DOCUMENTARY STAMP TAX
An excise tax
Not an imposition on the document itself but on the
privilege to enter into a taxable transaction
Person Liable
The person making, signing, issuing, accepting, or
transferring the document or facility evidencing the
transactions
In general, it may be imposed on the transaction itself
or upon the document underlying such act
Any of the parties thereto shall be liable for the full
amount of the tax due
The said parties may agree on who shall be liable or
how they may share on the cost of the tax
If one party is exempt from DST
o The other party thereto who is not exempt
shall be the one directly liable for the tax
TRANSACTIONS SUBJECT TO DOCUMENTARY STAMP
TAX
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Actual or constructive transfer necessary
Actual or constructive transfer of beneficial ownership of
the shares of stock from person to another = sale or
exchange is taxable
May be manifested by:
o The clear exercise of attributes of ownership
over such stocks by the transferee
o An actual entry of a change in the name
appearing in the certificate of stock or in the
Stock and Transfer Book of the issuing
corporation
o Any entry indicating transfer of beneficial
ownership in any form of registry including
those of a duly authorized scripless registry,
such as those maintained by the PSE
Transfer to new trustee
Exempt:
o The transfer of certificates of stock from a
resigned trustee to a newly appointed trustee
such as certificate of stock remained in the
name of the cestui que trust or the resigned
trustee so that the new trustee is constituted as
mere depository of the stock
Transfer of shares to “nominees”
Exempt:
o Transfer of shares to “nominees” to qualify
them to sit in the board or to qualify them to
perform any act in relation to the corporation
shall not be subject to DST upon proof of a duly
executed Nominee Agreement showing the
purpose of the transfer; that the transfer is
without consideration other than the
undertaking of the nominee to only represent
the beneficial owner of the stock; and the
transfer is in trust
Agreement to sell shares of stock
Taxable:
o It is not only actual sales or transfers that are
taxable but also agreements to sell such stock or
executory contracts for the sale or transfers of
shares of stocks
o However, if the DST has been paid on the
agreement to sell or memoranda of sale, the
actual sale or transfer of the stocks pursuant to
the agreement will no longer be subject to DST
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DST ON ORIGINAL ISSUANCE OF SHARES
Imposed on the privilege of issuing shares of stock
Shares are considered issued upon the acquisition of the
stockholder of the attributes of ownership over the
shares
Acquisition of such attributes of ownership shall be
manifested by the acceptance by the Corporation of the
stockholder’s subscription to its share of stock
The entire shares of stock subscribed are considered
issued for the purpose of the DST, even if not fully paid
The delivery of the certificates of stock to stockholders is
not essential for the DST to accrue
DST ON TRANSFER OF SHARES
All transfer of shares of stock are subject to DST upon
execution of the deed transferring ownership or rights
thereto, or upon delivery, assignment or indorsement of
such shares on favor of another
No transfer of shares stock shall be recorded unless the
DST thereon has been duly paid for
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ALL DEBT INSTRUMENTS
Representing borrowing and lending transactions
Debentures and certificates of indebtedness and due bills
and certificates of obligation used to be found under
separate provisions are now incorporated under this
classification and rate
Debt Instruments including but not limited to:
a. Debentures
b. Certificate of indebtedness
c. Due bills
d. Bonds
e. Loan agreements, including those signed abroad
wherein the object of the contract is located or used
in the Philippines
f. Instruments and securities issued by the
government or any of its instrumentalities
g. Deposit substitute debt instruments
h. Certificates or other evidence of deposits that are
drawing interest significantly higher than the
regular savings deposit taking into consideration
the size of the deposit and the risks involved
i. Certificates or other evidence of deposits that are
drawing interest and having a specified maturity
date
j.
Orders for payment of any sum of money otherwise
than at sight or on demand
k.
