a
SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES)
Second Regular Session 
)
rrmr-;
’17 
SEP 20 
PI 56
S E N A T E
S.B. No.
(In substitution ofS.B. Nos. 67, 107, 121, 124, 126, 129,138pt47^151, 479r267^ 
294, 295, 303, 388, 407, 670, 697, 763, 769, 821, 867, 919, 980, 1009, 1053, 10 
1096, 1338, 1408, and 1588 taking into consideration P.S. Res. Nos. 30, 118, 407,
and H.B. Nos. 4815, 4903, and 5636)
Prepared by the Committee on Ways and Means with Senators 
Recto, Gordon, Legarda, Zubiri, Angara, Villar, Ejercito, Binay, Pimentel, 
Aquino, Escudero, Sotto, Villanueva, and Gatchalian as authors
AN ACT
AMENDING SECTIONS 5, 6, 24, 25, 31, 34, 35, 51, 79, 84, 86, 89, 90, 97, 99, 100, 
101, 106, 107, 108, 109, 112, 114, 116, 148, 149, 150, 151, 155, 171, 196, 232, 237, 
249, 264, AND 288; CREATING NEW SECTIONS 148-A, 150-A, 237-A, 264-A, 
264-B, AND 265-A; ALL UNDER REPUBLIC ACT NO. 8424, OTHERWISE 
KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. -  This Act shall be known as the “Tax Reform for
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Acceleration and Inclusion (TRAIN)”.
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SEC. 2. Declaration o f Policy. -  It is hereby declared the policy of the State;
a. To enhance the progressivity of the tax system through the 
rationalization of the Philippine internal revenue tax system, thereby 
promoting sustainable economic growth;
b. To provide, as much as possible, an equitable relief to a greater 
number of taxpayers and their families in order to improve levels of 
disposable income and increase economic activity: and
c. To ensure that the government is able to provide for the needs of those 
under its jurisdiction and care through the provision of better


infrastructure, health, education, jobs, and social protection for the 
people.
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SEC. 3. Section 5 of the National Internal Revenue Code of 1997 (NIRC), as
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amended, is hereby further amended to read as follows:
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“SEC. 5. Power o f the Commissioner to Obtain Information, and 
to Summon, 
Examine, 
and Take 
Testimony of Persons. 
-  In 
ascertaining the correctness of any return, or in making a return when 
none has been made, or in determining the liability of any person for any 
internal revenue tax, or in collecting any such liability, or in evaluating tax 
compliance, the Commissioner is authorized:
(A) X X x;
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(B) 
To obtain on a regular basis from any person other than the 
person whose internal revenue tax liability is subject to audit or 
investigation, or from any office or officer of the national and local 
governments, government agencies and instrumentalities, including [the 
Bangko 
Central 
ng 
Pilipinas] 
GOVERNMENT 
FINANCIAL 
INSTITUTIONS and government-owned or -controlled corporations, any 
RELEVANT information such as, but not limited to, costs and volume of 
production, receipts or sales and gross incomes of taxpayers, and the 
names, addresses, and financial statements of corporations, mutual fund 
companies, insurance companies, regional 
operating headquarters of 
multinational companies, joint accounts, associations, joint ventures or 
consortia and registered partnerships, and their members: PROVIDED, 
THAT INFORMATION RELATING TO THE BANK ACCOUNTS OF 
TAXPAYERS SHALL ONLY BE DISCLOSED SUBJECT TO THE 
PROVISIONS 
IN 
THE 
SUCCEEDING 
SECTION: 
PROVIDED,
FURTHER, THAT THE BUREAU OF INTERNAL REVENUE (BUREAU) 
AND 
OTHER 
NATIONAL 
GOVERNMENT 
AGENCIES, 
LOCAL 
GOVERNMENT UNITS (LGU), AND GOVERNMENT AGENCIES AND 
INSTRUMENTALITIES, 
INCLUDING 
GOVERNMENT 
FINANCIAL


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INSTITUTIONS 
(GFI) 
AND 
GOVERNMENT-OWNED 
OR 
- 
CONTROLLED 
CORPORATIONS 
(GOCC), 
SHALL 
ESTABLISH 
ELECTRONIC 
INTERCONNECTIVITY 
THAT 
W ILL 
ALLOW  
EXCHANGE OF INFORMATION RELEVANT TO THE NEEDS OF 
EACH AGENCY AS DETERMINED UNDER JOINT RULES ISSUED 
BY THE HEADS OF THE SAID OFFICES AND THE SECRETARY OF 
FINANCE: 
PROVIDED, 
FURTHER, 
THAT 
IF 
THE 
DATA
REQUIREMENTS CONSIST OF INFORMATION FOUND IN THE 
INCOME TAX RETURN OF TAXPAYERS, THE REQUIREMENTS 
UNDER SECTION 71 OF THE NATIONAL INTERNAL REVENUE 
CODE (NIRC), AS AMENDED, SHALL STILL BE COMPLIED WITH: 
PROVIDED, FURTHER, THAT THE COOPERATIVES DEVELOPMENT 
AUTHORITY (CDA) SHALL SUBMIT TO THE BUREAU A TAX 
INCENTIVE REPORT, WHICH SHALL INCLUDE INFORMATION ON 
THE 
INCOME 
TAX, 
VALUE-ADDED 
TAX 
AND 
OTHER 
TAX 
INCENTIVES AVAILED OF BY COOPERATIVES REGISTERED AND 
ENJOYING INCENTIVES UNDER REPUBLIC ACT NO. 6938, AS 
AMENDED, OTHERWISE KNOWN AS THE “ COOPERATIVE CODE 
OF 
THE 
PHILIPPINES” : 
PROVIDED, 
FINALLY, 
THAT 
THE
INFORMATION SUBMITTED BY THE CDA TO THE BUREAU SHALL 
BE SUBMITTED TO THE DEPARTMENT OF FINANCE (DOF) AND 
SHALL BE INCLUDED IN THE DATABASE CREATED UNDER 
REPUBLIC ACT NO. 10708, OTHERWISE KNOWN AS THE “ TAX 
INCENTIVES MANAGEMENT AND TRANSPARENCY ACT (TIMTA)” ;
X X X
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SEC. 4. Section 6 of the NIRC, as amended, is hereby further amended to
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read as follows;
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“SEC. 6. Power o f the Commissioner to Make Assessments and 
Prescribe 
Additional 
Requirements 
for 
Tax 
Administration 
and 
Enforcement. -


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(A). 
Examination of Returns and Determination o f Tax Due. -  
After a return has been filed as required under the provisions of this 
Code, the Commissioner or his duly authorized representative may 
authorize the examination of any taxpayer and the assessment of the 
correct amount of tax, NOTWITHSTANDING ANY LAW REQUIRING 
THE PRIOR AUTHORIZATION OF ANY GOVERNMENT AGENCY OR 
INSTRUMENTALITY: Provided, however, That failure to file a return 
shall not prevent the Commissioner from authorizing the examination of 
any taxpayer.
XXX
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(B). 
Authority o f the Commissioner to Prescribe Real Property 
Values. - The Commissioner is hereby authorized to divide the 
Philippines into different zones or areas and shall, upon MANDATORY 
consultation with competent appraisers both from the private and public 
sectors, AND WITH PRIOR NOTICE TO AFFECTED TAXPAYERS, 
determine the fair market value of real properties located in each zone or 
area: PROVIDED, THAT NO ADJUSTMENT IN ZONAL VALUATION 
SHALL BE VALID UNLESS PUBLISHED IN A NEWSPAPER OF 
GENERAL 
CIRCULATION 
IN 
THE 
PROVINCE, 
CITY 
OR 
MUNICIPALITY CONCERNED, OR IN THE ABSENCE THEREOF, 
SHALL BE POSTED IN THE PROVINCIAL CAPITOL, CITY OR 
MUNICIPAL HALL AND IN TWO (2) OTHER CONSPICUOUS PUBLIC 
PLACES 
THEREIN: 
PROVIDED, 
FURTHER, 
THAT 
SUCH
VALUATION 
SHALL 
BE 
AUTOMATICALLY 
ADJUSTED 
ONCE 
EVERY THREE (3) YEARS THROUGH RULES AND REGULATIONS 
ISSUED BY THE SECRETARY OF FINANCE BASED ON THE 
CURRENT 
PHILIPPINE 
VALUATION 
STANDARDS: 
PROVIDED, 
FINALLY, THAT THE BASIS OF ANY VALUATION, INCLUDING THE 
RECORDS 
OF 
CONSULTATIONS 
DONE, 
SHALL 
BE 
PUBLIC 
RECORDS OPEN TO THE INQUIRY OF ANY TAXPAYER. For 
purposes of computing any internal revenue tax, the value of the 
property shall be, whichever is the higher of:


(1) 
The 
fair 
market 
value 
as 
determined 
by 
the 
Commissioner; or
(2) The fair market value as shown in the schedule of 
values of the Provincial and City Assessors.
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(C). 
Authority of the 
Commissioner to Inquire into AND 
RECEIVE INFORMATION ON Bank Deposit Accounts and Other 
Related 
[Information] 
DATA 
Held 
by 
Financial 
Institutions. 
-  
Notwithstanding any contrary provision of Republic Act No. 1405, 
OTHERWISE KNOWN AS THE ‘BANK SECRECY LAW ’, Republic Act 
No. 6426, otherwise known as the ‘Foreign Currency Deposit Act of the 
Philippines’, and other general and special laws, the Commissioner is 
hereby authorized to inquire into AND RECEIVE INFORMATION ON the 
bank deposits and other related [information] DATA held by financial 
institutions of:
(1) A decedent to determine his gross estate.
(2) Any 
taxpayer who 
has 
filed 
an 
application for 
compromise of his tax liability under Sec. 204(A)(2) of this 
Code by reason of financial incapacity to pay his tax liability.
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In case a taxpayer files an application to compromise the 
payment of his tax liabilities on his claim that his financial position 
demonstrates a clear inability to pay the tax assessed, his application 
shall not be considered unless and until he waives in writing his privilege 
under Republic Act No. 1405, Republic Act No. 6426, [otherwise known 
as the Foreign Currency Deposit Act of the Philippines,] or under other 
general or special laws, and such waiver shall constitute the authority of 
the Commissioner to inquire into the bank deposits of the taxpayer.
(3) 
A 
specific 
taxpayer 
or 
taxpayers, 
UPON 
AN 
OBLIGATION TO EXCHANGE TAX INFORMATION WITH A 
FOREIGN TAX AUTHORITY, WHETHER ON REQUEST OR 
AUTOMATIC, [subject of a request for the supply of tax 
information from a foreign tax authority] pursuant to an 
international convention or agreement on tax matters to which


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the Philippines is a signatory or a party of: Provided, That the 
information obtained from the banks and other financial 
institutions may be used by the Bureau of Internal Revenue for 
tax assessment, verification, audit and enforcement purposes.
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[In case of a request from a foreign tax authority for tax 
information held by banks and financial institutions, the] THE exchange 
of information WITH A FOREIGN TAX AUTHORITY, WHETHER ON 
REQUEST OR AUTOMATIC, shall be done in a secure manner to 
ensure confidentiality thereof under such rules and regulations as may 
be promulgated by the Secretary of Finance, upon recommendation of 
the Commissioner AND IN ACCORDANCE WITH INTERNATIONAL 
COMMON REPORTING STANDARDS.
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IN CASE THE EXCHANGE OF INFORMATION IS UPON 
REQUEST FROM A FOREIGN TAX AUTHORITY, [T]the Commissioner 
shall provide the tax information obtained from banks and financial 
institutions pursuant to a convention or agreement upon request of the 
foreign tax authority when such requesting foreign tax authority has 
provided the following information to demonstrate the foreseeable 
relevance of the information to the request:
XXX
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The term “foreign tax authority”, as used herein, shall refer to the 
tax authority or tax administration of the requesting State under the tax 
treaty or convention to which the Philippines is a signatory or a party of.
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(4) 
ANY TAXPAYER UPON ORDER OF ANY COURT OF 
COMPETENT JURISDICTION IN CASES INVOLVING OFFENSES 
COVERED UNDER SECTIONS 254 AND 255 OF THE NIRC, AS 
AMENDED, 
SUBJECT 
TO 
RULES 
AND 
REGULATIONS 
PRESCRIBED 
BY 
THE 
SECRETARY 
OF 
FINANCE 
UPON


RECOMMENDATION 
OF 
THE 
COMMISSIONER 
OF 
INTERNAL 
REVENUE.
(G) X X X
X X X
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SEC. 5. Section 24 of the NIRC, as amended, is hereby further amended to
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read as follows;
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“SEC. 24. Income Tax Rates. -
(A) 
Rates o f Income Tax on Individual Citizen and Individual 
Resident Alien o f the Philippines. -  
(1) 
X X X
XXX
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(2) 
Rates o f Tax on Taxable Income o f Individuals. 
-  The tax 
shall be computed in accordance with and at the rates established in the 
following schedule:
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[Not over P10,000 
5.00%
Over P 10,000 but not over P30,000 
P500 + 10% of the excess over PI 0,000
Over P30,000 but not over P70,000 
P2,500 + 15% of the excess over P30.000
Over P70,000 but not over PI 40,000 
P8,500 + 20% of the excess over P70,000 
Over P140,000 but not over P250,000 P22,500 + 25% of the excess over P140,000 
Over P250,000 but not over P500.000 P50,000 + 30% of the excess over P250,000 
Over P500,000 
P I25,000 + 32% of the excess over P500,000]
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(A) 
ON COMPENSATION INCOME EARNERS. 
-  TAX 
SCHEDULE EFFECTIVE JANUARY 1, 2018, 2019 AND 2020:
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NOT OVER P150,000
OVER P150,000 BUT NOT OVER P250,000 
OVER P250,000 BUT NOT OVER P400,000 
OVER P400,000 BUT NOT OVER P800.000 
OVER P800,000 BUT NOT OVER P2,000,000 
OVER P2,000,000
0%
15% OF THE EXCESS OVER 
P150,000
P15,000 
+ 20% 
OF 
THE
EXCESS OVER P250,000 
P45,000 
+ 25% 
OF 
THE
EXCESS OVER P400,000 
P145,000 
+ 30% 
OF THE
EXCESS OVER P800,000 
P505,000 
+ 32% 
OF THE
EXCESS OVER P2,000,000
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PROVIDED, THAT BEGINNING 2021 AND EVERY THREE (3) 
YEARS THEREAFTER, THE TAXABLE INCOME LEVELS AND BASE IN 
THE ABOVE SCHEDULE SHALL AUTOMATICALLY BE ADJUSTED 
UPWARD 
TO 
ITS 
PRESENT 
VALUE 
USING 
THE 
CUMULATIVE 
CONSUMER PRICE INDEX (CPI), AS PUBLISHED BY THE PHILIPPINE 
STATISTICS 
AUTHORITY 
(PSA), 
THROUGH 
RULES 
AND 
REGULATIONS TO BE ISSUED BY THE SECRETARY OF FINANCE.
XXX
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(B) 
RATE OF TAX FOR PURELY SELF-EMPLOYED AND/OR 
PROFESSIONALS. 
-  
SELF-EMPLOYED 
INDIVIDUALS 
AND 
PROFESSIONALS 
ENGAGED 
IN 
THE 
EXERCISE 
OF 
THEIR 
PROFESSION SHALL, AT THEIR OPTION, BE SUBJECT TO EITHER OF 
THE FOLLOWING TAXES:
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1. EIGHT PERCENT (8%) ON GROSS SALES OR RECEIPTS AND 
OTHER NON-OPERATING INCOME IN EXCESS OF THE INCOME 
SUBJECT TO ZERO PERCENT UNDER SECTION 24(A)(2)(A); OR


