing frucb:iee and sluc:oee
wlUcb is derived fro:m com and added to provide
aweetneaa to beverages, and which includes other
aimilar fructose syrup preparations; and
"(4)NOIWO!oric~referetoasubatance
~d that
that are artificially or chemically
prodUCM a certain swoetnea These are IUbatancea
which can be d.irectb' added to beveragea. such aa
upartame, sucraloae, saccharm, aceaul!a.me
potassium, neotame, cyclamatea and other
non·nutritive sweetenere approved by the Codex
Alimentarius and adopted by the FDA.
"(C) !!v'usiona. - ThefoJ.JowiDgproducta, as
deacribed in the food caleioJ:y system from Codex
AlimantariusFood Category Deecriptwi (Codex Stan
192-1995, Rev. 2017 or the latest) 88 adopted by the
FDA, are excluded from the llCOP<I of this Act:
"(l) All milk products, including plain milk.
infant formula milk. follow-on milk, growiDg up milk,
powderedmilk. reaily-to-drink milk and flavored milk,
fermented milk. aoymilk. and fiawted eoymilk;
"(2) One Hundred Percent (100%) Natural
Fruit Juices - Orig;illal liquid .re&ult.iug from tbe
pressing of fruit, th!l liquid resulting from the
reconstitution of natural fruit juice concentrate, or
the liquid resulting from the restoration of water to
dehydratecinatural fruit juice that do oat have added
1upror caloric sweetener;
"(3) One Hundred Percent (100%} Natural
Vegetable Juices - Original liquid resultinr from
the pressing of vegetables, the liquid reeultinr from
 ..
f
the roco1U1titution of nat=al vegetable juice
• concentrate, or th.e liquid rell'Q.}ting &om th.e
reetorationofwatertodehfdratednaturalvegetable
juice that do not have added augar or caloric
sweet.ener;
"(4) Mea!Replarementand MediatQI' Incliaited
Beveragee - Any liquid Or powder drink/pzodw:t for
on.lnubjtjcmaltberapyf'orpenaoswhocannotabeorb
or metabaljR dietu:y n 1111 ie1 ds from fDOd or bweracea,
or aa a soun:e of necessary nut:rilinn u8ed due to a
medical condition and an oral eledrol,yte IOlution for
infants and children formulated to prevent
dehfdration due to illness; and
,· . '
"(6) Ground ccffee, instant soluble coffee, and
pre-packaged powdered coll'eepzoclucta.
"(D) Fili1111 of Return alld Paymval of~
Th.>:olld hnoUy. -
"(l) Filing of Return and Payment of Excise
Tax OD Domestic and Imported Sweetenedilnerages.
- The provision of Sections 130 and 181 ofthe NIRC,
as appropriate, shall apply to sweetened beverages.
"(2) Penalty. - Upon final findings by the
Commiaiouer o!lnternal Revenue and/or Customs
that any manufacturer or importer, in violation of
this Section, m.iadedares or misrepieaente in the
sworn statement provided in Section lSO(c) of the
NIBC, as •mended. any pettinentdata or information.
the p<:ill&ll,y uf•IUD.ID&l"Y ainooJJa1'ion or withdrawal
ofthe permit to engaite in businea as manufacturer
or importer of sweetened beverages as proWled IU1der
Section 268 of the N1RC, as amended, shall be
imposed.
"An:! corporation, association or partnerahip
liable for any of the act& or omissions in violation of
.... .
69
thi.a Section ahal1 be fined tzeble the amo1U1t of
deficiellC.Y taxee, rurclwgea. and intereat which may
be ane-dpur8UADt.tothisSection.
•Any pereon liable for any of the acta or
omisaiona pzohibited under this Section. ehall be
criminal\y liable and penaliz.ed under SecQon 254 of
the NIBC, u emended Any peraon who willfully
aids or abeta in the cmnmi•si00 of any such act or
om.iaaion ahal1 be criminally liable in the aame
manner u the princ:ipal.
"If not a citizen of the Philippine6, the offonder
shall be deported immediately after serving the
; sentence withoutfurtherprooeedinga for deportation.
"(E) Specific Respon.sibility of the Food
and Drug AdmiAistrotion (FDA). - Starting
June 1, 2018, the FDA shall require all
ma.nufacbuer9 and importers rL-eetened beverages
covered by this Ad. to indicate on the label the type of
sweetener used, and on sweetened beveraiea in
powder form to indicate on the label the equivalent of
each serving per liter of volume capacity.
"The FDA shall also conduct post-
m.arketing surveillance ofthe sweetened beverages on
display in supermarkets, groceries or retail atorea
and/or inspectim ofmanufac;tming sites to determine
complian<:e with the requirements of this Section.
Violations of the provisions ofthis Act, including but
not~ to, mislabeling or misbranding, shall, to
the extent applicable, be punishable under e:aieting
laws.
"(F) Duty of th.e Commissioner to E1'sure
Payment of Taus. - It shall be the duty of the
Commiaaioner, among other things, to preec:ribe a
materially unique, secure and nonre.m ovable
identification, auch as codes, stamps or other
marlrinp, to be firmly and conspicuoualy dlixed on
and foxm part of the label of all excisable sweetened
bever&Rea.
 ·.
711
"For tbia pu.poee, the abovemctntfoned 0011trol
measure shall be cauaed by tbe Commiwioner to be
printed with adequate eecurity featurea to ensure the
p_,,.,ent of excise tax onsweetened bevengea.
"(G) Reuiew of Implomontotion of Ike
Sweelened Beueroge Tox. - At the start of the
implementation ofthe sugar aweotonod beverage tax
andeveryyearthe.reaft.er, theDepartmentofHoalth,
Department of Science and Technoloey, and
DepartmentafF!nanoe ehallreview tho impact ofthese
provisioDS on its health objectives with the view to
m•lring recommemlations on the tax rate on these
.. beverages."
SBc. 48. Section 151 of the NIRC, u amended. is hereby
further amended to tead es !ollowa:
"SEC. 151. MUterol ~- -
W Bates of Tax. - There ehell be levied,
assessed and collected on mineral.a, mineral products
and quarry nsources, exci.ee tax as follows:
further amended lo readaa follows:
"(l) On domestic or imported coal and coke,
notwithstanding any incentives granted in any law
or special law:
"EffectiveJanUSl'Y l, 2018, Fifty~(P50.00)
per metric ton;
"Effective January 1, 2019, One hundred pesos
(Pl00.00) per metric ton; and
"Effective January 1, 2020, One hundred fifty
P"- (Pl50.00) per metric ton.
"(2) On all nonmetallic minerala and quarry
resources, a tax of four percent (4%) bMOd on the
actual market value of the groas output thereof at
71
the time of :rem.oval. in the cue al tho. locally
extracted or produced; or the ...alue .aed by the
BureauofCustum.aindetnmininrtm:Urandc:ulttma
duties, net of Gciee tax and velue-addecl tax in the
case ofimportation.
"xxx:
"(a) Copper and other 111etallic min.e rala,
fourpercent(4%);and
"(b) Gold and chromite, fourpercent(4%).
'(4) On indigenous pet!'oleu.m, a tu of
aii peramt(6") oftbe:fair intmnatiooal marketprice
thereof, on the firG taxable aale, batter, excbanp or
such eimilar tnmaction, such tax lo be paid by the
b>zyer or purchaser before removal from the pla<:e of
production. xx x.
SEC. 49. Section 155 ofthe NmC, aa amended, is hereby
"SEC. 155. Maziufa1;turersondlor Impor-Urs
lo Provide Themselves with Counling or Meleri"I/
Delli«$ lo Determine Volunu of Production and
Importation. - M.onu;factm:ere of cigu'ettea, alcoholic
products, oil products., and other a?ticles subject lo
excise tax that can be similar\)' meuured shall
provide themselves with auch oec:enary number of
suitable counting or metering clevioea lo determine
aa a=uately as poss.ible the volume, quantity or
numberofthearticlesproducedbythem under rules
and regulations promulgated by the Secrete:ry of
Finance, uponremnmm>dation oftbe C.Ommiaeioner.
Provided, That the Dopartment of Finance shall
maintain a registry ofall petroleum manufacturers
and/orimportezs and tlJie articles boing manufactured
 and/or imported by them: Provided, {u.rtMr, That
tbe Department ofFinance aballm.andate the creation
of a real·time invent.ory of petroleum. articles being
manufactured, imported or found in storage depots of
such petroleum manufaetuzezs and/or importen:
Proui.d.ed., fi11olly, That importera of finiahed
petroleum produela ahall aleoprc:Mde them•lwewith
Buruu·accreditedmeteringdevil:eatocletennineu
accutate)y aa poaaihle the volume of petroleum
producta imported hy them.
