REVENUE MEMORANDUM CIRCULAR NO. 28-2012 issued on June 21, 2012 publishes the full text of the Implementing Guidelines of the Memorandum Agreement (MOA) on the exchange of information between this Bureau and the Mines and Geosciences Bureau (MGB).
       The BIR and the MGB jointly promulgate these guidelines in the implementation of the Memorandum of Agreement entered into by and between them on January 7, 2004.
            The MGB shall:
                a. Submit to the BIR within thirty (30) days from the issuance of these guidelines, for a                         one-time  validation, its updated database, in soft and hard copies, of existing mining                       and/or quarry contractors, permittees and operators, together with their respective                         Tax Identification Numbers (TINs)
                b. Submit to the BIR an annual report on any addition to the existing MGB database for                        purposes of identifying potential registrants.
                c. Require all mining applicants, contractors, permittees and operators to indicate their                        respective BIR-validated TINs in all statistical report forms and mining applications                            including application for area clearance required to be submitted under its existing                           rules and regulations.
                d. Assist the BIR, thru the Provincial/City Mining Regulatory Boards where the MGB                               Regional Director has jurisdiction over, in obtaining data on the volume and value of                         production that will serve as basis in the computation of Excise Tax on minerals of                           mining contractors, permitees and operators in far-flung areas where no Revenue                            Officers are assigned.
                e. Require mining contractors, permittees and operators to present the following                                 documents as part of its requirements for the issuance or renewal of mining, quarry                         and other permits at the central and regional offices:
                   i. Copy of proof of payment of Excise Taxes paid on extracted minerals, mineral                                  products and quarry resources duly authenticated by the BIR;

                  ii. Income Tax Returns (ITRs) filed with the BIR for the operating year(s) immediately                             preceding the application for permit;
                  iii. Business Tax Returns filed with the BIR covering the operating year(s) immediately                           preceding the application for permits;
                  iv. Certificate of BIR Registration and Proof of Payment of Annual Registration Fee with                         the BIR for each place of extraction; and
                   v. Tax Clearance Certificate and Certificate of “No Delinquent Accounts or                                             Outstanding Liabilities” duly issued by the BIR or a copy of the written request for                           said certificates duly received by the BIR Office concerned, in case the said                                      certificates were not issued by the said Office within fifteen (15) working days from                           actual receipt of the written request.
                f. Provide BIR with the following data or information:
                   i. Annual list of large-scale metallic mining contractors, permittees and operators in                             each project with the corresponding volume and value of their gross output within
                      ninety (90) days after end of each year, in hard and soft copies to serve as basis in                          the validation of payment for Excise Tax on minerals
                  ii. A Directory of Mines and Quarries containing an updated list of mining contractors,                          permittees or operators of mining projects in the Philippines as of December 31 of                             the reporting year, in diskette (soft) copy, not later than every end of December                               immediately after the preceding reporting year, to serve as guide in identifying                                 taxpayers liable to pay Excise Tax under Section 151 of the National Internal                                       Revenue Code of 1997, as amended;
                  iii. An annual list of companies that were subjected to administrative/legal sanctions,                             together with the specific violations committed by said errant companies in soft                               and hard copies;
                  iv. Copies of the Annual Report on Taxes, Fees and Royalties Paid and Withheld by                              Mining Operators and Explorations Permittees, within one month upon receipt of                              said report form; and
                 vi. A quarterly summary report of all the Mineral Ore Export Permits issued by all MGB                          Regional Offices, in hard and/or soft copies, within two months after the end of                                each quarter.
               g. Furnish the BIR, upon request, other available information, in soft and hard copies                            relevant and pertinent to the effective implementation of the revenue laws to                                    maximize tax compliance.
The BIR shall:
               a. Perform a one-time validation of the TINs of all contractors, permittees and operators                      in the MGB database. In case said information is incomplete in the MGB database, it                         shall endeavor, thru its Revenue District Offices, to provide the MGB with the missing                        information.
               b. Validate the veracity and authenticity of TINs supplied by mining contractors,                                    permittees and operators in the report forms submitted by MGB and inform the latter                       if there are invalid TINs as reported.
               c. Provide the MGB with data/information in soft or hard copy on the following, subject                        to the limitations prescribed under Section 270 of the Tax Code:
                    i. Report of annual collection of Excise Tax on minerals from mining contractors,                                   permittees and operators based on the authenticated TINs and in a format                                       arranged by the collecting Revenue District Office before the end of July of each                             year, indicating therewith the number of taxpayers covered by the report;
                   ii. Annual collections of other internal revenue taxes for revenue regions with                                       computerized system; and
                   iii. Other information/data as may be requested/needed by the MGB.
               d. Process and issue within fifteen (15) working days upon request by mining                                         contractors, permittees and operators, a Tax Clearance Certificate and Certificate of                       “No Delinquent Account or Outstanding Tax Liabilities” which will serve as basis in the
                    processing of application or renewal of mining permits and contracts by the MGB.                            Provided, that if said Tax Clearance is not issued by the BIR within the prescribed                             period, processing of the mining application or renewal shall proceed.
                e. Certify the Proof of Payment of excise and other taxes, upon request of mining                                contractors, permittees and operators, for submission to the MGB.
                f. Coordinate with the MGB in the revision and formulation of Revenue Regulations,                             definition of terms, and other policy matters affecting mining and the mineral industry.
                g. Furnish MGB with copies of the latest BIR regulations, ruling and other tax                                         issuances(s) affecting mining and the mineral industry.
The BIR and MGB shall:
                a. Promulgate and disseminate to their respective offices pertinent issuances for the                            proper execution of the provisions of these Implementing Guidelines.
                b. Issue their respective Orders designating BIR and MGB officials concerned, in their                            national, regional and district offices, who shall undertake proper coordination to                              ensure effective implementation of these guidelines. The BIR shall provide a copy of                         its order to the MGB and vice versa to facilitate communication and coordination.
                c. Establish and maintain a system of information exchange, with the primary objective                        of enhancing inter-agency cooperation.
               d. Conduct meetings, as often as necessary, to promptly resolve any issue involving                             discrepancies in the exchanged information.