An Act to Strengthen the Country's Gross International Reserves (GIR)

Case Overview and Summary

Summary of Republic Act No. 11256

Amendments to the National Internal Revenue Code
- Section 32(B)(7)(i) [Section 1]: Excludes from gross income and exempts from taxation the following:
    (1) Income from the sale of gold to the Bangko Sentral ng Pilipinas (BSP) by registered small-scale miners and accredited traders. [Section 32(B)(7)(i)(1)]
    (2) Income from the sale of gold by registered small-scale miners to accredited traders for eventual sale to the BSP. [Section 32(B)(7)(i)(2)]

- Section 151(C) [Section 2]: Exempts from excise tax the gold sold or eventually sold to the BSP, in accordance with Section 32(B)(7)(i). If excise tax was paid prior to the sale to the BSP, the taxpayer may file for refund or credit. [Section 151(C)]

Tax Incentives and Privileges [Section 3]
- The sale of gold by registered small-scale miners to accredited traders for eventual sale to the BSP shall enjoy the same tax treatment and privileges as direct sale to the BSP.

Presumption on the Source of Gold [Section 4]
- All gold sold to the BSP by accredited traders shall be presumed to have been purchased from small-scale miners.

Implementing Rules and Regulations [Section 5]
- Within 60 days after the effectivity of this Act, the BSP Governor, the Secretaries of Environment and Natural Resources, Interior and Local Government, and the Commissioner of Internal Revenue shall recommend to the Secretary of Finance the rules and regulations for effective implementation.
- The rules and regulations shall include provisions for the registration and accreditation requirements of small-scale miners and traders to avail of the tax exemptions.

Repealing Clause [Section 6]
- All laws, executive/administrative orders, rules, regulations and other issuances or parts thereof, which are inconsistent with the provisions of this Act, are hereby revoked, repealed or modified accordingly.

Separability Clause [Section 7]
- If any provision is declared unconstitutional, it shall not affect the validity of the other provisions.

Effectivity [Section 8]
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.