BIR creates new tax codes for mining firms

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has created two alphanumeric tax codes for mining firms in an offshoot of new revenue regulation directed at the sector. The move, according to Revenue Memorandum Order 33-2008, aims "to facilitate the proper identification and monitoring" of tax payments pursuant to Revenue Regulation (RR) 7-2008. This regulation concerns taxation on the sale to the Bangko Sentral ng Pilipinas of gold and other metallic mineral products by small-scale miners. Individual small-scale miners will have WI632 as their alphanumeric tax code while corporates will use WC632, the BIR said. Under RR 7-2008, a holder of small-scale mining contract is liable to pay an excise tax rate of 2% the sale of gold to the central bank. The contract holder will also be subject to a creditable withholding tax of 10%. The central bank was named by the BIR as the agent for collecting the 2% excise tax. - BusinessWorld