Promissory notes, whether negotiable or nonnegotiable, except bank notes issued for circulation
Sale of Debt Instruments in the Secondary Market
Exempt
Because the DST on debt instruments shall be imposed
only on every original issue and the tax shall be based on
the issue thereof
Computation of DST
1. Less than one year = computed taking into consideration
the number of days that the instrument is outstanding as
a fraction of 365 days
2. 1 year or longer = computed based on the issue price of
the debt instrument
Deposits Subject to DST
1. Those with fixed or a specific maturity date
(time deposits) or the interest varies depending on the
duration/term of the deposit, irrespective of the
nomenclature and whether covered by a certificate,
passbook or any other evidence of deposit
2. Those that provide interest significantly higher than the
rate given to a regular savings/demand deposit account
3. Those with a higher interest yield than that given to a
savings deposit or where the interest rate earned by such
deposit is reduced upon termination
Note: Significantly higher – interest rate is at least 50% higher than
the lowest interest rate given by the bank or financial institution
on any of its deposit, whether the same be savings/demand
deposit
Deposits not subject to DST
Regular or ordinary demand and savings deposit which
are withdrawable upon demand by the depositor AND
earning rates of interest based on prevailing market rate,
irrespective of the amount deposited
DST on Life Insurance
Shall be due and collected every time there is an
insurance premium collection on such policy, including
premiums paid/collected beyond the year of the policy
was taken out
Insurance Premium Collection
o Shall include not only those premiums paid or
remitted by the insured directly but shall also
include premiums paid for by applying cash
surrender value, dividends earned, other
modes of payment, whether on the original
policy or amendments thereto
o Increase in coverage from year to year or
additional riders attached to existing policy =
new issuance and premiums relating thereto
whether paid or remitted are subject to DST
3.
4.
5.
6.
7.
8.
9.
1.
2.
TRANSACTIONS EXEMPT FROM DST
Policies of insurance or annuities made or granted by a
fraternal or beneficiary society, order, association or
cooperative company, operated on the lodge system or
local cooperation plan and organized and conducted
solely by the members thereof for the exclusive benefit of
each member and not for profit
Certificate of oaths administered to any government
official in his official capacity or of acknowledgment by
any government official in the performance of his official
duties, written appearance in any court by any
government official, in his official capacity; certificates of
the administration of oaths to any person as to the
authenticity of any paper required to be filed in court by
any person or party thereto, whether the proceeding be
civil or criminal; papers and documents files in courts by
or for the national, provincial, city or municipal
governments; statements and other compulsory
information required of persons or corporations by the
rules and regulations of the national, provincial, city or
municipal governments exclusively for statistical
purposes and which are wholly for the use if the bureau
10.
11.
12.
13.
14.
or office in which they are files, and not at the instance or
of the use or benefit of the person filing them; certified
copies and other certificated placed upon documents,
instruments and papers for the national, provincial, city
or municipal governments, made at the instance and for
the sole use of some other branch of the national,
provincial, city or municipal governments; and
certificates of assessed value of lands, not exceeding P200
in value assessed, furnished by the provincial, city or
municipal Treasurer to applicants for registration of title
to land
Borrowing and lending securities executed under the
Securities Borrowing and Lending Program of a
registered exchange, or in accordance with regulations
prescribed by the appropriate regulatory authority;
Provided, however, that any borrowing or lending of
securities agreement as contemplated hereof shall be
duly covered by a master securities borrowing and
lending agreement acceptable to the appropriate
regulatory authority, and which agreement is duly
registered and approved by the BIR
Loan agreements or promissory notes, the aggregate of
which does not exceed P250,000, or any such amount as
may be determined by the Secretary of Finance, executed