2. THE RATES PRESCRIBED UNDER SUBSECTION 2(A) OF THIS 
SECTION ON TAXABLE INCOME.
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(C) 
RATE 
OF 
TAX 
FOR 
MIXED 
INCOME 
EARNERS. 
-  
TAXPAYERS EARNING BOTH COMPENSATION INCOME AND INCOME 
FROM 
BUSINESS 
OR 
PRACTICE 
OF 
PROFESSION 
SHALL 
BE 
SUBJECT TO THE FOLLOWING TAXES:
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1. THE RATES PRESCRIBED UNDER SUBSECTION 2(A) OF THIS 
SECTION FOR INCOME FROM COMPENSATION; AND
2. THE RATES PRESCRIBED UNDER SUBSECTION 2(A) OF THIS 
SECTION ON TAXABLE INCOME OR EIGHT PERCENT (8%) TAX 
BASED ON GROSS SALES OR RECEIPTS AND OTHER NON­
OPERATING 
INCOME 
FOR INCOME 
FROM 
BUSINESS 
OR 
PRACTICE OF PROFESSION IN EXCESS OF THE INCOME 
SUBJECT TO ZERO PERCENT TAX, AT THE OPTION OF THE 
TAXPAYER.
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WITH 
RESPECT 
TO 
THE 
INCOME 
FROM 
BUSINESS 
OR 
PRACTICE OF PROFESSION, THE TAXPAYERS WHO ARE PURELY 
SELF-EMPLOYED AND/OR PROFESSIONALS OR 
MIXED INCOME 
EARNERS SHALL SIGNIFY IN THE TAX RETURN THE CHOICE TO BE 
SUBJECT TO THE EIGHT PERCENT (8%) TAX OR TO BE TAXED 
BASED ON THEIR TAXABLE INCOME UNDER SUBSECTION (2)(A). 
UNLESS THE TAXPAYER SIGNIFIES IN THE RETURN THE INTENTION 
TO ELECT THE EIGHT PERCENT (8%) TAX, THE TAXPAYER SHALL BE 
CONSIDERED AS HAVING AVAILED OF THE TAX PROVIDED IN 
SUBSECTION 
(2)(A) 
OF 
THIS 
SECTION: 
PROVIDED, 
THAT 
AN 
ELECTION 
MADE 
UNDER 
THIS 
SUBSECTION 
SHALL 
BE 
IRREVOCABLE FOR A PERIOD OF THREE (3) YEARS FROM THE 
TAXABLE YEAR THE ELECTION WAS MADE.
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(B) 
Rate of Tax on Certain Passive Income: -
(1) 
Interests, Royalties, Prizes, and Other Winnings. -  A final tax 
at the rate of twenty percent (20%) is hereby imposed upon the amount of 
interest from any currency bank deposit and yield or any other monetary 
benefit from 
deposit 
substitutes 
and 
from 
trust funds 
and 
similar 
arrangements; royalties, except on books, as well as other literary works and 
musical compositions, which shall be imposed a final tax of ten percent 
(10%); prizes (except prizes amounting to Ten thousand pesos (P I0,000) or 
less which shall be subject to tax under Subsection (A) of Section 24; and 
other winnings (except Philippine Charity Sweepstakes and Lotto winnings 
AMOUNTING TO TEN THOUSAND PESOS (P10.000) OR LESS), derived 
from sources within the Philippines: 
[Provided, however. That interest
income received by an individual taxpayer (except a nonresident individual) 
from a depository bank under the expanded foreign currency deposit system 
shall be subject to a final income tax at the rate of seven and one-half 
percent (7 %%) of such interest income:] Provided, further. That interest 
income from long-term deposit or investment in the form of savings, common 
or individual trust funds, deposit substitutes, investment management 
accounts and other investments evidenced by certificates in such form 
prescribed by the Bangko Sentral ng Pilipinas (BSP) shall be exempt from 
the tax imposed under this Subsection: 
Provided, finally. That should the 
holder of the certificate pre-terminate the deposit or investment before the 
fifth (5th) year, a final tax shall be imposed on the entire income and shall be 
deducted and withheld by the depository bank from the proceeds of the long­
term deposit or investment certificate based on the remaining maturity 
thereof:
XXX
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(2) Cash and/or Property Dividends. -  A final tax AT THE RATE OF 
TWENTY PERCENT (20%) [at the following rates’] shall be imposed upon the 
cash and/or property dividends actually or constructively received by an 
individual from a domestic corporation or from a joint stock company, 
insurance or mutual fund companies and regional operating headquarters of 
multinational companies, or on the share of an individual in the distributable
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net income after tax of a partnership (except a general professional 
partnership) of which he is a partner, or on the share of an individual in the net 
income after tax of an association, a joint account, or a joint venture or 
consortium taxable as a corporation of which he is a member or co-venturer.[;
Six percent (6%) beginning January 1, 1998;
Eight percent (8%) beginning January 1, 1999;
Ten percent (10%) beginning January 1, 2000.
Provided, however, That the tax on dividends shall apply only on 
income earned on or after January 1, 1998. Income forming part of retained 
earnings as of December 31, 1997 shall not, even if declared or distributed on 
or after January 1, 1998, be subject to this tax.]
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(C) 
Capital Gains from Sale of Shares of Stock not Traded in the Stock 
Exchange. -  The provisions of Section 39(B) notwithstanding, a final tax at 
the rate[s prescribed below] OF TWENTY PERCENT (20%) is hereby 
imposed upon the net capital gains realized during the taxable year from the 
sale, barter, exchange or other disposition of shares of stock in a domestic 
corporation, except shares sold, or disposed of through the stock exchange. 
[Not over P 100,000 
5%
On any amount in excess of P 100,000 
10%]
XXX
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SEC. 6. Section 25 of the NIRC, as amended, is hereby further amended to
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read as follows;
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“SEC. 25. Tax on Nonresident Alien Individual. -  
(A) Nonresident Allen Engaged in Trade or Business 
Within the 
Philippines. -
XXX
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(F) THE 
PREFERENTIAL 
TAX 
TREATMENT 
PROVIDED 
IN 
SUBSECTIONS (C), (D), AND (E) OF THIS SECTION SHALL NOT BE 
APPLICABLE 
TO 
INDIVIDUALS 
EMPLOYED 
BY 
REGIONAL 
HEADQUARTERS (RHQS), REGIONAL OPERATING HEADQUARTERS 
(ROHQS), OFFSHORE BANKING UNITS (OBUS) OR PETROLEUM 
SERVICE 
CONTRACTORS 
AND 
SUBCONTRACTORS 
BEGINNING 
JANUARY 
1, 
2018: 
PROVIDED, 
HOWEVER, 
THAT 
EMPLOYEES 
ENJOYING 
THIS 
PREFERENTIAL 
TAX 
TREATMENT 
PRIOR 
TO 
JANUARY 1, 2018 SHALL CONTINUE TO DO SO UNTIL THE END OF 
THEIR CURRENT EMPLOYMENT.”
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SEC. 7. Section 31 of the NIRC, as amended, is hereby further amended to
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read as follows:
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“SEC. 31. Taxable Income Defined. -  The term “taxable income” 
means the pertinent items of gross income specified in this Code, less [the] 
deductions and/or [personal and] additional exemptions, if any, authorized 
for such types of income by this Code or other special laws.”
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SEC. 8. Section 34 of the NIRC, as amended, is hereby further amended to
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read as follows:
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“SEC. 34. Deductions from Gross Income. -  Except for taxpayers 
earning compensation income arising from personal services rendered under 
an employer-employee relationship where no deductions shall be allowed 
under this Section other than under Subsection (M) hereof, in computing 
taxable income subject to income tax under Sections 24(A)(2)(B); 25(A); 26; 
27(A), (B), and (C); and 28(A)(1), there shall be allowed the following 
deductions from gross income:
(A) X X X 
XXX
(L) Optional Standard Deduction (OSD). -  In lieu of the deductions 
allowed under the preceding Subsections, an individual subject to tax under 
Sections 24(A)(2)(B), AND 26, other than a nonresident alien, [may elect a
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standard deduction in an amount not exceeding forty percent (40%) of his 
gross sales or gross receipts, as the case may be. 
In the case of] A 
GENERAL PROFESSIONAL PARTNERSHIP OR ANY OF ITS MEMBERS 
UNDER SECTION 26 AND a corporation subject to tax under Sections 
27(A) and 28(A)(1), [it] may elect a standard deduction in an amount not 
exceeding forty percent (40%) of its gross income as defined in Section 32 of 
this Code. Unless the taxpayer signifies in his return his intention to elect the 
optional standard deduction, he shall be considered as having availed 
himself of the deductions allowed in the preceding Subsections. 
Such 
election when made in the return shall be irrevocable for the taxable year for 
which the return is made: Provided, That an individual who is entitled to and 
claimed for the optional standard deduction shall not be required to submit 
with his tax return such financial statements otherwise required under this 
Code: 
PROVIDED, 
FURTHER, 
A 
GENERAL 
PROFESSIONAL
PARTNERSHIP AND 
THE 
PARTNERS 
COMPRISING 
SUCH
PARTNERSHIP 
MAY 
AVAIL 
OF 
THE 
OPTIONAL 
STANDARD 
DEDUCTION ONLY ONCE, EITHER BY THE GENERAL PROFESSIONAL 
PARTNERSHIP OR THE PARTNERS COMPRISING THE PARTNERSHIP: 
Provided, [further] FINALLY, That except when the Commissioner otherwise 
permits, the said individual shall keep such records pertaining to his gross 
sales or gross receipts, or the said corporation shall keep such records 
pertaining to his gross income as defined in Section 32 of this Code during 
the taxable year, as may be required by the rules and regulations 
promulgated by the Secretary of Finance, upon recommendation of the 
Commissioner.
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(M) Premium Payments on Health and/or Hospitalization Insurance of 
an Individual Taxpayer. - The amount of premiums not to exceed [Two 
thousand four hundred] SIX THOUSAND pesos [(P2,400)] (P6,000) per 
family or [Two] FIVE hundred pesos [(P200)] (P500) a month paid during the 
taxable year for health and/or hospitalization insurance taken by the taxpayer 
for himself, including his family, shall be allowed as a deduction from his 
gross income: Provided, That said family has a gross income of not more 
than [Two hundred fifty] FIVE HUNDRED thousand pesos [(P250,000)]
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(P500.000) for the taxable year; Provided, [finally] FURTHER, That in the 
case of married taxpayers, only the spouse claiming the additional exemption 
for dependents shall be entitled to this deduction[.]:P/?0\//D£D, THAT 
BEGINNING 2021 AND EVERY THREE (3) YEARS THEREAFTER, THE 
AMOUNT OF PREMIUMS AND THE FAMILY GROSS INCOME HEREIN 
PROVIDED SHALL AUTOMATICALLY BE ADJUSTED UPWARD TO ITS 
PRESENT VALUE USING THE CUMULATIVE CONSUMER PRICE INDEX 
(CPI), AS PUBLISHED BY THE PHILIPPINE STATISTICS AUTHORITY 
(PSA), THROUGH RULES AND REGULATIONS TO BE ISSUED BY THE 
SECRETARY OF FINANCE.
X X X
11 
SEC. 9. Section 35 of the NIRC, as amended, is hereby further amended to
12 
read as follows:
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28 
29
“SEC. 35. [Allowance of Personal] ADDITIONAL Exemptions for 
Individual Taxpayer. -
[(A) In General. - For purposes of determining the tax provided in 
Section 24 (A) of this Title, there shall be allowed a basic personal exemption 
amounting to Fifty Thousand Pesos (P50.000) for each individual taxpayer.
In the case of married individuals where only one of the spouses is 
deriving gross income, only such spouse shall be allowed the personal 
exemption.]
[(B)] (A) Additional Exemption for Dependents. - There shall be 
allowed an ANNUAL additional exemption of Twenty-five thousand pesos 
(P25,000) for each dependent not exceeding four (4): PROVIDED, THAT 
BEGINNING 
2021, 
THE 
ADDITIONAL 
EXEMPTION 
SHALL 
AUTOMATICALLY BE ADJUSTED UPWARD TO ITS PRESENT VALUE 
USING 
THE 
CUMULATIVE 
CONSUMER 
PRICE 
INDEX 
(CPI), 
AS 
PUBLISHED BY THE PHILIPPINE STATISTICS AUTHORITY (PSA), 
THROUGH 
RULES AND REGULATIONS TO BE ISSUED BY THE 
SECRETARY OF FINANCE.


XXX
In the case of [legally] separated spouses, additional exemptions may 
be claimed only by the spouse who has custody of the child or children: 
Provided, That the total amount of additional exemptions that may be claimed 
by both shall not exceed the maximum additional exemptions herein allowed.
XXX
[(C)] (B) Change o f Status. -  x x x
XXX
6
7
[(D)] 
(C) 
Personal Exemption 
Allowable 
to 
Nonresident Alien 
Individual. - x x x”
8 
SEC. 10. Section 51 of the NIRC, as amended, is hereby further amended to
9 
read as follows:
10
“SEC. 51. Individual Return. 
(A) X X X 
(1) X X X
11
12
13
14
15
16
17
18
XXX
(2) The following individuals shall not be required to file an income tax
return:
(a) An individual whose [gross] NET TAXABLE income IS SUBJECT 
TO ZERO PERCENT (0%) [does not exceed his total personal and additional 
exemptions for dependents] under Section [35] 24(A)(2)(A): Provided, That a 
citizen of the Philippines and any alien individual engaged in business or 
practice of profession within the Philippine shall file an income tax return, 
regardless of the amount of gross income;
XXX
15


1 
SEC. 11. Section 79 of the NIRC, as amended, is hereby further amended to
2 
read as follows;
“SEC. 79. Income Tax Collected at Source.
(A) X X x;
X X x;
(D) [Personal] ADDITIONAL Exemptions.
X X X
6 
SEC. 12. Section 84 of the NIRC, as amended, is hereby further amended to
7 
read as follows:
8
9
10
11
12
“SEC. 84. Rafe[s] of Estate Tax. -  There shall be levied, assessed, 
collected and paid upon the transfer of the net estate as determined in 
accordance with Sections 85 and 86 of every decedent, whether resident or 
nonresident of the Philippines, a tax AT THE RATE OF SIX PERCENT (6%) 
based on the value of such net estate[, as computed in accordance with the
13
following schedule:].
14
[If the net estate is;
15
Over
But Not Over
The Tax Shall Be Plus
Of the Excess Over
16
P200.000
Exempt
17
P200,000
500,000
0
5% 
P200,000
18
500,000
2,000,000
PI 5,000
8%
500,000
19
2,000,000
5,000,000
135,000
11% 
2,000,000
20
5,000,000
10,000,000
465,000
15% 
5,000,000
21
10,000,000
And Over
1,215,000
20%
10,000,000
22 
SEC. 13. Section 86 of the NIRC, as amended, is hereby further amended to
23 
read as follows:
24
25
“SEC. 86. Computation of Net Estate. -  For the purpose of the tax 
imposed in this Chapter, the value of the net estate shall be determined:
16


0
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
I
“(A) Deductions Allowed to the Estate o f a Citizen or a Resident. -  
In the case of a citizen or resident of the Philippines, by deducting from the 
value of the gross estate -
[(1) Expenses, Losses, Indebtedness, and Taxes. - Such amounts -
(a) For actual funeral expenses or in an amount equal to five percent
(5%) of the gross estate, whichever is lower, but in no case to exceed
Two hundred thousand pesos (P200,000);
(b) For judicial expenses of the testamentary or intestate proceedings;]
(1) Standard Deduction. - An amount equivalent to [One] FIVE million pesos 
(P[1]5, 000,000); PROVIDED, THAT BEGINNING 2023 AND EVERY FIVE
(5) YEARS THEREAFTER, THE STANDARD DEDUCTION SHALL SHALL 
AUTOMATICALLY BE ADJUSTED UPWARD TO ITS PRESENT VALUE 
USING 
THE 
CUMULATIVE 
CONSUMER 
PRICE 
INDEX 
(CPI), 
AS 
PUBLISHED 
BY THE 
PHILIPPINE STATISTICS AUTHORITY (PSA), 
THROUGH 
RULES AND REGULATIONS TO BE ISSUED 
BY THE 
SECRETARY OF FINANCE.
[(c)] (2) For claims against the estate: Provided, That at the time the 
indebtedness was incurred the debt instrument was duly notarized and, if the 
loan was contracted within three (3) years before the death of the decedent, 
the administrator or executor shall submit a statement showing the disposition 
of the proceeds of the loan;
[(d)] (3) For claims of the deceased against insolvent persons where the value 
of decedent's interest therein is included in the value of the gross estate; and 
[(e)] (4) For unpaid mortgages upon, or any indebtedness in respect to, 
property where the value of decedent's interest therein, undiminished by such 
mortgage or indebtedness, is included in the value of the gross estate, but not 
including any income tax upon income received after the death of the 
decedent, or property taxes not accrued before his death, or any estate tax. 
The deduction herein allowed in the case of claims against the estate, unpaid 
mortgages or any indebtedness shall, when founded upon a promise or 
agreement, be limited to the extent that they were contracted bona fide and 
for an adequate and full consideration in money or money's worth. There shall 
also be deducted losses incurred during the settlement of the estate arising 
from fires, storms, shipwreck, or other casualties, or from robbery, theft or
17


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3
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5
6
7
8 
9
10
11
12
13
14
15
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17
18
19
20 
21 
22
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24
25
26
27
28 
29
1
embezzlement, when such losses are not compensated for by insurance or 
otherwise, and if at the time of the filing of the return such losses have not 
been claimed as a deduction for the income tax purposes in an income tax 
return, and provided that such losses were incurred not later than the last day 
for the payment of the estate tax as prescribed in Subsection (A) of Section 
91.]
[(2)] (5) Property Previously Taxed. -  x x x 
[(3)] (6) Transfers for Public Use. - x x x
[(4) The Family Home. - An amount equivalent to the current fair market value 
of the decedent's family home: Provided, however. That if the said current fair 
market value exceeds One million pesos (P I,000,000), the excess shall be 
subject to estate tax. As a sine qua non condition for the exemption or 
deduction, said family home must have been the decedent’s family home as 
certified by the barangay captain of the locality.]
[(5)(6) Standard Deduction. - An amount equivalent to One million pesos 
(PI, 000,000).]
[(5) Medical Expenses. - Medical Expenses incurred by the decedent within 
one (1) year prior to his death which shall be duly substantiated with receipts: 
Provided, That in no case shall the deductible medical expenses exceed Five 
Hundred Thousand Pesos (P500, 000).]
(7) Amount Received by Heirs Under Republic Act No. 4917.- Any amount 
received by the heirs from the decedent - employee as a consequence of the 
death of the decedent-employee in accordance with Republic Act No. 4917: 
Provided, That such amount is included in the gross estate of the decedent.
(8) THE FAMILY FARM. -  AN AMOUNT EQUIVALENT TO THE CURRENT 
FAIR MARKET VALUE OF THE DECEDENT’S FAMILY FARM UP TO 
THREE (3) HECTARES OF AGRICULTURAL LAND, WHICH MAY COVER 
A 
CONTIGUOUS 
TRACT 
OF 
LAND 
OR 
CUMULATED 
SEVERAL 
PARCELS OF LAND, SUBJECT TO THE FOLLOWING CONDITIONS:
30
31
32
33
(A)MUST BE OWNED, OCCUPIED, AND USED FOR THREE (3) YEARS 
PRIOR TO DEATH OF THE DECEDENT. THE FARM MUST HAVE 
BEEN OWNED AND ACTUALLY TILLED OR DIRECTLY MANAGED BY 
THE DECEDENT FOR THREE (3) YEARS PRIOR TO DEATH.
18


3
4
1
2
(B)MUST PASS TO OR BE ACQUIRED BY AN HEIR WHO MUST 
CONTINUE TO TILL OR DIRECTLY MANAGE THE LAND FOR 
AGRICULTURAL PURPOSES FOR THREE (3) YEARS FROM DEATH 
OF THE DECEDENT.
5
6
7
8 
9
10
11
12
(C)MUST NOT BE TRANSFERRED, SOLD OR CONVERTED FOR THREE
(3) YEARS FROM DEATH OF THE DECEDENT. THE LAND ACQUIRED 
BY THE HEIR MAY NOT BE SOLD, TRANSFERRED OR CONVEYED 
EXCEPT THROUGH HEREDITARY SUCCESSION OR DONATION TO 
ANOTHER HEIR, OR TO THE GOVERNMENT FOR A PERIOD OF 
THREE (3) YEARS FOLLOWING THE DECEDENT’S DEATH. IT MAY 
ALSO NOT BE CONVERTED TO RESIDENTIAL, COMMERCIAL OR 
INDUSTRIAL FOR THE SAME PERIOD.
13
14
15
16 
17
THE GOVERNMENT COULD RECAPTURE ALL THE ESTATE TAXES 
NOT 
PAID 
IF 
THE 
PROPERTY 
CEASES 
TO 
BE 
USED 
FOR 
AGRICULTURAL 
PURPOSES 
OR 
IS 
SOLD, 
TRANSFERRED, 
CONVEYED, OR CONVERTED AT ANY POINT WITHIN THE THREE (3) 
YEAR PERIOD.
18
19
20 
21 
22
23
24
25
26
27
28
29
30
“(B) Deductions Allowed to Nonresident Estates. -  In the case of a 
nonresident not a citizen of the Philippines, by deducting from the value of 
that part of his gross estate which at the time of his death is situated in the 
Philippines:
"[(1) Expenses, Losses, Indebtedness and Taxes. -  That proportion 
of the deductions specified in paragraph (1) of Subsection (A) of this Section 
which the value of such part bears to the value of his entire gross estate 
wherever situated;]
“[(2)](1) Property Previously Taxed. -  x x x
“[(3)] (2) Transfers for Public Use. 
-  The amount of all bequests, 
legacies, devises or transfers to or for the use of the Government of the 
Republic of the Philippines or any political subdivision thereof, for exclusively 
public purposes.
19


