Amount, Period and Place of Payment of Quarry Rental

February 8, 1984 BIR RULING NO. 031-84 254-a-b-000-00-031-84 S i r : This refers to your letter dated October 4, 1983 wherein you posed the following queries: 1. How much is the quarry rental that shall be paid by a quarry permittee/licensee or the applicant therefor? 2. Shall payment be made yearly and every anniversary date thereof, thereafter or for the five-year period, to start from the grant thereof or prior thereto? and 3. To what office shall such payment of the quarry rental/s be remitted? You stated that you represent a group of applicants for quarry permit/license covering areas located for marbleized limestone in Norzagaray, Bulacan whose applications were duly filed with the government office concerned. In reply, I have the honor to inform you as follows: 1. Pursuant to Section 4 of Revenue Regulations No. 13-80 implementing Batas Pambansa Blg. 84, a lessee, owner or operator of the mine (quarry resources) shall pay the following: (a) An annual rental of P50.00 per hectare or fraction thereof for each and every year during the life of the lease; (b) A royalty tax of 3% of the actual market value of the gross output thereof at the time of removal; and (c) A percentage tax of 10% of the gross selling price of the quarry resources as provided in Section 199 (a) of the Tax Code. 2. Under Section 6 of the same Regulations, rentals, royalty taxes and percentage taxes shall be paid as follows: (a) R ental The rental shall be paid in advance on the date of the granting of the lease and on the same date every year thereafter during the life of the lease. (b) Royalties The royalty taxes shall be due and payable upon the removal of the minerals or mineral products or quarry resources from the locality where mined. (c) Percentage tax The percentage tax on the sale of mineral, mineral products and quarry resources shall be paid within twenty (20) days after the end of each quarter. adc 3. Pursuant to Section 6 of the same Regulations, the taxes (rentals, royalties and percentage tax) herein imposed shall be paid to the revenue district officer, collection agent or the treasurer of the city or municipality of the place where the mine is located where no collection agent is assigned or, in the case of royalty tax payments, where the head office is located, and shall be paid upon filing of the required returns. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner