Mine Taxation in the Philippines

Question 1

At least __ % of the capital of a corporation or association must be owned by Phil Citizens to qualify as Philippine corporation or association

Answer 1

60

Question 2

in MPSA, the excise tax for metallic and non metallic minerals is

Answer 2

4%

Question 3

The actual market value of the minerals or mineral products from each mine or mineral land operated as a separate entity, without any deduction for mining, processing, refining, transporting, handling, marketing or any other expenses

Answer 3

Gross output

Question 4

In FTAA, government share shall consist of the

Answer 4

(i) basic government share
(ii) additional government share

Question 5

in FTAA, net mining revenue is computed as

Answer 5

Gross revenue from sale of mineral products - deductible operating expenses + gov taxes, duties, and fees

Question 6

Consists of all direct taxes, royalties, fees and related payments required by existing laws, rules and regulations to be paid by the FTAA holder

Answer 6

Basic government share

Question 7

A _________ is granted in favor of the FTAA holder ends 5 years from the date o Commencement of Commercial production or at a date the aggregate of the net cash flows from the mining operations

Answer 7

Recovery Period

Question 8

True or False:

The FTAA holder can raise any form of financing from domestic sources of funds, whether in Philippine or foreign currency, for conducting its mining operations for and in the contract area

Answer 8

False, the FTAA holder will not raise any form of financing from domestic sources of fnds

Question 9

If the basic government share is less than 5-% of the net mining revenue, an ___________ to increase the total government share to 50% of the net mining revenue must be paid by the FTAA holder

Answer 9

Additional government share

Question 10

The operational link between the environmental protection and enhancement commitments under the Mining Act, it is also equivalent to 10% of the total project cost

Answer 10

Environmental Protection and Enhancement Program (EPEP)

Question 11

FTAA holder must allocate annually 3-5% of its direct mining and milling cost depending on the environment/geologic condition, nature and scale of operations and technology employed in the FTAA area

Answer 11

Annual Environmental Protection and Enhancement Program (AEPEP)

Question 12

Must be in cash and in an amount to be determined by the Mine Rehabilitation Fund Committee, which shall not be less than the amount of 50,000 php

Answer 12

Monitoring Trust Fund (MTF)

Question 13

Established to ensure compliance with the approved rehabilitation activities and schedules for a specific mining project phase, including research programs defined in the EPEP or AEPEP. Equivalent to 10% of the total amount needed to implement EPEP or 5M php

Answer 13

Rehabilitation Cash Fund (RCF)

Question 14

Consists of replenishable amount of at least 50k php

Answer 14

Environmental Trust Fund (ETF)

Question 15

Mine waste and tailings fees collected semiannually based on the amounts of mine waste and mill tailing generated for the said period

Answer 15

Mine Waste and Tailings Fees Reserve Fund (MWTFR)

Question 16

Contingent Liability and Rehabilitation Fund consists:

Answer 16

1. Monitoring Trust Fund (MTF)
2. Rehabilitation Cash Fund (RCF)
3. Environmental Trust Fund (ETF)
4. Mine Waste and Tailings Fees Reserve Fund (MWTFR)
5. Final Mine Rehabilitation and Decommissioning Fund (FMRDF)

Question 17

In Social funds, the contractor will allot a minimum of 1.5% of the operating costs necessary to implement the foregoing:

Answer 17

-Social Development and Management program - 1.125%
-Development of Mining Technology and Geosciences - 0.150%
-Information, Education, and Communication Program - 0.225%

Question 18

the specific costs of producing a sellable product on a commercial scale incurred in the calculation of the net income before tax

Answer 18

Operating Cost

Question 19

Domestic corporations are generally subject to Philippine income tax at the rate of __ on their taxable income derived during the tax year from all sources within the Ph or abroad

Answer 19

30%

Question 20

Refers to the pertinent items of gross income specified in the Tax Code, less the deductions authorized by the tax code for such types of income

Answer 20

Taxable income

Question 21

Includes income derived from the conduct of trade or business, gains derived from dealings in property, interests, rents, royalties, dividends, among others

Answer 21

Gross income

Question 22

Include ordinary and necessary business expenses, interest, taxes losses, bad debts, depreciation, charitable

Answer 22

Allowable deductions

Question 23

The tax code also imposes a _____________- of 2% of the gross income as the end of the taxable year, on domestic and resident foreign corporations subject to normal income tax rates

Answer 23

Minimum Corporate Income Tax (MCIT)

Question 24

the VAT is generally imposed on the sale of goods, properties and services at the standard rate of

Answer 24

12%

Question 25

LGUs entitled to ___ of the excise tax

Answer 25

40%

Question 26

Barangay entitled to ___ of the excise tax

Answer 26

35%

Question 27

Municipal entitled to ___ of the excise tax

Answer 27

45%

Question 28

Province entitled to ___ of the excise tax

Answer 28

20%

Question 29

Excise tax for coal and coke (per metric ton)

Answer 29

100 Php