“(C) Share in the Conjugal Property. -  x x x 
“(D) Miscellaneous Provisions. -  x x x
“(E) Tax Credit for Estate Taxes Paid to a Foreign Country. -  x x x”
4 
SEC. 14. Section 89 of the NIRC, as amended, is hereby repealed.
5 
SEC. 15. Section 90 of the NIRC, as amended, is hereby further amended to
6 
read as follows:
7
8 
9
10
11
12
13
14
15
16
“SEC. 90. Estate Tax Returns. -  In all cases of transfers subject to the 
tax imposed herein, or where, though exempt from tax, the gross value of the 
estate exceeds Two hundred thousand pesos (P200,000), or regardless of the 
gross value of the estate, where the said estate consists of registered or 
registrable property such as real property, motor vehicle, shares of stock or 
other similar property for which a clearance from the Bureau of Internal 
Revenue is required as a condition precedent for the transfer of ownership 
thereof in the name of the transferee, the executor, or the administrator, or 
any of the legal heirs, as the case may be, shall file a return under oath in 
duplicate, setting forth:
17
18
19
20
(A) Requirements. -
(1) X X X 
X X  x
(2) Such part of such information as may at the time be ascertainable and 
such supplemental data as may be necessary to establish the correct 
taxes.
21
22
23
24
Provided, however. That estate tax returns showing a gross value 
exceeding [Two Hundred Thousand] FIVE MILLION pesos [(P200,000)] 
(P5,000,000) shall be supported with a statement duly certified to by a 
Certified Public Accountant containing the following:
X X X
20


3
4
1
2
(B) 
Time for Filing. - For the purpose of determining the estate tax 
provided for in Section 84 of this Code, the estate tax return required under 
the preceding Subsection (A) shall be filed within [six (6) months] ONE YEAR 
from the decedent's death.
XXX
5 
SEC. 16. Section 97 of the NIRC, as amended, is hereby further amended to
6 
read as follows:
7
8
“SEC. 97. Payment of Tax Antecedent to the Transfer o f Shares, 
Bonds or Rights. - xxx.
9
10
11
12
13
14
15
16
17
18
19
20
If a bank has knowledge of the death of a person, who maintained a 
bank deposit account alone, or jointly with another, it shall not allow any 
withdrawal from the said deposit account, unless the Commissioner has 
certified that the taxes imposed thereon by this Title have been paid: 
Provided, however. That the administrator of the estate or any one (1) of the 
heirs of the decedent may, upon authorization by the Commissioner, withdraw 
an amount not exceeding 
[Twenty thousand pesos (P20,000)] 
FIVE 
HUNDRED THOUSAND PESOS (P500,000.00) without the said certification. 
For this purpose, all withdrawal slips shall contain a statement to the effect 
that all of the joint depositors are still living at the time of withdrawal by any 
one of the joint depositors and such statement shall be under oath by the said 
depositors.”
21 
SEC. 17. Section 99 of the NIRC, as amended, is hereby further amended to
22 
read as follows:
23
24
25
26 
27
“SEC. 99. Rate[s] of Tax Payable by Donor. -
(A) 
In General. 
-  The tax for each calendar year shall be SIX 
PERCENT (6%) computed on the basis of the total [net] gifts IN EXCESS 
OF ONE HUNDRED THOUSAND PESOS (P100.000) EXEMPT GIFT made 
during the calendar year, [in accordance with the following schedule:]
21


1
[If the net gift is:
2
Over
But Not Over
The Tax Shall Be Plus
Of the Excess Over
3
PI 00,000
Exempt
4
PI 00,000
200,000
0
2%
PI 00,000
5
200,000
500,000
2,000
4%
200,000
6
500,000
1,000,000
14,000
6%
500,000
7
1,000,000
3,000,000
44,000
8%
1,000,000
8
3,000,000
5,000,000
204,000
10%
3,000,000
9
5,000,000
10,000,000
404,000
12%
5,000,0000
10,000,000
1,004,000
15%
10,000,000]
10 
[(B) Tax Payable by Donor if Donee is a Stranger. -  When the donee
11 
or beneficiary is a stranger, the tax payable 
by 
the donor 
shall be thirty
12 
percent (30%) of the net gifts. For the purpose of this 
tax, a ‘stranger’ 
is a
13 
person w ho is not a;
14 
(1) Brother, sister (w hether by w hole or half-blood), spouse, ancestor,
15 
and lineal descendant; or
16 
(2) Relative by consanguinity in the collateral line within the fourth
17 
degree of relationship.]
18 
[(C)](B) Any contribution in cash or in kind to any candidate, political
19 
party or coalition of parties for campaign purposes shall be governed by the
20 
Election Code, as amended.”
21 
SEC. 18. Section 100 of the NIRC, as amended, is hereby further amended to
22 
read as follows:
23
24
25
26
27
28
29
30
“SEC. 100. Transfer for Less Than Adequate and Full Consideration. - 
Where property, other than real property referred to in Section 24(D) is 
transferred for less than an adequate and full consideration in money or 
money's worth, then the amount by which the fair market value of the property 
exceeded the value of the consideration shall, for the purpose of the tax 
imposed by this Chapter, be deemed a gift, and shall be included in 
computing the amount of gifts made during the calendar year[.]: PROVIDED, 
HOWEVER, THAT A SALE, EXCHANGE, OR OTHER TRANSFER OF


PROPERTY MADE IN THE ORDINARY COURSE OF BUSINESS (A 
TRANSACTION WHICH IS A BONA FIDE, AT ARM ’S LENGTH, AND FREE 
FROM ANY DONATIVE INTENT), W ILL BE CONSIDERED AS MADE FOR 
AN ADEQUATE AND FULL CONSIDERATION IN MONEY OR MONEY’S 
WORTH.”
6 
SEC. 19. Section 101 of the NIRC, as amended, is hereby further amended to
7 
read as follows:
8
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
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24
25
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29
30
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32
“SEC. 101. Exemption o f Certain Gifts. -  The following gifts or 
donations shall be exempt from the tax provided for in this Chapter;
(A) In the Case of Gifts Made by a Resident. -
[(1) Dowries or gifts made on account of marriage and before its 
celebration or within one year thereafter by parents to each of their 
legitimate, recognized natural, or adopted children to the extent of the first 
Ten thousand pesos (P I0,000):]
[(2)] (1) Gifts made to or for the use of the National Government or any 
entity created by any of its agencies which is not conducted for profit, or to 
any political subdivision of the said Government; and 
[(3)] (2) Gifts in favor of an educational and/or charitable, religious, cultural 
or social welfare corporation, 
institution, 
accredited 
nongovernment 
organization, trust or philanthropic organization or research institution or 
organization: Provided, however. That not more than thirty percent (30%) of 
said gifts shall be used by such donee for administration purposes. For the 
purpose of this exemption, a 'non-profit educational and/or charitable 
corporation, institution, accredited nongovernment organization, trust or 
philanthropic organization and/or research institution or organization' is a 
school, college or university and/or charitable corporation, accredited 
nongovernment organization, trust or philanthropic organization and/or 
research institution or organization, incorporated as a non-stock entity, 
paying no dividends, governed by trustees who receive no compensation, 
and devoting all its income, whether students' fees or gifts, donation, 
subsidies or other forms of philanthropy, to the accomplishment and 
promotion of the purposes enumerated in its Articles of Incorporation.


XXX
1 
SEC. 20. Section 106 of the NIRC, as amended, is hereby further amended to
2 
read as follows:
3
4
5
6
7
8 
9
10
11
12
13
14
15
16 
17
“SEC. 106. Value-added Tax on Sale of Goods or Properties. -
(A) 
Rate and Base of Tax. -  There shall be levied, assessed and 
collected on every sale, barter or exchange of goods or properties, a value- 
added tax equivalent to [ten] TWELVE percent [(10%)] (12%) of the gross 
selling price or gross value in money of the goods or properties sold, 
bartered or exchanged, such tax to be paid by the seller or transferor[; 
Provided, That the President, upon the recommendation of the Secretary of 
Finance, shall, effective January 1, 2006, raise the rate of value-added tax to 
twelve percent (12%), after any of the following conditions has been 
satisfied;
(i) Value-added tax collection as a percentage of Gross Domestic 
Product (GDP) of the previous year exceeds two and four-fifth percent (2 
4/5%); or
(ii) National government deficit as a percentage of GDP of the 
previous year exceeds one and one-half percent (1 1/2%)].
(1) X X X
18
19
20 
21 
22
23
24
25
26
(2) 
The following sales by VAT-registered persons shall be subject to 
zero percent (0%) rate:
(a) Export Sales. -  The term “export sales” means:
(1) 
The sale and actual shipment of goods from the Philippines to a 
foreign country, irrespective of any shipping arrangement that may be 
agreed upon which may influence or determine the transfer of ownership of 
the goods so exported and paid for in acceptable foreign currency or its 
equivalent in goods or services, and accounted for in accordance with the 
rules and regulations of the Bangko Sentral ng Pilipinas (BSP);
24


3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
T")
^ A.
23
24
25
1
2
(2) 
THE SALE AND ACTUAL SHIPMENT OF GOODS TO SPECIAL 
ECONOMIC ZONES AND FREEPORT ZONES;
[(2)] (3) Sale of raw materials or packaging materials to a nonresident 
buyer for delivery to a resident local export-oriented enterprise to be used in 
manufacturing, processing, packing or repacking in the Philippines of the 
said buyer’s goods and paid for in acceptable foreign currency and 
accounted for in accordance with the rules and regulations of the Bangko 
Sentral ng Pilipinas (BSP);
[(3)](4) Sale of raw materials or packaging materials to export- 
oriented enterprise whose export sales exceed seventy percent (70%) of 
total annual production;
[(4) Sale of gold to the Bangko Sentral ng Pilipinas (BSP);]
[(5)] (5) Those considered export sales under Executive Order No. 
226, otherwise known as the Omnibus Investment Code of 1987, and other 
special laws; and
[(6)] (6) The sale of goods, supplies, equipment and fuel to persons 
engaged in international shipping or international air transport operations[.]:
PROVIDED, THAT THE GOODS, SUPPLIES, EQUIPMENT AND FUEL 
SHALL 
BE 
USED 
FOR 
INTERNATIONAL 
SHIPPING 
OR 
AIR 
TRANSPORT OPERATIONS.
26
27
28
29
30
PROVIDED, THAT SUBPARAGRAPHS (3), (4), AND (5) HEREOF 
SHALL BE SUBJECT TO THE TWELVE PERCENT (12%) VALUE-ADDED 
TAX AND NO LONGER BE CONSIDERED EXPORT SALES SUBJECT TO 
ZERO PERCENT (0%) VAT RATE UPON SATISFACTION OF THE 
FOLLOWING CONDITIONS:
31
32
1. 
THE 
SUCCESSFUL 
ESTABLISHMENT 
AND 
IMPLEMENTATION OF AN ENHANCED VAT REFUND SYSTEM THAT


2
3
4
5
6
7
8 
9
1
GRANTS REFUNDS OF CREDITABLE INPUT TAX WITHIN NINETY (90) 
DAYS FROM THE FILING OF THE VAT REFUND APPLICATION WITH 
THE BUREAU: PROVIDED, THAT, TO DETERMINE THE EFFECTIVITY 
OF ITEM NO. 1, ALL APPLICATION FILED FROM JANUARY 1, 2018 
SHALL BE PROCESSED AND MUST BE DECIDED WITHIN NINETY (90) 
DAYS FROM THE FILING OF THE VAT REFUND APPLICATION;
2. 
ALL 
PENDING 
VAT 
REFUND 
CLAIMS 
DECEMBER 31, 2018 SHALL BE FULLY PAID IN CASH.
AS 
OF
10
11
12 
13
PROVIDED, THAT, THE BUREAU SHALL BE REQUIRED TO 
SUBMIT TO THE CONGRESSIONAL OVERSIGHT COMMITTEE ON THE 
COMPREHENSIVE 
TAX 
REFORM 
PROGRAM 
(COCCTRP) 
A 
QUARTERLY REPORT OF ALL PENDING CLAIMS FOR REFUND.
14
15
16
17
18
19
20 
21 
22
23
24
25
26
[(b) Foreign Currency Denominated Sale. 
-  
The phrase ‘foreign 
currency denominated sale’ means sale to a nonresident of goods, except 
those mentioned in Sections 149 and 150, assembled or manufactured in 
the Philippines for delivery to a resident in the Philippines, paid for in 
acceptable foreign currency and accounted for in accordance with the rules 
and regulations of the Bangko Sentral ng Pilipinas (BSP),]
[c] 
(B) Sales to persons or entities whose exemption under special 
laws or international agreements to which the Philippines is a signatory 
[effectively subjects such sales to zero rate.]; AND
(C) SALE OF GOLD TO THE BANGKO SENTRAL NG PILIPINAS
(BSP).
27
XXX
26


1 
SEC. 21. Section 107 of the NIRC, as amended, is hereby further amended to
2 
read as follows;
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
“SEC. 107. Value-added Tax on Importation of Goods. -
(A) 
In General. -  There shall be levied, assessed and collected on 
every importation of goods a value-added tax equivalent to [ten] TWELVE 
percent [(10%)] (12%) based on the total value used by the Bureau of 
Customs in determining tariff and customs duties, plus customs duties, 
excise taxes, if any, and other charges, such tax to be paid by the importer 
prior to the release of such goods from customs custody: Provided, That 
where the customs duties are determined on the basis of the quantity or 
volume of the goods, the value-added tax shall be based on the landed cost 
plus excise taxes, if any.[: Provided, further. That the President, upon the 
recommendation of the Secretary of Finance, shall, effective January 1, 
2006, raise the rate of value-added tax to twelve percent (12%), after any of 
the following conditions has been satisfied:
(i) Value-added tax collection as a percentage of Gross Domestic 
Product (GDP) of the previous year exceeds two and four-fifth percent (2 
4/5%); or
(ii) National government deficit as a percentage of GDP of the 
previous year exceeds one and one-half percent (1 1/2%).]
21
(B) Transfer o f Goods by Tax-exempt Persons. -  x x x”
22 
SEC. 22. Section 108 of the NIRC, as amended, is hereby further amended to
23 
re a d  a s  fo llo w s :
24
25
26
27
28
29
30
“SEC. 108. Value-added Tax on Sale of Services and Use or Lease o f 
Properties. -
(A) 
Rate and Base of Tax. -  There shall be levied, assessed and 
collected, a value-added tax equivalent to [ten] TWELVE percent [(10%)] 
(12%) of gross receipts derived from the sale or exchange of services, 
including the use or lease of properties.[; Provided, That the President, upon 
the recommendation of the Secretary of Finance, shall, effective January 1,
27


