chapter 10 - excise tax of transfer and business taxation

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1. BSAIS 2A
EXCISE TAX
Chapter 10

2. An excise tax is a tax
imposed on specific
goods or services such
as tobacco, fuel and
alcohol.
Excise Tax
VILLAR, ANGEL V.

3. Excise Tax is also
known as tax on the
production, sale or
consumption of a
commodity in a
country including
certain services.
Excise Tax
VILLAR, ANGEL V.

4. It is imposed on:
Certain goods manufactured
or produced in the
Philippines for domestic sale
or consumption or for any
other disposition;
Certain goods imported;
and
Certain services performed
in the Philippines
1 2
3
VILLAR, ANGEL V.

5. SECTION 129
Excise taxes apply to goods manufactured or produced in the Philippines
for domestic sales or consumption or for any other disposition and to
things imported as well as services performed in the Philippines. Excise
tax shall be in addition to the value-added tax imposed under Title IV of the
Tax Code, as amended.
NIRC - Goods and Services Subject
to Excise Taxes
VILLAR, ANGEL V.

6. Types of Excise Tax:
1. SPECIFIC TAX
refers to the excise tax imposed which is based on weight or
volume capacity or any other physical unit of measurement.
Computation:
VILLAR, ANGEL V.
Specific Tax = No. of Units or other measurements x Specific Tax Rate

7. Types of Excise Tax:
2. AD VALOREM TAX
refers to the excise tax which is based on selling price or
other specified value of the goods/articles.
Computation:
VILLAR, ANGEL V.
Ad Valorem Tax = No. of Units or other measurements x Selling Price of
any specific value per unit x Ad Valorem Tax Rate

8. PERSONS LIABLE TO EXCISE TAX
1. IN GENERAL:
a) On Domestic or Local Articles
• Manufacturer or Producer
• Owner or person having possession of articles removed from
the place of production without the payment of the tax
PARO, Allysa Mae F.

9. PERSONS LIABLE TO EXCISE TAX
1. IN GENERAL:
b) On Imported Articles
• Importer
• Owner
• Person who is found in possession of articles which are exempt
from excise taxes other than those legally entitled to exemption
PARO, Allysa Mae F.

10. PERSONS LIABLE TO EXCISE TAX
2. OTHERS:
On Indigenous petroleum, natural gas or liquefied natural gas
• Local Sale, Barter or Transfer
◊ First buyer, purchaser or transferee
Exportation
◊ Owner, lessee, concessionaire or operator of the mining claim
PARO, Allysa Mae F.

11. MAJOR CLASSIFICATION
OF EXCISABLE TAX

12. 1. Alcohol Products (Sections 141-
143 of the Tax Code, as amended)
-shall refer to fermented liquors,
proof spirits, wines, and/or spirits
or distilled spirits, as defined in
RR 7-2021.
Aliazas, Joan B.
Definition of Terms under RR Nos. 7-2021

13. Proof Spirits
shall refer to liquor containing one-half (1/2) of
its volume of alcohol of a specific gravity of
seven thousand nine hundred and thirty-nine
ten thousandths (0.7939) at fifteen degrees
centigrade. A proof liter means a liter of proof
spirits.
Aliazaz, Joan B.

14. Net Retail Price
shall mean the price at which alcohol products and tobacco products are
sold on retail in at least five (5) major supermarkets in Metro Manila,
excluding the amount intended to cover the applicable excise tax and the
value-added tax. For alcohol products and tobacco products which are
marketed outside Metro Manila, the "net retail price" shall mean the price
at which the alcohol products, tobacco products, heated tobacco
products, or vapor products are sold in at least five (5) major
supermarkets in the region excluding the amount intended to cover the
applicable excise tax and the value-added tax. This shall initially be
provided by the manufacturer or importer through a sworn statement and
shall be validated by the BIR through a biannual price survey under oath.
Aliazas, Joan B.

15. EXCISE TAXES ON
ALCOHOL PRODUCTS

16. 1. Distilled Spirits
Distilled Spirits shall refer to the substance known 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 or mixtures.
Reyes, Franchezca Anne E.

17. 1. Distilled Spirits
Reyes, Franchezca Anne E.

