Revenue Regulations · RR
RR 1-2025
To further amend Section 9 of RR No. 25-2003 relative to the documentary requirements to be submitted by motor vehicle manufacturers/assemblers/importers as basis for the BIR to determine whether automobiles subject to Excise Tax exemption are hybrid or purely electric vehicles, pursuant to Republic Act (RA) No. 10963 (TRAIN Law).
- Document type
- RR
- Number
- 1
- Year
- 2025
- Text quality
- Not specified
Document text
Reference copy · verify against the official sourceRR No. 1-2025, issued January 6, 2025, further amends Section 9(E) of RR No. 25-2003 on tax-exempt removals of automobiles. The amendment states that purely electric vehicles are exempt from the excise tax on automobiles, while hybrid vehicles are subject to fifty percent (50%) of the applicable excise tax. Before automobiles are removed from the manufacturing plant or customs custody, the Commissioner of Internal Revenue shall refer to the Electric Vehicle Recognition List published by the Department of Energy (DOE), which contains classifications for battery electric vehicles (BEV/purely electric), plug-in hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV). The BIR determines whether an automobile is exempt or subject to the 50% excise tax based on the DOE's list of recognized electric vehicles published on its website, without prejudice to the BIR's authority to conduct post-verification assessment. The DOE shall furnish the BIR a certified true copy of each updated list of recognized electric vehicles.