'Thia requirement shall be a:mplied with before
commencement of operations.•
• SEC. 50. Secti.o n 1710ftheNIRCraeaniended, is hereby··
further amended to read aa followa:
"SBC. 171. Authority of l11ternol Reue11ru
O{firo in. ~{orandTestiltg7bmbleArlicla.
- ADY internal reven.11e oflicer may, in the cliacbarge
ofbia official dutiee, CEt.er aey houee. building or place
where arliclea aubjeci to tax uru4r this Title are
produced or kept, or are believed by him upon
reasonable grounds t:o be produced or kept. eo far as
may be necesaa.ry to examine, test, discover or aeizo
the same.
'He may alao stop and search 8IU' vehicle or
other mean.a al transportation when upon re•eonable
gNUDda he believe. that tbe same caniaa 8IU' article
on which the exci&e tax hunot been paid.
·subject to rules and ~tions to be issued
by the Secretazy of Finance, the Commissioner of
Intemal Revenue or Dia authorimdrepreaentati'Ves
may conduct periodic random field teate and
confirmatory tests OD fuelrequired to be maxked under
Section 148-A found in warehoaaea, atorage tanks.
gas ataliona and other retailoullets, and in such other
properties of penona engaged in the Nle, delivery,
trading, traD8portation. distribution, or importation
of fuel intended for the domestic market: Provided,
"(a) Random field testing ahall be oonduct.ed
in the preaeiM:e ohe'VODUIO or custom.a officera, fuel
marking provider, and the authorized repttaentstive
of the owner of the fuel to be teated: Prouid.ed., That
an employee aaaigned or working at the place where
tberandom&Mteatiaamdw:tedshallbedeemedan
authorjud representative of the owner;
"(b) All field t.esta shall be properly fibned or
'rideo-taped, and doewnenllld; and
"(c) A aample ofthe randoml,y tested fuel ahall
be immediately obta:ined by the revenue or custolllS
· officer upon discovering that the same is unmarked,
adui.wated, or diluted:
•ProuUkd., furthu, That confirmatory fuel test
certificate• iaaued by fuel testing facilitiea ahall be
valid for any lepl purpose from the date of iasue,
and ahall conatitute admissible a.nd conclwrive
evideiM:e before aey court.•
SEC. 61. Sectionl74oftheNIRC,aaamonded,i.shereby
further amended to read a.a follows:
'
"SEC. 174. Stamp To:< 011 Origin.oJ l11Sru of
Sharu ofSt«Jc. - On every ori!Pn•I iaaue, whether
on orp.niution, reorganjution or for any lawful
purpoae, of aharea of stoclt by any 8880Ciation,
oomp&IU', or corponuon, there shall be oollected a
documentary stamp tax ofTwo pesoa (P2.00) on each
Two hundred peeoe (P200), or fractional p81t th~
of the par value, of such shares of stock: Prouilkd.,
That in the caae of the original i.saue of shares of
stock without pe.r value, the amount of the
documentazy stamp tax herein p~d ahJill be
based upon the actual consideration for the iasu.ai=
of such aha.tee of stock: Provided., {u.rtMr, That in
the cue of stock di'Videnda, on the actual value
representod by each share."

SBC. 52. Section 175 of the NIRC, aa amended, ia hereby
further amended to readl aa follows:
"SBc.175. Stamp Tm: on Sala. AgreemmU
IO &U, Mvrwronda of Sala. .DelWuia or TraM{trr
ofSbsuesor~ofStock. - Ooallaalea,or
agreements to sell, or memoranda of sales, or
deliveries, or transfer ofshares or certificates of stock
in any association. company, or corporation, or
transfer of such securities by auipmumt in blank.
or by delivery, or hy any paper or agreement, or
. memorandum or other evidoocea of transfer or sale .
.I whether entitling the.holder in any ma'nnet to ~e
benefit of such stock, or to secuze the future paYmeot
of money. or for the future transfer of any stock.
there shall be oollected a documentary stamp tax of
One peso and fifty centavos (Pl.50) on each Two
hundred pesoe (P200), or fractional part thereof, of
the par value ofsuch stock: ProvUkd, That only one
tax ehaJl be collectod OD each sale or tnnsfer ofatock
from one pen;on to another, regardle. of whether or
not a certifica.te of stock is iaaued, indorsed, or
delivered in pursuance of such sale or transfer: and
'Provided, fur!Mr, That in the cue of stock without
par value the amoWlt of the doeumentuy·stamp tax
benio pll'80">1>ed aball be equivalaot to fifty percent
(50%) of the documentary stamp tax paid upon the
original issue of aaid stock.•
SEC. 53. Section 177 oftheNIRC, aaameoded, ia hereby
further amended co read aa follows:
"SBC. 177. Stomp To.x on Cerlificotes of
Profits or lnterul in. Property or Accumulotion& -
On all certificates of profit&, or any certificate or
memorandum aho....mg iotere.t in the property or
a ccumulations of any association, company or
corporation, and on all transfera of euch certificates
or memoranda, there shall be oolled.ed a docwoeotery
76
stamp tax of One peeo (Pl.DO) on each Two hundred
poeoe (P200), or fractional part thereof, of tho face
value ofsuch certifiaiteo or memorandum.•
SBC. 54. Section 178 of the NIRC, aa amended, ia hereby
further amended to read aa follows:
"SBc.178. St omp To.x on Bonk Checks,
Dro{l8, CertificaW ofDeposil n.ol &oring Inlerut,
01ld Olho- ~- - On each bank check,
draft, or certificate of deposit not drawing interest,
·or order for the payment of any sum ofm~y drawn
; upon or issued.by any bank, trust company, or any
penoo or pel80D8, companies or corpcn.tioxis, atei«ht
orond•m81Jd• thereahallbem!lec+M ad"C'U"entary
atamp tax of Three peaos (P3.00)."
SEC. 55. Section 179 of the NIRC, aa amended. i.B hereby
further amended to read u followa:
"SEc. 179. Stomp To.x o,. AU Debt
ln.slrumems. - On every original issue of debt
instruments, there eha1l be collected a documentary
stamp tu ofOoepoao andfift;yccntavoe(Pl.50)on
each Two hundred pellOS (1'200), or fractional part
thereof, of the iaaue price of any such debt
instruments: Provided, That for such debt
ioatrumente with tmnsofless than one (l)year, the
documentary stamp tax to be collected shall be of a
proportional amount in~ with tho ratio of
ita term in number of daya to three hundred
sixty-five (365) days: Provikd, further, That only
one documentary stamp tax shall be imposed on either
1oen agreement, or promissory notee i.eeued to secure
suchloen.
"xx x.·
 ·.
r
76
SBc. 66. Section 180 of the NIRC, u amended, is bezeby
further amended to read u follows:
•S&e. l!)O. Stam.p Tax on All Bills of
E:rdiatige or Draf". - On all billa of exchan&e
(between point.a within the Pbilippinee) or dza&,
there ahall be colle<:ted a documentuy stamp tax of
Sixty centavos (P0.60) on each Two bwulred peaoe
(P200), or fractional part thereof, of the face value of
any auch bill of exchuge or draft.•
SEc. 157. SectioD 181 of the NIRC, as amended, is hereby
further amended to read u follows:
"SBC." 181. Stom.p Tax Upon Accepta"" of
Bilu of E:«lumga ond 01Mr1. - Upon any
aoceptaoce orpaymantaf any bill ofexcbange or order
for the p~ent of money purporting to be drawn in
a foreign country but PtlYable in the Philippines, thmi
shall be oollecteda documentary stamp taxofSUt,
centavos (P0.60) on each Two hundred pesos (P200),
or fractiODBl part thereof, of the face value of 8111
such bill of exchange, or order, or the Pbilippine
equivalent of sucb value, if expresaed in foreign
cunency.•
Siie. 58. Section 182oftheNIRC,aaamended,ishereby
further amended to read aa follows:
"SEC. 182. Stam.p Tax on Foreign Bills of
~ and utter• of Credit. - On all foreign
bills ofexchang13 and letter oCcredit (lDcludingardeno,
by telegraph or otherwiae, for the payment of money
issued by express or steamship companies or by any
person or persona) drawn in but payable out of the
Philippines in a aet of three (S) or more accordiJli to
the custom of merchants and bankera, there shall be
oolleded a dllcument.ary stamp tax of Sixty centa-.o1
(P0.60) on ea ch Two hundred peeoa (P200), or
fractional part then1of, of the face value of any such
bill of exchange or letter of credit, or tlie Philippine
equivalent of such face value, ifexpressed in foreiin
-· ' .·
77
SBc.159. Sectioo 183 aftbeNIRC, aaamended, is hereby
further •mended to read u followa:
"SEC. 188. Scamp To: on Life In.suronce
Policies. - On all policies of ineurance or other
inmumeots by whatever name the same may be
called, whereby any insurance shall be made or
renewed upon any lire or Ima. tbere ahall be collected
a one·time documentm:y stamp tax at the following
rates:
"It Ibo - ollannJxe does - -
PlOO,ooo Bnllll>t
"li ti\• amount of hulµranoe exceed.I
Pl00,9d0 but dota not exce¢ P300.000 P20.oo
"It Ibo......- otw..---"'
noo.ooo bat does ""' u.coed P500,ooo ~.oo
'lt tbt am.ouut of lnlura.nce exceed.I
Pl!00.000 but cloea not , ...ed P750,000 Pl00.00
"It tlJ4I OJDOWlt of ......._ ai:eecb
P760,000 batdooo -Ga!Od Pl,000,000 Pl60.00
"It the amown or hulur&D<e .._.is
p t.000,000 P200.oo"
SBC. 60. Section 186 of the NIRC, aa amended, is hereby
further amended to read as followa:
"SEC.186. &amp Ta:ton.A>liciesofAnnuiti.es
and Pre-Nud PlaM. - On all policies of annuities,
or other inatru.menta by whatever name the same
~be called. wbe...._hy An Annuit;y may be made.
tranaferred or redeemed, there ahall be oolle<:ted a
documentary stamp tax of One poeo{Pl.00) on each
Two hundred peeoa {P200), or fractional part thereof,
of tbo premium or installment payment on contract
price collected. Onpre-needplana, thedocwnentary
stamp tax shall be Forty centavoe (P0.40) on each
Two hundred pesos (P200), or fractional part tbenof,
of the premium or contribution collected.·
 78
SEC. 61. Section 188 of the NIRC. u amended, is hereby
further amended t.o read aa followa:
"SBc. 188. SkJmp Tox on Certificotu. -
On each certificate of damap or othertriee, and on
every other certificate or document issued by any
cuatoms officer, marine surveyor, or other person
acting aa such, 8Ild on each certificate issued by a
notary public, and on each certificate of any
description required by law or by rules or rejlll).ations
of a public office, o:r which ia issued for the purpoee of
giving information. or establiahing proof of a fact,
and not otherwise specified heroin, there shall be
collected a docum_entary stamp tax.o!Tbirt:y pesos
(P30.po)." •
SEc. 62. Section 189 of the NIRC, u amended, is hereby
further amended t.o read as follow11:
-SSC. 189. Stomp Toz on Warehouse
Receipts. - On each wareholl88receiptforpn>perty
held in at.orage in a public or private warehouse or
ya.rd for any person other than the proprietor ofsuch
warehouse or yard, there ehall be collected a
documentary stamp tu of Tbirt:y peaoe (PS0.00):
Prouided, That no tax ehall be collected on each ·
warehouse receipt issued t.o any one per80n in any
one calendar month covering property the value of
which does not exceed Two hundred peaoe (P200)."
SEc. 63. Section 190 of the NIRC, a.a amended, is hereby
further amended t.o read as follows:
"SEc. 190. Stomp TG% Oil Joi-alai, Boru
Race, Tit:kd&, Lotto or Olhu AulMrized Numbers
Gomes. - On eachiai·alai. hone race ticket, lotto,
or other authorized numbers gamee, there shall be
collected a documentary stamp tax of Twenty cenlavoe
(P0.20): Provided, That ifthe coat of the ticket exceed
One peso (Pl.00), an additional tax of Twenty centavoe
(P0.20)onevery One peso (Pl.OD), or fractiooalpart
thereof, shall be collected.•
78
SBC. 64. Section 191 of the eame Code. a.a amended. is
hereby furt:ber amended to read U follow8'
"$BC. 191. Sl4mp Thz Oil BilJa Of Lodi1lg or
&oeipl& - On each aet of bille of lading or receipte
(except charter party} for any goodl, mercbandioe or
effecta shipped from one port or place in the
Philippines (exreptonferriee acroae rivet'll), or to any
foreign port, there ehall be collected a documentary
stamp tax of Two puos (P2.00), if the value of such
goods exceeds One htllldred peeoe (PlOO) and does not
exceed One thousand pesos (Pl ,000); Twenty pesos
(P20.00), if the value exceed& One thoUllaJlli peaoe
(P·l,000): Prouided, however, That freight tickete
covering goOd.s, merchand.iN or effects cmried as
~anjed !Jaaager/.paaMDgenonlanda.nd water
carriers primarily engaged in the traneportation of
passengers are hereby exempt."
SBC. 65. Section 192 of the NIRC, u amended, is hereby
further amended to read 88 followa:
"SEC. 192. Stamp Tol:oll Pro:Qa. - On each
proxy for voting at 8JJ11 election of officers of any
comp8JJ11 or association. or for 8JJ/I other purpose,
exce~t proxies iSsued aHectin~ the 'affIDJ:s of
associations or corporations organ1zed for religious,
charitable or lite?arypurpoeea, there shall be oollected
a documentary stamp tax of Thirty peaoe (P30.00)."
SBc. 66. Section 193ofthe NIRC. a.a amended, is hereby
further amended to read 88 filllows:
"SEc. 193. StampThzollPoweno{Attorney.
- On each power of attorney to perform any act
whstsoever, except acts connected with the cn!lettirm
of cl.a.ims due from or accruing to the Government of
the Republic of the Philippine&, or the government of
any province, city or municipality, there ehall be
collected a docume.n tary stamp tax of Ten pesos
(Pl0.00)."
~ · 80
SEC. 67. Section 194oftheNIRC,aaamended.iahereby
further amended to read aa followa:
'SEC. 194·. Stamp Tm: on Leasea and Ollw
Klrirllf A,qreenunts. - On each lease, agreement,
memorandum, or C011tract for hire, use or rent of any
lands or tenementa. or portions thereof. theze shall
be collected a doc:umenta:ry stamp tu of Siz pesos
(1'6.00) far the first Two thousand peeoe (P2.000), or
fraction.al part thereof, and an additional Two peeoe
(P2.00) for every Ooe thousand peaoe (Pl,000) or
fractional part thereof. in eueaa of the first Two
thousand peeoe (P2,000) for each year of the term of
said contrl!,ct or agreement.• _
' SEc. 68. Section 195 oftbe NIRC, as amended, ia hereby
furtber am.e nded to read as follows:
"SBc. 195. Stamp Tm: onMo~ ~
cmdDttdso{Tnut. - OoeveeymortpgoorpJeclce
af1aDda, eatate, or property, realar pmana). herjtahle
armavahle, wiw-.er, where the same ahail be ID8de
as a eecurity for the pllYJllent of any definite and
certain awn of money lent at the time orpreviowliy
due and owing or forborne to be paid, being payable,
and on any conveyance of land, estate, or property
whateoever, in trust or to be sold, or otherwise
converted into money which shall be and intended
onl,y as security, either by ~88 stipulation or
otherwise, there ehall be co1lected a documentary
eta.mp tu at the following rates:_
"(a) When the amount secured does not exceed
Five thousandpeeoa (P6,000), Forty peaoe (P40.00).
' (b) On oach Five thousand peeoe (P6,000), or
fractional part thereofin excess ofFive tboua8lid peeoe
(P5,000), an additional tu ofTwenty peeoe (P20.00).
81
SBC. 69. Section 196 of the NIRC, aa amended. ia bexeby
further amended to read aa followa:
"SEC. 196. Stamp Ta.x on. Dee<U of Sale,
Conveyoncu CJ1ld Doll<Jlion of Real Proputy. -
On all conveyances, d.anations, deeds, instnlment&,
or writinp, other than grants, patenta or oricina1
oeitiN:at...oCad;jndjra1jm i"S'Jed by tbe Gooermnent,
wbezeby any land. wnement. arother really eold aball
be granted, uaigned. transferred, donated or
otbenri8e conveyed to the purchaser, or purdluen,
or to any other person or pei:sons designated by auch
purchaeer or purchasera, or donee, there aball be
· collected 11 doclimentaey stamp tax,.at the r,ates
hUein below preacribed, base4 on~ consideration
contracted to be paid. for such realty or on ite fair
market •alue determined in accordance with
Section 6(E) of thia Code, whichever is higher:
ProW:Ud, That when one afthe comracting parties
is the Government. the tu beiein impoeed aball be
baaed on the actual oonsidezation;
"(a) When tho consideration, ar value received
or contracted to be paid for such realty, after malciDg
proper allowance ofany 8llQllllhrance. does not exceed
One thousandpeeoe (Pl,000), Fifteenpoaoe (Pl5.00),
"(b) For each additional One thousand pesos
(Pl,000), or fractional part thereof inexoea of One
thousand pea» (Pl.000) af such consideration or
value, Fifteen peeoe (Pl5.00).
