Implementing PD 1928 Imposing a Special Excise Tax on Foreign Exchange Sold by the Central Bank of the Philippines and Its Agents

June 27, 1984 REVENUE REGULATIONS NO. 07-84 SUBJECT : I mplementing PD 192 8 Imposing a Special Excise Tax on Foreign Exchange Sold by the Central Bank of the Philippines and Its Agents TO : All Internal Revenue Officers, Central Bank of the Philippines and Its Agents and Others Concerned SECTION 1 . Scope . These regulations are promulgated to implement PD 1928 which imposes a special excise tax on foreign exchange sold by Central Bank of the Philippines and its agents, which tax is deemed an internal revenue tax. SECTION 2 . Rate and tax base . The special excise tax shall be ten (10%) percent of the peso value of the foreign exchange sold. Peso value does not include bank charges, documentary stamps, all similar charges incident to sale and the ten (10%) percent special excise tax. Remittance of foreign exchange to the Philippines are not subject to the tax. cdt SECTION 3 . Persons liable for the tax . Any person, natural or juridical, purchasing foreign exchange, except those who purchase foreign exchange for the transactions enumerated in Section 4 hereof, shall be liable for the special excise tax. SECTION 4 . Exceptions . The Special Excise Tax shall not be levied, assessed or collected on the following sales of foreign exchange: aisa dc a. for payment of imports to the Philippines; b. by the Central Bank of the Philippines to banking institutions or interbank trading; c. as a consequence of forward contracts consummated prior to June 6, 1984; d. for capital transactions such as repatriation of capital and repayment of the principal of foreign loans but not including interests portion; e. to departing tourists or other temporary visitors to the Philippines, covering the unspent pesos converted from foreign exchange at the time of their arrival; f. conversion of the face value of foreign exchange denominated securities. SECTION 5 . Collection and remittance of the tax . The Central Bank and its agents authorized to sell foreign exchange are constituted agents of the Bureau of Internal Revenue in the assessment and collection of the special excise tax. As such, they shall assess and collect said tax upon consummation of every sale of foreign exchange subject to tax under Section 2 hereof. They shall declare daily in BIR Form 3302 all its taxable transactions on its sale of foreign exchange. The return shall be filed with the Collection Agent, or Revenue District Officer of the city or municipality where the office of the authorized seller is located on the next working day after the day the transactions were consummated. The tax shall be remitted simultaneously with the filing of the return thru an accredited bank in accordance with the provisions of Revenue Regulations 5-84. The monies collected under PD 1928 as implemented by these regulations shall accrue to the General Fund in the National Treasury. aisa dc In no case shall the Central Bank and its agents sell any foreign exchange subject to tax without first assessing and collecting the special excise tax. SECTION 6 . Consolidation of returns . The Central Bank and/or the head office of its authorized agents assessing and collecting the special excise tax shall accomplish BIR Form 3303 consolidating the Special Excise Tax Returns filed by all its branches and offices during the month and file the same not later than the fifteenth day of the next succeeding month at the Banks, Financing and Insurance Division of the BIR National Office. SECTION 7 . Penalties . Any person violating any of the provisions of PD 1928 and the regulations and other issuances promulgated thereto, shall, upon conviction, be fined in an amount not less ten thousand pesos nor more than fifty thousand pesos and imprisoned for a period not less than six (6) months nor more than five (5) years. If the offender is a corporation, association or partnership, the penalty shall be imposed upon the president, directors, managing partners, as the case may be, and the persons charged with the administration thereof. SECTION 8 . Repealing Clause . Any provision of any issuance which is inconsistent herewith is hereby revoked. SECTION 9 . Transitory Provisions . Special excise taxes collected from June 6, 1984 up to the date of approval of these regulations but have not yet been remitted may be remitted without penalties on or before July 10, 1984. Likewise, Special Excise Tax Returns required to be filed for the same period may be filed without penalties on or before July 10, 1984. SECTION 10 . Effectivity . These regulations shall take effect upon approval and shall continue in effect until December 31, 1985. cdt (SGD.) CESAR E.A. VIRATA Minister of Finance Recommended by: (SGD.) RUBEN B. ANCHETA Acting Commissioner BIR FORM NO. 3303 REPUBLIKA NG PILIPINAS (June 1984) MINISTRI NG PANANALAPI KAWANIHAN NG RENTAS INTERNAS FOR THE MONTH OF: MONTHLY RETURN ON DOCUMENT ____________,19____ SPECIAL EXCISE TAX LOCATOR NO. ______ COLLECTED NAME OF SELLER _____________________________ _______________________________ TAXPAYERS ACCOUNT NUMBER ADDRESS: __________________________ _______________________________ DATE OF INCORPORATIONS: 10% SPECIAL NAME OF BRANCH(ES) ADDRESS PESO VALUE EXCISE TAX __________________ _____________ ___________ ___________ __________________ _____________ ___________ ___________ TOTAL P__________ P__________ __________________ I DECLARE UNDER PENALTIES OF PERJURY THAT THIS STAMP OF RETURN HAS BEEN MADE IN GOOD FAITH, VERIFIED BY ME BIR RECEIVING AND TO THE BEST OF MY KNOWLEDGE AND BELIEF IS TRUE OFFICE AND AND CORRECT PURSUANT TO THE PROVISIONS OF THE DATE OF NATIONAL INTERNAL REVENUE CODE OF 1977, AS AMENDED, RECEIPT AND THE REGULATIONS ISSUED UNDER AUTHORITY THEREOF. __________________ ________________________ ________________________ _______________________ SIGNATURE OVER TAXPAYER ACCOUNT POSITION/TITLE PRINTED NAME NUMBER RES. CERTIFICATE NO. PLACE OF ISSUE: DATE ISSUE: AMOUNT PAID ________________________________ DETAIL OF ____________ P_____________ PAYMENT (TO BE FILL-UP BY BIR COLLECTION AGENT) O. R. NO. CR NO. ROR NO. DATE PAID: MO AMOUNT PAID: WHERE PAID: ________ ________ _________ ___________ _________________ _______