Professional Documents
Culture Documents
EXCISE TAXES
Atty. C. Llamado
1) To raise revenue;
2) To curtail the consumption of certain commodities;
3) To protect domestic industries;
Specific Tax – excise tax imposed on goods or Ad Valorem Tax – excise tax imposed on
articles based on weight or volume capacity or goods or articles based on the selling price or
any other physical unit of measurement. other specified value of the goods, exclusive of
VAT and tariff and customs duties (if
imported).
1
TRAIN.
6
Pick-ups are considered trucks, and therefore exempt from excise tax.
7
Jeeps are considered automobiles subject to excise tax.
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May 2020
2
Heated tobacco products refer to tobacco products that may be consumed through heating tobacco, either
electrically or through other means sufficiently to release an aerosol that can be inhaled, without burning
or any combustion of the tobacco. Heated tobacco products include liquid solutions and gels that are part
of the product, and are heated to generate an aerosol.
3
Vapor products shall mean any liquid solution or gel which contains nicotine that transforms into an
aerosol without combustion through the employment of a mechanical heating element, battery, or circuit
that can be used to heat such solution or gel, and includes but is not limited to a cartridge, a tank, and the
device without a cartridge or tank. It is commonly known as e-liquids for e-cigarettes.
4
Added by TRAIN.
5
The excise tax shall be based on the following schedule:
Using purely caloric sweetener, purely non-caloric sweetener, or mixture or ₱6/liter
both
Using purely high-fructose corn syrup, or in combination with any caloric or ₱12/liter
non-caloric sweetener
Using purely coconut sap sugar/purely steviol glycosides Exempt
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May 2020
1) The price, excluding the VAT, at which the goods are sold at wholesale or through sales
agents;
2) If the manufacturer also sells the goods at wholesale in another establishment of which he
is the owner, the wholesale price in the latter establishment shall be the gross selling price;
3) If the price is less than the cost of manufacturing plus expenses, the gross selling price shall
equal such cost + expenses + a proportionate margin of profit (≥ 10% of the cost +
expenses).
1) Domestic Products
a) Generally, the manufacturer or producer of the domestic products shall file the
return and pay the excise taxes before the removal of the domestic products from the
place of production; or
b) Owner or person having possession of domestic products which were removed from
place of production without payment of the excise tax; or
c) The first buyer, purchaser, or transferee for local sale or transfer in the case of
indigenous petroleum, natural gas, or liquefied natural gas;
2) Imported Products
8
Added by TRAIN.
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May 2020
a) The importer shall file the return and pay the tax before removal of the imported goods
from the customhouse or customs custody; or
d) The person who is found in possession of articles which are exempt from excise taxes
other than those legally entitled to exemption.
Excise taxes paid on goods actually exported shall be credited or refunded upon submission of
proof of actual exportation and upon receipt of the foreign exchange payment.
Provided: Excise tax on mineral products (except coal and coke) shall not be creditable nor
refundable even if the mineral products are actually exported.
1) Cigarettes packed by hand, and packed by machines follow the same schedule of specific
excise taxes.
(a) Naptha and pyrolysis gasoline used as raw material in the production of petrochemical
products or in the refining of petroleum products, or as replacement fuel for natural-
gas-fired-combined cycle power plant;
(b) Production of petroleum products, whether or not they are classified as products of
distillation, and for use solely for production of gasoline;
(c) Liquefied petroleum gas when used as a raw material in the production of
petrochemical products;
(d) Petroleum coke, when used as feedstock to any power generating facility;
(e) Purely electric vehicles, and pick-ups;10
4) The Secretary of Finance shall require the use of an official fuel marking or similar
technology on petroleum products refined, manufactured, or imported in the Philippines,
and that are subject to the payment of taxes and duties.
9
Diesel fuel, liquefied petroleum gas, kerosene, and bunker fuel oil which were all not taxed before the
effectivity of the TRAIN are now taxed under the TRAIN.
10
Hybrid vehicles shall be subject to 50% of the applicable excise tax rates on automobiles.
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May 2020
However, the DST is actually an excise tax because it is imposed on the transaction
rather than on the document.11 The transactions entered into by the taxpayer
need not be embodied in a document or debt instrument for them to be subjected
to DST.
Documents and Papers Subject to Documents and Papers Not Subject to DST
DST12
a) Original issue of shares of stock a) Policies of insurance or annuities made by a
b) Bonds, debentures, certificates of fraternal or beneficiary society operated on the
stock/indebtedness issued in foreign lodge system or local cooperation plan;
countries b) Certificates of oaths administered to any
c) Sales, agreements to sell, memoranda of government official in his official capacity
sales; deliveries or transfer of shares or c) Papers filed in court by or for the national,
certificates of stock provincial, or municipal governments
d) Certificates of profits or interest in d) Affidavits to prove poverty;
property or accumulations e) Statements and other compulsory information
e) Bank checks, drafts, certificates of required of persons exclusively for statistical
deposit not bearing interest, and other purposes and for the use of the government
instruments f) Certificates of the assessed value of lands ≤ ₱200
f) Debt instruments; g) Borrowing and lending of securities executed
g) Bills of exchange or drafts; under the Securities Borrowing and Lending
h) Acceptance of bills of exchange; Program (“SBL”) of a registered exchange
i) Foreign bills of exchange and letters of h) Loan agreements ≤ ₱250,000 executed by an
credit; individual for the purchase of a house and lot,
j) Life insurance policies; motor vehicle, appliance, or furniture for
k) Insurance upon property; personal use
l) Fidelity bonds and other insurance policies i) Sale, barter, or exchange of shares listed and
m) Policies of annuities, and pre-need plans traded through the local stock exchange
n) Indemnity bonds j) Assignment or transfer of mortgage, lease, or
o) Warehouse receipts insurance policy if there is no change in the
p) Jai-alai, horse race tickets, lotto, or other maturity date
authorized numbers games k) Fixed income and other securities traded in the
q) Bills of lading or receipts secondary market or through an exchange;
r) Proxies l) Derivatives
s) Powers of attorney m) Interbranch or interdepartmental advances
t) Leases and other hiring agreements within the same legal entity
u) Mortgages, pledges, and deeds of trust n) Forebearances arising from sales or service
v) Deeds of sale and conveyances of real contracts
property13 o) Bank deposit accounts without a fixed term
w) Charter parties and similar instruments p) Contracts, deeds, documents and transactions
related to the conduct of business of the BSP
11
San Miguel Paper Packaging Corporation vs. CIR, CTA Case No. 9288, July 2, 2019.
12
TRAIN increased the DST rates for the transactions in BOLD.
13
Transfers exempt from donor’s tax are exempted from DST.
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May 2020
Persons Subject:
The person making, signing, issuing, accepting, or transferring the document. When one
party enjoys exemption, the other party who is not exempt shall be the one directly liable
for the tax.
Generally, the tax return shall be filed within 5 days after the close of the month when the
document was made, signed, accepted or transferred.
1) Authorized agent bank (AAB) within the territorial jurisdiction of the RDO which has
jurisdiction over the residence or principal place of business of the taxpayer; or
2) If there be no AAB, with the Revenue District Officer, collection agent, or duly
authorized treasurer of the city or municipality in which the taxpayer has his legal
residence or principal place of business.
Modes of Payment:
1) The tax due on the return is paid at the time the return is filed; or
2) The tax may be paid through purchase and actual affixture of the DSTs on the
document; or
3) By imprinting the DSTs, through a DST metering machine, on the taxable document.