Occupation fee.
SEC. 241. Occupation fee. — Any locator, holder, or occupant of any mining claim shall pay to the Collector of Internal Revenue in advance, upon the expiration of the period of two years from the date of the registration of the claim in the office of the Mining Recorder, and on the same date every year thereafter, an annual occupation fee of one peso per hectare, or fractional part thereof, until the lease covering the mining claim shall have been granted. Fifty per centum of all the fees collected under this section shall accrue to the province, and fifty per centum to the municipality in which the mining claims are located: Provided, That in case the mining claims are located in a chartered city, the full amount shall accrue to the city concerned. Failure to pay the occupation fee herein required within thirty days after demand shall cause the mining claims to be open to relocation and lease by other persons qualified to locate and lease the same under the provisions of the Mining Act, in the same manner as if no location of the said mining claims had ever been made, unless the locator, holder, occupant, his heirs, executors, administrators, or legal representatives, shall have paid the delinquent occupation fees and have resumed occupation of the claims before relocation by other persons.
No lease shall be granted on any mining claim until the occupation fees required to be paid under this section shall have been fully paid: Provided, however, That nothing herein contained shall be construed to extend the period of four years within which application for lease of a mining claim shall be filed from the date of the recording of the claim in the office of the Mining Recorder, as provided for in the Mining Act.
Rentals and royalties on mineral lands under lease.
SEC. 242. Rentals and royalties on mineral lands under lease. — For the privilege of exploring, developing, mining, extracting, and disposing of the minerals from the lands covered by his lease, the lessee shall pay to the Government of the Philippines, through the Collector of Internal Revenue, rentals and royalties as follows:
(a) Rentals.
(1) On coal-bearing public lands, an annual rental, payable in advance on the date of the approval of the lease and on the same date every year thereafter, on the lands covered by such lease, at the rate of two pesos and fifty centavos per hectare or fraction thereof for each and every year for the first ten years, and five pesos per hectare or fraction thereof for each and every year thereafter during the life of the lease: Provided, That such rental for any year shall be credited against the royalties as they accrue for that year as provided in subsection (b) hereof: And provided, further, That such rental and royalties paid during any year shall be credited against the specific tax provided for in section 143.
(2) On all mineral lands of the first, second, fourth, and fifth groups provided under the Mining Act, one peso per hectare or fraction thereof. The rental shall be paid in advance to the provincial, city, or deputy provincial treasurers on the date of the granting of the lease and on the same date every year thereafter during the life of the lease. Fifty per centum of all the rentals collected shall accrue to the province, and fifty per centum to the municipality in which the mining claims are located: Provided, That in case the mining claims are located in a chartered city, the full amount shall accrue to that city.
(b) Royalties.
(1) On coal, such royalties as may be specified in the lease, which shall not be less than ten centavos per ton of one thousand and sixteen kilograms.
(2) On gold, a royalty based on the actual market value of the annual gross output thereof, as follows:
One and one-half per centum upon the first five hundred thousand pesos of the value of said output:
Two and one-half per centum upon the amount by which such output exceeds five hundred thousand pesos and does not exceed one million pesos;
Three and one-half per centum upon the amount by which such output exceeds one million pesos and does not exceed one million five hundred thousand pesos;
Four and one-half per centum upon the amount by which such output exceeds one million five hundred thousand pesos and does not exceed two million pesos;
Five and one-half per centum upon the amount by which such output exceeds two million pesos and does not exceed two million five hundred thousand pesos:
Six and one-half per centum upon the amount by which such output exceeds three million pesos and does not exceed four million pesos;
Seven and one-half per centum upon the amount by which such output exceeds four million pesos and does not exceed five million pesos;
Eight per centum upon the amount by which such output exceeds six million pesos and does not exceed seven million pesos;
Eight and one-fourth per centum upon the amount by which such output exceeds seven million pesos and does not exceed eight million pesos:
Eight and one-half per centum upon the amount by which such output exceeds eight million pesos and does not exceed ten million pesos;
Eight and three-fourths per centum upon the amount by which such output exceeds ten million pesos and does not exceed twelve million pesos;
Nine per centum upon the amount by which such output exceeds twelve million pesos and does not exceed fourteen million pesos:
Nine and one-half per centum upon the amount by which such output exceeds fourteen million pesos and does not exceed sixteen million pesos;
Nine and one-half per centum upon the amount by which such output exceeds sixteen million pesos and does not exceed eighteen million pesos:
Nine and three-fourths per centum upon the amount by which such output exceeds eighteen million pesos and does not exceed twenty million pesos; and
Ten per centum upon the amount by which such output exceeds twenty million pesos.
