Philippines Mining Investment Taxes and Fees

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60% of the profits from mining development are allocated to the Philippine government and its people.

(1) Taxes and fees payable to the central government

1. Income Tax: Outside the preferential period stipulated by the 1987 Omnibus Investment Code, contractors must pay income tax according to the Philippine National Internal Revenue Code, usually at a rate of 32%;

2. Mineral Products Tax:

(1) Coal and coke: 10 pesos/ton;

(2) All non-metallic mineral products are taxed at 2% of the actual total value of the mineral products;

(3) All metallic mineral products are taxed at 2% of the actual total value of the mineral products;

(4) Oil products: 3% of the international market price, to be paid by the buyer.

3. Customs Duties: A tax rate of 3% is required when importing machinery and capital goods;

4. Value-Added Tax: In addition to customs duties, a 10% value-added tax must also be paid on imports, while exported products are exempt from value-added tax;

5. Mining Franchise Tax;

6. Stamp Duty;

7. Capital Gains Tax.

(2) Taxes and fees payable to local governments

1. Business Tax;

2. Real Property Tax;

3. Registration Fee;

4. Occupation Fee;

Contractors must pay land occupation fees for land use. Mineral reserves are charged at 100 pesos per hectare per year, exploration is charged at 5 pesos per hectare per year, and mining is charged at 50 pesos per hectare per year. The Department of Environment and Natural Resources may increase this fee as necessary.

5. Public Tax;

6. Other local taxes.

(3) Withholding Taxes

1. Total salary;

2. Bank interest income;

3. Technology transfer franchise tax;

4. Foreign debt interest payments;

5. Dividends to foreign shareholders;

6. Principal remittance.

(4) Other Taxes and Fees

1. Government share in FTAA;

2. Land use fee;

3. Indigenous peoples fee;

4. Social development program fee;

5. Environmental protection fee;

6. Mining technology and geological science research and development fee;

7. Mining residue and waste fee: determined by the Department of Environment and Natural Resources, and may be increased as necessary.