Revenue Memorandum Circular · RMCMining / natural resources fiscal

Procedures for the Filing and Payment of Quarterly Royalty under Republic Act No. 12253 (Enhanced Fiscal Regime for Large-Scale Metallic Mining Act)

Bureau of Internal RevenueIndependent research copyOpen source document

Document type: RMC
Number: 58
Year: 2026
Text quality: ocr

Source PDF

Official document hosted by the Bureau of Internal Revenue

Document text

Reference copy · verify against the official source

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BI.]REAU OF' INTERNAL REVEIYUE BrhgfutsinReurt€s BAGONG forNatimBuiHing PIL'P,,DIAS !4AY 21 2026 REvENUE MEMoRAT\rDuM cTRCULAR No. 0 5 B - 2 026 SI]BIECT Procedures for the Filing and Payment of Quarterly Royalty under Republic Act No. 12253, Otherwise Known as the "Enhanced Fiscal Regime for Large-Scale Metallic Mining Act" TO All Internal Revenue Offrcers and Others Concemed This Circular is hereby issued to prescribe the procedures for the filing of quarterly royalty retum and payment of royalty under Section 15l-A of the National Intemal Revenue Code of 1997, as amended (Tax Code), as introduced under Republic Act (RA) No. 12253, otherwise known as the "Enhanced Fiscal Regime for Large-Scale Metallic Mining Act," and its Implementing Rules and Regulations pending the availability of the dedicated return for payment of royalty, in order to ensure compliance by affected taxpayers. SECTION 1. COVERAGE. - The procedures herein shall apply to all large-scale metallic mining contractors and operators who are required to file quarterly royalty retums and pay the corresponding royalty under Section 15l-A of the Tax Code, pursuant to the provisions of RA No. 12253, which provide that they shall become subject to the fiscal regime provided therein after one hundred and fifty (150) days from the effectivity ofthe Act, or on February 17,2026. SECTION 2. F'ILING AND PAYMENT OF QUARTERLY ROYALTY. _ a) Filing Deadline. Large-scale metallic mining contractors and operators subject to the payment of royalty under Section 151-A of the Tax Code shall file the corresponding return and pay the royalty within sixty (60) days after the close of each calendar or fiscal quarter, as applicable. b) Filing and Payment Facility. Pending the issuance of a dedicated quarterly royalty return and the availability of the corresponding elecfionic filing and payment facilities, the quarterly royalty shall be filed and paid using BIR Form No. 0605, either elecfonically through the Elecfronic Filing and Payment System (eFPS) for eFPS filers or manually for non-eFPS filers, with the following specificationr' @RrrgorfrtRfo,,t^r6$,}f*Tf,Vr,$Jri i. Tor type: "MC" l,tAY 2 8 2020 ll. Alphanumeric Tor Code (ATC): - MC 344 Operations Within Mineral Reservations R r;-lTI MIN U I I: - MC 345 Operations Outside Mineral Reservations BY: BIR National Office Bldg., Senator Miriam P. Defensor-Santiago Avenue, Diliman, Quezon City Websib: w ur n'. bir. grrv. rrh Trunkline: E9Et-7000 / 892*7676 iii. Manner of Payment: "Volunta4l Payment" lv Description field: "Others (Speciff)" and indicate: '?pe of agreement and agreement number" Example: "MPSA No. I 23-2026-XlIl" The filing and payment made through BIR Form No. 0605 shall be considered as advance or initial compliance with the quarterly royalty liability for the corresponding period, without prejudice to the subsequent filing of the prescribed quarterly royalty return, once available, and shall be subject to validation, monitoring, reconciliation, and necessary adjustment upon the issuance of the prescribed revenue issuance and/or forms governing the filing thereof. c) Separate Filing per Agreement under Ring-Fencing Requirement. Where a large- scale metallic mining contractor or operator holds two (2) or more mineral agreements, financial or technical assistance agreements (FTAAs), and/or