Amending Revenue Memorandum Circular No. 103-78 Implementing LOI 663

January 16, 1979 REVENUE MEMORANDUM CIRCULAR NO. 04-79 SUBJECT : Amending Revenue Memorandum Circular No. 1 03-7 8 Implementing LOI 6 6 3 TO : All Internal Revenue Officers and others concerned Upon representations made by the Federation of Petroleum Dealers of the Philippines and as clarified by the Bureau of Energy Utilization, the subsidy granted under LOI No. 663, is not limited to the sales of gasoline and liquefied petroleum gas (LPG) but also to sales of diesel fuel and kerosene by service stations, filling stations, and curb pumps registered and licensed by the Bureau of Energy Utilization to retail gasoline, diesel and kerosene. Considering that in most cases the sales of diesel fuel and kerosene is almost equal to and at times even exceed the sale of gasoline, and in order that the benefits of the subsidy can extend to the said petroleum outlets without any limitation other than that specifically mentioned herein, the following amendments to Revenue Memorandum Circular No. 103-78, which were conceived in consultation with authorities from the Bureau of Energy Utilization, are hereby promulgated. 1. The gasoline dealers mentioned in LOI No. 663 and Revenue Memorandum Circular No. 103-78, refer to curb pumps, filling stations and service stations duly registered and licensed by the Bureau of Energy Utilization to retail gasoline, diesel fuel, and kerosene. 2. For purposes of this Circular, curb pumps, filling stations and service stations are defined as follows: cdt a. Curb Pump That type of petroleum products retail outlet which generally has no separate building and driveway and offers no other service except to sell gasoline, kerosene and diesel fuel. Filling of customer's vehicle or a purchaser's receptacle is done at the curb side of the road. b. Filling Station That type of petroleum products retail outlet with a building and driveway and pump island. Its business is generally confined to the sale of gasoline, kerosene and diesel fuel. c. Service Station That type of petroleum products retail outlet with a building and driveway located on premises near or abutting a street or highway where gasoline, kerosene and diesel fuel are sold to motorists and the general public. cdt 3. The subsidy granted to operators or proprietors of curb pumps, filling stations and service stations shall cover only the sales of gasoline, diesel fuel and kerosene; hence, the operators or proprietors of these establishments should segregate their sales of gasoline, diesel fuel and kerosene from their sales of other articles and of services. In the case of liquefied petroleum gas dealers, the subsidy applies only to their sales of liquefied petroleum gas; hence, these dealers should also segregate their sales of liquefied petroleum gas from their sales of other articles. Failure on the part of operators or proprietors of curb pumps, filling stations and service stations as well as of dealers in liquefied petroleum gas to segregate their sales in the manner specified above will not entitle them to the subsidy. Accordingly, in preparing BIR Form 2528 [Business (Fixed) Tax Return] for 1979, on the basis of 1978 sales, these taxpayers should be guided by the following computations: a. For operators or proprietors of curb pumps, filling stations and service stations: Gross sales from gasoline, diesel fuel and kerosene (receipts from car service and sale of other articles excluded) P3,000,000.00 Add: Gross sales from other articles 1,000,000.00 Total Gross Sales P4,000,000.00 ============ Graduated Fixed Tax Due on P4,000,000.00 under the rates prescribed in P. D. 11 58-A as amended by P. D. 14 57 14,000.00 Deduct: Amount of Subsidy Gross sales from gasoline, diesel fuel and kerosene. P3,000,000 ======== Graduated Fixed Tax per P. D. 11 58-A as amended by P. D. 14 57 P11,000.00 Deduct: Graduated Fixed Tax per P.D. 69 6,600.00 Amount of Subsidy 4,400.00 Amount Payable to the B.I.R. P9,600.00 ======== b. For liquefied petroleum gas dealers: Gross sales from liquefied petroleum gas P1,500,000.00 Add: Gross sales from other articles 800,000.00 Total Gross Sales P2,300,000.00 =========== Graduated Fixed Tax Due on P2,300,000.00 under the rates prescribed in P. D. 11 58-A as amended by P. D. 14 57 9,000.00 Deduct: Amount of Subsidy Gross Sales of LPG P1,500,000.00 ========== Graduated Fixed Tax per P. D. 11 58-A as amended by P. D. 14 57 5,000.00 Graduated Fixed Tax per P.D. 69 2,625.00 Amount of Subsidy 2,375.00 Amount Payable to the B.I.R. P6,625.00 ======= 4. The Regional Directors shall submit to the Commissioner of Internal Revenue, through the Accounting Division, not later than March 31, 1979, a tabulated report containing the following data pertaining to the year 1978: a. In the case of operators or proprietors of curb pumps, filling stations and service stations: (1) Name, TAN and address of operator or proprietor; (2) Total gross sales (receipts from car service excluded); (3) Gross sales from gasoline, diesel fuel and kerosene; (4) Gross sales from other articles; (5) Graduated fixed tax due on total gross sales per P.D. 1158-A as amended by P.D. 1457; (6) Graduated fixed tax due on sales of gasoline, diesel fuel and kerosene per P.D. 1158-A as amended by P.D. 1457; (7) Graduated fixed tax due on sales of gasoline, diesel fuel and kerosene per P.D. 69; (8) Amount of subsidy; (9) Amount paid to the BIR; (10) RTR of ROR No. and Confirmation Receipt No.; (11) Date of payment; and (12) Name and address of bank where payment was made. b. In the case of liquefied petroleum gas dealers, the tabulated report shall contain all the data enumerated above except that the data on sales and graduated fixed tax shall pertain to sales of liquefied petroleum gas and the graduated fixed tax due thereon. 5. Any provision of Revenue Memorandum Circular No. 103-78 which is consistent with this Circular is deemed repealed and/or amended accordingly. All internal revenue officers and others concerned are hereby enjoined to be guided accordingly and to give this Circular as wide a publicity as possible. cdt CONRADO P. DIAZ Acting Commissioner of Internal Revenue TAN-D2567-D1025-A-2