"Tranafera e:rempt from donor's tax under
Section lOl{a) and (b) of this Code a1iall be exempt
from the taximpoaedlllllderthis Section.
"When it appears that the amount of the
documentary stamp tax payable hereunder bas been
reducedbyanina:JrrectatatementaCtbeauideration
in any conveyance, deed, instrument o:r writing
gubject to euch tax the Commissioner, provincial or
 82
city~. ar other revenue officer ahall. from
the aaeeemn ent rolls or other reliable eource of
in!ormatiou, .....,.. tbe p roperty of ite true m.azket
value and collect the proper tu thereon."
SKC. 70. Sedion 197 <Of the NIRC, aa amanded, is hereby
further amended to read as folloW11:
"SBc. 19'1. Stamp Thi on Chark!r Portia and
Similar Instruments.. - On every charter party,
contract or agreemen t for the charter of aey ahip,
vessel or streamer, or aey letter or memorandum or
other wriling between the captain, muter or OWXlel'
wother perean acting-as agent of any &hip, veeael.,;
steamer, and "IIY Other perao:n or penona for ar
relating to the charter of any such &hip, veaael or
slnamer, and an any renewal or tnnafer of auch
cbarter, mn1rart, agreement, letterer memorandum.
there ahaJl be collectecl a documentary stamp tu at
the following rates:
"(a) Iftbe registered groea tonnage of the ship,
vessel ar steamer does not exoeed one thouaand
(l,000) tons, and the druation of the charter or
contract does not exceed six (6) months, One tho11811Dd
pesos (Pl,000); and far each month or fraction of a
month i.n excees of six (6) months, an additional tu
of0nehundredpesl8 (PIOO) sball be paid.
"(b) lftbe regis1ered grosa tonnage exceeds one
thousand (l ,000) tons and doea not exoeed ten
thouaand (10.000) to:ns. 8lld the duration ol the
charter or contract does not exoeed aix (6) months,
Two thousand pesos (P2.000); and for each month or
fraction of a month in ex09l8 of six (6) montha, an
additional tax of Two hundred pesos {P200) ahaJl be
paid.
"(c) Ifthe registered groeetonnage exceeds ten
thou.sand (10,000) tons and the duration of the
charter or contract does not exceed ei:.t (6) montbe,
Three tbouaandpeeoe (P3,000); and for each month
or fra~ofa month in euea1 of lix (6) montba, &D
additional tu ofThree hundred pe*- (P300) ahaD
be paid."
SBC. 71. Section 232 of the NIRC, as amended, is hereby
further amended to read as fQ!lowa:
"SBC. 232. Kupi.ng of Boolts of Account;,. -
"(A) Ccrporaticn..s, Ccmpania, Partnerships
or Persons &quind to Keep Boob of &counts. -
AD corporatians, a:mpanies, partnerships or pel'80D8
required by law to pay internal revenue tasu shall
keep and use relevant end apJ!ropriate set of
bookkeapingrecards dubr antOOrized by the Seaeta.ey
of Finance wherein all transactions and results ol
operations are abown end from which all taxea due
the Government ~ readily and accuratel,)- be
aacertained and determined any time of the year:
ProWJ.ed, Tbatcorporatioos, ~ psxtoezshlps
or persons whose groea annual aalea, earnings,
receipts or output ex·c eed Three million pesos
(PS,000,000), aball have their books of accounts
audited and e,xsmined yearly by independent Certified
Public Accountants and their income tu returns
accompanied· with a duly accomplished Account
Information Form (AIF) which shall contain, among
others, information li&d from oerti.fi.ed balance
sheeta, profit and loea statements, acbodulC8 list:i.ng
i.ncome-producingproperti88 and the correeponding
income therefrom and other relevant statements.
SEC. 72. Section 236 of the NIRC, aa amended, is hereby
further amended to read as follows:
"SEC. 236. llegis&roti.on Requiremenlll. -
"(A,) Requirements. - " x x
"xxx
 ·,
.
'
'Tho tt!Patratiou ab.all amtain the taxpa.yer'a
name, style, place of reaidence, buGnea, and euch
other information aa ma.y be required by the
Commisaionar in the form p:reacribed therefor:
Provided., That the Cornmi"8ioner ahall simpJilY the
buaineaa regiatration aod tax compliance
requiremeots of self-employed individuals and/or
prof~mian·l·
"(0) Persons Required to Register for
Valiu-kkkd 'lbx.-
"(l) xxx
"(a) His gross aalea or receipts for the past
twelve (12) months, other than those that are exempt
under $ecti011 l09(A) to (BB), have exceeded Th:ee
millionpeaoe (PS,000,000);or
"(b) There ue tta!!()J)•hle ground.a to believe
that his gross aalea or receipts for the next twelve
(12) months, other than thoae thataie exempt under
Section 109(A) to (BB). will exceed Three million pesos
(PS.000,000).
"xx x
"(H) OpliDnal R~n for Valiu-Atldtd
Ta:cofEremptPmo71,, - 0) Any person whoisoot
required to regi.lw.r for value-added tu under
Subsection (0) her-eof may ..tect to register !or
value-added tax by repab!ring with the Revenue
Di.strict Office that Jiu jurisdictioo over the head
office of that persoo, and paying the annual
regiat:ration fee in Subeection (B) he:reof.
"(2) Any pen;on who elects to register under
this Subsection shall not be entitled to cancel his
regilttation uDder Subaection (F}(2) for the next three
(3) years.
8d
"Provuud, That any pereon taxed under
Section U(A)(2)(b) and U(A)(2)(c)(2}(a) of the NIRC
who elected to pa.y the eight percent (8%} tax OD pC*
aalasorreceipta ahall not be allowed to avail of this
oplian.
"For pmpoaea of Title IV o! tbi8 Code, &Jl1
peraon who has regilte:red value-added tax aa a tax
type in accordance with the pmviaiona ofSubeed:ion
(C) hereof ahall be refe.rred to as a 'VAT·regist.ered
peraoll'who ahall be assigoed ooly one Taxpayer
IdeotificationNumber (TIN).
":>:xx.·
SBc. 73. Section 231 of the NIRC, as amended. i.s hereby
further amended to read as follows:
"SEC. 287. Issuance of l/eceipls or Saks or
Comnwcial bwoicts. -
·w hsu.ancL - All persons subject to an
internal revenue tax ah.all, at the point of each aale
and transfer ofmerchandise or for eerviAlea rendered
valued at One hundred peaoe (PlOO) or more, iaue
duly registered receipts or sale or commercial
invoices, ahawini the date of traDsaction, quantity,
unit cost aod deecriptioo of merchandise or oature
alaem::e: ProWUd, however, That where tbereceipt
is issued to cover payment made as reotals,
co·mmisaion,s. compensation or fees. reoe.iptl or
invoices shall be issued which shall show tbe name,
bU&ineaa etyL::, i£ Any, and address nr the purchaser.
cwrtomer or client: Provided, {rmher, That where
the purchaser is a VAT-registered peraon, in addition
to the information herein required, the invoice or
receipt shall further show the Taxp!IYtll' Idelllification
Number (TIN) of the purchuer.
 86
"WJtbinfive (5) yeani from the e&ctivU;y al.this
Act and upon tbe estahli•lnnentola~ capable
or storing and procemnc the Nqldred data, the
Bureauahallrequire ~eocaced in the export
or goodJJ and eervicee, ta:rpayere engaged in
e<ommerce, and taxpayers under the juri8dict:ion of
the Large Tupayers Service to inue electronic
receipts or sales or commercial invoices in lieu of
manual receipts or sales or commorcial invoices,
subject to rules and regulation.a to be iBeued by the
Secretary of Finance upon recommendation of the
Commissioner and after a public bearing shall have
been held for this puzpoee: Provi<kd, That taxpayers
not covered by the mandate of thia provision may
issue electronic receipta or, ealea or commercial
in.voiCes, inlieu of manual receipts, and a1u and
commercial invoices.
