Duterte signs law on tax perks for small gold min­ers

Sun Star Bacolod - - Business -

PRES­I­DENT Rodrigo Dutere has signed a law ex­empt­ing small-scale gold min­ers from pay­ing income and ex­cise taxes.

Repub­lic Act (RA) 11256, inked by Duterte on March 29, is ex­pected to boost the coun­try’s gross in­ter­na­tional re­serves (GIR).

It amended Sec­tions 32 and 151 of the Na­tional Internal Rev­enue Code, which slaps five per­cent with­hold­ing taxes and two per­cent ex­cise taxes on the sale of gold to the Bangko Sen­tral ng Pilip­inas (BSP).

Un­der the newly-signed law, reg­is­tered small-scale min­ers and ac­cred­ited traders who are sell­ing gold to the BSP are ex­empt from pay­ing income and ex­cise taxes.

“All gold sold to the Bangko Sen­tral ng Pilip­inas by ac­cred­ited traders shall be pre­sumed to have been pur­chased by said traders from small-scale min­ers,” RA 11256 read.

“The sale of gold by small-scale min­ers, as de­fined un­der Repub­lic Act No. 7075 (Peo­ple’s Small-scale Min­ing Act of 1991), to ac­cred­ited traders for even­tual sale to the Bangko Sen­tral ng Pilip­inas, shall en­joy the same tax treat­ment and priv­i­leges given to the di­rect sale of gold to the Bangko Sen­tral ng Pilip­inas un­der the Tax Code,” it added.

The law also pro­vides that those who al­ready paid ex­cise tax prior to the sale of gold to the BSP may file a claim for refund or credit with the com­mis­sioner.

RA 11256 was a con­sol­i­da­tion of Sen­ate Bill 2127 and House Bill 3297 signed on Jan­uary 29 and Fe­bru­ary 6, re­spec­tively.

Sen­ate ways and means com­mit­tee chair­per­son Juan Edgardo An­gara, who just re­ceived a fresh man­date as se­na­tor, ear­lier noted that be­tween 2005 and 2010, the BSP pur­chased close to one mil­lion troy ounces of gold or 2,362 gold bars pro­duced from small-scale min­ing ac­tiv­i­ties.

An­gara said the BSP’S gold pur­chases dras­ti­cally de­clined to 35,000 troy ounces in 2012 af­ter BIR im­posed the tax re­quire­ment in 2011 and fur­ther slid to 14,700 troy ounces of gold in 2017.

In Septem­ber 2016, An­gara said the BSP was only able to pur­chase 7,600 troy ounces or an equiv­a­lent of 19 gold bars.

The law will take ef­fect 15 days af­ter its pub­li­ca­tion in the Of­fi­cial Gazette or in a news­pa­per of gen­eral cir­cu­la­tion.

Sixty days af­ter the law’s ef­fec­tiv­ity, the BSP gov­er­nor, sec­re­taries of En­vi­ron­ment and Local Gov­ern­ment de­part­ments, and Internal Rev­enue com­mis­sioner are man­dated to rec­om­mend to Fi­nance Sec­re­tary the rules and reg­u­la­tions nec­es­sary for the ef­fec­tive im­ple­men­ta­tion of RA 11256.

The rules and reg­u­la­tions will in­clude pro­vi­sions for the reg­is­tra­tion and ac­cred­i­ta­tion re­quire­ments of small-sale min­ers and traders in or­der to avail of the tax ex­emp­tion un­der the law.

The Palace re­leased a copy of the law on Wed­nes­day, May 22./Sun­star Philip­pines

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