Publishing Section 192(3)(pp) and (qq) of the National Internal Revenue Code, as Amended by Presidential Decree No. 1671 Dated January 28, 1980

February 22, 1980 REVENUE MEMORANDUM CIRCULAR NO. 10-80 SUBJECT : Publishing Section 192(3)(pp) and (qq) of the National Internal Revenue Code, as Amended by Presidential Decree No. 1671 Dated January 28, 1980 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is published hereunder Section 192(3) (pp) and (qq) of the National Internal Revenue Code, as amended by Presidential Decree No. 1671 dated January 28, 1980: "SEC. 192. Fixed taxes . xxx xxx xxx (3) Other fixed taxes . The following fixed taxes shall be collected as follows, the amount stated being for the whole year, when not otherwise specified: xxx xxx xxx (pp) Dealers of gasoline and/or petroleum products shall be subject to an annual fixed tax as follows: 1. Class "A" service stations P12,000 2. Class "B" service stations 6,000 3. Class "C" service stations 3,000 4. Filling stations 1,000 5. Curb pumps 500 For the above purposes, gasoline stations shall be defined as follows: A . Service Station petroleum products retail outlet with a building and driveway located on premises near or abutting a street or highway where gasoline, kerosene, diesel, lubricants and any of their derivatives including car care products may be dispensed and sold and car care services rendered to motorists and the general public. B. Filling Station petroleum retail outlet with building, driveway and pump island. Its business is generally confined to the sale of gasoline, kerosene diesel, lubricants and any of their derivatives. It includes marine outlets, whether mobile or stationary. C. Curb Pumps petroleum products retail outlet which generally has no separate building and driveway and offers no other services except to sell gasoline, kerosene, diesel, lubricants and any of their derivatives. Filling of the customer's vehicle or a purchaser's receptacle is done at the curb side of a road. LibLex Service stations are further classified into Class A, B and C with following general descriptions: Land Area Lube Pump Wash Rack (in sq. m.) Bays Island Hoist Class "A" 1501 or more 2 (minimum) 3(minimum)(minimum) Class "B" 1001-1500 2 (maximum) 2 (minimum) 1 Class "C" 1001 or less 1 (maximum) 1 (minimum) 1 (qq) Dealers of liquefied petroleum gas, six thousand pesos, if the annual sales during the preceding year exceeds 1,200,000 kilograms; four thousand pesos if the sales exceeds 900,000 kilograms but does not exceed 1,200,000 kilograms; two thousand pesos if the sales exceeds 600,000 kilograms but does not exceed 900,000 kilograms; one thousand pesos if the sales exceed 300,000 kilograms but does not exceed 600,000 kilograms; and five hundred pesos if the sales does not exceed 300,000 kilograms." FEATURES OF THE DECREE 1. Dealers of gasoline and/or petroleum product as well as dealers of liquefied petroleum gas shall no longer be subject to the graduated fixed tax prescribed under Section 192(2) of the Tax Code but instead are now liable to the rates prescribed under the new paragraphs (pp) and (qq) of Section 192(3) of the same Code. 2. The amount of fixed tax payable by dealers of gasoline and/or petroleum products depends on the classification of the service station, whether Class "A", "B" or "C", or whether filling station or curb pump. Moreover, the classification of service stations would also depend on the land area in square meters, lube bays, pump island and wash rack/hoist. 3. The fixed tax payable by the dealers of liquefied petroleum gas depends on the number of kilograms sold during the preceding year, provided that the minimum fixed tax is P500.00 if the sales do not exceed 300,000 kilograms. Consequently, the 1980 annual fixed tax payable by said dealers shall be based on the number of kilograms of liquefied petroleum gas they have sold in 1979. However, a person first engaging in business as a sealer of liquefied petroleum gas shall pay the annual fixed tax of P500.00. EFFECTIVITY Presidential Decree No. 1671 takes effect beginning the calendar year 1980. Consequently, dealers of gasoline, and/or petroleum products and liquefied petroleum gas shall be subject to the annual fixed tax for 1980 and thereafter as provided for in this Circular. If they have already paid the 1980 graduated annual fixed tax prescribed by Section 192(2) of the Tax Code, they are entitled to the refund of the difference between the amount paid and the fixed tax as provided for in the above quoted provisions upon compliance with the requirements of Section 295 of the same Code. However, dealers of gasoline and/or petroleum products and liquefied petroleum products who have not as yet paid any fixed tax for the year 1980 shall pay the tax as provided for in this Circular including 25% surcharge, interest and compromise penalty. prcd ENFORCEMENT All internal revenue officers and others concerned are enjoined to be guided accordingly and give this circular as wide a publicity as possible. (SGD.) EFREN I. PLANA Acting Commissioner