operating agreements, the quarterly royalty return for each agreement shall be filed and paid separately. Each agreement shall be treated as a distinct ring-fenced project for purposes of determining, reporting, and accounting for the corresponding quarterly royalty liability, consistent with Section 151-C of the Tax Code. d) Computation of Quarterly Royalty. The quarterly royalty due for each ring-fenced project shall be computed in accordance with Section 151-A of the Tax Code, taking into account: l. the gross output base, and allowable deductions and applicable royalty rate which shall differ depending on whether the mining operations are conducted within or outside mineral reservations; and ii. such other rules and requirements as may be prescribed in the implementing Revenue Regulations to be issued pursuant to RA No. 12253. Pending the issuance of such implementing Revenue Regulations by the Bureau of Internal Revenue (BIR), covered taxpayers shall apply the computation methodology directly prescribed under Section 151-A of the Tax Code and the Implementing Rules and Regulations dated December 18,2025 issued by the Department of Finance. Mining contractors and operators shall likewise maintain and preserve, and submit upon request, such schedules, computations, and supporting documents as may be necessary to substantiate the royalty paid, including but not limited to records supporting the determination of gross output base, allowable deductions, and the applicable royalty rate. @ RH8$,9'^,h9.,6r'1l}.vr*vs }.lAY 21 2026 R A MIN UNIT.2 BY: IIME: +'0q" Page 2 of 4 ILLUSTRATIYE EXAMPLE. - ABC Nickel Corp. has two (2) existing Mineral Production Sharing Agreements (MPSA), namely: o MPSA No. 123-2026-Xlil (Operations Within Mineral Reservations); and o MPSA No. 456-2026-)(lll (Operations Outside Mineral Reservations) Pursuant to Section l5l-C of the Tax Code, separate BIR Form No. 0605 shall be filed for each MPSA. A. Filing and Payment for MPSA No. 123-2026-XIII (Operations Within Mineral Reservations) BIR Fsm No. R?rrbl€ngPffia 0605 @ ffitrfiffi* PaYment Form September 2003(EltCS) ltu- CH.r4.;t t ea 3**or* lDr 5nl-ruerc ErYral 2E fia i2-Olc.trE v I 2026r OrOrOrOr i.,--q".i-_;,,- zoasl[--f lffi- PfYIY' 7brgmytyni ii., " ,gqli__ ?qqi!E"rir.o..{rc-: rEE rffiE Orem O- Om Orelx...DEL CrlE OEHffiE Oarm OrcrrSrrE+aH OEE*ErEl t.rl Ocrcrql Ormr UPSA IZ}AELEI EdfrE t9' igo,@,o(l: ZoEl- f5!. H offi, 20A1 . - .---,,r."AarB1.' ''' --q.qi2rci- d't 2r0t_:-:- :l-:!jE turffiH Fre -tFproird [*t irtuert{.:+ts.J e!hi+ I trE al'r, apf'sil# bi rr''$I4}t{1! 0f.a: $, rq uo'A"e -{ REv Efru E @' RECOT1 DS M At\,lA(i EM ENT DIVISION ^q ^1 },lAY 21 2026 R A MIN UNItT -2 TIME: BY: -th!99P Page 3 of4 B. Filing and Payment for MPSA No. 456-2026-XI[ (Operations Outside Mineral Reseruations) 8lR Fom 1{o. 0605 @ ffiHffi*". PavmentForm Soptember 2003{E}ICS) EI C:lsndor Fa€l 3rcrro-r :H*r, tb..r*Ecdc E 12 - O.cat..r v i _ad OrrOzOrOr i.--G,i.-rli, -r01zo I:d, Im: (B 3tl i-_ ..*jture.c.cffi] tmrE kffiiEr Os*- O- O* Omrftrlr*rE Onol*aorE OmrsurffiHD Omuto- Ompar Oarcldrt AC.d Oru as&ar2s[t trhErm.E 6i'.' 20rlm S 'iirio-lmi rEt GE-. *r O.Ol aq OT HrlHFCh af---- so.n.r F rEntrr P?E,fgFlBed ily t4{e ;ientrP} {}ra* d, o!a,r d ,*\ ll+i iF{H sfed I f iailrlq ;!i.,* l:ffl{* SECTION 3. BOI\D REQIIIREMENT. - The requirement for the submission of a bond to secure the payment of the royalty, if any, shall be subject to further guidelines to be issued by the BIR in a separate revenue issuance. SECTION 4. EFFECTMTY. - This Circular shall take effect immediately. All internal revenue offtcers and employees are hereby enjoined to give this Revenue Memorandum Circular as wide publicity as possible. CHARLTTO MARTIN R. C o mmi s s ioner of Int ernal D4 000 00241 BUREAU o,f^',llE*$fIHSMFSS*' @ RECORDS 1 I },lAY 2 8 2026 R ADMIN UNIT - 2 TIME: ll.9* Page 4 of4 BY:

