Professional Documents
Culture Documents
Automobiles
Automobiles:
Total landed value includes:
(i) Total of the market value of the vehicles imported as indicated in the motor
vehicle reference books, or the dutiable value, whichever is higher
(ii) Customs duties paid on the imported goods, and
(iii) all other charges arising from importation
Completely knocked down (CKD): imports in disassembled condition
Semi knocked down (SKD): imports in partially disassembled condition
Completely build up (CBU): imports that are completely assembled
Imposition of tax
Persons liable in the payment of ad valorem tax:
a) On locally manufactured/assembled automobiles
a. Must be paid by the manufacturer/assembler before removal of goods
from place of production/assembly
b. If removed without payment, the owner/dealer shall be liable for
payment of excise tax
c. In case of transfer from tax-exempt to non-tax exempt, the possessor or
transferee shall be liable
b) On imported automobiles
a. Excise tax shall be paid by the owner/importer
b. If the article is imported tax free and subsequently sold to non-tax
exempt persons, the possessor, buyer or transferee shall be liable for the
excise tax as if he was the importer
If a locally manufactured motor vehicle previously classified as jeepney, bus, etc. is
converted any time after its removal to a vehicle subject to ad valorem tax, the
owner/possessor shall be liable for excise tax based on acquisition price plus cost of
conversion, and shall be subject to penalties.
Rates and bases of ad valorem tax on automobiles
- Must be based on manufacturer’s/assembler’s/importer’s selling price, net of
excise tax and VAT
OLD RATES
NEW RATES
Manufacturer’s selling price: the net manufacturer’s selling price shall refer to the
price net of excise taxes and VAT, as sold to dealers, or the price in their sales
invoices/receipts, whichever is higher
a) The price shall include the value of air conditioner, radio, and mag wheels, and
cost of installation, even if these were not installed
b) The manufacturer’s selling price shall not be less than:
a. 80% x (SRP – excise taxes – VAT)
b. Cost to manufacture plus 10% industry profit margin and other
expenses incurred
c. Actual selling price when sold to the market
If imported automobiles are not held for sale, the excise taxes shall be based on the
total landed value.
But if the same importer imports another automobile within the 12 month period, this
shall be not be treated as importation not for sale.
Subsequent sale by a tax-exempt entity to non-tax exempt entity:
- shall be subject to ad valorem tax based on the higher of: (i) actual
consideration for the sale; or (ii) the depreciated value at the time of sale,
subject to depreciation rate of 10%, but in no case shall total depreciation be
more than 50% of the total cost or value
Exempted from excise taxes:
2. On imported automobiles
a. All importation shall not be released without payment of ad valorem tax
and presentation to the Collector of Customs of the original copy of the
Authority to Release Imported Goods
Alcohol and Tobacco Products
Net Retail Price: price at which the alcohol and tobacco products are sold on retail in
at least 5 major supermarkets in Metro Manila, excluding excise tax and value added
tax
Suggested Net Retail Price: refers to the net retail price at which locally manufactured
or imported tobacco and alcohol is intended to be sold by the manufacturer or
importer
- SNRP should not be understated by 15% or more of the actual NRP, otherwise
the manufacturer or importer shall be liable to deficiency excise tax
If a cask has one liter and an additional fractional part of a proof liter greater than or
equal to half a liter, this portion shall be taxed as a liter. Any package containing less
than a liter shall be taxed as a liter.
Petroleum Products
Creditable excise taxes when used on manufacturing excisable articles:
1. Purchased feedstock (bunker)
Zero-rate excise taxes:
A. Naphtha: applicable when used as a raw material or replacement fuel
B. Kerosene
C. Diesel fuel or oil
D. LPG: not used for motive power
E. Bunker fuel or oil
Exempt from excise taxes
a) International carriers of Philippine or foreign registry
b) Exempt entities or agencies covered by tax treaties
c) Entities exempt by law on direct and indirect taxes
d) Liquefied petroleum gas not used for motor or vehicle fuel
e) Purchases of gasoline by AFP
f) Gasoline lost through evaporation while stored in bonded warehouse
g) Aviation gasoline and oils used in international flights
h) Imported gasoline and oils in bonded warehouses which can be removed and
loaded into the tanks of airplanes of foreign airlines