by an individual for his purchase on installment for his
personal use or that of his family and not for business or
resale, barter or hire of a house, lot, motor vehicle,
appliance or furniture; Provided, however, that the
amount to be set by the Secretary of Finance shall be in
accordance with a relevant price index but not to exceed
10% of the current amount and shall remain in force for
at least 3 years
Sale, barter, or exchange of shares of stocks listed and
traded through the local stock exchange
Assignment or transfer of any mortgage, lease or policy
of insurance, or the renewal or continuance of any
agreement, contract, charter, or any evidence of
obligation or indebtedness, if there is no change in the
maturity date or remaining period of coverage from that
of the original instrument
Fixed income and other securities traded in the
secondary market or through an exchange
Derivatives; repurchase agreements and reverse
repurchase agreements shall be treated similarly as
derivatives
o Derivative exempted from DST = issued by
entities duly licensed by the BSP to issue and
trade in derivatives, and whose issuance is duly
authorized by the BSP
Interbranch or interdepartmental advances within the
same legal entity
All forbearance arising from sale or service contracts
including credit card and trade receivables: Provided,
that the exemption be limited to those executed by the
seller or service provider itself
Bank deposits accounts without a fixed term or maturity
All contracts, deeds, documents, and transactions related
to the conduct of business of the BSP
Transfer of property pursuant to Section 40(c)(2) of the
Tax Code
o Exempt transfers of real property in exchange
for shares of stock resulting in control. Note,
however, that the issuance of shares on
exchange for such real property is subject to the
DST on original issuance of shares
Interbank call loans with maturity of not more than 7
days to cover deficiency in reserves against deposit
liabilities, including those between or among banks and
quasi-banks
o Purpose of the loan must be strictly to cover the
deficiency in reserves against deposit liabilities
for the exemption to apply
o
If the purpose is otherwise = subject to DST on
debt instruments
ELECTRONIC DOCUMENTS
Subject to DST where no exemption applies
Under Electronic Commerce Act, electronic documents
are the functional equivalent of a written document
under existing law, and the issuance thereof is
tantamount to the issuance of a written documents
SINGLE CONTINUOUS TRANSACTION
Transactions consisting of a single act and a single
purpose, but which may have as its component more
than one taxable transaction, is taken separately
Loan Transactions with Security
Only one DST shall be imposed on either loan agreement
or promissory note issued to secure such loan, whichever
is higher
Section 8 of RR No. 9-1994
Where only one instrument was prepared, made, signed,
and executed to cover a loan agreement/promissory note,
pledge/mortgage, the DST shall be paid and computed
in the full amount of loan or credit granted
In this regards the instrument shall be treated as
covering only one taxable transaction, subject to the
higher DST
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Repurchase Agreement
The seller would sell securities with an agreement that
he would purchase back the security at a fixed price on a
fixed future date
Considered exempt from DST because it is really a form
of financing and not an actual sale of securities
BIR: deemed this transaction as consisting of two
components, the repurchase agreement itself and a
pledge
o Pledge is not covered by the exemption
Letter of Credit
Contract by and between a Local Bank and its
Correspondent Bank in a foreign country
Opened by the Local Bank in favor of a Client/Importer
who has a credit line; through the LC, the Local Bank
orders it Corresponding Bank to pay the Supplier of
Goods in a foreign country, upon presentation of proof
that the goods have been laden on board a vessel or an
aircraft, and the title over the goods is legally transferred
to the Local Bank, pursuant to the shipping agreement
After which, the Client/Importer would issue a Trust
Receipt as a security for the payment of the amount
advanced by the Bank
BIR imposed a separate DST on the trust receipt
MODE OF PAYMENT AND/OR REMITTANCE OF DST
DST return (BIR Form No. 2000) shall be files 5 days after
the close of the month when the taxable document was
made, signed, issue, accepted or transferred and the tax
