Occupation Fees, Rentals, Royalties and Taxes.
SEC. 51. Occupation Fees, Rentals, Royalties and Taxes. - The claim owner shall pay the occupation fees, rentals, royalties and taxes on his mining claims and on the minerals extracted therefrom as provided for in the National Internal Revenue Code, as amended: Provided, That the failure to pay pay all taxes and fees due the government for two (2) consecutive years shall cause the cancellation of the mining claim and the reopening of the same for relocation by other parties.
Power to Levy Taxes on Mines, Mining Operations and Mineral Products.
SEC. 52. Power to Levy Taxes on Mines, Mining Operations and Mineral Products. - Any law to the contrary notwithstanding, no province, city, municipality, barrio or municipal district shall levy and collect taxes, fees, rentals, royalties or charges of any kind whatsoever on mines, mining claims, mineral products, or on any operation, process or activity connected therewith.
Tax Exemptions.
SEC. 53. Tax Exemptions. - Machineries, equipment, tools for production, plants to convert mineral ores into saleable form, spare parts, supplies, materials, accessories, explosives, chemicals and transportation and communication facilities imported by and for the use of new mines and old mines which resume operation, when certified as such by the Secretary upon recommendation of the Director, are exempt from the payment of customs duties and all taxes except income tax for a period starting from exploration and ending five (5)years from the first date of actual commercial production of saleable mineral products: Provided, That such articles are not locally available in reasonable quantity, quality and price and are necessary or incidental in the proper operation of the mine.
Any tax-exempt article acquired under this section shall not be sold, transferred or otherwise disposed of within a period of five (5) years from the time of such acquisition: Provided, That any such sale, transfer or other disposal of such articles within the aforesaid period shall be subject to the payment of all taxes and duties which shall have been due at the time of such acquisition, together with all interests and surcharges which amount shall constitute a lien on the articles sold.
All mining claims, improvements thereon and mineral products derived therefrom shall likewise be exempt from the payment of all taxes, except income tax, for the same period provided for in the first paragraph of this section.
The exemption provided for in this section shall be subject to such rules and regulations that shall be issued by the Director and approved by the Secretary.
SEC. 54. Notice of Revenue Payments to Director. -Within thirty (30) days from the date of the payment of the rentals or royalties due on any mining lease or minerals extracted therefrom, the lessee shall submit to the Director copies of receipt of such payment, and the names of the mining claims, lease number, and the names of persons, partnerships or corporations for which such payment has been made. Failure to submit copies of such receipt, information or document shall be deemed as non-payment of same and may cause the cancellation of the lease contract. The Director shall keep a record of receipt of such information.
Unpaid Rentals and Royalties.
SEC. 55. Unpaid Rentals and Royalties. - If a mining lease contract is cancelled or otherwise terminated, the lessee shall be liable for all unpaid rentals and royalties due up to the time of the termination or cancellation of the lease.
Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).
