BIR and MGB sign MOA

The BIR and the Mines and Geosciences Bureau (MGB) entered into an agreement that establishes the policies on the exchange of information between the two agencies. The following are some of the highlights of the agreement:

1. The MGB shall require all mining applicants, contractors, permittees and operators to indicate their respective BIR-validated taxpayer identification number (TIN) in all statistical report forms and mining applications, including application for area clearance required to be submitted under existing rules and regulations. The BIR shall validate the TIN supplied by contractors, permittees, and operators to the MGB.

2. The MGB shall require mining contractors, permittees and operators to present the following:

(a) copy of proof of payment of excise tax on minerals, mineral products and quarry resources duly authenticated by the BIR;

(b) income tax returns and business tax returns (excise tax, VAT and percentage tax for non-VAT contractors) for the operating year(s) immediately preceding the application for permits;

(c) Certificate of BIR registration; and

(d) tax clearance certificate and certificate of “No Delinquent Accounts or Outstanding Liabilities” duly issued by the BIR or written request for such certificates if not issued with 15 working days from actual receipt of request.

The BIR shall process and issue within 15 days upon request the tax clearance certificate and certificate of “No Delinquent Account or Outstanding Tax Liabilities,” which will serve as the MGB’s basis in processing applications or renewals of mining permits and contracts.

3. The MGB shall provide the BIR with the annual list of large-scale metallic mining contractors, permittees and operators in each project with the corresponding volume and value of their gross output within 90 days after the end of each year to serve as basis in the validation of payment for excise tax on minerals. Upon request, the BIR shall certify the proof of payment of excise and other taxes for submission to the MGB.

4. A directory of mines and quarries containing list of mining contractors, permittees or operators of mining projects in the Philippines as of December 31 of the reporting year shall be submitted by the MGB not later than every end of December immediately after the preceding reporting year. The list shall be used by the BIR as a guide in identifying the taxpayers liable to pay excise tax.

Revenue Memorandum Circular No. 28-2012, June 21, 2012

Tax Brief – July 2012

Punongbayan and Araullo