thereon shall be paid at the same time the return is filed
Where to pay: Authorized Agent Banks within the
territorial jurisdiction of the RDO over the residence or
principal place of business of the taxpayer
Exception: the tax may be paid either through:
o Purchase and actual affixture, or
o By imprinting the stamps through a DST
metering machine
ONLINE ELECTRONIC DST IMPRINTING MACHINE
Unless said otherwise by the Commissioner, the
following class of taxpayers shall use the “on-line DST
imprinting machine” in the payment and remittance of
their documentary stamp taxes;
o Bank, a quasi-bank or non-bank financial
intermediary, a finance company, or an
insurance, a surety, a fidelity, or annuity
company
o Shipping and airline companied
o Pre-need company on sale of pre-need plans
o Educational institution in respect of issuance of
taxable certificates
o Such other industries as may be required by the
Commissioner
Effect of Failure to Stamp Taxable Document
1. Shall not be recorded
2. Nor shall it or any copy thereof or any record of transfer
of the same be admitted or used in evidence in any court
3. No notary public or other officer authorized to
administer oaths shall add his jurat or acknowledgment
to any document subject to DST unless the proper
documentary stamps are affixed thereto and cancelled
EXCISE TAXES
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Sin taxes
Imposed on certain articles (and now services) either to
promote health or to discourage purchase of certain
articles or to protect the environment
Business tax in addition to VAT or the Percentage Tax
Part of the Gross Selling Price in determining the basis
for the 12% VAT
Part of the “landed cost” upon which the VAT on
importation is based
Goods Subject to Excise Taxes
1. Goods manufactured or produced in the Philippines for
domestic sale or consumption or of any other disposition
2. To things imported
3. Non-essential services (added by TRAIN law)
Kinds as to amount
1. Specific tax – if based on weight or volume capacity or
any other physical unit of measurement
2. Ad Valorem tax – if based on selling price or other
specified value
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2.
3.
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6.
7.
8.
ARTICLES SUBJECT TO EXCISE TAX
Alcohol, including wines, distilled spirits, and ferment
liquor
Tobacco products (cigars, cigarettes, heated tobacco, and
vapor products)
Automobiles
Petroleum products
Non-essential goods
Mineral products
Sugar sweetened beverages
Non-essential services
MANUFACTURED OR PRODUCED ARTICLES
Payment of tax
Duty to pay begins at the moment the excisable articles
exist
Paid by the manufacturer or producer before removal
from the place of production
Excise Tax Return
Every person liable to pay excise tax impose shall file a
separate return for each place of production
Contents of the return:
1. The description of products to be removed
2. Quantity or volume of products to be removed
3. The applicable tax base
4. The amount of tax due thereon
Exception:
Indigenous petroleum, natural gas, or liquefied natural
gas
o Paid by the first buyer, purchase, or transferee
for local sale, barter, or transfer
Exported goods
o
Paid by the owner, lessee, concessionaire, or
operator of the mining claim
Removal without payment of tax
The owner or person having the possession shall be
liable for the tax due thereon
Tax Base
Gross Selling Price of Goods Subject to Ad Valorem Tax
1. The price at which the goods are sold at wholesale in the
place of production or through their sales agents to the
public shall constitute the GSP
2. Excluding the VAT
3. If the manufacturer also sells or allows such goods to be
sold at wholesale in another establishment of which he is
the owner or in the profits of which he has an interest,
the wholesale price in such establishment shall constitute
the GSP
4. Should price be less than the cost of manufacture plus
expenses incurred until the goods are finally sold, then a
proportionate margin of profit, not less than 10% of such
manufacturing cost and expenses, shall be added to
constitute the GSP
Manufacturer’s or Producer’s Sworn Statement
Shall file with the Commissioner on the date or dates
designated by the latter, and as often as may be required,
a sworn statement
Showing the different goods or products manufactured
or produced and their:
o GSP or market value
o The cost of manufacture or production
o Expenses incurred or to be incurred until the
goods or products are finally sold
Creditable for Excise Tax on Goods Actually Exported
