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Revenue Memorandum Circular · RMC

RMC No. 20-2023

RMC No. 20-2023 clarifies the provision of Section 5 of RMC No. 63-2022 pertaining to the correct tax base in computing the Excise Tax on the importation of automobiles for resale pursuant to Section 149 of the Tax Code of 1997, as amended.

Bureau of Internal RevenueIndependent research copy
Document type
RMC
Number
20
Year
2023
Text quality
Not specified

Document text

Reference copy · verify against the official source
RMC No. 20-2023 (issued February 8, 2023) clarifies Section 5 of RMC No. 63-2022 on the correct tax base for computing Excise Tax on the importation of automobiles for resale under Section 149 of the Tax Code of 1997, as amended. It states there are three primary taxable bases for applying excise tax rates on automobiles: (1) declared manufacturer's or importer's selling price, net of Excise and Value-Added Taxes; (2) 80% of the actual dealer's price, net of Excise and Value-Added Taxes; and (3) total cost of importation and expenses divided by 90%. The third base applies only where the net importer's selling price is lower than the cost of importation and expenses as defined in RMC No. 63-2022.