18. Ibe, Rhegine Blaize D.
WINES

19. shall refer to beer, larger beer, ale, porter and other fermented
liquors regardless if manufactured in factories or sold and
brewed at microbreweries or small establishments such as pubs
and restaurant, except tuba, basi, tupay and similar formented
liquors.
Pagkaliwangan, Kristene M.
FORMENTED LIQUORS

20. Pagkaliwangan, Kristene M.
FORMENTED LIQUORS

21. CHAPTER 10 - EXICE TAX
Revenue Regulations No. 14-2022, amending certain sections of Revenue Regulations No. 18 -2021 and 7-
2021
There shall be levied, assessed and collected an excise tax on Vaporized Nicotine and Non- Nicotine
Products at the rate of tax prescribed under RA Nos. 11346 and 11467, and Novel Tobacco Products under
Section 144 (A)(b) of the Tax Code, as implemented by RR No. 7-2021 as amended by RR 14-2022. The rates of
tax imposed herein shall apply to any substance in solid, liquid, or gel form, regardless of nicotine content,
including nicotine-free substance or any similar product.
Nicotine and Non-Nicotine Products

22. A. TOBACCO PRODUCTS, HEATED TOBACCO
PRODUCTS, VAPOR PRODUCTS, AND NOVEL TOBACCO
PRODUCTS
A. TOBACCO PRODUCTS, HEATED TOBACCO
PRODUCTS, VAPOR PRODUCTS, AND NOVEL TOBACCO
PRODUCTS
HEATED TOBACCO PRODUCTS (HTPS), also referred to as Heated Tobacco Products
(HTP) Consumables or Heat-Not-Bum Product Consumables shall refer to tobacco
products that are intended to be consumed through heating tobacco either
electronically or through other means, sufficient to release an aerosol that can be
inhaled, without combustion of the tobacco, HTP Consumables or Heat-Not-Bum
Product Consumables may also include liquid solutions and gels that are part of the
product and are heated to generate an aerosol. HTPs may or may not operate by

23. Nicotine and Non-nicotine Products
Vapor Products
also known as e-cigarettes or vapes, are devices that heat a liquid to create an inhalable aerosol.
This liquid, often called e-liquid or vape juice, can contain nicotine, flavorings, and other
chemicals, though there are also non-nicotine variants.
Delos Santos, Haishen C.

24. VAPORIZED NICOTINE OR NON-NICOTINE PRODUCTS shall refer to both Heated
Tobacco Products and Vapor Products, as defined herein, which are novel
consumer goods that generate a nicotine-containing or non-nicotine-containing
aerosol without combustion (RR 14-2022).
NICOTINE shall refer to nicotinic alkaloids, including any salt or complex of
nicotine, whether derived from tobacco or synthetically produced.
Conventional 'freebase' or 'classic' NicotineConventional 'freebase' or 'classic' Nicotine

25. Effectivity Quantity Excise Tax
Aug. 10, 2022
Per Kilogram
Php 2.50
Jan. 1, 2023 Php 2.60
2024 onwards
Rate shall be increased by 4% every year
effective Jan. 1, 2024
3. Novel Tobacco Products
refer to all non-combusted substances in solid or liquid form, and innovations, either
made partly of tobacco leaf as raw material or containing nicotine from tobacco.
Ahorro, Andrea Marie S.

26. B. INSPECTION FEES
RR 14-2022 provides that there shall be collected inspection fees on
Vaporized Nicotine and Non-Nicotine Products as prescribed under RA
Nos. 11346 and 11467 as implemented by RR No. 7-2021, and Novel
Tobacco Products under Section 146 of NIRC of 1997, as amended,
detailed as follows:

27. Floor Price is the minimum retail price set by
the BIR at which Vaporized Nicotine and Non-
Nicotine Products or Novel Tobacco Products
may be sold, taking into account the sum of
their excise tax, value-added tax, and a
reasonable production cost.
MINIMUM FLOOR PRICE = Total production
cost/expenses/landed cost of the cheapest
brand per tobacco product + excise tax + VAT
FLOOR PRICE
Presented by: CASTILLO, Erica Miles

28. 1. Name, address, TIN and assessment number of the manufacturer or importer.
2. Complete root name of the brand as well as the complete brand name with modifiers, if any;
3. Complete specifications of the brand detailing the specific measurements, weights, manner of packaging, etc.;
4. Name(s) of the region(s) where the brand is/are to be marketed;
5. Wholesale price per case, gross and net of VAT and excise tax;
MANUFACTURER'S OR IMPORTER'S OF SWORN
STATEMENT
INCLUDES;
Dela Cruz, Alicia Mae F.

