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REVENUE MEMORANDUM CIRCULAR NO. 58-2026 issued on May 28, 2026 prescribes the procedures for the filing and payment of quarterly royalty under Republic Act (RA) No. 12253, titled “Enhanced Fiscal Regime for Large-Scale Metallic Mining Act”.

The procedures shall apply to all large-scale metallic mining contractors and operators who are required to file quarterly royalty returns and pay the corresponding royalty under Section 151-A of the Tax Code, pursuant to the provisions of RA No. 12253, which provide that they shall become subject to the fiscal regime provided after one hundred and fifty (150) days from the effectivity of the Act, or on February 17, 2026.

Large-scale metallic mining contractors and operators subject to the payment of royalty under Section 151-A of the Tax Code shall file the corresponding return and pay the royalty within sixty (60) days after the close of each calendar or fiscal quarter, as applicable.

Pending the issuance of a dedicated quarterly royalty return and the availability of the corresponding electronic filing and payment facilities, the quarterly royalty shall be filed and paid using BIR Form No. 0605, either electronically through the Electronic Filing and Payment System (eFPS) for eFPS filers or manually for noneFPS filers, with the following specifications:

i. Tax type: “MC”
ii. Alphanumeric Tax Code (ATC):
MC 344 – Operations Within Mineral Reservations
MC 345 – Operations Outside Mineral Reservations
iii. Manner of Payment: Voluntary Payment”
iv. Description field: “Others (Specify)” and indicate: “type of agreement and
agreement number”
Example: “MPSA No. 123-2026-XIII”

The filing and payment made through BIR Form No. 0605 shall be considered as advance or initial compliance with the quarterly royalty liability for the corresponding period, without prejudice to the subsequent filing of the prescribed quarterly royalty return, once available, and shall be subject to validation, monitoring, reconciliation, and necessary adjustment upon the issuance of the prescribed revenue issuance and/or forms governing the filing thereof.

Where a large-scale metallic mining contractor or operator holds two (2) or more mineral agreements, financial or technical assistance agreements (FTAAs), and/or operating agreements, the quarterly royalty return for each agreement shall be filed and paid separately. Each agreement shall be treated as a distinct ring-fenced project for purposes of determining, reporting, and accounting for the corresponding quarterly royalty liability, consistent with Section 151-C of the Tax Code.

The quarterly royalty due for each ring-fenced project shall be computed in accordance with Section 151-A of the Tax Code, taking into account:

i. The gross output base, and allowable deduction and applicable royalty rate which shall differ depending on whether the mining operations are conducted within or outside mineral reservations; and

ii. Such other rules and requirements as may be prescribed in the implementing Revenue Regulations to be issued pursuant to RA No.12253.

Pending the issuance of such implementing Revenue Regulations by the Bureau of Internal Revenue (BIR), covered taxpayers shall apply the computation methodology directly prescribed under Section 151-A of the Tax Code and the Implementing Rules and Regulations dated December 18, 2025 issued by the Department of Finance.

Mining contractors and operators shall likewise maintain and preserve, and submit upon request, such schedules, computations, and supporting documents as may be necessary to substantiate the royalty paid, including but not limited to records supporting the determination of gross output base, allowable deductions, and the applicable royalty rate.