(3) On all other minerals extracted from or mineral products of, mineral lands of the first, second, fourth, and fifth groups as provided for in the Mining Act, a royalty of one and one-half per centum of the actual market value of the gross output thereof.
Before the minerals or mineral products are removed from the mines, the Collector of Internal Revenue or his representative shall first be notified of such removal on a form prescribed for the purpose.
The rentals and royalties at the rates herein established or at such rates as hereafter may be prescribed by law shall be paid by the lessee and a provision to this effect shall be deemed to be a part of every contract of lease covering the mineral lands and mineral product referred to in this section
Ad valorem taxes on output of mineral lands not covered by lease.
SEC. 243. Ad valorem taxes on output of mineral lands not covered by lease. — There shall be assessed and collected on the actual market value of the annual gross output of the minerals or mineral products extracted or produced from all mineral lands, not covered by lease, an ad valorem tax, payable to the Collector of Internal Revenue, as follows:
(1) On gold —
One and one-half per centum upon the first five hundred thousand pesos of the value of said output;
Two and one-half per centum upon the amount by which such output exceeds five hundred thousand pesos and does not exceed one million pesos;
Three and one-half per centum upon the amount by which such output exceeds one million pesos and does not exceed one million five hundred thousand pesos;
Four and one-half per centum upon the amount by which such output exceeds one million five hundred thousand pesos and does not exceed two million pesos;
Five and one-half per centum upon the amount by which such output exceeds two million pesos and does not exceed two million five hundred thousand pesos;
Six and one-half per centum upon the amount by which such output exceeds two million five hundred thousand pesos and does not exceed three million pesos;
Seven per centum upon the amount by which such output exceeds three million pesos and does not exceed four million pesos;
Seven and one-half per centum upon the amount by which such output exceeds four million pesos and does not exceed five million pesos;
Seven and three-fourths per centum upon the amount by which such output exceeds five million pesos and does not exceed six million pesos;
Eight per centum upon the amount by which such output exceeds six million pesos and does not exceed seven million pesos;
Eight and one-fourth per centum upon the amount by which such output exceeds seven million pesos and does not exceed eight million pesos;
Eight and one-half per centum upon the amount by which such output exceeds eight million pesos and does not exceed ten million pesos;
Eight and three-fourths per centum upon the amount by which such output exceeds ten million pesos and does not exceed twelve million pesos;
Nine per centum upon the amount by which such output exceeds twelve million pesos and does not exceed fourteen million pesos;
Nine and one-fourth per centum upon the amount by which such output exceeds fourteen million pesos and does not exceed sixteen million pesos;
Nine and one-half per centum upon the amount by which such output exceeds sixteen million pesos and does not exceed eighteen million pesos;
Nine and three-fourths per centum upon the amount by which such output exceeds eighteen million pesos and does not exceed twenty million pesos; and
Ten per centum upon the amount by which such output exceeds twenty million pesos.
(2) On all other minerals, one and one-half per centum of the value of said output.
Before the minerals or mineral products are removed from the mines, the Collector of Internal Revenue or his representative shall first be notified of such removal on a form prescribed for the purpose.
Deductions from royalty or ad valorem tax on the output of gold.
