Author MRTC

Introduction

REVENUE MEMORANDUM CIRCULAR (RMC) 058-2026

This Circular establishes the procedures for the filing of quarterly royalty returns and the payment of royalties under Section 151-A of the Tax Code, as introduced by RA No. 12253 or the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act. It provides interim guidelines for affected large-scale metallic mining contractors and operators while awaiting the issuance of a dedicated royalty return and payment facility, ensuring their continued compliance with royalty filing and payment requirements.

SECTION 1 – Coverage

  • Applies to all large-scale metallic mining contractors and operators covered by RA No. 12253.
  • Covers taxpayers required to file quarterly royalty returns and pay royalties under Section 151-A of the Tax Code.
  • The fiscal regime became effective on February 17, 2026 (150 days after the law’s effectivity).

SECTION 2 – Filing and Payment of Quarterly Royalty

A. Filing DeadlineQuarterly royalty return must be filed and paid within 60 days after the close of each calendar or fiscal quarter.
B. Filing and Payment Facility● Pending the release of a dedicated royalty return, taxpayers shall use BIR Form No. 0605.
● eFPS filers shall file electronically; non-eFPS filers may file manually.  

Required specifications:  
● Tax Type: MCATC MC 344 – Operations Within Mineral Reservations
● ATC MC 345 – Operations Outside Mineral Reservations
● Manner of Payment: Voluntary Payment
● Description: “Others (Specify)” and indicate the agreement type and agreement number (e.g., MPSA No. 123-2026-XIII).
● Payment through BIR Form 0605 is considered advance or initial compliance until the prescribed royalty return becomes available.
 ● Such filings remain subject to validation, monitoring, reconciliation, and adjustments by the BIR.
C. Separate Filing per Agreement (Ring-Fencing Requirement)● If a taxpayer has two or more mineral agreements, FTAAs, or operating agreements, each agreement must be filed and paid separately
● Each agreement is treated as a separate ring-fenced project.
● Royalty liability must be determined, reported, and accounted for individually per agreement.
D. Computation of Quarterly Royalty● Royalty is computed per ring-fenced project under Section 151-A of the Tax Code.
● Computation considers:
i. Gross output base.
ii. Allowable deductions.
iii. Applicable royalty rate.

● Royalty rates vary depending on whether operations are:
– Within mineral reservations; or
– Outside mineral reservations.

● Until implementing Revenue Regulations are issued, taxpayers shall follow:
– Section 151-A of the Tax Code; and
– The DOF Implementing Rules and Regulations dated December 18, 2025.

● Taxpayers must maintain supporting schedules, computations, and documents to substantiate royalty payments.

SECTION 3 – Bond Requirement

  • Any requirement to submit a bond securing royalty payment will be covered by future BIR guidelines through a separate revenue issuance.

SECTION 4 – Effectivity

  • The Circular takes effect immediately upon issuance.
  • All BIR officers and employees are directed to give the Circular wide publicity