29. 6. Suggested retail price, gross and net of VAT and excise tax, per pack, per pod, or per bottle/container, as the case
may be;
7. Detailed production/importation costs and all other expenses incurred or to be incurred until the product is finally
sold (e.g. material, labor, overhead, selling and administrative expenses) per case;
8. Applicable excise tax rates; and
9. Corresponding excise and value-added taxes per pack, per pod, or per bottle/container, as the case may be.
The manufacturer's or importer's sworn statement shall be submitted as a supporting document to the
prescribed application for the initial registration of Vaporized Nicotine and Non-Nicotine Products and Novel
Tobacco Products and thereafter submit an updated sworn statement on or before the end of the months of
June and December of the year. If there is any change in the cost to manufacture, produce and sell the brand
or change in the actual selling price of the brand, an updated sworn statement shall be submitted at least five
(5) days before the actual removal of the product from the place of production or release from the customs'
custody, as the case may be.
Catam, John Phol B.

30. Bond for the Succeeding Years of Operation
The bond for the succeeding years of
operation shall be based on the actual total
excise tax paid during the year immediately
preceding the current year. However, for
taxpayers availing of the tax prepayment,
advance deposit, or similar schemes, the
amount of bond shall be based on schedule
provided in RR 14-2022. How can i presentation
this in PowerPoint presentation
Initial Bond
In case of initial bond, the amount shall be
equal to One Hundred Thousand pesos
(P1,00,000.00). However, after six (6) months of
operation, if the amount of initial bond is less
than the amount of the total excise tax paid
during the said period, the amount of the bond
shall be adjusted to twice the tax actually paid
for the period.
MANUFACTURER'S AND IMPORTERS' SURETY BOND
- Manufacturers and importers of articles subject to excise tax shall pos a surely bond
subject to the following conditions:

31. PETROLEUM PRODUCTS
There shall be collected on refined and manufactured
mineral oils and motor fuels, the following excise taxes
which shall attach to the goods hereunder enumerated
as soon as they are in existence as such:
AUDIJE, ANGELO & DORADO, PIA
section 148 of the Tax Code, as amended by the TRAIN
Law, entitled, Manufactured Oils and Other Fuels,
provides:

32. PRODUCT TYPE
(a) Lubricating oils and greases, including but not limited to base stock for lube oils and greases,
high vacuum distillates, aromatic extracts and other similar preparations, and additives for
lubricating oils and greases, whether such additives are petroleum based or not, per liter and
kilogram respectively, of volume capacity or weight
Php8.00
Ph9.00 Php10.00
(a.1) Locally produced or imported oils previously taxed but are subsequently reprocessed, re-
refined or recycled, per liter and kilogram of volume capacity or weight.
(b)Processed gas, per liter of volume capacity
(c)Waxes and petrolatum, per kilogram
(d)Denatured alcohol to be used for motive power, per liter of volume capacity
(e)Asphalt, per kilogram
(f)Naphtha, regular gasoline, pyrolysis gasoline and other similar products of distillation, per liter of
volume capacity
Php7.00
PETROLEUM PRODUCTS
AUDIJE, ANGELO & DORADO, PIA
EFFECTIVITY
Jan. 1
2018
Jan. 1
2020
Jan. 1
2019

33. PRODUCT TYPE
(g) Unleaded premium gasoline, per liter of volume capacity Php7.00 Phg9.00 Php10.00
(h) Kerosene, per liter of volume capacity Php3.00 Php4.00 Php5.00
(i) Aviation turbo jet fuel, aviation gas, per liter of volume capacity
Php4.00 Php4.00 Php4.00
(j) Kerosene when used as aviation fuel, per liter of volume
capacity
(k) Diesel fuel oil, and on similar fuel oils having more or less the
same generating power, per liter of volume capacity
Php2.50 Php4.50 Php6.00
(I) Liquified petroleum gas used for motive power, per kilogram
EFFECTIVITY
Jan. 1
2018
Jan. 1
2020
Jan. 1
2019

34. PRODUCT TYPE
(m) Bunker fuel oil, and on similar oils having more or less the same generating
power, per liter of volume capacity
Php2.50 Php4.50 Php6.00
(n) Petroleum coke, per metric ton
(o) Liquified petroleum gas, per kilogram Php1.00 Php2.00 Php3.00
(p) Naphtha and pyrolysis gasoline, when 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, in lieu of lacally-extracted natural gas
during the non-availability thereof, per liter of volume capacity
Php0.00 Php0.00 Php0.00
(q) Liquified petroleum gas, when used as raw material in the production of
petrochemical peoducts, per kilogram
(r) Petroleum coke when used as feedstock to any power generating facility, per
metric ton
EFFECTIVITY
Jan. 1
2018
Jan. 1
2020
Jan. 1
2019

35. AFRICA, ADRIAN
BSAIS - 2A
Section 149 of the Tax Code, as amended by
the TRAIN Law provides: There shall be
levied, assessed and collected an ad
valorem tax on automobiles based on the
manufacturer's or importer's selling price,
net of excise and value-added taxes, in
accordance with the following schedule
effective January 1, 2018:
Automobiles