Research aid

Issuance analysis

Structured from the available issuance text · Mining / natural resources fiscal

RMC No. 58-2026 tells large-scale metallic mining contractors and operators how to file and pay the new quarterly mining royalty under Section 151-A of the Tax Code, introduced by RA No. 12253 (the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act), while the BIR has not yet released a dedicated royalty return. Returns and payments are due within 60 days after each calendar or fiscal quarter ends and, for now, must be made using BIR Form No. 0605 — electronically via eFPS for eFPS filers or manually for non-eFPS filers — with tax type 'MC', ATC MC 344 for operations within mineral reservations or MC 345 for operations outside, manner of payment 'Voluntary Payment', and a description stating the agreement type and number (e.g., 'MPSA No. 123-2026-XIII'). Taxpayers holding two or more mineral agreements, FTAAs, or operating agreements must file and pay separately for each ring-fenced project, compute the royalty under Section 151-A (gross output base, allowable deductions, and the rate that differs within or outside mineral reservations) pending BIR implementing regulations, and keep records supporting the royalty paid. Filing and paying through Form 0605 counts as advance or initial compliance and remains subject to validation, reconciliation, and adjustment once the prescribed return and rules are issued.

Purpose

To prescribe interim procedures for filing the quarterly royalty return and paying the royalty due under Section 151-A of the NIRC, as introduced by RA No. 12253 and its implementing rules, pending availability of a dedicated royalty return, in order to ensure compliance by affected taxpayers.

In brief

Prescribes interim procedures for filing and paying the quarterly large-scale metallic mining royalty under Sec. 151-A (RA 12253) using BIR Form No. 0605 with tax type 'MC' and ATCs MC 344/MC 345, with separate filings per ring-fenced agreement, pending a dedicated royalty return.

Keywords

quarterly royaltyRA No. 12253Enhanced Fiscal Regime for Large-Scale Metallic Mining ActSection 151-ASection 151-C (ring-fencing)BIR Form No. 0605eFPS (Electronic Filing and Payment System)Tax type 'MC'ATC MC 344 / MC 345mineral reservationsring-fencingMPSA (Mineral Production Sharing Agreement)gross output baseFebruary 17, 2026

Key points

Covered large-scale metallic mining contractors and operators must file the quarterly royalty return and pay the royalty within 60 days after the close of each calendar or fiscal quarter, as applicable.
Pending issuance of a dedicated quarterly royalty return, the royalty must be filed and paid using BIR Form No. 0605 — electronically through eFPS for eFPS filers or manually for non-eFPS filers — with tax type 'MC', ATC MC 344 (operations within mineral reservations) or MC 345 (operations outside), manner of payment 'Voluntary Payment', and a description field marked 'Others (Specify)' indicating the type and number of agreement (e.g., 'MPSA No. 123-2026-XIII').
Filing and payment made through BIR Form No. 0605 are treated as advance or initial compliance with the quarterly royalty liability, without prejudice to later filing of the prescribed quarterly royalty return once available, and remain subject to validation, monitoring, reconciliation, and necessary adjustment.
Under the ring-fencing requirement, a contractor or operator holding two or more mineral agreements, FTAAs, and/or operating agreements must file and pay the quarterly royalty separately for each agreement, with each agreement treated as a distinct ring-fenced project consistent with Section 151-C of the Tax Code.
The quarterly royalty for each ring-fenced project is computed under Section 151-A of the Tax Code using the gross output base, allowable deductions, and the applicable royalty rate, which differs for operations within versus outside mineral reservations; pending BIR implementing Revenue Regulations, taxpayers apply Section 151-A directly together with the DOF Implementing Rules and Regulations dated December 18, 2025.
Mining contractors and operators must maintain, preserve, and submit upon request schedules, computations, and supporting documents substantiating the royalty paid, including records supporting the gross output base, allowable deductions, and applicable royalty rate.
The procedures apply to large-scale metallic mining contractors and operators, who became subject to the new fiscal regime 150 days after the effectivity of RA No. 12253, i.e., on February 17, 2026.
An illustrative example (ABC Nickel Corp. holding two MPSAs, one within and one outside mineral reservations) directs that a separate BIR Form No. 0605 be filed for each MPSA pursuant to Section 151-C.

Forms referenced

BIR Form No. 0605 (Payment Form) is used on an interim basis to file and pay the quarterly royalty, with tax type 'MC', ATC MC 344 (operations within mineral reservations) or MC 345 (operations outside), manner of payment 'Voluntary Payment', and a description indicating the type and number of agreement.

Tax types

Quarterly royalty on large-scale metallic mining under Section 151-A of the National Internal Revenue Code of 1997, as amended, introduced by RA No. 12253.
For BIR Form No. 0605 filings, the interim royalty payments use tax type code 'MC' with alphanumeric tax codes MC 344 (operations within mineral reservations) and MC 345 (operations outside mineral reservations).

Affected taxpayers

All large-scale metallic mining contractors and operators required to file quarterly royalty returns and pay the corresponding royalty under Section 151-A of the Tax Code pursuant to RA No. 12253.
All internal revenue officers and others concerned, who are directed to implement the prescribed filing and payment procedures.