RMC No. 95-2025 Digest

RMC No. 95-2025, issued October 27, 2025, circularizes Republic Act No. 12235, which amends Sections 134 and 168 of the National Internal Revenue Code of 1997, together with the Veto Message of President Ferdinand R. Marcos, Jr. Under the amended Section 134, ethyl alcohol of at least 180° proof (90% alcohol by volume), whether imported or locally manufactured, is exempt from the excise tax prescribed in Section 141 when suitably denatured under Section 168 and rendered unfit for oral intake, but is subject to tax under Section 106(A); alcohol used for motive power is taxed under Section 148(d); and denatured alcohol later re-processed to become fit for oral intake is taxed under Section 141, payable by the person in possession. Under the amended Section 168, denaturing must be effected prior to removal from duly registered distilleries and compounding plants where the rectifying facilities are located, in accordance with BIR rules including denaturant formulations, with confirmatory testing prior to removal and BIR representatives monitoring the denaturing process.