REVENUE REGULATIONS NO. 7-2008 issued on May 2, 2008 prescribes the regulations to govern the taxation on the sale to the Bangko Sentral ng Pilipinas (BSP) of gold and other metallic mineral products extracted or produced by small-scale miners pursuant to Republic Act (RA) No. 7076, otherwise known as the “People’s Small-Scale Mining Act of 1991” , and further amends section 2.57.2 (T) of Revenue Regulations (RR) No. 2-98, as amended by RR No. 17-2003. RA No. 7076 requires person/s undertaking small scale mining activities to register with the Board and may organize themselves into a cooperative in order to qualify for the awarding of people’s small scale mining contract. A holder of small-scale mining contract is liable to pay the following national internal revenue taxes, to wit: a. Excise Tax at the rate of two percent (2%) prescribed under Section 151(A)(3)(b) of the Tax Code , as amended, on every sale of gold to BSP, based on actual market value. For this purpose, actual market value shall refer to the prices competitive with those prevailing in the world market regardless of the volume or weight by which the BSP has agreed to buy the gold. b. Value -Added Tax at the rate of zero percent (0%) as prescribed under Section 106(A)(2)(a)(4) of the Tax Code on every sale of gold to BSP. c. Income Tax at the rate prescribed under Sections 24 (A) and 27 (A) of the Tax Code, as amended, in the case of individual taxpayers and corporations, respectively. Further, contract holder shall be subject to the Creditable Withholding Tax (CWT) at the rate of ten percent (10%). Section 2.57.2(T) of RR No. 2-98, as amended, was further amended by providing that income payments on purchases of minerals, mineral products and quarry resources such as but not limited to silver, gold, marble, granite, gravel, sand, boulders and other materials/products shall be subject to ten percent (10%) tax. Consistent with Section 17 of RA No. 7076, all gold produced by small-scale miners in any mineral area shall be sold to the BSP or its duly authorized representatives which shall buy it at prices competitive with those prevailing in the world market regardless of volume weight. For purposes hereof, the BSP shall be constituted as agent for the collection of the two percent (2%) Excise Tax on sale of gold by the small-scale miner. As such, it shall, upon payment to the small-scale miner of its purchase of gold, deduct from such payment the corresponding Excise Tax due thereon. Such deduction shall be in addition to the 10% CWT required to be withheld on income payments or purchases of minerals and mineral products. All Excise Taxes collected from payments made to small-scale miners on their sale of gold to BSP for the month shall be remitted by the BSP by filing the corresponding Excise Tax Return (BIR Form No. 2200-M) and paying the amount of tax it collected to the Accredited Agent Bank having jurisdiction over its principal place of business on or before the tenth (10th) day of the following month. Moreover, in accordance with Section 2.58 of RR No. 2-98, as amended, the CWT withheld by BSP under Section 2.57.2(T) shall be remitted by indicating the following, among others: the phrase “Gold miners/suppliers under PD 1899, as amended by RA No. 7076”, in lieu of the individual names and Taxpayer Identification Numbers of the Gold Sellers, the tax base and the amount withheld, as one line item, in the Monthly Remittance Return of Creditable Withholding Taxes Withheld (BIR Form No. 1601-E) with Monthly/Annual Alphalist of Payees periodically accomplishe d and filed by BSP as a duly constituted withholding agent. The withholding tax return shall be filed and payment shall be made within ten (10) days after the end of each month, except for taxes withheld for the month of December, which shall be filed on or before January 15 of the following year. However, if the BSP availed of the Electronic Filing and Payment System, the deadline for electronic filing of the applicable withholding tax returns (BIR Form No. 1601- E) and payment of taxes due thereon remains on the 15th day of the following month.