2006, raise the rate of value-added tax to twelve percent (12%), after any of 
the following conditions has been satisfied;
(i) Value-added tax collection as a percentage of Gross Domestic 
Product (GDP) of the previous year exceeds two and four-fifth percent (2 
4/5%); or
(ii) National government deficit as a percentage of GDP of the 
previous year exceeds one and one-half percent (1 1/2%).]
XXX
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(B) 
Transactions Subject to Zero Percent (0%) Rate. -  The following 
services performed in the Philippines by VAT-registered persons shall be 
subject to zero percent (0%) rate.
(1) X X X
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(2) 
SERVICES RENDERED TO ENTITIES REGISTERED WITH THE 
SPECIAL ECONOMIC ZONES AND FREEPORT ZONES AUTHORITY;
[(2)] (3) Services other than those mentioned in the preceding 
paragraph, rendered to a person engaged in business conducted outside the 
Philippines or to a nonresident person not engaged in business who is outside 
the Philippines when the services are performed, the consideration for which 
is paid for in acceptable foreign currency and accounted for in accordance 
with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);
[(3)] (4) Services rendered to persons or entities whose exemption 
under special laws or international agreements to which the Philippines is a 
signatory effectively subjects the supply of such services to zero percent (0%) 
rate;
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[(4)] (5) Services rendered to persons engaged in international 
shipping or international air transport operations, including leases of property 
for use thereof: 
PROVIDED, THAT THESE SERVICES SHALL BE
EXCLUSIVELY FOR INTERNATIONAL SHIPPING OR AIR TRANSPORT 
OPERATIONS;
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[(5)] (6) Services performed by subcontractors and/or contractors in 
processing, converting, or manufacturing goods for an enterprise whose 
export sales exceed seventy percent (70%) of total annual production;
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[(6)] (7) Transport of passengers and cargo by DOMESTIC air or sea 
vessels from the Philippines to a foreign country; and
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[(7)] (8) Sale of power or fuel generated through renewable sources 
of energy such as, but not limited to, biomass, solar, wind, hydropower, 
geothermal, ocean energy, and other emerging energy sources using 
technologies such as fuel cells and hydrogen fuels.
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PROVIDED, 
THAT 
SUBPARAGRAPH 
(B)(6) 
HEREOF 
SHALL 
BE 
SUBJECT TO THE TWELVE PERCENT (12%) VALUE-ADDED TAX AND 
NO LONGER BE SUBJECT TO ZERO PERCENT (0%) VAT RATE UPON 
SATISFACTION OF THE FOLLOWING CONDITIONS:
1. 
THE 
SUCCESSFUL 
ESTABLISHMENT 
AND 
IMPLEMENTATION OF AN ENHANCED VAT REFUND SYSTEM THAT 
GRANTS REFUNDS OF CREDITABLE INPUT TAX WITHIN NINETY (90) 
DAYS FROM THE FILING OF THE VAT REFUND APPLICATION WITH 
THE BUREAU: PROVIDED, THAT, TO DETERMINE THE EFFECTIVITY 
OF ITEM NO. 1, ALL APPLICATION FILED FROM JANUARY 1, 2018 
SHALL BE PROCESSED AND MUST BE DECIDED WITHIN NINETY (90) 
DAYS FROM THE FILING OF THE VAT REFUND APPLICATION;
2. 
ALL PENDING VAT REFUND CLAIMS AS OF DECEMBER 
31, 2018 SHALL BE FULLY PAID IN CASH BY DECEMBER 31, 2018.
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PROVIDED, THAT THE BUREAU SHALL BE REQUIRED TO 
SUBMIT TO THE COCCTRP A QUARTERLY REPORT OF ALL PENDING 
CLAIMS FOR REFUND.”
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SEC. 23. Section 109 of the NIRC, as amended, is hereby further amended to
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read as follows:
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“SEC. 
109. Exempt Transactions. 
-  (1) SUBJECT TO THE 
PROVISIONS 
OF 
SUBSECTION 
(2) 
HEREOF, 
THE 
following 
TRANSACTIONS shall be exempt from the value-added tax:
(A) . XXX
(B) . XXX
(C) . XXX
[(D.) 
Importation 
of 
professional 
instruments 
and 
implements, wearing apparel, domestic animals, and personal 
household effects (except any vehicle, vessel, aircraft, machinery, 
other goods for use in the manufacture and merchandise of any kind 
in commercial quantity) belonging to persons coming to settle in the 
Philippines, for their own use and not for sale, barter or exchange, 
accompanying such persons, or arriving within ninety (90) days 
before or after their arrival, upon the production of evidence 
satisfactory to the Commissioner, that such persons are actually 
coming to settle in the Philippines and that the change of residence is 
bona fide;]
(D) 
. IMPORTATION OF PROFESSIONAL INSTRUMENTS 
AND IMPLEMENTS, TOOLS OF TRADE, OCCUPATION OR 
EMPLOYMENT, WEARING APPAREL, 
DOMESTIC ANIMALS, 
AND PERSONAL AND HOUSEHOLD EFFECTS BELONGING TO 
PERSONS COMING TO SETTLE IN THE PHILIPPINES OR 
FILIPINOS OR THEIR FAMILIES AND DESCENDANTS WHO ARE 
NOW RESIDENTS OR CITIZENS OF OTHER COUNTRIES, SUCH 
PARTIES 
HEREINAFTER 
REFERRED 
TO 
AS 
OVERSEAS 
FILIPINOS, IN QUANTITIES AND OF THE CLASS SUITABLE TO 
THE PROFESSION, RANK OR POSITION OF THE PERSONS 
IMPORTING SAID ITEMS, FOR THEIR OWN USE AND NOT FOR 
BARTER OR SALE, ACCOMPANYING SUCH PERSONS, OR 
ARRIVING WITHIN A REASONABLE TIME: PROVIDED, THAT 
THE BUREAU OF CUSTOMS MAY, UPON THE PRODUCTION OF
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SATISFACTORY 
EVIDENCE 
THAT 
SUCH 
PERSONS 
ARE 
ACTUALLY COMING TO SETTLE IN THE PHILIPPINES AND 
THAT THE GOODS ARE BROUGHT FROM THEIR FORMER 
PLACE OF ABODE, EXEMPT SUCH GOODS FROM PAYMENT 
OF 
DUTIES 
AND 
TAXES: 
PROVIDED, 
FURTHER, 
THAT
VEHICLES, VESSELS, AIRCRAFTS, MACHINERIES AND OTHER 
SIMILAR GOODS FOR USE IN MANUFACTURE, SHALL NOT 
FALL WITHIN THIS CLASSIFICATION AND SHALL THEREFORE 
BE SUBJECT TO DUTIES, TAXES AND OTHER CHARGES;
XXX
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(P). 
Sale of real properties not primarily held for sale to customers or held 
for lease in the ordinary course of trade or business[, or]; SALE OF 
real property utilized for [low-cost and] socialized housing as defined 
by Republic Act No. 
7279, 
otherwise known as the 
Urban 
Development and Housing Act of 1992[, and other related laws, 
residential lot valued at One million five hundred thousand pesos 
(P1,500,000) and below,] SALE OF house and lot, and other 
residential dwellings LOCATED OUTSIDE METRO MANILA WITH 
SELLING PRICE OF NOT MORE THAN TWO MILLION PESOS 
(P2,000,000) [valued at Two million five hundred thousand pesos 
(P2,500,000) and below]: Provided, That not later than January 31, 
[2009] 2021 and every three (3) years thereafter, the amounts herein 
stated shall be adjusted to their present values using the Consumer 
Price Index, as published by the [National Statistics Office (NSO)] 
PHILIPPINE STATISTICS AUTHORITY (PSA);
(Q), Lease of a residential unit with a monthly rental not 
exceeding [Ten] TWELVE thousand EIGHT HUNDRED pesos 
[(P I0,000)] (12,800): 
Provided, That not later than January 31,
[2009] 2021 and every three (3) years thereafter, the amount herein 
stated shall be adjusted to its present value using the Consumer 
Price Index, as published by the [National Statistics Office (NSO)] 
PHILIPPINE STATISTICS AUTHORITY;
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XXX
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(U) 
. Importation of fuel, goods and supplies by persons 
engaged in international shipping or air transport operations;
PROVIDED, THAT THE FUEL, GOODS, AND SUPPLIES SHALL 
BE USED FOR INTERNATIONAL SHIPPING OR AIR TRANSPORT 
OPERATIONS:
(V) 
. Services of bank, non-bank financial intermediaries 
performing quasi-banking functions, and other non-bank financial 
intermediaries; [and]
(W) 
. SALE OR LEASE OF GOODS AND SERVICES TO 
SENIOR CITIZENS AND PERSONS WITH DISABILITIES, AS 
PROVIDED UNDER REPUBLIC ACT NOS. 9994 (EXPANDED 
SENIOR 
CITIZENS 
ACT 
OF 
2010) 
AND 
10754 
(AN 
ACT 
EXPANDING THE BENEFITS AND PRIVILEGES OF PERSONS 
WITH DISABILITY), RESPECTIVELY;
(X) 
. TRANSFER 
OF 
PROPERTY 
PURSUANT 
TO 
SECTION 40(C)(2) OF THE NIRC, AS AMENDED; AND
[(W).] (Y). Sale or lease of goods or properties or the 
performance of services other than the transactions mentioned in the 
preceding paragraphs, the gross annual sales and/or receipts do not 
exceed the amount of [One million five hundred thousand] THREE 
MILLION pesos [(P1,500,000)] (P3,000,000): 
Provided, That not
later than January 31, [2009] 2021 and every three (3) years 
thereafter, the amount herein stated shall be adjusted to its present 
value using the Consumer Price Index, as published by the [National 
Statistics Office (NSO);] PHILIPPINE STATISTICS AUTHORITY 
(PSA).”
SEC. 24. Section 112 of the NIRC, as amended, is hereby further amended to 
read as follows;
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“SEC. 112. Refunds or Tax Credits of Input Tax. 
{A) XXX
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(C) Period within which Refund [or Tax Credit] of Input Taxes shall be 
Made. - In proper cases, the Commissioner shall grant a refund [or 
issue the tax credit certificate] for creditable input taxes within [one 
hundred twenty (120)] NINETY (90) days from the date of submission 
of complete documents in support of the application filed in 
accordance with Subsections (A) AND (B) hereof: PROVIDED, THAT, 
SHOULD THE COMMISSIONER FIND THAT THE GRANT OF 
REFUND IS NOT PROPER, THE COMMISSIONER MUST STATE IN 
WRITING THE LEGAL AND FACTUAL BASIS FOR THE DENIAL.
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In case of full or partial denial of the claim for tax refund [or tax 
credit], or the failure on the part of the Commissioner to act on the 
application within the period prescribed above, the taxpayer affected 
may, within thirty (30) days from the receipt of the decision denying the 
claim or after the expiration of the [one hundred twenty] NINETY day- 
period, appeal the decision or the unacted claim with the Court of Tax 
Appeals.
XXX
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SEC. 25. Section 114 of the NIRC, as amended, is hereby further amended to
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read as follows;
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“SEC. 114. Return and Payment of Value-Added Tax. -
(A) XXX
(B) X X X
(C) Withholding of Value-added Tax. - The Government or any of its 
political subdivisions, instrumentalities or agencies, including government- 
owned or -controlled corporations (GOCCs) shall, before making payment on 
account of each purchase of goods and services which are subject to the 
value-added tax imposed in Sections 106 and 108 of this Code, deduct and 
withhold the value-added tax imposed in Sections 106 and 108 of this Code,


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deduct and withhold a final value-added tax at the rate of five percent (5%) of 
the gross payment thereof: Provided, That the payment for lease or use of 
properties or property rights to nonresident owners shall be subject to [ten] 
TWELVE percent [(10%)] (12%) withholding tax at the time of payment[.]; 
PROVIDED, 
HOWEVER, 
THAT 
PAYMENTS 
FOR 
PURCHASES 
OF 
GOODS AND SERVICES ARISING FROM PROJECTS FUNDED BY 
OFFICIAL DEVELOPMENT ASSISTANCE 
(ODA) AS DEFINED UNDER 
REPUBLIC ACT NO. 8182, OTHERWISE KNOWN AS THE “ OFFICIAL 
DEVELOPMENT ASSISTANCE ACT OF 1996” , AS AMENDED, SHALL 
NOT BE SUBJECT TO THE FINAL WITHHOLDING TAXES AS IMPOSED 
IN THIS SUBSECTION. For purposes of this Section, the payor or person in 
control of the payment shall be considered as the withholding agent.
XXX
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SEC. 26. Section 116 of the NIRC, as amended, is hereby further amended to
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read as follows:
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“SEC. 116. Tax on Persons Exempt from Value-added Tax (VAT). -  
Any person whose sales or receipts are exempt under Section 109 [(V)] (Y) 
of this Code from the payment of value-added tax and who is not a VAT- 
registered person shall pay a tax equivalent to three percent (3%) of his 
gross quarterly sales or receipts; Provided, That SELF-EMPLOYED AND 
PROFESSIONALS WHOSE GROSS SALES OR GROSS RECEIPTS DO 
NOT EXCEED THE VAT THRESHOLD AND WHO OPT TO PAY THE 
EIGHT PERCENT (8%) TAX, AS W ELL AS cooperatives shall be exempt 
from the three percent (3%) gross receipts tax herein imposed.”
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1 
SEC. 27. Section 148 of the NIRC, as amended, is hereby further amended
2 
to read as follows;
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“SEC. 148. 
Manufactured Oils and Other Fuels. -  There shall be 
collected on refined and manufactured mineral oils and motor fuels, the 
following excise taxes which 
shall 
attach to the goods hereunder 
enumerated as soon as they are in existence as such:
EFFECTIVE JANUARY 1, 2018
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(a) Lubricating oils and greases, 
including but not limited to, 
basestock for lube oils and greases, high vacuum distillates, aromatic 
extracts and other similar preparations, and additives for lubricating oils and 
greases, whether such additives are petroleum based or not, per liter and 
kilogram, respectively, of volume capacity or weight, [Four pesos and fifty 
centavos (P4.50)] SIX PESOS (P6.00):[Provided, however, That the excise 
taxes paid on the purchased feedstock (bunker) used in the manufacture of 
excisable articles and forming part thereof shall be credited against the 
excise tax due therefrom:] Provided, [further,] That lubricating oils and 
greases produced from basestocks and additives on which the excise tax 
has already been paid shall no longer be subject to excise tax; Provided, 
[finally,] FURTHER, That locally produced or imported oils previously taxed 
as such but are subsequently reprocessed, refined or recycled shall likewise 
be subject to the tax imposed under this [Section] SUBSECTION.
(b) Processed gas, per liter of volume capacity, [Five centavos 
(P0.05)] ONE PESO AND SEVENTY FIVE CENTAVOS (P I.75);
(c) Waxes and petrolatum, per kilogram, [Three pesos and fifty 
centavos (P3.50)] SIX PESOS (P6.00);
(d) On denatured alcohol to be used for motive power, per liter of 
volume capacity, [Five centavos (P0.05)] ONE PESO AND SEVENTY FIVE 
CENTAVOS (P1.75): Provided, That unless otherwise provided by special 
laws, if the denatured alcohol is mixed with gasoline, the excise tax on which 
has already been paid, only the alcohol content shall be subject to the tax 
herein prescribed. 
For purposes of this Subsection, the removal of
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denatured alcohol of not less than one hundred eighty degrees (180°) proof 
(ninety percent (90%) absolute alcohol) shall be deemed to have been 
removed for motive power, unless shown otherwise;
(e) Naphtha, regular gasoline, PYROLYSIS GASOLINE and other 
similar products of distillation, per liter of volume capacity, [Four pesos and 
thirty-five centavos (P4.35)] SIX PESOS (P6.00): Provided, however, That 
naphtha AND PYROLYSIS GASOLINE, when used as a raw material in the 
production of petrochemical products or as replacement fuel for natural-gas- 
fired-combined cycle power piant[,] in lieu of locally-extracted natural gas 
during the non-availability thereof, subject to the rules and regulations to be 
promulgated by the Secretary of Energy, in consultation with the Secretary of 
Finance, per liter of volume capacity, zero (PO.OO): Provided, further, That 
the by-product including fuel oil, diesel fuel, kerosene, pyrolysis gasoline, 
liquefied petroleum gases, and similar oils having more or less the same 
generating power, which are produced in the processing of naphtha into 
petrochemical products shall be subject to the applicable excise tax specified 
in this Section, except when such by-products are transferred to any of the 
local oil refineries through sale, barter or exchange, for the purpose of further 
processing or blending into finished products which are subject to excise tax 
under this Section;
(f) [Leaded premium gasoline, per liter of volume capacity. Five pesos 
and thirty-five centavos (P5.35);] [u]Unleaded premium gasoline, per liter of 
volume capacity, [Four pesos and thirty-five centavos (P4.35);] SIX PESOS 
(P6.00);
(g) Aviation turbo jet fuel, per liter of volume capacity, [Three pesos 
and sixty-seven centavos (P3.67)] FOUR PESOS (P4.00);
(h) Kerosene, per liter of volume capacity, zero (PO.OO): Provided, 
That kerosene, when used as aviation fuel, shall be subject to the same tax 
on aviation turbo jet fuel under the preceding paragraph [(g)] (F), such tax to 
be assessed on the user thereof;
(i) Diesel fuel oil, and on similar fuel oils having more or less the same 
generating power, per liter of volume capacity, [zero (PO.OO)] ONE PESO 
AND SEVENTY FIVE CENTAVOS (P1.75);
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(j) Liquefied petroleum gas, per liter OF VOLUME CAPACITY, [zero 
(PO.OO)] ONE PESO (P1.00): PROVIDED, THAT LIQUEFIED PETROLEUM 
GAS WHEN USED AS RAW MATERIAL IN THE PRODUCTION OF 
PETROCHEMICAL 
PRODUCTS, 
SUBJECT 
TO 
THE 
RULES 
AND 
REGULATIONS TO BE PROMULGATED BY THE SECRETARY OF 
ENERGY, IN CONSULTATION WITH THE SECRETARY OF FINANCE, 
SHALL BE TAXED ZERO (PO.OO) PER LITER OF VOLUME CAPACITY: 
Provided, FINALLY, That liquefied petroleum gas used for motive power 
shall be taxed at the equivalent rate as the excise tax on diesel fuel oil;
(k) Asphalts, per kilogram, [Fifty-six centavos (P0.56)] ONE PESO 
AND SEVENTY FIVE CENTAVOS (P1.75); and
(l) Bunker fuel oil, and on similar fuel oils having more or less the 
same generating power, per liter of volume capacity, [zero (PO.OO).] ONE 
PESO AND SEVENTY FIVE CENTAVOS (P1.75): PROVIDED, HOWEVER, 
THAT THE EXCISE TAXES PAID ON THE PURCHASED BASESTOCK 
(BUNKER) USED IN THE MANUFACTURE OF EXCISABLE ARTICLES 
AND FORMING PART THEREOF SHALL BE CREDITED AGAINST THE 
EXCISE TAX DUE THEREFROM.
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EFFECTIVE JANUARY 1, 2019
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(A) LUBRICATING OILS AND GREASES, INCLUDING BUT NOT 
LIMITED TO, BASESTOCK FOR LUBE OILS AND GREASES, HIGH 
VACUUM DISTILLATES, AROMATIC EXTRACTS AND OTHER SIMILAR 
PREPARATIONS, AND ADDITIVES FOR LUBRICATING OILS AND 
GREASES, WHETHER SUCH ADDITIVES ARE PETROLEUM BASED OR 
NOT, PER LITER AND KILOGRAM, RESPECTIVELY, OF VOLUME 
CAPACITY OR WEIGHT, EIGHT PESOS (P8.00): PROVIDED, THAT 
LUBRICATING OILS AND GREASES PRODUCED FROM BASESTOCKS 
AND ADDITIVES ON WHICH THE EXCISE TAX HAS ALREADY BEEN 
PAID SHALL NO LONGER BE SUBJECT TO EXCISE TAX: PROVIDED, 
FURTHER, 
THAT 
LOCALLY 
PRODUCED 
OR 
IMPORTED 
OILS 
PREVIOUSLY 
TAXED 
AS 
SUCH 
BUT 
ARE 
SUBSEQUENTLY
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REPROCESSED, REREFINED OR RECYCLED SHALL LIKEWISE BE 
SUBJECT TO THE TAX IMPOSED UNDER THIS SUBSECTION.
(B) PROCESSED GAS, PER LITER OF VOLUME CAPACITY, 
THREE PESOS AND SEVENTY FIVE CENTAVOS (P3.75);
(C) WAXES AND PETROLATUM, PER KILOGRAM, EIGHT PESOS 
(P8.00):
(D) ON DENATURED ALCOHOL TO BE USED FOR MOTIVE 
POWER, PER LITER OF VOLUME CAPACITY, THREE PESOS AND 
SEVENTY 
FIVE 
CENTAVOS 
(P3.75): 
PROVIDED, 
THAT 
UNLESS 
OTHERWISE PROVIDED BY SPECIAL LAWS, IF THE DENATURED 
ALCOHOL IS MIXED WITH GASOLINE, THE EXCISE TAX ON WHICH 
HAS ALREADY BEEN PAID, ONLY THE ALCOHOL CONTENT SHALL 
BE SUBJECT TO THE TAX HEREIN PRESCRIBED. FOR PURPOSES OF 
THIS SUBSECTION, THE REMOVAL OF DENATURED ALCOHOL OF 
NOT LESS THAN ONE HUNDRED EIGHTY DEGREES (180°) PROOF 
(NINETY PERCENT (90%) ABSOLUTE ALCOHOL) SHALL BE DEEMED 
TO HAVE BEEN REMOVED FOR MOTIVE POWER, UNLESS SHOWN 
OTHERWISE;
(E) NAPHTHA, REGULAR GASOLINE, PYROLYSIS GASOLINE, 
AND OTHER SIMILAR PRODUCTS OF DISTILLATION, PER LITER OF 
VOLUME CAPACITY, EIGHT PESOS (P8.00): PROVIDED, HOWEVER, 
THAT NAPHTHA AND PYROLYSIS GASOLINE, WHEN USED AS A RAW 
MATERIAL IN THE PRODUCTION OF PETROCHEMICAL PRODUCTS OR 
AS 
REPLACEMENT 
FUEL 
FOR 
NATURAL-GAS-FIRED-COMBINED 
CYCLE POWER PLANT IN LIEU OF LOCALLY-EXTRACTED NATURAL 
GAS DURING THE NON-AVAILABILITY THEREOF, SUBJECT TO THE 
RULES 
AND 
REGULATIONS 
TO 
BE 
PROMULGATED 
BY 
THE 
SECRETARY OF ENERGY, IN CONSULTATION WITH THE SECRETARY 
OF FINANCE, PER LITER OF VOLUME CAPACITY, ZERO (PO.OO): 
PROVIDED, FURTHER, THAT THE BY-PRODUCT INCLUDING FUEL OIL, 
DIESEL 
FUEL, 
KEROSENE, 
PYROLYSIS 
GASOLINE, 
LIQUEFIED 
PETROLEUM GASES AND SIMILAR OILS HAVING MORE OR LESS THE 
SAME GENERATING 
POWER, WHICH 
ARE 
PRODUCED IN 
THE 
PROCESSING OF NAPHTHA INTO 
PETROCHEMICAL 
PRODUCTS
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SHALL BE SUBJECT TO THE APPLICABLE EXCISE TAX SPECIFIED IN 
THIS 
SECTION, 
EXCEPT 
WHEN 
SUCH 
BY-PRODUCTS 
ARE 
TRANSFERRED TO ANY OF THE LOCAL OIL REFINERIES THROUGH 
SALE, BARTER OR EXCHANGE, FOR THE PURPOSE OF FURTHER 
PROCESSING OR BLENDING INTO FINISHED PRODUCTS WHICH ARE 
SUBJECT TO EXCISE TAX UNDER THIS SECTION;
(F) UNLEADED PREMIUM GASOLINE, PER LITER OF VOLUME 
CAPACITY, EIGHT PESOS (P8.00);
(G) AVIATION TURBO JET FUEL, PER LITER OF VOLUME 
CAPACITY, FOUR PESOS (P4.00);
(H) KEROSENE, PER LITER OF VOLUME CAPACITY, ZERO 
(PO.OO): PROVIDED, THAT KEROSENE, WHEN USED AS AVIATION 
FUEL, SHALL BE SUBJECT TO THE SAME TAX ON AVIATION TURBO 
JET FUEL UNDER THE PRECEDING PARAGRAPH (F), SUCH TAX TO 
BE ASSESSED ON THE USER THEREOF;
(I) 
DIESEL FUEL OIL, AND ON SIMILAR FUEL OILS HAVING 
MORE OR LESS THE SAME GENERATING POWER, PER LITER OF 
VOLUME CAPACITY, THREE PESOS AND SEVENTY FIVE CENTAVOS 
(P3.75);
(J) LIQUEFIED PETROLEUM GAS, PER LITER, TWO PESOS 
(P2.00): PROVIDED, THAT LIQUEFIED PETROLEUM GAS WHEN USED 
AS RAW MATERIAL IN THE PRODUCTION OF PETROCHEMICAL 
PRODUCTS, SUBJECT TO THE RULES AND REGULATIONS TO BE 
PROMULGATED 
BY 
THE 
SECRETARY 
OF 
ENERGY, 
IN 
CONSULTATION WITH THE SECRETARY OF FINANCE, PER LITER OF 
VOLUME CAPACITY, 
ZERO 
(PO.OO): 
PROVIDED, 
FINALLY, 
THAT 
LIQUEFIED PETROLEUM GAS USED FOR MOTIVE POWER SHALL BE 
TAXED AT THE EQUIVALENT RATE AS THE EXCISE TAX ON DIESEL 
FUELOIL;
(K) ASPHALTS, PER KILOGRAM, THREE PESOS AND SEVENTY 
FIVE CENTAVOS (P3.75); AND
(L) BUNKER FUEL OIL, AND ON SIMILAR FUEL OILS HAVING 
MORE OR LESS THE SAME GENERATING POWER, PER LITER OF 
VOLUME CAPACITY, THREE PESOS AND SEVENTY FIVE CENTAVOS
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(P3.75): PROVIDED, HOWEVER, THAT THE EXCISE TAXES PAID ON 
THE 
PURCHASED 
BASESTOCK 
(BUNKER) 
USED 
IN 
THE 
MANUFACTURE OF EXCISABLE ARTICLES AND FORMING PART 
THEREOF SHALL BE CREDITED AGAINST THE EXCISE TAX DUE 
THEREFROM.
EFFECTIVE JANUARY 1, 2020
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(A) LUBRICATING OILS AND GREASES, INCLUDING BUT NOT 
LIMITED TO, BASESTOCK FOR LUBE OILS AND GREASES, HIGH 
VACUUM DISTILLATES, AROMATIC EXTRACTS AND OTHER SIMILAR 
PREPARATIONS, AND ADDITIVES FOR LUBRICATING OILS AND 
GREASES, WHETHER SUCH ADDITIVES ARE PETROLEUM BASED OR 
NOT, PER LITER AND KILOGRAM, RESPECTIVELY, OF VOLUME 
CAPACITY OR WEIGHT, TEN PESOS (P10.00): PROVIDED, THAT 
LUBRICATING OILS AND GREASES PRODUCED FROM BASESTOCKS 
AND ADDITIVES ON WHICH THE EXCISE TAX HAS ALREADY BEEN 
PAID SHALL NO LONGER BE SUBJECT TO EXCISE TAX: PROVIDED, 
FURTHER, 
THAT 
LOCALLY 
PRODUCED 
OR 
IMPORTED 
OILS 
PREVIOUSLY 
TAXED 
AS 
SUCH 
BUT 
ARE 
SUBSEQUENTLY 
REPROCESSED, REREFINED OR RECYCLED SHALL LIKEWISE BE 
SUBJECT TO THE TAX IMPOSED UNDER THIS SUBSECTION.
(B) PROCESSED GAS, PER LITER OF VOLUME CAPACITY, SIX 
PESOS (P6.00):
(C) WAXES AND PETROLATUM, PER KILOGRAM, TEN PESOS 
(P10.00):
(D) ON DENATURED ALCOHOL TO BE USED FOR MOTIVE 
POWER, PER LITER OF VOLUME CAPACITY, SIX PESOS (P6.00): 
PROVIDED, THAT UNLESS OTHERWISE PROVIDED BY SPECIAL 
LAWS, IF THE DENATURED ALCOHOL IS MIXED WITH GASOLINE, THE 
EXCISE TAX ON WHICH HAS ALREADY BEEN PAID, ONLY THE 
ALCOHOL CONTENT SHALL BE SUBJECT TO THE TAX HEREIN 
PRESCRIBED. FOR PURPOSES OF THIS SUBSECTION, THE REMOVAL 
OF DENATURED ALCOHOL OF NOT LESS THAN ONE HUNDRED
40


