President Duterte has signed into law a measure seeking to give tax incentives and privileges to small-scale miners for the sale of gold to the Bangko Sentral ng Pilipinas.
Republic Act No. 11256, signed by the President last March 29, seeks to strengthen the country’s gross international reserves by amending the National Internal Revenue Code.
Under the law, registered small-scale miners will be exempted from paying income and excise taxes when they sell their gold to the BSP.
Prior to the enactment of the law, the Bureau of Internal Revenue imposed a five-percent withholding tax and a two-percent excise tax on the sale of gold to the BSP.
“The following items shall not be included in gross income and shall be exempt from taxation under this title,” the law said. “(1)The sale of gold to the Bangko Sentral ng Pilipinas by registered small miners as defined under Republic Act No. 7076 and accredited traders; and (2) The sale of gold by registered small-miners to accredited traders for eventual sale to the Bangko Sentral ng Pilipinas,” it added.
The law also stated that the gold sold to the BSP shall also be “exempt from payment of excise tax.”
“In addition to the foregoing, and notwithstanding the existing provisions of Republic Act No. 6938, as amended, and the applicable laws, the sale of gold by registered small-scale miners, as defined under Republic Act No. 7076, 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,” the law said.
RA 11256 also directed the BSP Governor, Secretary of Environment and Natural Resources, Secretary of Interior and Local Government, and the Commissioner of Internal Revenue to recommend to the Secretary of Finance the rules and regulations necessary for the implementation of the act. (Genalyn Kabiling)