36. NET MANUFACTURER'S
PRICE/IMPORTER'S SELLING PRICE
TAX RATES (RA
10963 (TRAIN Law)
OVER UP TO RATE
0 Php 600,000
Php 600,000 Php 1,000,000
Php 1,100,000 Php 4,000,000
Php 4,000,000 OVER
4%
10%
20%
50%
AFRICA, ADRIAN BSAIS - 2A

37. Provided, That hybrid vehicles shall be subject to
fifty percent (50%) of the applicable excise tax
rates on automobiles under this Section: Provided,
further, That purely electric vehicles and pick-ups
shall be exempt from excise tax on automobiles.
AFRICA, ADRIAN BSAIS - 2A

38. I. Automobile shall mean any four (4) or more wheeled motor vehicle regardless of seating capacity, which is
propelled by gasoline, diesel, electricity or any other motive power: Provided, That for purposes of this Act, buses,
trucks, cargo vans, jeepneys/ jeepney substitutes, single cab chassis, and special-purpose vehicles shall not be
considered as automobiles.
II. Truck/cargo van shall mean a motor vehicle of any configuration that is exclusively designed for the carriage of
goods and with any number of wheels and axles: Provided, That pick-ups shall be considered as trucks.
III. Jeepney/jeepney substitutes shall mean as 'Philippine jeep or jeepney which are of the jitney type locally
designed and manufactured generally from surplus parts and components. It shall also 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.
IV. Bus shall mean a 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.
As used in this Section –

39. V. Single cab chassis shall mean a motor vehicle with complete engine power train and chassis equipped with a cab
that has a maximum of two (2) doors and only one (1) row of seats.
vi. Special purpose vehicle shall mean a motor vehicle designed for specific applications such as cement mixer, fire
truck, boom truck, ambulance and/or medical unit, and off-road vehicles for heavy industries and not for recreational
activities.
vii. Hybrid electric vehicle shall mean a motor vehicle powered by electric energy, with or without provision for off-
vehicle charging, in combination with gasoline, diesel or any other motive power: Provided, That, for purposes of this
Act, a hybrid electric vehicle must be able to propel itself from a stationary condition using solely electric motor
As used in this Section –

40. FF GOODS:
Non-Essential
Goods
There shall be levied, assessed and
collected a tax equivalent to twenty
percent (20%) based on the wholesale
price or the value of importation
A. All goods commonly and commercially
known as jewel
B. Perfumes and toilet waters
C. Yachts and other vessels intended for
pleasure or sports
Chavez, Jhan Markkho F.

41. Non-Essential
Service-
Invasive
Cosmetic
Procedure
There shall be levied, assessed and
collected a tax equivalent to five
percent (5%) based on the gross
receipts derived from the performance
of the services.
Mendoza, Christine Marie P.

42. PRODUCT
TAX RATE
Per Liter of Volume Capacity
Using purely caloric sweeteners, and purely non-caloric
sweeteners, or a mix of caloric and non-caloric sweeteners
Php6.00
Using purely high fructose corn syrup or in combination with
any caloric or non-caloric sweetener
Php12.00
Using purely coconut sap sugar and purely steviol glycosides Exempt
Borgoños, Loreane A.
SWEETENED BEVERAGES

43. PRODUCT TYPE TAX RATE (RA 10963-TRAIN LAW)
COAL AND COKE(DOMESTIC AND IMPORTED)
JANUARY 1, 2018- PHP50.00
JANUARY 1, 2019- PHP100.00
JANUARY 1, 2020- PHP150.00 AND ONWARDS
NONMETALLIC MINERALS AND QUARRY RESOURCES
(LOCALLY EXTRACTED OR PRODUCED)
FOUR PERCENT (4%)
NONMETALLIC MINERALS AND QUARRY RESOURCES
(IMPORTED)
FOUR PERCENT (4%)
LOCALLY-EXTRACTED NATURAL GAS AND LIQUEFIED NATURAL GAS EXEMPT
ALL METALIC MINERALS (LOCALLY EXTRACTED OR PRODUCED COPPER,
GOLD, CHROMITE AND OTHER METALIC MINERALS)
FOUR PERCENT (4%)
IMPORTED COPPER, GOLD, CHROMITE AND OTHER METALLIC MINERALS FOUR PERCENT (4%)
ON INDIGENOUS PETROLEUM SIX PERCENT (6%)
MINERALS AND MINERAL PRODUCTS
ATIENZA, RENZEL & DANIEL STEFHANIE