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6
7
8 
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20 
21 
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31
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34
1
EIGHTY DEGREES (180°) PROOF (NINETY PERCENT (90%) ABSOLUTE 
ALCOHOL) SHALL BE DEEMED TO HAVE BEEN REMOVED FOR 
MOTIVE POWER, UNLESS SHOWN OTHERWISE;
(E) NAPHTHA, REGULAR GASOLINE, PYROLYSIS GASOLINE 
AND OTHER SIMILAR PRODUCTS OF DISTILLATION, PER LITER OF 
VOLUME CAPACITY, TEN PESOS (P10.00): PROVIDED, HOWEVER, 
THAT NAPHTHA AND PYROLYSIS GASOLINE, WHEN USED AS A RAW 
MATERIAL IN THE PRODUCTION OF PETROCHEMICAL PRODUCTS OR 
AS 
REPLACEMENT 
FUEL 
FOR 
NATURAL-GAS-FI RED-COMBI NED 
CYCLE POWER PLANT IN LIEU OF LOCALLY-EXTRACTED NATURAL 
GAS DURING THE NON-AVAILABILITY THEREOF, SUBJECT TO THE 
RULES 
AND 
REGULATIONS 
TO 
BE 
PROMULGATED 
BY 
THE 
SECRETARY OF ENERGY, IN CONSULTATION WITH THE SECRETARY 
OF FINANCE, PER 
LITER OF VOLUME CAPACITY, ZERO (PO.OO): 
PROVIDED, FURTHER, THAT THE BY-PRODUCT INCLUDING FUEL OIL, 
DIESEL 
FUEL, 
KEROSENE, 
PYROLYSIS 
GASOLINE, 
LIQUEFIED 
PETROLEUM GASES AND SIMILAR OILS HAVING MORE OR LESS THE 
SAME 
GENERATING 
POWER, 
WHICH 
ARE 
PRODUCED IN 
THE 
PROCESSING OF NAPHTHA 
INTO 
PETROCHEMICAL 
PRODUCTS 
SHALL BE SUBJECT TO THE APPLICABLE EXCISE TAX SPECIFIED IN 
THIS 
SECTION, 
EXCEPT 
WHEN 
SUCH 
BY-PRODUCTS 
ARE 
TRANSFERRED TO ANY OF THE LOCAL OIL REFINERIES THROUGH 
SALE, BARTER OR EXCHANGE, FOR THE PURPOSE OF FURTHER 
PROCESSING OR BLENDING INTO FINISHED PRODUCTS WHICH ARE 
SUBJECT TO EXCISE TAX UNDER THIS SECTION;
(F) UNLEADED PREMIUM GASOLINE, PER LITER OF VOLUME 
CAPACITY, TEN PESOS (P10.00);
(G) AVIATION TURBO JET FUEL, PER LITER OF VOLUME 
CAPACITY, FOUR PESOS (P4.00);
(H) KEROSENE, PER LITER OF VOLUME CAPACITY, ZERO 
(PO.OO): PROVIDED, THAT KEROSENE, WHEN USED AS AVIATION 
FUEL, SHALL BE SUBJECT TO THE SAME TAX ON AVIATION TURBO 
JET FUEL UNDER THE PRECEDING PARAGRAPH (F), SUCH TAX TO 
BE ASSESSED ON THE USER THEREOF;
41


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1
(I) 
DIESEL FUEL OIL, AND ON SIMILAR FUEL OILS HAVING 
MORE OR LESS THE SAME GENERATING POWER, PER LITER OF 
VOLUME CAPACITY, SIX PESOS (P6.00);
(J) LIQUEFIED PETROLEUM GAS, PER LITER, THREE PESOS 
(P3.00): PROVIDED, THAT LIQUEFIED PETROLEUM GAS WHEN USED 
AS RAW MATERIAL IN THE PRODUCTION OF PETROCHEMICAL 
PRODUCTS, SUBJECT TO THE RULES AND REGULATIONS TO BE 
PROMULGATED 
BY 
THE 
SECRETARY 
OF 
ENERGY, 
IN 
CONSULTATION WITH THE SECRETARY OF FINANCE, PER LITER OF 
VOLUME 
CAPACITY, ZERO (PO.OO): 
PROVIDED, 
FINALLY, THAT 
LIQUEFIED PETROLEUM GAS USED FOR MOTIVE POWER SHALL BE 
TAXED AT THE EQUIVALENT RATE AS THE EXCISE TAX ON DIESEL 
FUELOIL;
(K) ASPHALTS, PER KILOGRAM, SIX PESOS (P6.00); AND
(L) BUNKER FUEL OIL, AND ON SIMILAR FUEL OILS HAVING 
MORE OR LESS THE SAME GENERATING POWER, PER LITER OF 
VOLUME CAPACITY, SIX PESOS (P6.00): PROVIDED, HOWEVER, THAT 
THE 
EXCISE 
TAXES 
PAID 
ON 
THE 
PURCHASED 
BASESTOCK 
(BUNKER) USED IN THE MANUFACTURE OF EXCISABLE ARTICLES 
AND FORMING PART THEREOF SHALL BE CREDITED AGAINST THE 
EXCISE TAX DUE THEREFROM.
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29
30
31
32
FOR THE PERIOD COVERING 2018 TO 2020, THE SCHEDULED 
INCREASE IN THE EXCISE TAX ON FUEL AS IMPOSED IN THIS 
SECTION SHALL BE SUSPENDED WHEN ANY OF THE FOLLOWING 
CONDITIONS HAVE BEEN MET:
1) THE AVERAGE DUBAI CRUDE OIL PRICE FOR THE FIRST 
FIFTEEN (15) DAYS OF THE MONTH BASED ON MEAN OF 
PLATTS SINGAPORE (MOPS) REACHES OR EXCEEDS EIGHTY 
DOLLARS (USD 80) PER BARREL COST, INSURANCE, AND 
FREIGHT (CIF): OR
2) WHEN THE INFLATION RATE EXCEEDS THE HIGHER END OF 
THE ANNUAL INFLATION TARGET RANGE SET BY THE
42


DEVELOPMENT BUDGET AND COORDINATION COMMITTEE 
(DBCC) AND THE BANGKO SENTRAL NG PILIPINAS (BSP).
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4
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6
7
8 
9
10
PROVIDED, THAT THE SCHEDULED INCREASE IN EXCISE TAX 
SHALL BE IMPLEMENTED SHOULD THE SAID OIL PRICE PER BARREL 
FALLS BELOW EIGHTY DOLLARS (USD 80) OR WHEN THE INFLATION 
RATE FALLS BELOW THE ANNUAL INFLATION TARGET SET BY THE 
DBCC AND THE BSP: PROVIDED, FINALLY, THAT ANY SUSPENSION 
OF THE INCREASE IN EXCISE TAX SHALL NOT RESULT IN ANY 
REDUCTION OF THE EXCISE TAX BEING IMPOSED AT THE TIME OF 
THE SUSPENSION.”
11 
SEC. 28. A new section designated as Section 148-A under Chapter V of the
12 
NIRC, as amended, is hereby added to read as follows:
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14
15
16
17
18
19
20 
21 
22
23
24
25
26 
27
“SECTION 148-A. MARKING OF PETROLEUM PRODUCTS. -  
IN 
ACCORDANCE WITH RULES AND REGULATIONS TO BE ISSUED BY 
THE 
SECRETARY 
OF 
FINANCE 
IN 
CONSULTATION 
WITH 
THE 
COMISSIONER OF INTERNAL REVENUE AND COMMISSIONER OF 
CUSTOMS 
AND 
IN 
COORDINATION 
WITH 
THE 
SECRETARY OF 
ENERGY, THE SECRETARY OF FINANCE MAY REQUIRE THE USE OF 
FUEL 
MARKING 
OR 
SIMILAR 
TECHONOLOGY 
ON 
PETROLEUM 
PRODUCTS SUCH AS BUT NOT LIMITED TO UNLEADED PREMIUM 
GASOLINE, KEROSENE, AND DIESEL FUEL OIL BEFORE REMOVAL 
FROM THE PLACE OF PRODUCTION OR, FOR PETROLEUM PRODUCTS 
BROUGHT OR IMPORTED INTO THE PHILIPPINES, 
BEFORE THE 
RELEASE OF SUCH ARTICLES FROM CUSTOMS CUSTODY. ALL 
COSTS 
IN 
CONNECTION 
WITH 
THE 
IMPLEMENTATION 
OF THIS 
SECTION SHALL BE BORNE BY THE IMPORTER OR MANUFACTUER 
OF PETROLEUM PRODUCTS.”
28 
SEC. 29. Section 149 of the NIRC, as amended, is hereby further amended to
29 
read as follows;
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8 
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1
2
“SEC. 149. Automobiles. -  There shall be levied, assessed and 
collected an ad valorem tax on automobiles based on the manufacturer’s or 
importer’s selling price, net of excise and value-added tax, in accordance 
with the following schedule:
[Net Manufacturer's Price/Importer's Selling Price
up to P600 Thousand
Over P600 Thousand to P1.1 Million
Over P1.1 Million to P2.1 Million
Over P2.1 Million
Rate
2%
P I2,000 + 20% value in 
excess of P600 Thousand 
P112, 000 + 40% of value in 
excess of P1.1 Million 
P512,000 + 60% of value in 
excess of P2.1 Million]
14
EFFECTIVE JANUARY 1, 2018
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20 
21 
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24
25
NET MANUFACTURER’S PRICE/ 
IMPORTER’S SELLING PRICE
UP TO P600K
OVER P600K TO P1.1 MILLION 
OVER P1.1 MILLION TO P2.1 MILLION 
OVER P2.1 MILLION TO P3.1 MILLION 
OVER P3.1 MILLION
RATE
4%
P24,000 + 35% OF EXCESS 
OVER P600K
P I99,000 + 55% OF EXCESS 
OVER P1.1 MILLION 
P749.000 + 90% OF EXCESS 
OVER P2.1 MILLION 
P1,649,000 + 100% OF EXCESS 
OVER P3.1 MILLION
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29
30
31
32
[Provided, That the brackets reflecting the manufacturer’s price or 
importer’s selling price, net of excise and value-added taxes, will be indexed 
by the Secretary of Finance once every two (2) years if the change in the 
exchange rate of the Philippine peso against the United States (U.S.) dollar 
is more than ten percent (10%) from the date of effectivity of this Act, in the 
case of initial adjustment and from the last revision date in the case of 
subsequent adjustments.
44


The manufacturer’s price or importer’s selling price, net of excise and 
value-added taxes, shall be indexed by the full rate of the peso depreciation 
or appreciation, as the case may be.
Provided, further, That in case the change in the exchange rate of the 
Philippine peso against the U.S. dollar is at least twenty percent (20%) at 
anytime within the two-year period referred to above, the Secretary of 
Finance shall index the brackets reflecting the manufacturer’s price or 
importer’s selling price, net of excise and value-added taxes, by the full rate 
of the peso depreciation or appreciation, as the case may be.]
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13
14
15
16
17
18
As used in this Section -
(a) Automobile shall mean any four (4) or more wheeled motor vehicle 
regardless of seating capacity, which is propelled by gasoline, diesel, OR 
electricity or any other motive power; 
Provided, That for purposes of this 
Act, buses, trucks, cargo vans, [jeeps/jjeepneys/jeepney substitutes, single 
cab chassis, and special-purpose vehicles, AND VEHICLES PURELY 
POWERED BY ELECTRICITY OR HYBRID VEHICLES shall not [be 
considered as automobiles] BE SUBJECT TO EXCISE TAX AS PROVIDED 
UNDER THIS SECTION.
XXX
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20 
21 
22
23
24
25
(G) HYBRID ELECTRIC VEHICLE SHALL MEAN A MOTOR 
VEHICLE POWERED BY ELECTRIC ENERGY, WITH OR WITHOUT 
PROVISION FOR OFF-VEHICLE CHARGING, IN COMBINATION WITH 
GASOLINE, DIESEL OR ANY OTHER MOTIVE POWER: PROVIDED, 
THAT, FOR PURPOSES OF THIS ACT, A HYBRID ELECTRIC VEHICLE 
MUST 
BE 
ABLE 
TO 
PROPEL 
ITSELF 
FROM 
A 
STATIONARY 
CONDITION USING SOLELY ELECTRIC MOTOR.
26
X X X
45


