Amendment to NIRC Re: Accrual of Royalties on Mineral Lands and Ad Valorem Taxes to Municipalities
Republic Act No. 834, enacted on March 6, 1953, amends Section 246 of the National Internal Revenue Code to stipulate that 5% of royalties from mineral lands under lease and ad valorem taxes on output from unleased mineral lands will be allocated to the municipality where the mines are located. The act defines "gross output" as the actual market value of minerals or mineral products, without deductions for expenses, except for specific costs related to overseas sales. The remaining 95% of the royalties and taxes will be directed to the National Treasury. This law aims to provide local municipalities with financial benefits from mining activities within their jurisdictions.
Law Information
- Reference Number
- Republic Act No. 834
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
March 6, 1953
REPUBLIC ACT NO. 834
AN ACT TO AMEND SECTION TWO HUNDRED FORTY-SIX OF THE NATIONAL INTERNAL REVENUE CODE BY PROVIDING THAT FIVE PER CENTUM OF THE ROYALTIES ON MINERAL LANDS UNDER LEASE AND OF THE AD VALOREM TAXES ON THE OUTPUT OF MINERAL LANDS NOT COVERED BY LEASE SHALL ACCRUE TO THE MUNICIPALITY WHERE THE MINES ARE SITUATED
SECTION 1. Section two hundred forty-six, of Commonwealth Act Numbered Four hundred and sixty-six, known as the National Internal Revenue Code, is amended to read as follows: acd
"Sec. 246. Definition of the term "gross output" — Disposition of royalties and ad valorem taxes. — The term "gross output" shall be interpreted as the actual market value of minerals or mineral products, or of bullion from each mine or mineral lands operated as a separate entity without any deduction for mining, milling, refining, transporting, handling, marketing, or any other expenses: Provided, however, That if the minerals or mineral products are sold or consigned abroad by the lessee or owner of the mine under C.I.F. terms, the actual cost of ocean freight and insurance shall be deducted. The output of any group of contiguous mining claims shall not be subdivided. Five per centum of the royalties and ad valorem taxes herein provided shall accrue to the municipality where the mines are situated, and ninety-five per centum to the National Treasury."
SECTION 2. This Act shall take effect upon its approval.
Approved: March 6, 1953
Published in the Official Gazette, Vol. 49, No. 4, p. 1319 in April 1953
Cite This Law
Amendment to NIRC Re: Accrual of Royalties on Mineral Lands and Ad Valorem Taxes to Municipalities, Republic Act No. 834, Mar 6, 1953 (Philippines)
Amendment to NIRC Re: Accrual of Royalties on Mineral Lands and Ad Valorem Taxes to Municipalities, Republic Act No. 834 (Phil. 1953)
Related Laws
- Amendment and Repeal of Certain Sections of NIRC Re: Royalties and Ad Valorem Taxes on Certain Mineral LandsRepublic Act No. 909 • Jun 20, 1953 • Statutes
- Amendment to NIRC Re: Definition of the Term "Gross Output"Republic Act No. 1510 • Jun 16, 1956 • Statutes
- Amendment to C.A. No. 466 Re: Definition of "Minerals" and "Mineral Products"Republic Act No. 1299 • Jun 16, 1955 • Statutes
- Amendments to NIRC of 1977 Re: Taxation of Minerals and Mineral ProductsBatas Pambansa Blg. 84 • Sep 19, 1980 • Statutes
- Amendment to R.A. 81 Re: Condonation of Taxes and Extension of Period for Requirement Compliance in Mining IndustryRepublic Act No. 215 • Jun 1, 1948 • Statutes
- Amendments to Sec. 145, Par. B of NIRC, as amended Re: Ad Valorem Tax RateRepublic Act No. 6767 • Oct 30, 1989 • Statutes
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