Rentals and royalties on mineral lands under lease.
Section 242
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