1 
SEC. 30. Section 150 of the NIRC, as amended, is hereby further amended
2 
to read as follows;
3
4
5
6
7
8 
9
“SEC. 150. Non-essential Goods AND SERVICES. - There shall be 
levied, assessed and collected a tax equivalent to twenty-percent (20%) 
based on the wholesale price or the value of importation used by the 
Bureau of Customs in determining tariff and customs duties, net of excise 
tax and value-added tax of the following goods, OR BASED ON THE 
GROSS SALES OR RECEIPTS DERIVED FROM THE PERFORMANCE 
OF SERVICES:
XXX
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21
(c) Yachts and other vessels intended for pleasure or sports;[.] AND
(D) 
COSMETIC 
PROCEDURES, 
SURGERIES, 
AND 
BODY 
ENHANCEMENTS 
UNDERTAKEN 
FOR 
AESTHETIC 
REASONS: 
PROVIDED, 
THAT, 
FOR 
PURPOSES 
OF 
THIS 
ACT, 
COSMETIC 
PROCEDURES ARE THOSE ENTIRELY FOCUSED ON ALTERING AND 
ENHANCING A PATIENT’S APPEARANCE, IMPROVING AESTHETIC 
APPEAL, SYMMETRY, AND PROPORTION: PROVIDED, FURTHER, THAT 
RECONSTRUCTIVE SURGERY OR THE REPAIR, RECONSTRUCTION. 
AND RESTORATION OF FACIAL AND BODILY FUNCTIONS DUE TO 
CONGENITAL DISORDERS, TRAUMA, BURNS, INFECTIONS, DISEASE, 
AND THOSE INTENDED TO CORRECT DYSFUNCTIONAL AREAS OF 
THE BODY SHALL BE EXEMPT.’’
22 
SEC. 31. A new section designated as Section 150-A under Chapter VI, Title
23 
VI of the NIRC, as amended, is hereby inserted to read as follows:
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25
26
27
28
“ SEC. 150-A. SWEETENED BEVERAGES. -
(A) RATE AND BASE OF TAX. -  EFFECTIVE JANUARY 1, 2018,
(1) A TAX OF FIVE PESOS (P5.00) PER LITER OF VOLUME 
CAPACITY SHALL BE LEVIED, ASSESSED, AND COLLECTED ON 
SWEETENED BEVERAGES USING PURELY CALORIC SWEETENERS:
46


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1
2
PROVIDED, 
THAT 
SWEETENED 
BEVERAGES 
USING 
PURELY 
COCONUT SAP SUGAR SHALL BE EXEMPT FROM THIS TAX;
(2) A TAX OF TEN PESOS (P10.00) PER LITER OF VOLUME 
CAPACITY SHALL BE LEVIED, ASSESSED, AND COLLECTED ON 
SWEETENED BEVERAGES USING PURELY HIGH FRUCTOSE CORN 
SYRUP OR IN COMBINATION WITH ANY CALORIC OR NON-CALORIC 
SWEETENER: AND
(3) A TAX OF THREE PESOS (P3.00) PER LITER OF VOLUME 
CAPACITY SHALL BE LEVIED, ASSESSED, AND COLLECTED ON 
SWEETENED 
BEVERAGES 
USING 
PURELY 
NON-CALORIC 
SWEETENERS 
OR 
A 
MIX 
OF 
CALORIC 
AND 
NON-CALORIC 
SWEETENERS: PROVIDED, THAT SWEETENED BEVERAGES USING 
PURELY STEVIOL GLYCOSIDES SHALL BE EXEMPT FROM THIS TAX.
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33
PROVIDED, THAT, AFTER TWO YEARS OF IMPLEMENTATION:
(1) 
SWEETENED 
BEVERAGES 
USING 
PURELY 
CALORIC 
SWEETENERS SHALL BE SUBJECT TO A TAX OF FIVE CENTAVOS 
(P0.05) PER GRAM OF SUGAR: PROVIDED, THAT SWEETENED 
BEVERAGES USING PURELY COCONUT SAP SUGAR SHALL BE 
EXEMPT FROM THIS TAX;
(2) SWEETENED BEVERAGES USING PURELY HIGH FRUCTOSE 
CORN SYRUP OR IN COMBINATION WITH ANY CALORIC OR NON­
CALORIC SWEETENER SHALL STILL BE TAXED OF TEN PESOS 
(P10.00) PER LITER OF VOLUME CAPACITY;
(3) SWEETENED BEVERAGES USING PURELY NON-CALORIC 
SWEETENERS 
OR 
A 
MIX 
OF 
CALORIC 
AND 
NON-CALORIC 
SWEETENERS SHALL STILL BE TAXED AT THE RATE OF THREE 
PESOS (P3.00) PER LITER OF VOLUME CAPACITY: PROVIDED, THAT 
SWEETENED BEVERAGES USING PURELY STEVIOL GLYCOSIDES 
SHALL BE EXEMPT FROM THIS TAX.
4 7


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29
1
(B) DEFINITION OF TERMS. -  AS USED IN THIS ACT:
(1) SWEETENED 
BEVERAGES 
(SBS) 
REFER 
TO 
NON­
ALCOHOLIC BEVERAGES OF ANY CONSTITUTION (LIQUID, POWDER, 
OR CONCENTRATES) THAT ARE PRE-PACKAGED AND SEALED IN 
ACCORDANCE WITH THE FOOD AND DRUG ADMINISTRATION (FDA) 
STANDARDS, 
THAT CONTAIN 
CALORIC 
AND/OR 
NON-CALORIC 
SWEETENERS ADDED 
BY THE 
MANUFACTURERS, AND SHALL 
INCLUDE, BUT NOT BE LIMITED TO THE FOLLOWING, AS DESCRIBED 
IN THE FOOD CATEGORY SYSTEM FROM CODEX ALIMENTARIUS 
FOOD CATEGORY DESCRIPTORS (CODEX STAN 192-1995, REV 2017 
OR THE LATEST) AS ADOPTED BY THE FDA:
(A) . SWEETENED JUICE DRINKS;
(B) . SWEETENED TEA AND COFFEE;
(C) . ALL CARBONATED BEVERAGES;
(D) . FLAVORED WATER;
(E) . POWDERED MILK, READY TO DRINK MILK, FLAVORED
MILK, AND FERMENTED MILK, CONTAINING MORE THAN
FIVE (5) GRAMS OF ADDED SUGAR PER ONE HUNDRED
MILLILITER (100 ML) OF VOLUME CAPACITY;
(F) . ENERGY AND SPORTS DRINKS;
(G) . POWDERED DRINKS NOT CLASSIFIED AS MILK, JUICE,
TEA, AND COFFEE;
(H) . CEREAL AND GRAIN BEVERAGES; AND
(I) 
. 
OTHER NON-ALCOHOLIC BEVERAGES THAT CONTAIN
ADDED SUGAR.
(2) CALORIC SWEETENER REFERS TO A SUBSTANCE THAT IS 
SWEET AND INCLUDES SUCROSE, FRUCTOSE, INCLUDING HIGH 
FRUCTOSE CORN SYRUP THAT PRODUCES A DESIRED SWEETNESS;
30
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(3) 
NON-CALORIC SWEETENER REFERS TO A SUBSTANCE 
THAT THAT ARE ARTIFICIALLY OR CHEMICALLY PROCESSED THAT 
PRODUCES A DESIRED SWEETNESS. THESE ARE SUBSTANCES
48


WHICH CAN BE DIRECTLY ADDED TO BEVERAGES, SUCH AS 
ASPARTAME, SUCRALOSE, SACCHARIN, ACESULFAME POTASSIUM, 
NEOTAME, 
CYCLAMATES 
AND 
OTHER 
NON-NUTRITIVE 
SWEETENERS APPROVED BY THE CODEX ALIMENTARIUS AND 
ADOPTED BY THE FDA.
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8 
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21 
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33
6
(C) 
EXCLUSIONS. 
-  
THE 
FOLLOWING 
PRODUCTS, 
AS 
DESCRIBED IN THE 
FOOD CATEGORY SYSTEM 
FROM 
CODEX 
ALIMENTARIUS FOOD CATEGORY DESCRIPTORS (CODEX STAN 192- 
1995, REV 2017 OR THE LATEST) AS ADOPTED BY THE FDA, ARE 
EXCLUDED FROM THE SCOPE OF THIS ACT:
(1) PLAIN MILK, INFANT FORMULA MILK, AND GROWING UP 
MILK;
(2) POWDERED MILK, READY TO DRINK MILK AND FLAVORED 
MILK, AND FERMENTED MILK CONTAINING FIVE (5) GRAMS 
OF SUGAR OR LESS PER 100 ML OF VOLUME CAPACITY;
(3) ONE HUNDRED PERCENT (100%) NATURAL FRUIT JUICES
-  ORIGINAL LIQUID RESULTING FROM THE PRESSING OF 
FRUIT, 
THE 
LIQUID 
RESULTING 
FROM 
THE
RECONSTITUTION 
OF 
NATURAL 
FRUIT 
JUICE
CONCENTRATE, OR THE LIQUID RESULTING FROM THE 
RESTORATION OF WATER TO DEHYDRATED NATURAL 
FRUIT JUICE THAT DO NOT HAVE ADDED SUGAR OR 
CALORIC SWEETENER;
(4) ONE HUNDRED PERCENT (100%) NATURAL VEGETABLE 
JUICES 
-  
ORIGINAL LIQUID 
RESULTING FROM THE 
PRESSING 
OF VEGETABLES, 
THE 
LIQUID 
RESULTING 
FROM THE RECONSTITUTION OF NATURAL VEGETABLE 
JUICE CONCENTRATE, OR THE LIQUID RESULTING FROM 
THE RESTORATION OF WATER TO DEHYDRATED NATURAL 
VEGETABLE JUICE THAT DO NOT HAVE ADDED SUGAR OR 
CALORIC SWEETENER;
(5) MEAL 
REPLACEMENT 
AND 
MEDICALLY 
INDICATED 
BEVERAGES -  ANY LIQUID OR POWDER DRINK/PRODUCT
49


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9
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11
1
FOR ORAL NUTRITIONAL THERAPY FOR PERSONS WHO 
CANNOT ABSORB OR METABOLIZE DIETARY NUTRIENTS 
FROM FOOD OR BEVERAGES, OR AS A SOURCE OF 
NECESSARY 
NUTRITION 
USED 
DUE 
TO 
A 
MEDICAL 
CONDITION AND AN ORAL ELECTROLYTE SOLUTION FOR 
INFANTS AND CHILDREN 
FORMULATED TO 
PREVENT 
DEHYDRATION DUE TO ILLNESS;
(6) GROUND COFFEE INSTANT SOLUBLE COFFEE, AND PRE­
PACKAGED POWDERED COFFEE PRODUCTS WITH OR 
WITHOUT ADDED SUGAR; AND
(7) UNSWEETENED TEA.
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(D) 
FILING OF RETURN AND PAYMENT OF EXCISE TAX AND 
PENALTY. -
(1) 
FILING OF RETURN AND PAYMENT OF EXCISE TAX ON 
DOMESTIC AND IMPORTED SWEETENED BEVERAGES 
-  
THE 
PROVISION 
OF 
SECTIONS 
130 
AND 
131 
OF 
THE 
NIRC, 
AS 
APPROPRIATE, SHALL APPLY TO SWEETENED BEVERAGES .
(2) 
PENALTY 
-  
UPON 
FINAL 
FINDINGS 
BY 
THE 
COMMISSIONERS OF INTERNAL REVENUE AND/OR CUSTOMS THAT 
ANY 
MANUFACTURER OR 
IMPORTER, 
IN 
VIOLATION 
OF THIS 
SECTION, 
MISDECLARES OR MISREPRESENTS 
IN 
THE SWORN 
STATEMENT PROVIDED IN SECTION 130 (C) OF THE NIRC, AS 
AMENDED, ANY PERTINENT DATA OR INFORMATION, THE PENALTY 
OF SUMMARY CANCELLATION OR WITHDRAWAL OF THE PERMIT TO 
ENGAGE IN BUSINESS AS MANUFACTURER OR IMPORTER OF 
SWEETENED BEVERAGES AS PROVIDED UNDER SECTION 268 OF 
THE NIRC, AS AMENDED, SHALL BE IMPOSED.
ANY CORPORATION, ASSOCIATION OR PARTNERSHIP LIABLE 
FOR ANY OF THE ACTS OR OMISSIONS IN VIOLATION OF THIS 
SECTION SHALL BE FINED TREBLE THE AMOUNT OF DEFICIENCY 
TAXES, SURCHARGES, AND INTEREST WHICH MAY BE ASSESSED 
PURSUANT TO THIS SECTION.
50


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3
4
5
6
1
ANY PERSON LIABLE FOR ANY OF THE ACTS OR OMISSIONS 
PROHIBITED UNDER THIS SECTION SHALL BE CRIMINALLY LIABLE 
AND PENALIZED UNDER SECTION 254 OF THE NIRC, AS AMENDED. 
ANY PERSON WHO W ILLFULLY AIDS OR ABETS IN THE COMMISSION 
OF ANY SUCH ACT OR OMISSION SHALL BE CRIMINALLY LIABLE IN 
THE SAME MANNER AS THE PRINCIPAL.
IF NOT A CITIZEN OF THE PHILIPPINES, THE OFFENDER SHALL 
BE DEPORTED IMMEDIATELY AFTER SERVING THE SENTENCE 
WITHOUT FURTHER PROCEEDINGS FOR DEPORTATION.
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14
15
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17
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19
(E) 
SPECIFIC RESPONSIBILITY OF THE FOOD AND DRUG 
ADMINISTRATION (FDA). -F O R  THE FIRST TWO YEARS OF THE 
IMPLEMENTATION OF THIS ACT, THE FDA SHALL REQUIRE ALL 
MANUFACTURERS AND IMPORTERS OF SWEETENED BEVERAGES 
COVERED BY THIS ACT TO INDICATE ON THE LABEL THE TYPE OF 
SWEETENER 
USED: PROVIDED, 
THAT 
IN 
THE 
CASE 
OF 
THE 
MANUFACTURERS AND IMPORTERS OF POWDERED MILK, READY 
TO DRINK MILK, FLAVORED MILK, AND FERMENTED MILK, THE FDA 
SHALL REQUIRE THEM TO STATE ON THE LABEL THE TYPE AND 
AMOUNT OF SWEETENER ADDED TO THE SWEETENED BEVERAGE.
20
21
22
23
24
25
26 
27
WHEN THE SWEETENED BEVERAGE TAX HAS SHIFTED TO 
SUGAR CONTENT, THE FDA SHALL REQUIRE ALL MANUFACTURERS 
AND IMPORTERS TO STATE ON THE LABEL THE TYPE AND AMOUNT 
OF SWEETENER ADDED TO THE SWEETENED BEVERAGE. THE FDA 
SHALL EVALUATE THE SWEETENED BEVERAGE TO DETERMINE THE 
CALORIC SWEETENER CONTENT OF THE SWEETENED BEVERAGE AS 
SPECIFIED ON THE LABEL BEFORE THESE PRODUCTS ARE SOLD IN 
THE MARKET.
28
29
THE 
FDA 
SHALL 
ALSO 
CONDUCT 
POST 
MARKETING SURVEILLANCE OF THE SWEETENED BEVERAGES ON
51


DISPLAY IN 
SUPERMARKETS, 
GROCERIES OR 
RETAIL STORES 
AND/OR INSPECTION OF MANUFACTURING SITES TO DETERMINE 
COMPLIANCE 
WITH 
THE 
REQUIREMENTS 
OF 
THIS 
SECTION. 
VIOLATIONS OF THE PROVISIONS OF THIS ACT, INCLUDING BUT NOT 
LIMITED TO MISLABELING OR MISBRANDING, SHALL, TO THE EXTENT 
APPLICABLE, BE PUNISHABLE UNDER EXISTING LAWS."
7 
SEC. 32. Section 151 of the NIRC, as amended, is hereby further amended to
8 
read as follows:
9
10
11
12
13
“SEC. 151. Mineral Products. -
(A) Rates o f Tax. - There shall be levied, assessed and collected on 
minerals, mineral products and quarry resources, excise tax as follows:
(1) On coal and coke, a tax of [Ten pesos (PI 0.00)] TWENTY 
PESOS (P20.00) per metric ton;
XXX
14 
SEC. 33. Section 155 of the NIRC, as amended, is hereby further amended to
15 
read as follows:
16
17
18
19
20 
21 
22
23
24
25
26
“SEC. 
155. 
Manufacturers AND/OR 
IMPORTERS 
to 
Provide 
Themselves with Counting or Metering Devices to Determine VOLUME OF 
Production AND IMPORTATION. -  Manufacturers of cigarettes, alcoholic 
products, oil products, and other articles subject to excise tax that can be 
similarly measured shall provide themselves with such necessary number of 
suitable counting or metering devices to determine as accurately as possible 
the volume, quantity or number of the articles produced by them under rules 
and 
regulations 
promulgated 
by 
the 
Secretary 
of 
Finance, 
upon 
recommendation of the Commissioner^]: PROVIDED, THAT IMPORTERS 
OF 
FINISHED 
PETROLEUM 
PRODUCTS 
SHALL ALSO 
PROVIDE 
THEMSELVES WITH BUREAU ACCREDITED METERING DEVICES TO
52


1 
DETERMINE AS ACCURATELY AS POSSIBLE THE VOLUME OF
2 
PETROLEUM PRODUCTS IMPORTED BY THEM.
This requirement shall be complied with before commencement of 
operations.”
5 
SEC. 34. Section 171 of the NIRC, as amended, is hereby further amended to
6 
read as follows;
7
8 
9
10
11
12
“SEC. 171. Authority o f Internal Revenue Officer in Searching for 
AND TESTING Taxable Articles. -  Any internal revenue officer may, in the 
discharge of his official duties, enter any house, building or place where 
articles subject to tax under this Title are produced or kept, or are believed 
by him upon reasonable grounds to be produced or kept, so far as may be 
necessary to examine, TEST, discover or seize the same.
13
14
15
He may also stop and search any vehicle or other means of 
transportation when upon reasonable grounds he believes that the same 
carries any article on which the excise tax has not been paid.
16
17
18
19
20 
21 
22
23
24
25
26
27
28
SUBJECT TO RULES AND REGULATIONS TO BE ISSUED BY 
THE SECRETARY OF FINANCE, THE COMMISSIONER OF INTERNAL 
REVENUE OR HIS AUTHORIZED REPRESENTATIVES MAY CONDUCT 
PERIODIC RANDOM AND CONFIRMATORY FIELD TESTS ON FUELS 
REQUIRED TO BE MARKED UNDER SECTION 148-A FOUND IN 
WAREHOUSES, GAS STATIONS AND OTHER RETAIL OUTLETS, AND 
IN SUCH OTHER PROPERTIES OF PERSONS ENGAGED IN THE SALE, 
DELIVERY, 
TRADING, 
TRANSPORTATION, 
DISTRIBUTION, 
OR 
IMPORTATION OF FUEL INTENDED FOR THE DOMESTIC MARKET.”
SEC. 35. Section 196 of the NIRC, as amended, is hereby further amended to 
read as follows;
53


