BIR Revenue Memorandum Circular No. 40-2020
REVENUE MEMORANDUM CIRCULAR NO. 40-2020 issued on April 8, 2020 publishes the full text of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11256 (An Act to Strengthen the Country’s Gross International Reserves, amending for the Purpose Sections 32 and 151 of the National Internal Revenue Code, as Amended, and for Other Purposes). Based on the IRR, transactions specified hereunder are exempt from taxes, as follows:
a) Income derived from the following sale of gold are excluded in the gross income and shall be exempt from Income Tax and consequently from Withholding Taxes:
i. The sale of gold to the Bangko Sentral ng Pilipinas (BSP) by registered Small-Scale Miners (SSMs) and accredited traders; and
ii. The sale of gold by registered SSMs to accredited traders for eventual sale to the BSP. b) Excise Tax shall not be levied, assessed and collected on the following:
i. The sale of gold to the BSP by registered SSMs and accredited traders; and
ii. The sale of gold by registered SSMs to accredited traders for eventual sale to the BSP. b) Excise Tax shall not be levied, assessed and collected on the following:
i. The sale of gold to the BSP by registered SSMs and accredited traders; and
ii. The sale of gold by registered SSMs to accredited traders for eventual sale to the BSP. If an Excise Tax has been otherwise paid prior to the sale of gold to the BSP, the taxpayer may file a claim for refund or credit with the Commissioner of Internal Revenue for the Excise Tax paid.
The Bureau of Internal Revenue (BIR) shall issue a Taxpayer Identification Number to SSMs and traders to serve as a tag for the Income and Excise Tax exemption of their sale or eventual sale of gold to BSP. The details of the sales transactions from registered SSMs and accredited traders shall be reported by the BSP on a monthly basis to the BIR.
For purposes of applying the tax exemptions and non -withholding/collection of taxes under RA No. 11256, no further proof shall be required by the BSP from registered SSMs or accredited traders other than the documents mentioned under Sections 9 and 12 of the IRR. In the event that the tax exemption is found by the BIR as not applicable to a BSP transaction with a person or entity purporting to be a registered SSM and/or accredited trader, such person or entity shall be primarily and solely liable for any deficiency taxes that may be assessed by the BIR.
