Section 7Sec./Art. 7

A new section designated as Section 151-B under Chapter VII, Title VI of the National Internal Revenue Code of 1997, as amended, is hereby inserted to read as follows:

"Section 151-B. Windfall Profits Tax. -

(A) Windfall Profits Tax Rates for Large-Scale Metallic Mining Operations. - Large-scale metallic mining operations subject of any mineral agreement or financial or technical assistance agreement, as defined under Republic Act No. 7942, otherwise known as "The Philippine Mining Act of 1995", shall be subject to, in addition to the taxes imposed under this Code, a windfall profits tax on net income from metallic mining operations based on the following rates:

Margin

Rate

Equal to 30% but not over 40%

1.0%

Over 40% but not over 55%

3.0%

Over 55% but not over 65%

5.0%

Over 65% but not over 75%

7.0%

Over 75%

10.0%

Provided, That this windfall profits tax shall not be deductible from taxable income as defined in Section 31 of this Code: Provided, further, That for purposes of this section, 'windfall' or 'margin' means the ratio of 'net income from metallic mining operations' to gross output, where the definition of 'gross output' is as provided under Section 151(B)(1) of this Code and 'net income from metallic mining operations' is as provided under Section 151-A(B)(2), except that allowable tax deductions shall include corporate income tax and royalty under Section 151-A Provided, finally, That for the purpose of computing the windfall or margin, the optional standard deduction under Section 34(L) of this Code shall not be used.

(B) Annual Returns and Payment. - The mining contractor or operator shall file a windfall profit tax return and pay the tax due thereon, if any, on or before the fifteenth (15th) day of April, or on or before the fifteenth (15th) day of the fourth (4th) month following the close of fiscal year, as the case may be, subject to rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner.

The windfall profits tax return shall be either electronically or manually filed with and the tax paid to the Bureau of Internal Revenue through any revenue district office through the revenue collection officer, authorized agent bank, or duly authorized tax software provider, except as the Commissioner other prescribes."