44. Administrative
Provisions
A. Filing of Return and
Payment of Excise Tax
on Domestic Products
(Sec. 130)

45. (1) Persons Liable to
File a Return
Every person liable to pay excise tax shall file a separate return for each place of
production setting forth, among others:
•Description and quantity or volume of products to be removed•
•The applicable tax base; and•
•The amount of tax due•

46. (1) Persons Liable to
File a Return
Provided, however, That in the case of indigenous petroleum, natural gas
or liquefied natural gas, the excise tax shall be paid by the first buyer,
purchaser or transferee for local sale, barter or transfer, while the excise
tax on exported products shall be paid by the owner, lessee,
concessionaire or operator of the mining claim. Should domestic
products be removed from the place of production without the payment
of the tax, the owner or person having possession thereof shall be liable
for the tax due thereon.

47. (2) Time for Filing of Return and Payment of the Tax
A. ADMINISTRATIVE PROVISIONS
a) IN GENERAL
The excise tax return shall be filed and paid by the manufacturer or
producer BEFORE removal of domestic products from place of
production, such as, locally manufactured Petroleum products and
indigenous Petroleum/levied under Sections 148 and 151(A)(4),
respectively, of the Tax Code, as amended.
ATIENZA, MA. THERESA L.

48. b) Nonmetallic mineral or mineral products or quarry
resources.
The excise tax return shall be filed and paid UPON REMOVAL of such
products from the locality where mined or extracted.
c) Locally produced or extracted metallic mineral or mineral
products.
The excise tax return shall be filed and paid WITHIN FIFTEEN (15)
DAYS after the end of the calendar quarter when such products
were removed.
ATIENZA, MA. THERESA L.

49. d) For imported mineral or mineral products, whether metallic
or nonmetallic.
The excise tax due shall paid BEFORE Their removal from customs
custody.
ATIENZA, MA. THERESA L.

50. (3) PLACE OF FILING OF RETURN AND PAYMENT OF
THE TAX
A. ADMINISTRATIVE PROVISIONS
Except as the Commissioner otherwise permits, the
return shall be filed with and the tax paid to any
authorized agent bank or Revenue Collection Officer, or
duly authorized City or Municipal Treasurer in the
Philippines.
BALMES, KC ANN L.

51. (3) PLACE OF FILING OF RETURN AND PAYMENT OF THE TAX
EXCEPTIONS:
The Secretary of Finance, upon recommendation of the Commissioner
may, by rules and regulations, prescribe:
(a) The time for filing the return at intervals for a particular class or
classes of taxpayers after considering factors such as volume of
removals, adequate measures of security and such other relevant
information required to be submitted under the pertinent provisions of
the Tax Code, as amended; and
(b) The manner and time of payment of excise taxes other than as herein
prescribed, under a tax prepayment, advance deposit or similar schemes.
BALMES, KC ANN L.

52. 1. Determination of Gross Selling Price of Goods
(GSP) Subject to Ad Valorem Tax (Section 130(B)]
B. OTHER ADMINISTRATIVE PROVISIONS
Unless otherwise provided, the price, excluding the value-
added tax, at which the goods are sold at wholesale in the place of
production or through their sales agents to the public shall
constitute the gross selling price.

53. (2) Manufacturer’s or producer’s
sworn statement [Sec. 130(C)]
Every manufacturer or producer of goods or products subject to excise
taxes 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, among other information, the different goods or products
manufactured or produced and their corresponding gross selling price
or market value, together with the cost of manufacture or production
plus expenses incurred or to be incurred until the goods or products are
finally sold.

54. (3) CREDIT FOR EXCISE TAX ON GOODS
ACTUALLY EXPORTED [SEC. 130(D)]
When goods locally produced or manufactured are removed and actually
exported without returning to the Philippines, whether so exported in
their original state or as ingredients or parts of any manufactured goods
or products, 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: Provided, That the excise
tax on mineral products, except coal and coke, imposed under Section
151 shall not be creditable or refundable even if the mineral products are
actually exported .

55. •Paid by owner/importer to Customs Officers as per
Department of Finance regulations.
•Must be paid before article release from customs or if found
in possession of non-exempt items.
Excise
Taxes on
Imported
Articles
Payment of Excise Taxes:
Rate and Basis:
Same rates and basis as locally manufactured articles unless
specified otherwise.
Tax-Free Articles Brought or Imported in the
Philippines (Sec. 131):
If sold, transferred, or exchanged to non-exempt persons/entities
in the Philippines, the new owners are liable for duty and internal
revenue tax.

56. Thank You!!!