Any excise tax paid thereon shall be credited or refunded
upon submission of the proof of actual exportation and
upon receipt of the corresponding foreign exchange
payment
Not applicable to: excise tax on mineral products, except
coal and coke
IMPORTED ARTICLES
Payment of Tax
Shall be paid to the Customs Officers, conformable with
the regulations of the Department of Finance, before the
release of such article from the customhouse
Persons liable for the tax
1. The owner or importer
2. The person who is found in possession of articles which
are exempt from excise taxes other than those legally
entitled to exemption
Note:
Tax-free articles brought or imported into the Philippines
by person, entities, or agencies exempt from tax which
are subsequently sold, transferred or exchanged in the
Philippines to non-exempt person or entities
o The purchasers or recipients shall be
considered the importers thereof = liable for the
duty and internal revenue tax due on such
importation
Tax base: similar rules apply as that of manufactured/product
article
Modes of Computing Content of Cask or Package
1. Every fractional part of a proof liter equal to or greater
than a half liter in a cask or package containing more
than one liter shall be taxed as a liter; and
2. Any smaller fractional part shall be exempt; but any
package of spirits, the total contents of which are less
than a proof liter, shall be taxed as one liter
EXCISE TAX ON ALCOHOL PRODUCTS
Distilled Spirits
Spirits or distilled spirits
Knowns as ethyl alcohol, ethanol, or spirits of wine,
including all dilutions, purifications, and mixtures
thereof, from whatever source, by whatever process
produced, and shall include whisky, brandy, rum, gin,
and vodka, and other similar products of mixtures
Proof Spirits
Liquor containing ½ of its volume of alcohol of a specific
gravity of 0.7939 at 15C
Proof liter = liter of proof spirits
Wines
Fermented Liquors
Beer, lager beer, ale, porter, and other fermented liquors
except tuba, basi, tupay, and similar fermented liquors
Heated Tobacco Products
Excise tax per pack of 20 units or any packaging
combinations of not more than 20 units
EXCISE TAX ON PETROLEUM PRODUCTS
Manufactured Oils and Other Fuels
Collected on refines and manufactured mineral oils and
motor fuels
Attached to the goods as soon as they are in existence
Vapor Products
Cigars
LPG when used as raw material in the production of petrochemical
products are exempt. The same with Petroleum Coke when used as
feedstock to any power generating facility
Excise tax due shall be the sum of the ad valorem tax and specific taxes
Cigarettes Packed by Hand or Machine
For cigarettes per pack of 20s or any packaging
combinations of not more than 20 packed by hand or
machine
Inspection fee
Floor Prince of Minimum Price
Total production cost/expenses of the cheapest brand per
tobacco product including the sum of excise tax and VAT
Excise Large Taxpayer Regulatory Division (ELTRD)
o Shall establish a monthly data provided based
on the required periodic manufacturer’s or
importer’s sworn declaration for all brands per
tobacco product category
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EXCISE TAX ON AUTOMOBILES
Ad valorem tax on automobiles based on the
manufacturer’s or importer’s selling price, net of excise
and VAT
Automobile
Any four or more wheeled motor vehicle regardless of
seating capacity, which is propelled by gasoline, diesel,
electricity or any other motive power
Buses, trucks, cargo vans, jeeps/jeepneys/jeepney
substitute, single cab chassis, and special-purpose
vehicles =/= automobiles
Truck/cargo van
Motor vehicle of any configuration that is exclusively
designed for the carriage of goods and with any number
of wheels and axles
Pick-ups =/= trucks
Jeep/Jeepney/Jeepney substitutes
Philippine jeep or jeepney
Jitney type locally designed and manufactured generally
from surplus parts and components
Include jeepney substitutes that are manufactured from
brand-new single cab chassis or cowl chassis
And locally customized rear body that has continuous
sideway row seats with open rear door and without
retractable glass windows
Bus
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Motor vehicle of any configuration with gross vehicle
weight of 4.0 tons or more with any number of wheels
and axles, which is generally accepted and specially
designed for mass or public transportation
Single cab chassis
Motor vehicle with complete engine power train and
chassis equipped with a cab that has a maximum of 2
doors and only 1 row of seats
Special purpose vehicle
