RR No. 27-2025 Digest

RR No. 27-2025 (issued October 21, 2025) amends Section 8 of RR No. 25-2003 on the subsequent sale, transfer, or exchange of a tax-exempt automobile by a tax-exempt person/entity to a non-exempt person/entity. The purchase is subjected to ad valorem tax on the higher of the actual consideration between the parties or the depreciated value of the automobile (16% per year depreciation, capped at 80% of original cost or value). If the automobile was acquired prior to but sold after the effectivity of the Act, the ad valorem tax is computed under the Act. Where the acquisition was primarily intended to avoid the payment of excise tax, the ad valorem tax is assessed on the original purchase price or value of importation without any allowance for depreciation. Eight listed circumstances may support a finding of tax-avoidance intent unless contrary evidence shows the transaction is bona fide and at arm's length.