'The original oCeach receipt or invoice ahall be
issued U> the purchaser, customer or client at the
time the tranaaction i.9 effected. who, ifengaged in
busin"ll& or in the exerci.ee of profeaaion, ehall keep
and preserve the same in hia place ofbuainea for a
petiod or three (S) years from the cl- of the taxable
year in which such invoice orreoeipt waaiaaued, while
the duplicate shall be keptandproeerved by the issuer,
alao in his place of business, for a like period;
Provided., That in case of electronic recoipta or aales
or COirlJIUm:ial invoices, the digital record8 ofthe same
ahall be kept by the purchaser, custom.e r or client
and the issuer for the same period above stated.
'The CmnmiesKmer may. in meritariouA c::&mK.
exempt any person subject to intemal revenue tax
from c:omplia.m:e with the proviaiona of this Section.•
SEc. 74. A new section designated aa Section 237-A under
Chapter II, Title IX of the NIRC, aa amended, is hereby inserted
lo read as follows:
"SEC. 287-A. Electronic Sales Reporting
System. - Within five (5) years from the effectivity
'
oftt>i&Actand upon tJ>eemb1i•hmentof a eyatem
capable of aiming and pio e •nc the required data.
the Bureauahallrequire ~enpied in the
export of goods and eerricee, and taxp..,_ under
the jmiectiction al the Large Tup17era &!rrice to
electronically report their aalea data to the Bureau
through the use of eJectronic point of aalea.,.iems.
subject to rulee and regulations to be i.aeued by the
Secretary of Finance aa recommended by the
Commissioneroflnternal Revenue: Provided, That
the machines, fiscal devices, and 6.ecal memory
devices shall be at the expense of the taxpll)'ers.
'The data Jll: essingofaaleundpurcbase data
shall comply with the pro9Wona al Republic Ac:t
No. 10173, otbenrise known u the "Data Privacy
Ad' and Section 270 of the NIRC, u amended. on
unlawful diwlgence rL taxpazyei infmn•tion andauch
other laws relating to the confidentiality of
inWrmation.
'The Bureau shall also eatabliah policiea, risk
management approaches, actiona, traininp, and
technologies to protect the cyber enviionment,
organization, and data in compliance with Republic
A.¢ No. 10175 or the "Cybercri.me Prev.ontionActof
2012.· -
SBC. 75. Se<:tion 249 of the NIR.C, aa amended, i.9 hereby
further amended to read as fullows:
"SEC. 249. fruuu1. -
"(A) IA Generol.. - There ahall be useA"'i
and collected on any unpaid amount of tax, interest
at the rate of double the legal interest rate for Joans
or forbearance of any money in the abae11ll8 of an
express stipulation as set by the Bangko Sentral ng
Pilipinaa from the date preacribed for payment until
the amount is fully paid: Provi.ded, That in no case
shall the deficiency an.d tho delinquency interest
prescribed under SubsectioM (B) and (C) hereof, be
imposed simultaneously.

"(B) ~.him-est. - Arr:t deficiency in
the tax due, aa the term ia defined in this Code,
ahall be subject to the interest prescribed in
r S.il«o: ticm (A) bereaf. whid:uDlereehball beam a !
and collected from the date preecrihed for ita payment
until the full payment tbereo£, or upon iaeuance of a
notice and demand by the (lommiasioner oflnt.emal
Reve.n ue, whichove;r oomes earlier.
"(C) Delinquency.Tnterul. - x" x
SBc. 76. Section 264 of the NIRC, aa amended. is hereby
further amended to read aa follows:
"SBC. 254. Aflem.pt lo Eva.de or Defeat Tax.
- Any person wbowilliulJ.y attempt:aina.nymanner
to evade or defeat a.ny tax impoeod under this c.ode or
the payment thereof aball, in addition to other
penalties provided by law, upon conviction thereof,
be p•mialwl witba fine or not leaa than Five hundred
thou.sand~ (P500,000) but not more than Ten
millionpeaos(Pl0,000,000),andimpriaomnentofoot
le88 than m (6) yean but not more than ten (10)
years: Provided, Tbat the conviction or acquittal
obtained under this Section shall not be a bar to the
filing of a cml suit for the collection of tues.•
SBC. 77. Section264oftheNIRC, aaamended,isbereby
further amended to read as follows:
"SBC. 264. F11ilr<r• or Refu•ol lo luuc
Reuipl8 or Saks or Commercial Invoices, ViololioM
Related to lhe Prinling of such &c:eipu or Irwoica
ond OtMr Violations. -
"(a) xx"
"(b) Any person wbo commit:a a.ny of the acta
enumerated hereunder eh.all be penalized.with a fine
89
.-. •, .-
of 11® leu th.an Five hundred thOUMDd peaoe
(P600 000) but not more than Ten million peaoa
(Pl0,00o.OOO),andim.prl8cmmontofnoUeaatbmuiiz
(6) yean but not more than ten (10) yeua:
"(l) xx z;
"(2) xx z;
•(8) xx x; or
"(4) Printing or other fraudulent receipts or
eales or commercialinwicea."
.
• ' SEC. 78. A 00,. aecl:ian desianab!d aa Section 2&1-A under
Chapter ll, Title Xof the NIRC, aa amended. is hereby inserted
aafollows:
"SBC. 264-A. Failure to Tron.smU Sale• Data
Entered on Cashllegi$ur Mach.ine (CRM)/Pointof
Sale8 Sy$lem (POS) Moch.ines to the BIR's
Ekdronic Sala Report~ Sygtem. - iln3 tazpayer
required to transmit sales data to the Bureau's
electronic salea reporting syetem but fail.a to do eo,
shall pay, for each day of violation, a penalty
amounting.to one·tenth of one percent(lJIO_of 1%)
of the annual net income as reflected U1 the
taxpayer's audit.ed financial statement for the eecond
year pnceding the current tauble year fur each day
of violation or Ten thousand pesos (Pl0,000),
whichever is higher: Prouid.ed, That should the
acgregate number or days of violation exceed
one hundredeighty(l80)dayawitbina taxa.bloyear,
an additional penalty of permanent closure of the
taxpayer shall be imposed: ProuUkd. furiM;• That
if the failure to transmit ia due to force mo1eure or
a:ey causes beyond the control of the taxpayer the
penalty shall not apply."
 90
r, SBC. 79. AneweectiondeeignatedaaSec:tionl!M-BUDder
Chapter ll, Title X of the NIRC, u amended, U. hereby iDlerted
to read u li:illowa:
"SBc.264-B. PurcJi.ou. Uu, Pouasion, Sak
or Offer lo Sell, lMtall~m. Tran.a/tr, Updak.
Upgrade, Keeping or Main1ai11i111 of Sales
Suppression Deuices. - Any person who ehall
purchase, use, poeeess, sell or offor to eell, inetall,
transfer, update, upgrade, keep, or maintain any
software or deirice designed for, or ia capable
of: (a) suppressi.nli the creation of electronic records
of aale transactions that a taxpll)'er ia required to
keep under existing tax lawe and/or regulatione; or
(b) m.Qdifying, hiding, or·detetingelec:tronicrecord.s
ol. ealea tranaactinns and providing a ready m.eai:is of
acceaa to them. aball be punished by a fine otnotlegg
than Five hundred thousand peeoe (P500,000) but
not more tban Ten.million peeoe (Pl0,000,000), and
8ldl'er impriaonmentcf not leee tban two (2) yean
bu.t not more than !oar (4) ;rean: Prouilkd., That a
cumulative suppteS&ion of electronic aalee record in
eJ:ceaa of the amount of Fifty million peaoa
(P50,000,000)sballbemnsideredaaeoonomicaabotage
and shall be punished in the ma.ximu.m penalty
provided for under tlrls provision.•
SEC. 80. Anew section designated aa Section 2&5-A under
Chapter II, TitleXoftbe NIRC, aaamended, U. hereby inserted
to read aa follows:
"SBC. 265-A. Offenses RelaJint1 lo Fuel
Marking. - All offenses relating to fuel marking
.W.U. iu addition to the penalttes lmpoeed under
Title X of the NIRC, as amended, Section 1401 at
Repuhlic Act No. 10863, otbenriee known aa the
'Cu.stoma Modemiza1;iao and Tariff Ad. (CMTA)', and
other relevant laws, be punishable asfollowe:
"(a) Any person who is found to be engaged in
the aale, trade, delivery, distribution or transportation
91
of umnuhd fuel in comme?Cial quantity held for
dpme.tic Ille or merebandiae lhaJl. upon CXJOViction,
IUfFer the penalt>ea of:
"(1) For the first ofrenae, a fine ofTwo million
five hundred tbousandpeeoe (1'2.600,000);
"(2) For the aecoud olrente, a fine ofFive millioo
pesos (P5,000,000); and
"(8) For the third offenee, a fine of Ten million
pesos (Pl0,000,000) and revocatlon aflioenae to engage
in any trade or business.