Motor vehicle designed for specific applications
Cement mixer, fire truck, boom truck, ambulance
and/or medical unit, and off-road vehicles for heavy
industries and not for recreational activities
In case of imported automobiles not for sale, the tax imposed herein shall
be based on the total landed value, including transaction value, customs
duty and all other charges. Automobiles used exclusively within the
freeport zone shall be exempt from excise tax
EXCISE TAX ON NON-ESSENTIAL GOODS
Shall be levied, assessed, and collected a tax equivalent
to 20% based on the wholesale price or the value of
importation used by the Bureau of Customs in
determining tariff and customs duties, net of excise tax
and VAT
a. Jewelry, whether real or imitation, pearls, precious
and semi-precious stones and imitations thereof;
goods made of, or ornamented, mounted or fitted
with, precious metals or imitations thereof or ivory
(not including surgical or dental instruments, silverplated wares, frames or mountings for spectacles or
eyeglasses, and dental gold or gold alloys and other
precious metals used in filling, mounting or fitting
of the teeth; opera glasses and lorgnettes
•
Precious metals = platinum, gold, silver, and
other metals of similar or greater value
•
Imitations thereof = include plating and alloys
of such metals
b. Perfumes and toilet waters
c. Yachts and other vessels intended for pleasure or
sports
EXCISE TAX ON MINERAL PRODUCTS
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First taxable sales, barter, exchange or similar
transactions = transfer of indigenous petroleum
in its original state, to a first taxable transferee;
fair international market price shall be
•
determined in consultation with appropriate
government agency
Indigenous petroleum = locally extracted mineral
oil, hydrocarbon gas, bitumen, crude asphalt;
mineral gas and all other similar or naturally
associated substances with the exception of coal,
peat, bituminous shale and/or stratified mineral
deposits
SUBJECT TO EXCISE TAX UNDER THE TRAIN LAW
EXCISE TAX ON NON-ESSENTIAL SERVICES OR
INVAVSIVE COSMETIC PROCEDURE
Rate and Base of Tax
Equivalent to 5% based on the gross receipts, net of
excise tax and VAT
Derived from the performance of invasive cosmetic
procedure, surgeries and body enhancements directed
solely towards improving, altering, or enhancing the
patient’s appearance and do not meaningfully promote
the proper functions of the body or prevent or treat
illness or disease
Gross receipts = the total of money or its equivalent
representing the contract price or service fee, including
deposits applied as payments for services rendered and
advance payments actually or constructively received for
services performed or to be performed for another
person, but excluding the 5% excise tax and VAT
Exclusions:
1. Procedures necessary to ameliorate a deformity arising
from or directly related to a congenital or developmental
defect or abnormality, a personal injury resulting from
an accidental or trauma, or disfiguring disease, tumor,
virus, or infection
2. Cases and treatments covered by the National Health
Insurance Program
3. Non-invasive cosmetic procedures
Plastic Surgery
Surgical specialty or procedure concerned with the
restoration,
construction,
reconstruction,
or
improvement in the form, function and appearance of
body structure that are missing, defective, damaged, or
misshapen
Encompasses both reconstructive and aesthetic surgery
Cosmetic Surgery
Plastic surgery aims to improve a person's appearance,
through invasive cosmetic procedures, surgeries and
body enhancements directed solely on improving,
altering or enhancing the person’s appearance and do
not necessarily promote the proper functions of the body
or prevent or treat illness or disease
Elective surgery
Invasive Cosmetic Procedure
Carried out by entering the body through the skin or
through a body cavity or anatomical opening, but with
the smallest damage possible to these structures
Non-invasive Cosmetic Procedure
Conservative treatment that does not require incision
into the body or the removal of tissue, or when no break
in the skin is created and there is no contact with mucosa,
or skin break, or internal body cavity beyond a natura or
artificial body orifice
Who Will File the Estate Tax Return
Any person, whether natural or juridical, performing the
non-essential service using BIR Form No. 2200-C (Excise
Tax on Invasive Cosmetic Procedures) together with the
Monthly Summary of Cosmetic Procedures Performed
as an attachment thereto