SEC. 244. Deductions from royalty or ad valorem tax on the output of gold. — The following deductions from the royalty or ad valorem tax, as the case may be, on the annual gross output of gold shall be allowed:
(a) Twenty-five per centum in the case of gold placer mines;
(b) Fifteen per centum in the case of lode mines producing gold from ores which average less than ten pesos but more than seven pesos per ton; and
(c) Thirty per centum in the case of lode mines prorefining, transporting, handling, marketing, or any other producing gold from ores which average less than seven pesos per ton.
The average value per ton of ore shall be determined by dividing the total gross output of gold in pesos for any year by the total number of tons milled or shipped as crude ore during that year for any particular lode mine.
Time and manner of payment of royalties or ad valorem taxes.
SEC. 245. Time and manner of payment of royalties or ad valorem taxes. — The royalties or ad valorem taxes, as the case may be, shall be due and payable upon the removal of the mineral products from the locality where mined. However, the output of the mine may be removed from such locality without the prepayment of such royalties or ad valorem taxes if the lessee, owner, or operator shall file a bond in the form and amount and with such sureties as the Collector of Internal Revenue may require, conditioned upon the payment of such royalties or ad valorem taxes, in which case, it shall be the duty of every lessee, owner, or operator of a mine to make a true and complete return in duplicate under oath setting forth the quantity and the actual market value of the output of his mine removed during each calendar quarter and pay the royalties or ad valorem taxes due thereon within twenty days after the close of said quarter.
In case the royalties or ad valorem taxes are not paid within the period prescribed above, there shall be added thereto a surcharge of twenty-five per centum. Where a false or fraudulent return is made, there shall be added to the royalties or ad valorem taxes a surcharge of fifty per centum of their amount. The surcharge so added shall be collected in the same manner and as part of the royalties or ad valorem taxes, as the case may be.
Definition of the term "gross output".
SEC. 246. Definition of the term "gross output". — The term "gross output" shall be interpreted as the actual market value of minerals or mineral products, or of bullion from each mine or mineral lands operated as a separate entity without any deduction for mining, milling refining, transporting, handling, marketing, or any other expenses: Provided, however, That if the minerals or mineral products are sold or consigned abroad by the lessee or owner of the mine under C.I.F. terms, the actual cost of ocean freight and insurance shall be deducted. The output of any group of contiguous mining claims shall not be subdivided. All the royalties or ad valorem taxes herein provided shall accrue to the National Treasury.
Deductions from royalties payable by persons removing minerals from private lands.
SEC. 247. Deductions from royalties payable by persons removing minerals from private lands. — In case mining is carried on upon private lands, the royalty due on the value of the output of such mines under any and all leases granted for the purpose shall be reduced by five per centum of the amount due to the Government under the provisions of this Title. The amount so reduced to be paid by the lessee to the land owner. This privilege shall not be granted to any person acquiring an option on the surface right after any mining location has been made on the minerals found therein.
Specific penalties.
SEC. 248. Specific penalties. — Anyone liable to make a return of the actual market value of the output of mines or to pay the royalties or ad valorem taxes required in section 245, who refuses or neglects to file such return, or to pay such royalties or ad valorem taxes at the time or time specified therein and any lessee, owner, or person in charge of any minerals or mineral products upon which the royalties or ad valorem taxes imposed in this Title are applicable, who removes, in violation of the first paragraph of said section, or who allows or procures the unlawful removal from the place where mined of any such products, upon which the royalties or ad valorem taxes have not been paid; and any person who abets or aids in the unlawful removal of minerals or mineral products, shall be fined not more than one thousand pesos or imprisoned for not more than six months, or both.
Anyone required by this Title to make, render, or file a return of the actual value of the output of mines, who makes, renders, or files a false or fraudulent return with intent to defeat or evade the payment of the royalties or ad valorem taxes, as the case may be, shall be fined not more than four thousand pesos or imprisoned for not more than one year, or both.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