"(b) Alzy penon who cauaes the rem0'8l ofthe
official fuel marking agent &om marked fuel, and
the adulteration or dilution of fuel intended for aale
to the domestic market, tr the llDowing poaeeaion.
storage, transfer oroffar for ea1e offuel obtained as a
result of such xemoval, .adulteration or dilutionehall
be penali7.ed in the same manner and utent as
provided for in the preceding Subeect:i.on.
"(c) Any person who commitaany of the acte
enumerated hereunder shall, upon conviction, be
punished by a fine of not less than Ono million pesos
(Pl,000,000) but not more than Five million peaoe
(P5,000,000),andsufl'er imprisonmentafnotlcssthan
four (4) years but not more than eight (8) yeara:
"(1) Mal<int, importing, eelling, uaing or
possessing fuel markers without e:rpreea aulhority;
"(2) Making, importing, selling, uaing or
pcssetaing counterfeit fuel markers;
"(3) Causing another person or entity to
commit any of the two (2) p-ding acte; or
 ' .·
"(4) Cauallig the eale, diatribution, oupply or
transport of legitimate~ imported, in-tranait,
manufactured or piwwed oontn>lled pnic:unora and
e1Nntial chemicals, in diluted, mixture• or in
amcentrab!d form. to anypenon orentitypenatired
i.n$n'-ctjnna (a), (b), or (c) hereof, including but not
limited to, packaging, repackaging, labeling,
relabeling or cxmceslmentof sucb tranaaction through
fraud, destruction of documents, fraudulent use of
permits, misdeclaration, use of front companies or
mail fraud.
"(d) Any person who willfully inserts, places,
adds or attaches cmectly or inclirectl3, throueh an,y
overt or covert act, whatever Cl\l8DtitY of a.ny
~iµhd fuel. .,.;unte,deit additive or chem.ica'l i.n
the penion, house, efl'ecla, inventory, or in the
immediate vicinity ofan iD!IM!Dt indi'fidual for the
purpoaeofimpticating iocrimio•tingorimputingtbe
commi•siou of any violation of thia Act aball. upon
convi<:tian, be puniahed by a 6ne a! not leaa than
Five million pesos (PS,000,000) but not mora than
Ten million pesos (Pl0,000,000), and suffer
imprisonment of not less than four (4) years but not
more tban eight (8) years.
"(e) Any person who ia autbmized, licensed or
aocredited under this Act and its imple.m enting rules
to conduct fuel tests, whoiasuealal.ae or fraudulent
fuel test reaulis knowingly, willfull.y or through gross
negligence, shall sufl'er the additional penalty of
imprisonment ranging from one (1) year and one (1)
day to two (2) yean; and m (6) months.
'"l'be additional penaltiea of revocation of the
license to practice his pro{eaaion in caae of a
ptaetitioner, and the cbute o£tbe Cuel teating facility,
or
may also be imposed at the inatance the court..
Sic. 8L Section 269 of the NIRC, aa amended. i.e hereby
furt.ber emended to readaa followa:
"SBC. 269. VaolalioM Commilled by
Go~ Enforcemm.1 Officen. - "xx
"(a) xx x;
"x x x
"(b) Having knowledge or information of any
violation of thl8 Code or of a.ny fraud committed on
the revenue& collectible by the Bureau of Internal
Revenue, failure to r eport auch knowledge or
iiifarmatian to their superior officer, ar failure to
report as otberwUie teqUired by law;
"(i) " x :a:; and
"(j) Deliberalefailure to act on the applicalion
for refunds within Iha prescribed pariod provided
under Section 112 oftbia Act.
"Provided, That th& provision.a ofthe foregni.ng
paragraph notwithstanding, a.ny internal revenue
officer for which a prima focie case of grave
miaconductbas been established shall. after due noti<:e
and bearing of the admioi.strative case and subject to
Civil Service Laws, be dismissed from the revenue
service: Prouilkd, furl/I.er, That the term 'grave
m.iscondud', as defiDed in the Civil Service Law, shall
or
include the issuance offake letters autbmi:ty and
receipts,forgeryofeignature, uaurpadono!autbority
and halriP1al isswmce of umeaaooable 111 ments.•
SEc. 82. Section288oftbe NIRC, uameoded.is hereby
further amended to read aa follows:
"SEC. 288. Di•posilion of In.cremen.tal
&venue. -
"(A) "x"
•.
..
"(D) :i:J:x
·~ ln.crementol Reuen.ues from the Tax
Reform for kcelera:lion and Inclusion (TRAIN). -
For five (5)yearafrom tbeeffectivityofthiaAct, the
yeazl,y incremental revenues generated aha.U be
aut<lUl.atically app?Opriated as follows:
"(l) Not ~ore .than aeventy percent (70%)
fund infrastrncture projedll such ... but not limited
t.o, the Build, Build, Build Program and provide
infrastructure programa to addreu con.gestion
through mass transport and new road netwoth.
military infrastructure, apcn1a f..,..1itiea for public
echools, and potable drinking water supply in all
public pl.aces; and
"(2) Not more than t.lrirty pemmt (80%) t.o fund:
"(a) Programs !Wlder RepublicActNo.10659,
otherwise known as 'Sugarcane Induatry Development
Act of 2015', t.o advance the aelf-reliance of sugar
fenners that will increase productivity, provide
livelilioodoppm:t> 111itiiea, develop alternative f1'rming
systems and ultimately enhance Carmen( income·
\b) Social mitigating meaaures and
investments in: (i) education, (il) health. targeted
nutrition, and anti-h1lllgllr programa for mothers,
infanla, and young childzen. (iU) social protection,
(iv) employment, and (v) housing that prioritize and
directly benefit both the poor and near-poor
bowieholds;
"(c) A social welfare and benefit8 pzocram
where qualified benefici•rieeahall be provided with
a aoc:ial bendiW card. to avail ol the following aocial
benefit8:
"(i) lJnronditiona] cash transfer to bonseholds
in the fizst t.o seventh.income decilee of the National
Household Targeting- Syat.em for Poverty Reduction
(NRTS-PR), Pantawid Pamilyang Filipino Program,
and the social pension program for a period of time
(8) years from the effectivity of this Act: Prowud,
That the unconditional C8Jlh tranafer shall be Two
hundred pesos (P200.00) per month for the first year
and Three hunched pesos (PS00.00) per month for
tJ; the eeca¢year and third year, to be implemented by
theDepartmentofS<ici.al Wel!are and Development
(DSWD);
"(ii) Fuel voucheni to qualified £ranchiae bllders
of Public Utility Jeepneya (PUJe);
"(jii)Forntimmumwageearnere, unemployed,
and the poorestfift;y pen:ent (60%) o!the population:
"(l) Fare discount from all public utility
vehicles (except triickis for hire end school transport
service) in the amount equivalent to ten percent (10%)
of the authorized.fare;
"CZ> Di=unted purcllue of National Food
Authcrity (NFA) rice from aa:red.it.ecl retail stores in
•
the amount equivalent to ten pm:ent (10%) of the net
retail pricea, up to a maxi.mum of twen1;y ~)kilos
per month; and
"(S) Free akilla training under a program
implemented bytlie TedmicalSkilla and Development
Authority Cl'ESDA).
"Proui.ded, That benefits or granta contained
in tbis Subsection shall not be availed in addition to
any other discounts.
 96 ••
"(iv) Olher eccia.l benefita proaram• to be
dneloped and implemented bytbe government.
"Notw:itbstancling any proviaione bereiil to the
contrary, tbeincrementalrevenuee from the tobaooo
taxes under this Act shall be subject to Section S of
Republic Act No. 7171, otherwise known as 'An Act
to Promote the Development of the Farmer in
the Vuiinia Tobacco Producing Provinoee', and
Section8 ofRepublic Act No. 8240, othenri.ae known
aa'AnActAmendingSections 138, 189, 140and142
of the National Interua! Revenue Code, aaAmeoded,
and for Other l'urpoeet'.
· "An interageocy ·committe~. chaired. by. the
• DepartmentofBudgetandManagement(D.BM)and ·
~by DOF and DSWD, and comprised of the
National Economic and Development Authority
(NEDA), Departme.nt of 'i'r8IIBpOrtation (DOTr),
Department of. Education (DepEd), Department of
Health (DOB), Depar1mex1ta£Lihar and Employment
(DOLE), National Houaing Authority (NBA), Sugar
Regulatory Administntion (SRA), Department ofthe
Interior and Local Government (DILG), Department
ofEnergy (DOE), NF.A, and TESDA, is hereby created
to oversee tho idontifuation of qualified beneficiaries
and the implementation of these projecta and
prOgra.me: Provided, That qualifted beneficiaries
under Subeection {c) hereofshall be identified using
the National ID System which may be enacted by
Cangrea
"Within sixty (60) deye from the end of the
three (3)-year period from the effectivity of this Act,
the interagency committee and respective
implementing agencies for the above procrama ahall
submit corresponding program asaesamente to the
COCCTRP. The National Expenditure Program from
2019onwardaahallprovidelineitemathatoorrespcmd
to the allocatio.na mandated in the provisiona above.