2
3
4
5
6
7
8 
9
10
11
12
13
1
“SEC. 196. Stamp tax on Deeds of Sale, [and] Conveyances AND 
DONATION of Real Property. - On all conveyances, DONATIONS, deeds, 
instruments, or writings, other than grants, patents or original certificates of 
adjudication issued by the Government, whereby any land, tenement, or 
other realty sold shall be granted, assigned, transferred, DONATED or 
otherwise conveyed to the purchaser, or purchasers, or to any other person 
or persons designated by such purchaser or purchasers, OR DONEE, there 
shall be collected a documentary stamp tax, at the rates herein below 
prescribed, based on the consideration contracted to be paid for such realty 
or on its fair market value determined in accordance with Section 6(E) of this 
Code, whichever is higher: Provided, That when one of the contracting 
parties is the Government the tax herein imposed shall be based on the 
actual consideration.
XXX
14
15
16
TRANSFERS EXEMPT FROM DONOR’S TAX UNDER SECTION 101
(A) AND (B) OF THIS CODE SHALL BE EXEMPT FROM THE TAX 
IMPOSED UNDER THIS SECTION.
17
18
19
20 
21 
22 
23
When it appears that the amount of the documentary stamp tax 
payable hereunder has been reduced by an incorrect statement of the 
consideration in any conveyance, deed, instrument or writing subject to such 
tax the Commissioner, provincial or city Treasurer, or other revenue officer 
shall, from the assessment rolls or other reliable source of information, 
assess the property of its true market value and collect the proper tax 
thereon.”
24 
SEC. 36. Section 232 of the NIRC, as amended, is hereby further amended to
25 
read as follows:
26
27
28
“SEC. 232. Keeping o f Books of Accounts. -
(A) 
Corporations, Companies, Partnerships or Persons Required to 
Keep Books of Accounts. -  All corporations, companies, partnerships or
54


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16 
17
1
persons required by law to pay internal revenue taxes shall keep a journal 
and a ledger or their equivalents. Provided, however, That those whose 
quarterly sales, earnings, receipts, or output do not exceed [Fifty] TWO 
HUNDRED FIFTY thousand pesos [P50,000)] (P250.000) shall keep and 
use simplified set of bookkeeping records duly authorized by the Secretary 
of Finance wherein all transactions and results of operations are shown and 
from which all taxes due the Government may readily and accurately be 
ascertained and determined any time of the year: Provided, further. That 
corporations, companies, partnerships or persons whose gross quarterly 
sales, earnings, receipts or output exceed [One] SEVEN hundred fifty 
thousand pesos [(P150,000)] (P750,000), shall have their books of accounts 
audited and examined yearly by independent Certified Public Accountants 
and their income tax returns accompanied with a duly accomplished Account 
Information Form (AIF) which shall contain, among others, information lifted 
from certified balance sheets, profit and loss statements, schedules listing 
income-producing properties and the corresponding income therefrom and 
other relevant statements, 
x X x”
18
19
SEC. 37. Section 237 of the NIRC, as amended, is hereby further amended to 
read as follows;
20
21
22
23
24
25
26
27
28
29
30
31
“SEC. 237. [Issuance o f Receipts or Sales or Commercial Invoices.] 
ELECTRONIC RECEIPTS OR ELECTRONIC SALES OR COMMERCIAL 
INVOICES. -
(A) ISSUANCE. -  All persons subject to an internal revenue tax shall, 
[for] AT THE POINT OF each sale and transfer of merchandise or for 
services 
rendered 
valued 
at 
[Twenty-five] 
ONE 
HUNDRED 
pesos 
(P[25]100.00) or more, issue duly registered receipts or saleS or commercial 
invoices, [prepared at least in duplicate,] showing the date of transaction, 
quantity, unit cost and description of merchandise or nature of service: 
Provided, however. That where the receipt is issued to cover payment made 
as rentals, commissions, compensation or fees, receipts or invoices shall be 
issued which shall show the name, business style, if any, and address of the
55


purchaser, customer or client: Provided, Further, That where the purchaser 
is a VAT-registered person, in addition to the information herein required, the 
invoice or receipt shall further show the Taxpayer Identification Number 
(TIN) of the purchaser.
5
6
7
8 
9
10
11
12
13
14
15
16
17
18 
19
WITHIN FIVE (5) YEARS FROM THE EFFECTIVITY OF THIS ACT 
AND UPON THE ESTABLISHMENT OF A SYSTEM CAPABLE OF 
SUCCESSFULLY STORING AND PROCESSING THE REQUIRED DATA, 
THE BUREAU SHALL REQUIRE THE ISSUANCE OF ELECTRONIC 
RECEIPTS OR SALES OR COMMERCIAL INVOICES IN LIEU OF 
MANUAL 
RECEIPTS 
OR 
SALES 
OR 
COMMERCIAL 
INVOICES, 
SUBJECT TO RULES AND REGULATIONS TO BE ISSUED BY THE 
SECRETARY 
OF 
FINANCE 
UPON 
RECOMMENDATION 
OF 
THE 
COMMISSIONER OF INTERNAL REVENUE AND AFTER A PUBLIC 
HEARING SHALL HAVE BEEN HELD FOR THIS PURPOSE: PROVIDED, 
THAT THE COMMISSIONER OF INTERNAL REVENUE SHALL PILOT 
TEST THE ISSUANCE OF ELECTRONIC RECEIPTS OR SALES OR 
COMMERCIAL INVOICES ON SUCH BUSINESSES OR INDUSTRIES, 
WHICH IN THE COMMISSIONER’S DISCRETION, HAVE THE FINANCIAL 
CAPACITY TO ADOPT THIS ELECTRONIC SYSTEM.
20
21
22
PROVIDED, THAT THE BIR SHALL BE REQUIRED TO SUBMIT TO 
THE COCCTRP REPORTS AS TO THE STATUS AND/OR RESULTS OF 
THE PILOT TESTS.
23
24
25
26
27
28
29
30
The original of each receipt or invoice shall be issued to the purchaser, 
customer or client at the time the transaction is effected, who, if engaged in 
business or in the exercise of profession, shall keep and preserve the same in 
his place of business for a period of three (3) years from the close of the 
taxable year in which such invoice or receipt was issued, while the duplicate 
shall be kept and preserved by the issuer, also in his place of business, for a 
like period: PROVIDED, THAT IN CASE OF ELECTRONIC RECEIPTS OR 
SALES OR COMMERCIAL INVOICES, THE DIGITAL RECORDS OF THE
56


SAME SHALL BE KEPT BY THE PURCHASER, CUSTOMER OR CLIENT 
AND THE ISSUER FOR THE SAME PERIOD ABOVE STATED.
The Commissioner may, in meritorious cases, exempt any person 
subject to internal revenue tax from compliance with the provisions of this 
Section.”
6 
SEC. 38. A new section designated as Section 237-A under Chapter II, Title
7 
IX of the NIRC, as amended, is hereby inserted to read as follows;
8
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
“SEC. 237-A. ELECTRONIC SALES REPORTING SYSTEM. -  THE 
BUREAU 
SHALL 
REQUIRE 
TAXPAYERS 
TO 
ELECTRONICALLY 
REPORT THEIR SALES DATA TO THE BUREAU THROUGH THE USE 
OF ELECTRONIC POINT OF SALES SYSTEMS, SUBJECT TO RULES 
AND REGULATIONS TO BE ISSUED BY THE SECRETARY OF FINANCE 
AS 
RECOMMENDED 
BY 
THE 
COMMISSIONER 
OF 
INTERNAL 
REVENUE: PROVIDED, THAT THE MACHINES AND OTHER ANCILLARY 
DEVICES 
SHALL 
BE AT THE 
EXPENSE 
OF THE TAXPAYERS: 
PROVIDED, FURTHER, THAT WITHIN THREE (3) YEARS FROM THE 
EFFECTIVITY OF THIS ACT, THE ELECTRONIC SALES REPORTING 
SYSTEM SHALL UNDERGO A PILOT TEST TO BE APPLIED TO 
PARTICULAR TAXPAYERS TO BE SELECTED BY THE SECRETARY OF 
FINANCE: PROVIDED, FINALLY, THAT THE BUREAU SHALL BE 
REQUIRED TO SUBMIT TO THE COCCTRP REPORTS AS TO THE 
STATUS AND/OR RESULTS OF THE PILOT TESTS.
23
24
25
26
27
28 
29
THE DATA PROCESSING OF SALES AND PURCHASE DATA 
SHALL COMPLY WITH THE PROVISIONS OF REPUBLIC ACT NO. 10173 
OTHERWISE KNOWN AS THE “ DATA PRIVACY ACT” AND SECTION 
270 OF THE NIRC, AS AMENDED, ON UNLAWFUL DIVULGENCE OF 
TAXPAYER INFORMATION AND SUCH OTHER LAWS RELATING TO 
THE CONFIDENTIALITY OF INFORMATION
57


THE 
BUREAU 
SHALL 
ALSO 
ESTABLISH 
POLICIES, 
RISK 
MANAGEMENT 
APPROACHES, 
ACTIONS, 
TRAININGS, 
AND 
TECHNOLOGIES 
TO 
PROTECT 
THE 
CYBER 
ENVIRONMENT, 
ORGANIZATION, AND DATA IN COMPLIANCE WITH REPUBLIC ACT 
NO. 10175 OR THE “ CYBERCRIME PREVENTION ACT OF 2012” .
6 
SEC. 39. Section 249 of the NIRC, as amended, is hereby further amended to
7 
read as follows;
8 
“SEC. 249. Interest. -
9
10
11
12
13
(A) In General. - There shall be assessed and collected on any unpaid 
amount of tax, interest at the rate of TWICE THE LEGAL RATE AS SET BY 
THE BANGKO SENTRAL NG PILIPINAS [twenty percent (20%) per annum, 
or such higher rate as may be prescribed by rules and regulations, from the 
date prescribed for payment until the amount is fully paid].
14
15
16
17
18 
19
(B) 
Deficiency Interest. - Any deficiency in the tax due, as the term is 
defined in this Code, shall be subject to the interest prescribed in Subsection 
(A) hereof, which interest shall be assessed and collected from the date 
prescribed for its payment until the full payment thereof, OR UPON 
ISSUANCE OF A NOTICE AND DEMAND BY THE COMMISSIONER OF 
INTERNAL REVENUE, WHICHEVER COMES EARLIER.
20
(C) Delinquency Interest. -  x x x”
21 
SEC. 40. A new section designated as Section 264-A under Chapter II, Title X
22 
of the NIRC, as amended, is hereby inserted as follows:
23
24
25
26 
27
“SEC. 264-A. FAILURE TO TRANSMIT SALES DATA ENTERED ON 
CASH REGISTER MACHINE (CRM)/POINT OF SALES SYSTEM (POS) 
MACHINES TO THE B IR ’S ELECTRONIC SALES REPORTING SYSTEM. 
- A N Y  TAXPAYER REQUIRED BY RULES AND REGULATIONS TO 
TRANSMIT SALES DATA TO THE BUREAU’S ELECTRONIC SALES
58


2
3
4
5
6
7
8 
9
10
11
12
13
1
REPORTING SYSTEM BUT FAILS TO DO SO, SHALL PAY, FOR EACH 
DAY OF VIOLATION, A PENALTY AMOUNTING TO ONE-TENTH OF ONE 
PERCENT (1/10 OF 1%) OF THE ANNUAL NET INCOME AS REFLECTED 
IN THE TAXPAYER’S AUDITED FINANCIAL STATEMENT FOR THE 
SECOND YEAR PRECEDING THE CURRENT TAXABLE YEAR FOR EACH 
DAY OF VIOLATION OR TEN THOUSAND PESOS (P10,000), WHICHEVER 
IS HIGHER; PROVIDED, THAT SHOULD THE AGGREGATE NUMBER OF 
DAYS OF VIOLATION EXCEED ONE-HUNDRED EIGHTY (180) DAYS 
WITHIN A TAXABLE YEAR, AN ADDITIONAL PENALTY OF PERMANENT 
CLOSURE OF THE TAXPAYER SHALL BE IMPOSED: PROVIDED, 
FURTHER, THAT IF THE FAILURE TO TRANSMIT IS DUE TO FORCE 
MAJEURE 
OR ANY CAUSES 
BEYOND 
THE 
CONTROL 
OF THE 
TAXPAYER THE PENALTY SHALL NOT APPLY.”
14 
SEC. 41. A new section designated as Section 264-B under Chapter II, Title X
15 
of the NIRC, as amended, is hereby inserted to read as follows:
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
“SEC. 264-B. PURCHASE, USE, POSSESSION, SALE OR OFFER 
TO SELL, INSTALLATION, TRANSFER, UPDATE, UPGRADE, KEEPING 
OR MAINTAINING OF SALES SUPPRESSION DEVICES. 
-  
ANY 
PERSON 
WHO 
SHALL 
SELL, 
INSTALL, 
TRANSFER, 
UPDATE, 
UPGRADE, 
KEEP, 
OR 
MAINTAIN 
ANY 
SOFTWARE OR 
DEVICE 
DESIGNED FOR, OR IS CAPABLE OF: 
(A) SUPPRESSING THE 
CREATION OF ELECTRONIC RECORDS OF SALE TRANSACTIONS 
THAT A TAXPAYER IS REQUIRED TO KEEP UNDER EXISTING TAX 
LAWS AND/OR REGULATIONS; OR (B) MODIFYING, HIDING, OR 
DELETING ELECTRONIC RECORDS OF SALES TRANSACTIONS AND 
PROVIDING A READY MEANS OF ACCESS TO THEM, SHALL BE 
PUNISHED 
BY A 
FINE 
OF 
NOT 
LESS 
THAN 
FIVE 
HUNDRED 
THOUSAND PESOS (P500,000) BUT NOT MORE THAN TEN MILLION 
PESOS (P10,000,000), AND SUFFER IMPRISONMENT OF NOT LESS 
THAN TWO (2) YEARS BUT NOT MORE THAN FOUR (4) YEARS: 
PROVIDED, THAT A CUMULATIVE SUPPRESSION OF ELECTRONIC 
SALES RECORD IN EXCESS OF THE AMOUNT OF FIFTY MILLION
59


PESOS 
(PSO.OOO.OOO) 
SHALL 
BE 
CONSIDERED 
AS 
ECONOMIC 
SABOTAGE AND SHALL BE PUNISHED IN THE MAXIMUM PENALTY 
PROVIDED FOR UNDER THIS PROVISION."
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
SEC. 42. A new section designated as Section 265-A under Chapter II, Title 
X of the NIRC, as amended, is hereby inserted to read as follows:
“ SEC. 265-A. OFFENSES RELATING TO FUEL MARKING. -  ALL 
OFFENSES RELATING TO FUEL MARKING SHALL, IN ADDITION TO 
THE PENALTIES IMPOSED UNDER TITLE X OF THE NIRC, AS 
AMENDED, SECTION 1401 OF REPUBLIC ACT NO. 10863, OTHERWISE 
KNOWN AS THE CUSTOMS MODERNIZATION AND TARIFF ACT 
(CMTA), 
AND 
OTHER 
RELEVANT 
LAWS, 
BE 
PUNISHABLE 
AS 
FOLLOWS:
(A) ANY PERSON WHO IS FOUND TO BE ENGAGED IN THE 
SALE, TRADE, DELIVERY, DISTRIBUTION OR TRANSPORTATION OF 
UNMARKED FUEL IN COMMERCIAL QUANTITY HELD FOR DOMESTIC 
USE OR MERCHANDISE SHALL, UPON CONVICTION, SUFFER THE 
PENALTIES OF:
(1) 
FOR THE FIRST OFFENSE, A FINE OF TWO MILLION FIVE 
HUNDRED THOUSAND PESOS (P2,500,000);
(2) 
FOR THE SECOND OFFENSE, A FINE OF FIVE MILLION 
PESOS (P5,000,000); AND
(3) 
FOR THE THIRD OFFENSE, A FINE OF TEN MILLION 
PESOS (P10,000,000) AND REVOCATION OF LICENSE TO ENGAGE IN 
ANY TRADE OR BUSINESS.
26
27
28
29
30
31
(B) 
ANY PERSON WHO CAUSES THE REMOVAL OF THE 
OFFICIAL FUEL MARKING AGENT FROM MARKED FUEL, AND THE 
ADULTERATION OR DILUTION OF FUEL INTENDED FOR SALE TO THE 
DOMESTIC MARKET, OR THE KNOWING POSSESSION, STORAGE, 
TRANSFER OR OFFER FOR SALE OF FUEL OBTAINED AS A RESULT 
OF SUCH REMOVAL, ADULTERATION OR DILUTION SHALL BE
60


PENALIZED IN THE SAME MANNER AND EXTENT AS PROVIDED FOR 
IN THE PRECEDING SUBSECTION.
3
4
5
6
7
8 
9
10
11
12
13
14
(C) 
ANY 
PERSON 
WHO 
COMMITS 
ANY 
OF 
THE 
ACTS 
ENUMERATED 
HEREUNDER 
SHALL, 
UPON 
CONVICTION, 
BE 
PUNISHED BY A FINE OF NOT LESS THAN ONE MILLION PESOS 
(P1,000,000) BUT NOT MORE THAN FIVE MILLION PESOS (P5,000,000), 
AND SUFFER IMPRISONMENT OF NOT LESS THAN FOUR (4) YEARS 
BUT NOT MORE THAN EIGHT (8) YEARS;
(1) 
MAKING, IMPORTING, SELLING, USING OR POSSESSING 
FUEL MARKERS WITHOUT EXPRESS AUTHORITY;
(2) 
MAKING, IMPORTING, SELLING, USING OR POSSESSING 
COUNTERFEIT FUEL MARKERS; OR
(3) 
CAUSING ANOTHER PERSON OR ENTITY TO COMMIT 
ANY OF THE TWO (2) PRECEEDING ACTS.
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
(D) ANY PERSON WHO W ILLFULLY INSERTS, PLACES, ADDS 
OR ATTACHES DIRECTLY OR INDIRECTLY, THROUGH ANY OVERT OR 
COVERT ACT, WHATEVER QUANTITY OF ANY UNMARKED FUEL, 
COUNTERFEIT ADDITIVE OR CHEMICAL IN THE PERSON, HOUSE, 
EFFECTS, INVENTORY, OR IN THE IMMEDIATE VICINITY OF AN 
INNOCENT 
INDIVIDUAL 
FOR 
THE 
PURPOSE 
OF 
IMPLICATING, 
INCRIMINATING OR IMPUTING THE COMMISSION OF ANY VIOLATION 
OF THIS ACT SHALL, UPON CONVICTION, BE PUNISHED BY A FINE 
OF NOT LESS THAN FIVE MILLION PESOS (P5,000,000) BUT NOT 
MORE THAN TEN 
MILLION 
PESOS (P10,000,000), AND SUFFER 
IMPRISONMENT OF NOT LESS THAN FOUR (4) YEARS BUT NOT 
MORE THAN EIGHT (8) YEARS.
(E) ANY 
PERSON 
WHO 
IS 
AUTHORIZED, 
LICENSED 
OR 
ACCREDITED UNDER THIS ACT AND ITS IMPLEMENTING RULES TO 
CONDUCT FUEL TESTS, WHO ISSUES FALSE OR FRAUDULENT FUEL 
TEST RESULTS KNOWINGLY, W ILLFULLY OR THROUGH GROSS 
NEGLIGENCE, 
SHALL 
SUFFER 
THE 
ADDITIONAL 
PENALTY 
OF
61


