PI Global Investments
Precious Metals

It’s final: Rolex watches not subject to 20% excise tax

The Department of Finance (DOF) has ruled that expensive watches made of precious metals cannot be levied a 20-percent excise tax, reversing an earlier ruling made by the taxman.

The DOF opinion issued by former Finance Secretary Carlos Dominguez III last June 29 before he stepped down reversed a ruling issued by former Internal Revenue Commissioner Caesar Dulay in 2021, which told the luxury watchmaker Rolex that their wristwatches manufactured using precious metals were subject to excise tax under Section 150(a) of the Tax Code.

Back in 2019, Rolex’s Philippine branch office, through its legal counsel, argued before the Bureau of Internal Revenue (BIR) that the wristwatches it imported and sold in the country were not subject to the 20-percent levy.

But the BIR said the Tax Code’s Section 150, which covered taxation of nonessential goods, “should be taken as a whole.” In particular, Section 150(a) covered “all goods commonly or commercially known as jewelry, whether real or imitation, pearls, precious and semiprecious stones and imitations thereof; goods made of, or ornamented, mounted or fitted with, precious metals or imitations thereof or ivory…; opera glasses and lorgnettes.”

The Tax Code said precious metals included gold, platinum, silver, as well as other metals of same or bigger value, while “imitations” included these metals’ alloys and platings.

As such, “a wristwatch (considered as ‘goods’) made of precious metals, is subject to excise tax,” the BIR said.

However, Rolex appealed the BIR ruling to the DOF early this year.

—Ben O. de Vera INQ

Read Next

Don’t miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

For feedback, complaints, or inquiries, contact us.

Source link

Related posts

Ham, ice scraper in field for Kansas’s ‘Coolest Thing’ | Business


Russia’s new gold exchange could challenge LBMA and reveal gold’s ‘fair’ price – Matthew Piepenburg


War & inflation: rally time for gold


Leave a Comment


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    100% secure your website.