97
"At the end al five (5) yean &om the e&c:U'fity
of thit Act, all earmarking proviliona under
SubaerWm {F), ehallc:eaae toezist~aWncmnental
revenue& derived under this Act shall accrue to the
General Fund of the govemment.•
SBc. ss. &portorial ~- - The inmagency
commiUee created end the concerDP.d departmeot.'agenciea/
benefici•ri"?S under Section 82 of this Act ahall lllhmit to the
President oft.be Senate of the Pbilippine8, the Speaker of the
House ofRep.-ntativee, the Senate Committee Cll Finance and
the Houae Committee on APpropriali.ons a cletsiled report on the
expenditure of the amount.a earmarked hereon copy furnished
the Cha1rpersona of the Committee o~ W8:f& and Me~ of both
Houses of Congrees. The report ehail likewise be posted on tp.e
official websita of tho agencle& coru:emed.
SBC. 84. Imp~Bulesand.ReguJatioM. - Within
thirty (30) cla;ra &om the e&ctivity of this Act, the Secretary of
Financesball. upon tberecommemdatioo oftheCanmi•onerof
Internal Revenue, prlllDuJcate tbe :rieo •1 rulee miregulatioos
for its effective implementation.
Sllc. 85. Separobilily Clauu. - If any provision of this
Ad.is subsequently declared invalid or unconstitutional, the other
pravisi.ona luJreof which in 119t affected thereby Gall remain' in
full force and effect.
SBc. 86. &pealing Clause. - The following laws or
provisions oflawa are hereby repealed and the peraona and/or
transadions affected herein are made subje¢ to the VATprmi.eion
of Title IV of the NIRC. aa amended:
{a) Section 8 of Presidential Decree {P.D.) .
1972, s. 1985, ae amended, Sections 4 and 5 of
Executive Order No. (E.O.) 1057, a. 1985, and
Section 4 ofE.O. 1064, e. 1985, insofar aa the VAT
tax exemption and tax credit is concerned;

(b) Section 10, imofar u VAT uemption is
concerned. o!Republic Ad No. (lt.A.) 6807 or AuAct
~tbe Matt Community CoOece into a Stale
Collep to be known as the Davao Oriental State
I College of Science and Technoloa. Providing for a
Charter for this Purpoee, Expanding ita Curricular
Offerings, &.!directing its Objectivea, and
Appropriating Funds Therefor;
(c) Sections 18 and 19, insofar aa VAT
exemption ia o:mcemed, ofR.A. 6847 or The Philippine
Sports CommjesjOT1 Act;
.· . (d) . ~ 8(d), laat paragraph, iosaf.ar as
VAT exemptionia cxmcerned, ofR.A 7278 or An.Act
Amending CommouwealthActNo. 111, aa Amended
by P .D. 460, eul:i:tled An Act to Create a Public
Cozparation to be Known aa the Boy Scouta of the
Philippines, and to Define ita Powen and Purpoeea,
by Strengthening tlle Volunteer and Democratic
Character of the Boy Sa:iuta of the Philippines aud
for Othe:r Purpoeee;
(e) Section 1, iuso£ar ea VAT exemption is
concerned, ofR.A. 7291 or AoAct Reatoringthe Tax
and Duty Incentives Previoualy Enjoyed by the
Veterans Federation ofthe Philippines under Republic
Act Numbered Twenty-Six Hundred and Forty;
(f) Section 21. insofar aa VAT exemption is
coucemed,ofR.A. 7306ortheCba.rterofthePeople'a
Television Network, Inc.;
(g) Section 14, insofar aa VAT exomption is
concerned, ofR.A. 7354 or the P041tal Service Act of
1992;
(h) Section9(c), i.Mofar as VAT exemption is
concerned, ofR.A. 7355 or the ManliHkha ng Bayau
Act;
-··99
(.i) Sectim 21, m..&r aa VAT exemption ia
coucenied. of R.A. 7366 or the Law Creating the
National Cammi-ion for Culture and the Arla;
(j) Section 7(f), inaofa:r u VAT exemption ii
concerned. of R.A. 7371 or Au Act Converting the
Aldan.Agricultural College into .Aklau State Collep
ofAgriculture, audAppropriatinr Funda Therefor;
(Ji) Section 12, second sentence, in8ofar as VAT
exemption is concerned, of R.A. 7878 or Au Act
Establ.i.ahiug the Eas:tem Visaya• Science Higb
School;
.
(I) Section U(j), insofar aa VAT exemption.is
CXJh El I ffl, ofR.A. 7605ar the Chartsrolthe Pbilippine
State College afAmlnautics;
(m) Section 126, in8ofar as VAT exemption is
concemeci.' of R.A. 7603 or The New Central Bank
Act;
(II) Section 14, imofar aa VAT exemption ia
concerned. of R.A. 7876 or the Natioaal Health
Iuauraoce Act of 1995;
(o) Section 18, insofar ea VAT'exemption ia
CO!la!med, and Sectiou 18, last parapapb of R.A. 7884
or the National Dairy Development Act of 1995;
(p) Section 8, insofar as VAT exemption ia
concerned. R.A. 8160 or Au Act Granting the
University of the Pbtltppmea a P'rauchise io
Conatruct, Install, Operate and Maintain for
F.ducational and Other Related Purpoeee, Radio and
Television Broadcasting Statione Within the
Uni•msi:ty oftbs Philippines and inSuch OtherAreaa
Within the Scope of its Operation;
 100
(q) Sooti ••2and16,inaa!araaVATeaoemptioo
ia CODCe%1led. o!R.A. 8282 or The Soci.a1 Secumy Act
of1997;
(r) Section 39, insofar as VAT exemption i.9
concerned. ofR.A 8291 or '!be Government Service
lmurance Syatem Act of 1997;
(s) Section 4(c) ud (!), insofar as VAT
exemption ia c:oncerued, of R..A. 8292 or the Hilber
Edw:ationModamizationAttofl997;
(t) Section 25, in.aofar as VAT exemption ia
concerned, ofR..A. 8492 or the National Museum Act
of1998; •
(u) Section S(h), inaofar as VAT exemption ia
concerned. of R.A. 8502 or the Jewelry Industry
DevelopmentActof 1998;
(v) Article 66, :insofar 88 VAT e:romption and
zero rating ia concerned, of regional or area
headquartera and ze:ro..ratingoftbe aale or lease of
good.a and pzoperly and the rendition of aervicea to
regional or area headquarters, andArtide 67, insofar
aa VAT exemption ia concemed, of R.A. 8756;
Provided, Thatexjsting RHQa and ROHQa enjoying
VAT exemption and zero.rating at the ti.me of the
effecti.vity of TRAIN shall not be affected;
(w) Section 7(c), insofar as VAT exemptionia
concerned, of R.A. 9045 or An Act Creating tbe
Bata.ngaa Stato Univcraitr,
(:r) Section 7(c), insofar as VAT exemption ia
concemed. of 1lA. 9()55 or An Act Converting the
Altlan State College of Airiculture into the Ak1an
State University;
.·~ lU~
(y) Section 13, in.tofu aa VAT uamplion i.9
ccmcemed ofR.A. 9088 or AnAct Establiahing the
0
Sta. Rosa Science and Technology HJch School in
Sta. Rosa, Laguna;
(,,.) Section 7(c) and (!), inaofar as VAT
exemption i.9 concemed. of R.A. 9138 or An Ad
Est.ahlisbing tbe Guimar8a State College;
(aa) Sed:ion 7(c), inaofar as VAT exemption ia
concerned, of R.A. 9141 or An Act Con'Veding the
Negroe Occidental Agricultural College into State
College to be known as the Negros Occidental
Agricultural College;
·. '(bb) Section 16, i:n.eofar as VAT exeml'tion is
concerned, ofR.A. 9497 or The CivilA'l'iationAutlwrity
Actof2008;
· (cc) Section 25(b) and (c), inlofar as VAT
oxemptioni.9 concerned. and (d),insofar 88 V.AT r.ero-
rating ia c:oncerned. ofR.A. 9500 or tho University of
the Philippine& Charter of2008;
(dd) Section 25(b) and (c), inaofar as VAT
exemption \a coru:emed, and (d) inaofar as VAT
zero.rating ia co!ll:erned, of R.A. 9519 or An !'cl
Convexting Mitv!anao Pol.Jtechnic state College into
a State University to be Known 88 the Mindanao
University of Science and Technology;
(ee) Sect:ionl7(c), inaomas VATexemptionia
., "oed of'llA. 8591. othenrise knownu lhe PDIC