IMPRISONMENT RANGING FROM ONE (1) YEAR AND ONE (1) DAY TO 
TWO (2) YEARS AND SIX (6) MONTHS.
3
4
5
6 
7
THE 
ADDITIONAL 
PENALTIES 
OF 
REVOCATION 
OF 
THE 
LICENSE TO PRACTICE HIS/HER PROFESSION IN CASE OF A 
PRACTITIONER, 
AND 
THE 
CLOSURE 
OF 
THE 
FUEL 
TESTING 
FACILITY, MAY ALSO BE IMPOSED AT THE INSTANCE OF THE 
COURT.”
8 
SEC. 43. Section 288 of the NIRC, as amended, is hereby further amended to
9 
read as follows:
10
11
12
13
14
15
16
17
18
19
20 
21 
22 
23
“SEC. 288. Disposition o f Incremental Revenue. -
(A) 
XXX
(B) 
XXX
(C) 
XXX
(D) 
XXX
(E) 
XXX
(F) INCREMENTAL REVENUES FROM THE TAX REFORM FOR 
ACCELERATION AND INCLUSION (TRAIN). -  FOR FIVE (5) YEARS 
FROM THE EFFECTIVITY OF THIS ACT, THE YEARLY INCREMENTAL 
REVENUES GENERATED SHALL BE ALLOCATED TO FUND SOCIAL 
MITIGATING MEASURES AND INVESTMENTS IN EDUCATION, HEALTH, 
SOCIAL 
PROTECTION, 
EMPLOYMENT, 
HOUSING, 
AND 
FLAGSHIP 
INFRASTRUCTURE THAT PRIORITIZE AND DIRECTLY BENEFIT BOTH 
THE POOR AND NEAR-POOR HOUSEHOLDS AS HEREIN SPECIFIED:
24
I. SOCIAL MITIGATING MEASURES
25
26
27
28 
29
1. THE 
INCREMENTAL 
REVENUES 
GENERATED 
FROM 
THE 
PETROLEUM EXCISE TAX UNDER SECTION 148 OF THE NIRC, 
AS 
AMENDED, 
SHALL 
BE 
ALLOCATED 
TO 
FUND 
AN 
UNCONDITIONAL 
CASH 
TRANSFER 
PROGRAM 
FOR 
THE 
BOTTOM TEN (10) MILLION POOREST HOUSEHOLDS IN THE
62


3
4
5
6
7
8 
9
10
1
2
NATIONAL HOUSEHOLD TARGETING SYSTEM FOR POVERTY 
REDUCTION (NHTS-PR). THE UNCONDITIONAL CASH TRANSFER 
SHALL BE THREE HUNDRED PESOS (P300.00) PER MONTH FOR 
A PERIOD OF THREE (3) YEARS FROM THE EFFECTIVITY OF 
THIS ACT.
2. THE GOVERNMENT SHALL ALSO ALLOCATE INCREMENTAL 
REVENUES GENERATED FROM THE PETROLEUM EXCISE TAX 
TO AID IN THE IMPLEMENTATION OF THE PUBLIC UTILITY 
VEHICLE (PUV) MODERNIZATION PROJECT.
11
12
13
3. FIFTY PERCENT (50%) OF INCREMENTAL REVENUES FROM THE 
SWEETENED BEVERAGE TAX UNDER SECTION 150-A OF THIS 
ACT SHALL BE ALLOCATED FOR THE FOLLOWING:
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
a. 
IMPLEMENTATION OF HEALTH PROGRAMS FOR THE 
BOTTOM TEN (10) MILLION POOREST HOUSEHOLDS TO 
ADDRESS 
OBESITY, 
DIABETES, 
AND 
OTHER 
NON- 
COMMUNICABLE 
DISEASES 
RESULTING 
FROM 
THE 
INTAKE OF SWEETENED BEVERAGES;
b. 
PROVISION 
OF 
DIALYSIS 
WARD 
OR 
UNIT 
IN 
ALL NATIONAL, 
REGIONAL, 
AND 
PROVINCIAL 
GOVERNMENT HOSPITALS;
c. 
IMPLEMENTATION OF SCHOOL-BASED SUPPLEMENTAL 
NUTRITION 
PROGRAMS AND 
PROVISION 
OF WATER 
FOUNTAINS IN PUBLIC SCHOOLS TO REDUCE IN-SCHOOL 
ACCESS TO SWEETENED BEVERAGES;
d. 
PROVISION OF SUPPLEMENTAL FEEDING FOR CHILDREN 
AND ADULTS IN AREAS WITH 
HIGH INCIDENCE OF 
HUNGER;
29
30
31
4. FOR A PERIOD OF ONE YEAR FROM THE EFFECTIVITY OF THIS 
ACT, A PORTION OF THE INCREMENTAL REVENUES FROM THE 
SWEETENED BEVERAGE TAX SHALL BE ALLOCATED TO FUND
63


EMERGENCY EMPLOYMENT AND TRAINING AND RETOOLING 
PROGRAMS FOR DISPLACED WORKERS IN THE SWEETENED 
BEVERAGE INDUSTRY.
4
5
6
7
8 
9
10
II
II. THE 
REMAINING 
REVENUES 
IN 
THE 
FIRST 
YEAR 
AND 
SUCCEEDING 
YEARS 
SHALL 
BE 
ALLOCATED 
TO 
FUND 
THE 
FOLLOWING:
1. PHASED IMPLEMENTATION OF THE UNIVERSAL ACCESS TO 
QUALITY TERTIARY EDUCATION AND PROVISION OF FREE 
TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING 
(TVET);
12
13
14
2. EXPANSION OF THE UNIVERSAL PRIMARY CARE BENEFIT 
PACKAGE OF PHILHEALTH TO INCLUDE OUTPATIENT CARE 
FOR INDIGENTS AND SENIOR CITIZENS;
15
16
3. EXPANSION 
OF 
THE 
FREE 
MEDICINES 
PROGRAM 
IN 
GOVERNMENT HOSPITALS FOR POOR FAMILIES;
17
18
4. PROVISION OF SCHOLARSHIPS FOR HEALTH PROFESSIONAL 
EDUCATION;
19
20
5. PROVISION OF SOCIAL PENSION FOR A LL SENIOR CITIZENS 
EXCEPT THOSE WITH CONTRIBUTORY PENSION;
21
22
23
24
25
26
27
28
6. PROVISION OF GRANT FINANCING TO LGUS TO IMPROVE THE 
MANAGEMENT OF 
MUNICIPAL WATERS AND 
BOOST THE 
LIVELIHOOD OF ONE MILLION FIVE HUNDRED THOUSAND 
(1,500,000) 
MUNICIPAL 
FISHERFOLK 
REGISTERED 
IN 
THE 
MUNICIPAL FISHERFOLK REGISTRATION SYSTEM (FISHR) OF 
BUREAU OF FISHERIES AND AQUATIC RESOURCES (BFAR). 
THIS MAY COVER SUBSIDY FOR FISHERFOLK DURING CLOSED 
SEASONS, BENEFITS FOR BANTAY DAGAT OR DEPUTIZED FISH
64


WARDENS, AND PROGRAMS ON ECOSYSTEM-APPROACH TO 
FISHERIES MANAGEMENT;
7. EXPANSION 
OF 
TECHNICAL 
ASSISTANCE 
PROGRAM 
TO 
SUPPORT THE SUGARCANE BLOCK FARMS OF AGRARIAN 
REFORM BENEFICIARIES TO INCREASE THEIR PRODUCTIVITY;
6
7
8 
9
10
11
12
13
8. PROVISION OF HOUSING PROGRAMS FOR FISHERFOLK IN THE 
EASTERN SEABOARD OF THE COUNTRY WHO ARE EITHER IN 
THE 
TOP 
ONE 
THOUSAND 
(1,000) 
BARANGAYS 
MOST 
FREQUENTLY SUSTAINING HIGH LOSSES IN TERMS OF LIVES 
AND PROPERTY BASED ON THE LIST OF THE DEPARTMENT OF 
INTERIOR AND LOCAL GOVERNMENT (DILG) AND OFFICE OF 
CIVIL DEFENSE (OCD) OR IN THE LIST OF BENEFICIARIES OF 
FIVE HUNDRED (500) FISH LANDING SITES FROM BFAR; AND
14
15
16
17
18
19
20 
21 
22
23
24
25
26 
27
9. PROVISION OF INFRASTRUCTURE PROGRAMS TO ADDRESS 
CONGESTION AND MASS TRANSPORT AS DETERMINED BY 
CONGRESS IN THE 2018 GENERAL APPROPRIATIONS ACT 
(GAA) AND THEREAFTER.
WITHIN SIXTY (60) DAYS FROM THE END OF THE THREE (3) 
YEAR 
PERIOD 
FROM 
THE 
EFFECTIVITY 
OF 
THIS 
ACT, 
THE 
RESPECTIVE IMPLEMENTING AGENCIES FOR THE ABOVE PROGRAMS 
SHALL SUBMIT CORRESPONDING PROGRAM ASSESSMENTS TO THE 
COCCTRP.
AT THE END OF FIVE (5) YEARS FROM THE EFFECTIVITY OF 
THIS ACT, ALL EARMARKING PROVISIONS UNDER SUBSECTION (F), 
SHALL 
CEASE 
TO 
EXIST AND 
ALL 
INCREMENTAL 
REVENUES 
DERIVED UNDER THIS ACT SHALL ACCRUE TO THE GENERAL FUND 
OF THE GOVERNMENT.”
65


1 
SEC. 44. Reportorial Requirements. -  The concerned departments,
2 
agencies, and beneficiaries under Section 43 of this Act shall submit to the President
3 
of the Senate of the Philippines, the Speaker of the House of Representatives, the
4 
Senate Committee on Finance and the House Committee on Appropriations a
5 
detailed report on the expenditure of the amounts earmarked hereon copy furnished
6 
the Chairpersons of the Committee on Ways and Means of both Houses of
7 
Congress. The report shall likewise be posted on the official website of the agencies
8 
concerned.
9 
SEC. 45. Implementing Rules and Regulations. -  Within sixty (60) days
10 
from the effectivity of this Act, the Secretary of Finance shall, 
upon the
11 
recommendation of the Commissioner of Internal Revenue, 
promulgate the
12 
necessary rules and regulations for its effective implementation: Provided, That, the
13 
failure of the Secretary of Finance to promulgate the said rules and regulations shall
14 
not prevent the implementation of this Act upon its effectivity.
15 
SEC. 46.Separability Clause. -  If any provision of this Act is subsequently
16 
declared invalid or unconstitutional, the other provisions hereof which are not
17 
affected thereby shall remain in full force and effect.
18 
SEC. 47. Repealing Clause. -  The following laws or provisions of laws are
19 
hereby repealed and the persons and/or transactions affected herein are made
20 
subject to the VAT provision of Title IV of the NIRC, as amended;
21
22
23
24
25
26
27
28 
29
a) Section 13(1) and (2), insofar as VAT exemption is concerned, of 
Presidential Decree No. (P.D.) 1869 s. 1983 providing for the franchise and 
powers of the Philippine Amusement and Gaming Corporation;
b) 
Section 3 of P.D. 1972, s. 1985, as amended. Sections 4 and 5 of 
Executive Order No. (E.O.) 1057, s. 1985, and Section 4 of E.O. 1064, s. 
1985, insofar as the VAT tax exemption and tax credit is concerned;
c) 
Section 10, insofar as VAT exemption is concerned, of Republic Act No. 
(R.A.) 6807 or An Act Converting the Mati Community College to Davao 
Oriental State College of Science and Technology, Providing for a Charter
6 6


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
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17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
1
for this Purpose, Expanding its Curricular Offerings, Redirecting its 
Objectives, and Appropriating Funds Therefor;
d) Sections 18 and 19, insofar as VAT exemption is concerned, of R.A. 6847 
or The Philippine Sports Commission Act;
e) Section 8 (d) last paragraph, insofar as VAT exemption is concerned, of 
R.A. 7278 or An Act Amending Commonwealth Act No. I l l ,  as amended 
by P.D. 460 or An Act to Create a Public Corporation to be known as the 
Boy Scouts of the Philippines, and to Define its Powers and Purposes by 
Strengthening the Volunteer and Democratic Character of the Boy Scouts 
of the Philippines and for Other Purposes;
f) 
Section 1, insofar as VAT exemption is concerned, of R.A. 7291 or An Act 
Restoring the Tax and Duty Incentives Previously Enjoyed by the Veterans 
Federation of the Philippines under R.A. 2640;
g) Section 21, insofar as VAT exemption is concerned, of R.A. 7306 or the 
Charter of the People’s Television Network, Inc.;
h) Section 14, insofar as VAT exemption is concerned, of R.A. 7354 or the 
Postal Service Act of 1992;
i) 
Section 9(c), insofar as VAT exemption is concerned, of R.A. 7355 or the 
Manlilikha ng Bayan Act;
j) 
Section 21, insofar as VAT exemption is concerned, of R.A. 7356 or the 
Law Creating the National Commission for Culture and the Arts;
k) 
Section 7(f), insofar as VAT exemption is concerned, of R.A. 7371 or An 
Act Converting the Akian Agricultural College into Akian State College of 
Agriculture, and Appropriating Funds Therefor;
l) 
Section 12 second sentence, insofar as VAT exemption is concerned, of 
R.A. 7373 or An Act Establishing the Eastern Visayas Science High 
School;
m) Section 11(j), insofar as VAT exemption is concerned, of R.A. 7605 or the 
Charter of the Philippine State College of Aeronautics;
n) Section 126, insofar as VAT exemption is concerned, of R.A. 7653 or The 
New Central Bank Act;
o) Section 14 insofar as VAT exemption is concerned, of R.A. 7875 or the 
National Health Insurance Act of 1995;
67


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
1
p) 
Section 18, insofar as VAT exemption is concerned, and Section 18 last 
paragraph of R.A. 7884 or the National Dairy Development Act of 1995;
q) 
Section 8, insofar as VAT exemption is concerned, R.A. 8160 or the Act 
Granting the University of the Philippines a Franchise to Construct, Install, 
Operate and Maintain for Educational and Other Related Purposes, Radio 
and Television 
Broadcasting Stations Within the 
University of the 
Philippines and in Such Other Areas W thin the Scope of its Operation;
r) 
Sections 2 and 16, insofar as VAT exemption is concerned, of R.A. 8282 or 
The Social Security Act of 1997;
s) 
Section 39, insofar as VAT exemption is concerned, of R.A 8291 or The 
Government Service Insurance System Act of 1997;
t) 
Section 4 (c) and (f), insofar as VAT exemption is concerned, of R.A. 8292 
or the Higher Education Modernization Act of 1997;
u) Section 25, insofar as VAT exemption is concerned, of R.A. 8492 or the 
National Museum Act of 1998;
v) 
Section 3(h), insofar as VAT exemption is concerned, of R.A. 8502 or the 
Jewelry Industry Development Act of 1998;
w) Article 65, insofar as VAT exemption and zero rating is concerned, of 
regional or area headquarters and zero-rating of the sale or lease of goods 
and property and the rendition of services to regional or area headquarters, 
and Article 67, insofar as VAT exemption is concerned, of R.A. 8756; 
Provided, That existing RHQs and ROHQs enjoying VAT exemption and 
zero-rating at the time of the effectivity of TRAIN shall not be affected;
x) 
Section 7(c), insofar as VAT exemption is concerned, of R.A. 9045 or An 
Act Creating the Batangas State University;
y) 
Section 7(c), insofar as VAT exemption is concerned, of R.A. 9055 or An 
Act Converting the Akian State College of Agriculture into the Akian State 
University;
z) 
Section 13, insofar as VAT exemption is concerned, of R.A. 9083 or An Act 
Establishing the Sta. Rosa Science and Technology High School in Sta. 
Rosa, Laguna;
aa) Section 7(c) and (f), insofar as VAT exemption is concerned, of R.A. 9138 
or An Act Establishing the Guimaras State College;
68


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
1
bb) Section 7(c), insofar as VAT exemption is concerned, of R.A. 9141 or An 
Act Converting the Negros Occidental Agricultural College into State 
College to be known as the Negros Occidental Agricultural College; 
cc) Section 16, insofar as VAT exemption is concerned, of R.A. 9497 or The 
Civil Aviation Authority Act of 2008;
dd) Section 25 (b) and c, insofar as VAT exemption is concerned, and (d), 
insofar as VAT zero-rating is concerned, of R.A. 9500 or the University of 
the Philippines Charter of 2008;
ee) Section 25(b) and (c), insofar as VAT exemption concerned, and (d) insofar 
as VAT zero-rating is concerned, of R.A. 9519 or An Act Converting 
Mindanao Polytechnic State College into a State University to be known as 
the Mindanao University of Science and Technology; 
ff) Section 17(c), insofar as VAT exemption is concerned, of R.A. 3591, 
otherwise known as the PDIC Charter, as amended by Section 8 of RA 
9576 otherwise known as An Act Increasing the Maximum Deposit 
Insurance Coverage, and in Connection Therewith, to Strengthen the 
Regulatory and Administrative Authority, and Financial Capability of the 
Philippine Deposit Insurance Corporation (PDIC), Amending for this 
Purpose Republic Act Numbered Three Thousand Five Flundred Ninety- 
One, as Amended, Otherwise Known as the PDIC Charter, and for other 
Purposes;
gg) Sections 2 and 19, insofar as VAT exemption is concerned, of R.A. 9679 or 
An Act Further Strengthening the Home Development Mutual Fund, and for 
other purposes;
hh) Section 23, insofar as VAT exemption is concerned of the National 
Historical 
Commission 
of the 
Philippines, 
of R.A. 
10086, 
or the 
Strengthening Peoples' Nationalism Through Philippine History Act; 
ii) 
Section 7(b) and (c), insofar as VAT exemption is concerned, and (d), 
insofar as VAT zero-rating is concerned, of R.A. 9647 or The Philippine 
Normal University Modernization Act of 2009; 
jj) 
Section 17, insofar as VAT exemption is concerned, of R.A. 7898, 
Establishing The Revised AFP Modernization Program And For Other 
Purposes, as amended by R.A. 10349;
69


1 
kk) Section 56, insofar as VAT exemption is concerned, of R.A. 10801 or the
2 
Overseas Workers Welfare Administration Act.
3
4 
Provided, That the VAT obligations of government owned and controlled
5 
corporations, state universities and colleges, and other government instrumentalities
6 
whose VAT exemption has been repealed under this Act shall be chargeable to the
7 
Tax Expenditure Fund (TEF) provided for in the annual General Appropriations Act;
8 
Provided, Further, That VAT exemption, VAT zero-rating, and VAT credit granted to
9 
state universities and colleges on their purchases and importations are hereby
10 
repealed and the transactions affected herein are made subject to the VAT
11 
provisions of Title IV of the NIRC, as amended.
12 
SEC. 48. Effectivity. -  This Act shall take effect fifteen (15) days after its
13 
complete publication in the Official Gazette or in at least two (2) newspapers of
14 
general circulation.
Approved,
70