BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jul 12, 1976
Full text
July 12, 1976 2% Ad Valorem Tax on Output of Mineral Lands In reply to your letter dated June 9, 1976, I have the honor to inform you that the 2% ad valorem tax on output of mineral lands prescribed by Section 243 of the Tax Code is imposed on the actual market value of the annual gross output of the mineral or mineral products extracted or produced from all mineral lands not covered by lease. The term "gross output" has been interpreted to mean as the actual market value of mineral or mineral products, or of bullion from each mine or mineral lands operated as a separate entity without any deduction from mining, milling, refining, transporting, handling, marketing, or any other expenses, as provided by Section 246 of the same Code. Accordingly, our Collection Agent of Infanta, Pangasinan correctly based the 2% ad valorem tax payable by you on the gross value of your white clay at the point of delivery or to your customer's bodega without any deduction with respect to trucking fees. cdta
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.