Gold line signed: PH exempts small miners from taxes
Starting next month, the Bureau of Internal Revenue (BIR) will exempt from taxes small miners supplying gold to the Bangko Sentral ng Pilipinas (BSP).
“Income derived from the following sale of gold are excluded in the gross income and shall be exempt from income tax, and consequently from withholding taxes: The sale of gold to the BSP by registered small-scale miners and accredited traders; and the sale of gold by registered small-scale miners to accredited traders for eventual sale to the BSP,” a BIR issuance read.
The BIR’s Revenue Regulation (RR) No. 4-2020, which serves as the implementing guideline for Republic Act No. 11256 approved by President Duterte last year, was signed by Finance Secretary Carlos Dominguez III and Internal Revenue Commissioner Caesar Dulay.
RR 4-2020 dictated that “excise tax shall not be levied, assessed and collected on the following: The sale of gold to the BSP by registered small-scale miners and accredited traders; and the sale of gold by registered small-scale miners to accredited traders for eventual sale to the BSP.”
If the taxpayer already paid the excise tax prior to selling gold to the BSP, a claim for credit or refund may be filed before the BIR commissioner.
RR 4-2020 mandated the BSP to submit to the BIR a monthly report containing sales transactions with small-scale miners and traders, who will also be given a transition period of up to three years to register and get accreditation for the tax exemption. During this period, small-scale miners can still avail of the tax perk for as long as there is certification from the BSP.
Under then Commissioner Kim Jacinto-Henares in 2011, the BIR slapped excise and withholding taxes on all gold sales to the BSP, resulting in a drop in the banking regulator’s domestic gold purchases.
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