Deadline: 10 days following the close of the month
Invoicing Requirement:
Every person subject to the 5% excise tax shall issue an
Official Receipt for services performed whether
invasive/non-invasive
showing
the
following
information:
1. The total amount the patient/client pay or is obliged
to the service provider including the excise tax and
VAT, if applicable, provided:
a. The amount of VAT shall be a separate line
item in the OR (the VAT base is inclusive of
the 5% excise tax)
b. Discounts given shall be indicated in the
OR, otherwise the same shall not be
allowed as a deduction from gross receipts
c. If the procedure performed is non-invasive
and/or invasive but considered exempt
from excise tax, the term “EXEMPT FROM
EXCISE TAX” shall be shown in the OR
d. If the services performed involves both
invasive (whether excisable or exempt) and
non-invasive (not excisable) procedures, a
separate OR may be used for the excisable
and non-excisable services rendered
EXCISE TAX ON SUGAR SWEETENED BEVERAGES
Sweetened Beverages
Non-alcoholic beverages of any constitution (liquid,
powder, or concentrates) that are pre-packaged and
sealed in accordance with the FDA standards, that
contain caloric and/or non-caloric sweeteners added by
the manufacturers
Caloric Sweetener
Substance that is sweet and includes sucrose, fructose,
and glucose that produces a certain sweetness
High Fructose Corn Syrup
Sweet saccharide mixture containing fructose and
glucose which is derived from corn and added to
provide sweeteners to beverages, and which includes
other similar fructose syrup preparations
Non-Caloric Sweetener
Substance that is artificially or chemically produces a
certain sweetness
Can be directly added to beverages, such as aspartame,
sucralose, saccharin, acesulfame potassium, neotame,
cyclamates, and other non-nutritive sweeteners
approved by the Codes Alimentarious and adopted by
the FDA
Tax Base
Persons Liable
1. For locally manufactured sweetened beverages
a. Manufacturers
b. Persons having possession of domestically
manufactured sweetened beverages removed
from the place of production without the
payment of tax
2. For imported sweetened beverages
a. Owners or importers
b. Persons having possession of imported
sweetened beverages removed from customs
custody without the payment of the tax
Filing of Return and Payment of Excise Tax
1. For locally manufactured
o A separate return (BIR Form No. 2200-S) shall
be file for each place of production with the
concerned RDO where the Head Office is
registered before removal from place of
production
2. For imported
o The importer shall apply for an Authority to
Release Imported Goods (ATRIG) with Excise
Large Taxpayers Regulatory Division (ELTRD),
BIR National Office and pay the corresponding
excise tax before the release from customs
custody
Note: for imported raw materials which will be used in the
production of excisable sweetened beverages, the excise tax due
thereon shall be paid before removal of the finished good from the
place of production
Exclusions:
1. All milk products
2. Soymilk and flavored soymilk
o Main ingredients of which are the soybean
and/or soy derivatives (soybean flour, soybean
concentrates, soybean isolates or defatted soya)
and water which are produced without
fermentation process
3. 100% Natural Fruit Juices
o If there is sugar or sweetener added at any
amount, the product shall be considered
excisable depending on the kins of sweetener
added and its corresponding rate
4. 100% Natural Vegetable Juices
5. Meal Replacement and Medically Indicated Beverages
6. Ground coffee, instant soluble coffee, and pre-packaged
powered coffee products
Transfer of Raw Materials
Manufacturers of sweetened beverages subject to excise
tax shall not be allowed to transfer or remove raw
material from the place of production, except when the
transfer or removal thereof is intended for further
processing to its other registered production or tollmanufacturing plants and shall be accompanied by an
Excise Tax Removal Declaration
Transfer of Semi-Processed Goods
Semi-processed
goods,
such
as
syrups/puree/concentrates sod to fast food chains where
such are mixed with carbonated water and dispensed
through soda vending or juice dispensing machines,
shall be considered as finished goods subject to excise tax,
notwithstanding that the same are in their semiprocessed state
The excise tax shall be compute using a pre-determined
formula in arriving at the equivalent yield in liters of
volume capacity submitted by the manufactures as
approved by the FDA