CLARIFYING THE PROPER TAXABLE BASE OF EXCISE TAX IN THE MANUFACTURER’S/ASSEMBLER’S OR IMPORTER’S SWORN STATEMENT AND INTEGRATION OF THE MONITORING, SUPERVISION AND REPORTING OF EXCISABLE PRODUCTS UNDER REVENUE ADMINISTRATIVE ORDER (RAO) NO. 2-2014 (Revenue Memorandum Circular No. 63-2022, April 28, 2022)
- Rates and Bases of the Ad Valorem Tax on Automobiles
- Excise tax is imposed on manufacturer’s/assembler’s selling price, net of excise tax and value-added tax, in accordance with the following schedule:
| Net Manufacturer’s Price/Importer’s Selling Price | Tax Rate |
| Up to Six Hundred Thousand Pesos (P600,000.00) | Four Percent (4%) |
| Over Six Hundred Thousand Pesos (P600,000.00) to One Million Pesos (P1,000,000.00) | Ten Percent (10%) |
| One Million Pesos (P1,000,000.00) to Four Million Pesos (P4,000,000.00) | Twenty Percent (20%) |
| Over Four Million Pesos (P4,000,000.00) | Fifty Percent (50%) |
- Three (3) Primary Taxable Bases in applying the excise tax rates for automobiles:
- Declared manufacturer’s or importer’s selling price, net of excise and valued-added tax.
- Based on the 80% of the actual dealer’s price, net of excise and valued-added tax.
- Based on the total cost of importation and expenses divided by 90%.
The highest identified taxable bases integrating the value of car air conditioner, radio and mag wheels including the cost of installation, accessories, optional equipment, or any other attachment on the unit removed or sold.
