Implementing Presidential Decree No. 1671 which Amended Section 192(3) of the National Internal Revenue Code of 1977, as Amended

September 1, 1980 REVENUE REGULATIONS NO. 08-80 SUBJECT : Implementing Presidential Decree No. 1671 which Amended Section 192(3) of the National Internal Revenue Code of 1977, as Amended TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 326 in relation to Section 4 of the National Internal Revenue Code of 1977, as amended, these Regulations are hereby promulgated to implement Presidential Decree No. 1671 which amended Section 192(3) of the same Code by providing a separate annual fixed tax on dealers of gasoline and liquified petroleum gas. SECTION 1 . Definitions of Terms . For purposes of these Regulations, the following terms are 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) Filing 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 stationery. aisa dc (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. Filing of the customer's vehicle or a purchaser's receptacle is done at the curb side of a road. SECTION 2 . Classification of Service Stations . Service stations are classified into Class A, B and C according to general description, to wit: Land Area Lube Pump Wash Rank/ (in sq. m.) Bays Island Hoist Class "A" 1501 or more 2(maximum) 3(minimum) (minimum) Class "B" 1001-1500 2(maximum) 2(minimum) 1 Class "C" 1000 or less 1(maximum) 1(minimum) 1 SECTION 3 . Amount of fixed tax . (a) Dealers of gasoline and/or petroleum products shall be subject to an annual fixed tax as follows: 1. Class "A" service stations P12,000.00 2. Class "B" service stations P6,000.00 3. Class "C" service stations 3,000.00 4. Filing Stations 1,000.00 5. Curb pumps 500.00 The annual fixed tax payable by the person first beginning in business subject to the above tax shall be equivalent to that prescribed for the class to which his gasoline station belongs. (b) Dealers of liquified petroleum gas shall be subject to a graduated annual fixed tax as follows: casia Not exceeding 300,000 P 500.00 Over 300,000 but not exceeding 600,000 1,000.00 Over 600,000 but not exceeding 900,000 2,000.00 Over 900,000 but not exceeding 1,200.00 4,000.00 Over 1,200,000 6,000.00 The graduated fixed tax payable by a person first engaging in business subject to the above tax shall be five hundred pesos. SECTION 4 . Proof of classification and payment of tax : (a) Dealers of gasoline and/or petroleum products beginning with the calendar year 1981, shall secure from the Bureau of Energy Utilization, a certificate of classification whether a service station, filling station or curb pump. If they fall under the category of a service station the certificate shall further show whether the dealer belongs to Class A, B or C. The certificate of classification issued by the Bureau of Energy Utilization shall be presented to the Collection Agent of the municipality or city where the gasoline station referred to in said certificate is located. A xerox copy of the certificate shall be furnished the Collection Agent who shall keep the same in his file for future reference. The Collection Agent shall collect the annual fixed tax due from the gasoline dealer on the basis of the information contained in the certificate presented to him. In no case shall a Collection Agent reclassify a gasoline dealer from a higher to a lower class and/or accept payment in an amount less than that collected during the preceding year unless the dealer presents to him a new certificate issued by the Bureau of Energy Utilization reclassifying such dealer and revoking the certificate previously issued to him . cd (b) Dealers of liquified petroleum gas shall pay the graduated annual fixed tax in the same manner as any ordinary dealer not subject to percentage tax. SECTION 5 . Segregation of Sales or Gross Receipts . Proprietors or operators of service stations, filling stations or curb pumps selling in their establishments articles other than gasoline and other petroleum products, and/or rendering services for a fee such as car washing, greasing, motor tuning, and other car care services, shall segregate their sales of articles and their gross receipt from service from their sales of gasoline and other petroleum products. The sale of articles other than gasoline and other petroleum products shall be subject to the graduated annual fixed tax under Section 192(2), while the gross receipts from service shall be subject to the percentage tax prescribed under Section 205, both of the Tax Code, as amended. SECTION 6 . Repealing Clause . All existing rules and regulations or part thereof which are inconsistent with the provisions of these Regulations are hereby revoked. acd SECTION 7 . Effectivity . These regulations shall take effect beginning the calendar year 1980. (SGD.) ALFREDO PIO DE RODA, JR. Acting Minister of Finance Recommended by: (SGD.) RUBEN B. ANCHETA Acting Commissioner