Amending certain sections of Revenue Regulations No. 7 80, implementing surtax on extraordinary gains under Presidential Decree No. 1709

July 1, 1981 REVENUE REGULATIONS NO. 14-81 SUBJECT : Amending Certain Sections of Revenue Regulations No. 7-8 0, Implementing Surtax on Extraordinary Gains under Presidential Decree No. 17 09 TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Subparagraph (v) of Section 4 of Revenue Regulations No. 7-80, is hereby amended to read as follows: "(v) To ensure consistency and accuracy in the computation of the extraordinary gains which will be the base for the computation of the surtax, the Bureau of Internal Revenue in coordination with the Bureau of Energy Utilization shall prepare and furnish the oil companies with "Basis and Method of Inventory Gain Computation", applicable to each price increase" SECTION 2 . Paragraph (a) of Section 6 of the said Revenue Regulations, is hereby amended to read as follows: "(a) Every person liable to pay the surtax imposed by Presidential Decree No. 1709, shall file the prescribed tax return (Petroleum Surtax Return) and pay the corresponding surtax due thereon within thirty (30) days from the date the price increases are authorized. With regard to the price increases authorized last March 22, 1981, the oil companies shall file the prescribed tax return and pay the surtax due thereon within thirty (30) days from the effectivity date of these Regulations." SECTION 3 . Section 7 of the said Revenue Regulations is hereby amended to read as follows: "Sec. 7. Programs of Investment of Balance of Gains . Pursuant to Section 5 of Presidential Decree No. 1709, each oil company shall, within a period of six (6) months from the date price increases are authorized, submit to the Minister of Finance and the Minister of Energy its own program for the investment of the balance of the extraordinary gain. The investments must be in the nature of oil refining, storage, transportation and/or pollution control facilities; such as process equipment, storage tanks, process instrumentation and control, pipeline, refinery utilities equipment, tankers, barges, tank trucks, oil receiving and handling equipment and facilities, and electronic computers. The program should plan to complete the facilities within a period of five years." SECTION 4 . Section 11 of the said Revenue Regulations is hereby amended to read as follows: "Sec. 11. Effectivity and Applicability . The surtax imposed by the Decree shall apply to extraordinary gains deemed realized by oil companies as a result of the authorized price increases beginning August 1, 1979 and on every subsequent price increase thereafter." SECTION 5 . This amendatory Revenue Regulations shall take effect immediately. CESAR VIRATA Minister of Finance Recommended by: RUBEN B. ANCHETA Acting Commissioner ANNEX A May 29, 1981 The Acting Minister Ministry of Finance S i r : I am forwarding to you herewith for your approval the following proposed Revenue Regulations: 1. Revenue Regulations on the extension for the filing of statement of assets, liabilities and networth . The filing of statement of assets, liabilities and networth has been extended by Executive Order No. 695, dated May 27, 1981 from May 31, 1981 to August 31, 1981. 2. Revenue Regulations extending the date for the filing of the amnesty tax returns from May 31, 1981 to August 31, 1981 . The filing of the amnesty tax returns has been extended by Executive Order No. 695, dated May 27, 1981. A new section known as Section 7-A, was added pursuant to the presidential directive dated May 18, 1981, wherein the Commissioner of Internal Revenue or his duly authorized representative is prohibited from conducting an investigation on amnesty tax returns filed under Presidential Decree No. 1740. 3. Revenue Regulations on the substantiation requirements in determining the capital gains on stock transactions . Pursuant to Letter of Instructions No. 1133 dated May 21, 1981, for purposes of determining the capital gains on stock transactions, only the following must be inquired into: a. the selling price; b. acquisition cost; and c. allowable deductible expenses. In no case shall the inquiry be made as to the sourcing of funds used in the acquisition of stock. Very truly yours, R. B. ANCHETA ANNEX B The Commissioner of Internal Revenue Diliman, Quezon City Attention: INVESTMENT INCENTIVES DIVISION S i r : We are applying for tax credit under Section 202 of the National Internal Revenue Code of 1977 in the amount of P ______________. This application covers the taxes paid on raw materials/supplies used in the production of ________________________________________________ ___________________________________________________________ directly exported during the period _______________________________. This is our ____________________ application for the year. (1st, 2nd, etc.) Pertinent data in connection with this application are as follows: [ ] 1. We are not registered with the Board of Investments or other government agency. [ ] 2. We have not claimed any internal revenue tax credit for this exportation from the Board of Investments or other government agency. [ ] 3. We have not claimed any tax credit in our quarterly percentage tax returns corresponding to the exports covered by this application. [ ] 4. We are registered with the Board of Investments, but the product exported is not the registered product. Details of our registration are as follows: Registration No. : ____________________ Date of Registration : ____________________ Registered product : ____________________ Nature of Registration : ____________________ Tax Account Number : ____________________ Other data covered by the application are as follows: a) EXPORT DATA Product Exported Quantity FOB Value Destination b) RAW MATERIALS/PURCHASE/CONSUMPTION DATA 1. Purchase RAW MATERIAL QUANTITY COST TAX ANNEX C TABLE II TABLE OF TAXES MATERIALS L O C A L Date Invoice No. 1 Volume Value Sales Taxes I M P O R T E D Date of 2 Import Importation O.R. Number 3 Entry Number Volume Value per Import Entry Taxes 1. Purchase receipt invoice number 2. Indicate date of official receipt 3. Number of official receipt issued by the Bureau of Customs or Central Bank in the payment of taxes and duties. Indicate whether it is (CB) for Central Bank, (BC) for Bureau of Customs, or others. ANNEX D ANNEX E TABLE IV STANDARD RAW MATERIAL USAGES Export Product: _______________ Period:_________________ QUANTITY PER PESO COST PER USED PER MATERIALS UNIT OF MEASURE UNIT OF PRODUCTS RAW MATERIALS UNIT OF PROD. A. LOCALLY PURCHASED B. IMPORTED PURCHASE NOTE: If the above table cannot be applied, a standard formula of the quantity usage of each raw material and supply that form part of the export product for which tax credits are being claimed. ANNEX G C E R T I F I C A T I O N This is to certify that the contents of this application are true and correct to the best of my knowledge and belief. This is to certify further that xerox copies are true copies of original documents and that ____________________ has not and will not avail with other government agencies special internal revenue credits for exports covered by this application. ____________________ Signature Republic of the Philippines) ____________________) S.S. ____________________) SUBSCRIBED AND SWORN to before me this ______ day of ________ 19__, in the city/province of ________________. Affiant exhibited to me his Residence Certificate No. ________ issued at _______________, on ________________. ____________________ NOTARY PUBLIC Until __________________ PTR. No. ______________ Issued on ______________ Issued at _______________ Doc. No. ____________ Page No. ____________ Book No. ____________ Series of ____________ NOTE: This certification should be signed by either the President, General Manager, Proprietor or Chief Accountant of the registered firm. ANNEX H LIST OF REQUIRED SUPPORTING DOCUMENTS 1. A standard formula of the quantity usage of each raw material and supply that go into the exported product for which tax credits are being claimed. 2. Export documents: a. Credit memo from the bank to evidence remittance of export earnings b. Bill of Lading c. Export sales invoice of the firm 3. Import documents of the imported raw materials: a. Purchase invoice of the imported raw materials b. Import entry and internal revenue declaration c. CB/BC official receipt 4. Documents for locally purchased materials: a. Purchase invoices amount of tax passed to the firm by the manufacturer must be indicated as a separate item in the invoice. 5. Duly accomplished Table I, II, III, IV and V to accompany the form. 6. Certification that the contents of the application are true and correct. 7. ORIGINAL IMPORT DOCUMENTS covering the different imported raw materials. NOTE: These documents will be returned after the necessary verification is made. ANNEX I FORMULA : Consumption Ratio = Total R/M Used Quantity Purchased Total R.M. Used = Export Volume x Standard Usage Cost = Volume x C.R. Taxes = Sales Tax x C.R. NO. _____________ Type of Internal Revenue Official Amount of Tax Balance of Against which Date Receipt No. Credit Utilized Tax Credit ** Remarks * After the appliance of the full amount of the tax credit, this certificate should be surrendered immediately to the Commissioner of Internal Revenue ** The same serial number as on the reverse side. This is to facilitate identification when xerox copies are submitted. ANNEX J BIR FORM NO. ________ BIR SEAL REPUBLIC OF THE PHILIPPINES Ministry of Finance BUREAU OF INTERNAL REVENUE Quezon City TAX CREDIT CERTIFICATE TO WHOM IT MAY CONCERN: This credit certificate is hereby issued to: Name of Manufacturer-Exporter _________________________ Address: ___________________________________________ Tax Account Number: _________________________________ in accordance with the provisions of Section 202 of the National Internal Revenue Code of 1977 as amended, in the amount of ____________________________ ______________________________ PESOS (P______________). This tax credit is equivalent to the taxes actually paid under Title IV and Title V of the Tax Code on domestically manufactured or on imported raw materials, part or accessory used in the manufacture of finished products exported and forming part thereof. Issued at ________________ this ________ day of ________________, 19____. TOMAS C. TOLEDO Deputy Commissioner (To be printed in quadruplicate. The original should be on security paper.) RAW MATERIAL QUANTITY COST TAX Imported: Local: Consumption RAW MATERIAL QUANTITY COST TAX Imported: Local: Very truly yours, Name of Company U N D E R T A K I N G This is to certify that the information and figures stated herein including the attached supporting papers are true and correct and that the enterprise shall be liable under any existing laws, its rules and regulations. _______________________ SUBSCRIBED AND SWORN to before me, this __________ day of _________, 19____, affiant exhibited to me his Residence Certificate A ___________ issued on ___________________ at __________________ . NOTARY PUBLIC Until December 31, _____________ PTR No. _____________________ Issued on _____________________ Issued at _____________________ Doc No. ___________ Page No. ___________ Book No. ___________ Series of ___________