Charter.~ amended by Section 8 of RA 9576,
otherwise known ae An Act Increasing tbe Mai:imum
Deposit lnauraru:e Coverage, and in Connection
Therewith, to Strengthen the Regulatory and
Administrative Authority, and Financial Capability
of the Philippine Deposit lnaurance Corporation
(PDIC), Amending for tbia Purpose Republic Act
 10~
Nwnbered Three Thousand Five Hun<Ued
N"mety-One, as Amended, Otherwiae Known aa the
PDIC Charter, and for Other Purpoeea;
(If) Sections 2 and 19, insofar as VAT
exemption is concemed, of R.A. 9679 or An Act
Further Strengthening the Home Dovelopment
Mutual Fund, and for Other Purpoaee;
(gg} Section23, insofar as VAT exemption is
concerned of the National Historical Commission of
the ~hilippines, ofR.A.. 10086, or the Strengthening
0
Peoples' Natimaljem Tlrtougbl'bilippine History Ad:; ·
~ Section 7(b) and (c), inaofar aa VAT
exemption is concerned. and (d), insofar as VAT
zeio.ralingiscxmrnned,ofR.A.9647orthePhilippine
Normal Unive111it1 ModemizationActof2009;
(ii) Section 17, inaofar aa VAT exemption is
concerned, of R.A. 7898, aa &mended by
R.A. 10849. Establishing the Reviaed APP
Modernization Program and for Other Purpose&;
Gi) Section 56, insofar as VAT e.x emption is
concerned, of R.A. 10801 or the Oveneaa Workers
Welfare Administmtion Act;
(kk) Section9 (e}(2)and(D, withreepectto VAT,
o( R..A.. 7900 or the High·Value Crops Development
Actofl995;
(IQ Sectioll24(e) ofR.A.10068orthe Organic
Agricult>= Act of 2010;
(mm) Section 14(b), with respect t.o VAT,
R..A. 7308 or the Seed Industry Development Act of
1992;
103
(DD) Section 35 (b)(c), with rN]>8Ct t.o VAT, of
R..A.. 8550 or The Philippine Fiaberiel Code of 1998;
(oo) SectiGn 13, aeoond paraaxaph, with reaped
to VAT, ofR.A. 10817 or the Philippine Halal Export
DevelopmentandPromotion Actof2016;
(pp) Section 9(8), (4), and (8), with respect to
VAT, ofR.A 8479 or the Downstream Oil Industry
Deregulation Act of 1998;
(qq) Section6(c)and(d), withrespectto VAT,
ofR4. 7108 or Ute~ and Steel Industry Act;
(rr) Section 10, with respect to VAT, of
R..A.. 7718or AnActAmending R.A. No. 6957;
(88) Section 26(B)(3), with resi-t t.o VAT, of
R.A. 9275 or the Philippine Clean Water Actof2004;
(tt) Section 20(d)(3) ofR.A. 7279 or the Urban
Development and Housing Act of1992;
(uu) Section 20(d)(8) of R.A.10884 or An Act
Strengthening the Balanced Houaiilg Development
Program, Amending for the Purpose R.A. 7279, as
Amended, Otherwise Known ae the Urban
Development and Housing Act of 1992;
(vv) S ection 14. with r u pAct to VAT, af
R.A. 8423 orthe'l'raditinnal and Altemative Medicine
Act (TAMA) of 1997;
(ww) Section 22(b) ofR.A. 10747 or the Rare
Diseaaea ofthe Philippines;
(xx) Section 45(a), (b), and (c), with respect to
VAT, of R.A. 9003 or the Ecological Solid Waste
Management Act of2000;
 UM
(yy) Section 5(b), with resp~t to VAT, of
R.A.10771 or tbe Philippine GreenJobaActof2016;
(zz) Section 6, with resp~ to VAT, of R.A.
7469 or the Investors and Inventiona Incentives Act
oftbe Philippines;
(aaa) Section 24, insofar as VAT exemption
of follDdatioDJ !or scientific advancement& is
concerned, of R.A. 2067, aa ameilded, or the Science
Act ofl958; and
: sufficient number oflioraes to determine the.major
' (W>) . Section 9, with respect to• VAT, of
R.A. 9511 or the National Grid Corporation of the
Philippines Act.
Provided, That the VAT obligations of govem.ment-
owned and-coatrolled corporations, ltate universities
and oolleges, and other govemmenti.nstrumentalitiee
whose VAT exemption has been repealed under tbia
Act ahall be clwgeable to the Tu Expenditme Fund
(TEP) provided for in the ann1tal General
Appropriations Act: Provided, further, That VAT
exemption, VATzero.rsting, and VAT credit granted
to $tate univenities and colleges on their pUrchasoa
and importations are hereby repealed and the
transactions afi'ectcd herein are made s1tbi~ to the
VAT provisions ofTitle IV of the NIRC, as amended.
Prouided, That, with respect to income tax,
the following laws or provisions of laws are hereby
repealed or amended:
(a) Section 38(A) ofR.A. 7277, as amended by
R.A. 10754 or the Magna Carta for Peraons with
Disability;
(b) Section 22(8) of R.A. 10165 or the Footer
Care Act of2012;
105
(c) Sedlon 4 o£R.A. 1169 or An ActProvidinc
fur CharitY Sweepstakes. HClnle Racea and Lotterie&:
"SEC. 4. Holding of sweepstakes. - The Office
shall hold charity horse race sweepstakes under 8UCh
regulations as ehall be promulgated by the Board in
accorduce with Repllhlic Act N1tmbered Three
h=dred and nine: Provided, however, That when
the holding of a sweepstakes race to detmnine prizes
is impossible due to war, public calamity, or other
unforeseen or fortuitous event or when there is no
prir.ea, the Board of J);rectora ID8Y determine the
procedure to be followed in the distribution ofprizes
in the moet jnst, equitable and expeditious manner.
The horse races and the &ale of ticket.a in the said
sweepstakes shall be exempt from all texes. except
that each ticbtab.all beara twelve-ceutavo internal
revenue stamp. The tickets ehall be printed by the
Govomment and shall be considered government
securities for the purposes of pe •1izing forgery or
0
alteration."
(cl) Section 5 ofR.A. 8756or An Act Providing
for the Terme, Conditions and Licenaing
Requirements of Regional or Area Headquartara.
Regional Operating Headq llarter&, and Regional
Warehouses ofMultinational Companies, Amending
forthePurpoeeCertainProvisimisofBxecllliveOrder
No. 226 or The Om.aibus Investments Code of 1987:
Prouidcd, That erioting Re~onal or Area
Headquarters, ~anal Operating Headquarters, and
Regional Warehouses of Multinational Companiee
enjoying tbe preferential income tax rate at the time
of the effectivity of the TRAIN shall not be affected;
(e) Section 2 of P .D. 1854, s. 1978 or lmpoe:ing
Final Ini:ome Tax on Subcontractors and Alien
Emplayees ofService Contractors and SubcontrectorB
Enpged in Petroleum Operations in the Philippinos
under Presidential Decree No. 87: Provided, That
 8"rvice contractors and subcontractora enjoyiog the
preJerential income tax rate at the time of the
effectivity of the TRAIN shall not be affected; end
'
CO Section 7 ol P.D. 1084, s. 1976, or
Authori%ing the Establishment of an Offshore
Banking Systam in the :Philippine8' ProWUd, That
service contractors end subcontractors el\joying the
preferential income tax rate at the timo or the
e.ffectivity of the TRAIN shall not be affected.

SEC. 87. Effectiuity. - Thia Act shall take effect on

January l, 2018 following its complete publication in the
Official Gcuett<? or in at lea.st one (1) newspaper of general
c:ircula lion.

1'... r\) \~-.Ar;;;

A~O"ROKO" PIMENrn.m
Pru/dent of the Senate

Thia Ad which is a oon.solidation of HouM Bill No. 5636

and Senate Bill No. 1592 waa paased by the Bouse of
Representatives and the Senate on Dcce~

d::::::O
Secretary ofthe Se11ate
~p~A
&crctary General
House of&presentarives

([
President oftht Philippines
0
UIVN.JC or m Pall.I PPJm
PMO 2011 • OOl71'