Briefing on Republic Act

(RA) 10963: Tax Reform

for Acceleration and
Inclusion (TRAIN) –
Invasive Cosmetic
Procedure (Section 150A
of the Tax Code)
 1. Plastic Surgery - refers to a
Definition surgical specialty dedicated to
of Terms reconstruction of facial and body
defects due to birth disorders,
trauma, burns, and disease. It
intends to correct dysfunctional
areas of the body and is
reconstructive in nature.
 2. Cosmetic Surgery - refers to a type
of plastic surgery that aims to improve a
person’s appearance, through invasive
Definition cosmetic procedures, surgeries, and
of Terms body enhancements directed solely on
improving, altering, or enhancing the
person’s appearance and do not
necessarily promote the proper
functions of the body or prevent or treat
illness or disease.
 3. Reconstructive Surgery shall
refer to another type of plastic
surgery which aims to improve
Definition function and give a normal
of Terms appearance to a part of a person’s
body that has been damaged,
ameliorate a deformity arising
from, or directly related to, a
congenital or developmental defect
or abnormality, a personal injury
resulting from accident or trauma,
or disfiguring disease, tumor, virus
 4. Invasive Cosmetic Procedure -
refers to a surgery that is carried out
Definition by entering the body through the
skin or through a body cavity or
of Terms
anatomical opening, but with the
smallest damage possible to these
structures. Invasive Cosmetic
Procedures shall include, but not be
limited to the following:
 Invasive Cosmetics Procedures

1. Liposuction

Definition 2. Mammoplasty
of Terms 3. Breastlift
4. Buccal Fat Reduction
5. Buttocks
Augmentation
 Invasive Cosmetics Procedures
6. Chin
Augmentation
Definition 7. Facelift/Necklift
of Terms 8. Thread Lift
9. Hair Restoration/
Transplantation
10.Eyelid Surgery
 Invasive Cosmetics Procedures
11.Vaginal Plastic
Surgery
Definition 12.Abdominoplasty or
of Terms Tummy Tuck
13.Auto Grafting
14.Rhinoplasty/
Alar Trimming
15.Otoplasty
 5. Non-Invasive Cosmetic
Procedure - refers to a
conservative treatment that does
Definition not require incision into the body or
of Terms the removal of tissue, or when no
break in the skin is created and
there is no contact with mucosa, or
skin break, or internal body cavity
beyond a natural or artificial body
orifice. Non- Invasive Cosmetic
Procedures shall include, but not be
limited to the following:
 Non-invasive Cosmetics Procedures
1. Acupuncture Rejuvenation
Therapy
Definition 2. Air Dissector
of Terms 3. Botulinum Toxin
Injection/Treatment
4. Collagen Induction Therapy
5. Dermal Fillers (Crosslinked
and Non-Crosslinked)
6. Embedded Protein Threads
 Non-invasive Cosmetics Procedures
7. Non-surgical
facelifting & skin
tightening using radio
Definition frequency,
of Terms ultrasound, infrared
8. Fractional CO 2
9. Lasers and Light
Treatments
10.Body Treatments and
Contouring
Procedures
 Non-invasive Cosmetics Procedures

11.Cleanings and
Definition Facials
of Terms 12.Peelings (Face
and Body)
13. Injectables and
Weight
Management
Treatment
 Rate and Base of Excise Tax
Rate = five percent (5%)
Coverage,
Tax Base = Gross Receipts, net of
Nature, excise tax and VAT
Basis and
Rate of Coverage = invasive cosmetic
Excise Tax procedures, surgeries and body
enhancements directed solely towards
improving, altering, or enhancing the
patient’s appearance and do not
meaningfully promote the proper function
of the body or prevent or treat illness or
disease.
 1. Non-invasive cosmetic procedures and
surgeries necessary to ameliorate a
deformity arising from or directly related
to,
 congenital or developmental defect
Exclusion
or abnormality,
 personal injury resulting from an
accident or trauma,
 disfiguring disease, tumor, virus or
infection
2. Cases or treatments covered by the
National Health Insurance Program
 Persons Liable to File a Return
Any person, whether individual or juridical
Filing of entity, performing invasive
Returns medical/cosmetic procedures, surgeries,
and body enhancements directed solely on
Payment improving, altering, or enhancing the
of Excise patient’s appearance and do not
Tax on meaningfully promote the proper
Invasive functions of the body or prevent or treat
Procedure illness.
s
 Nature and Characteristic
of Excise Tax
Filing of An excise tax is considered an
Returns indirect tax, meaning that the service
and provider who is the statutory bearer
Payment of the said excise tax is expected to
of Excise shift the tax by billing the same to
Tax on the customer-client.
Invasive
Procedure
s
 Invoicing Requirements

Every person subject to excise tax herein

imposed shall issue:
Administrative
Requirements 1. An Official Receipt for services
performed whether invasive/non-
invasive.
2. The following information shall be
indicated in the Official Receipt:
 Invoicing Requirements
 If the services performed involved both
invasive (excisable) and non-invasive
(exempt from excise tax) procedures, the
Administrative receipt shall clearly indicate the breakdown
Requirements of the amount received between its taxable
and exempt components and the calculation
of excise tax on each portion of the
procedure performed shall be shown on the
receipt:
 Provided, that the service provider may issue
separate ORs for the excisable and exempt
components of the services rendered.
 Violations of these Regulations shall be subject to the
corresponding penalties under Title X of the NIRC, as
amended.
1. Any violation of the provision of this Regulation
shall be subject to the corresponding penalties
under Sec. 250 and 255 of the NIRC as amended
Penalties and RMO 7-2015.
2. Any person who willfully attempts in any manner
to evade or defeat any tax imposed under this
regulation or the payment thereof shall, in
addition to other penalties provided by law, upon
conviction thereof, be punished with a fine of not
less than P500,000 but not more than P10 Million,
and imprisonment of not less than 6 years but
not more than 10 years. The conviction or
acquittal obtained under this section shall not be
a bar to the filing of a civil suit for the collection
 2. Any person willfully aids or abets in the
commission of any such act or omission
shall be criminally liable in the same
manner as the principal; and
Penalties
3. If the offender is not a citizen of the
Philippines, he shall be deported
immediately after serving the sentence,
without further proceedings for
deportation.
 Exceptions

Filing of The Secretary of Finance, upon the

Returns recommendation of the Commissioner,
may, by rules and regulations, prescribe
and
the manner and time for filing of the
Payment
return and payment of excise tax other
of Excise than as prescribed under Section 130,
Tax on Chapter I, Title VI of the Tax Code, as
Invasive amended.
Procedure
s
 Time and Place for Filing of Return
and Payment of the Tax
BIR TIME OF PLACE
Filing of
FORM FILING AND
Returns REMITTANCE
and BIR Every 10th of authorized agent bank
Payment FORM the following (AAB) under the jurisdiction
of Excise 1620- month of the Revenue District
XC Office/BIR Office where the
Tax on taxpayer (Head Office of
Invasive the business
Procedure establishment) is
registered or required to
s register
 Time and Place for Filing of Return
and Payment of the Tax
Filing of Submit Summary of Invasive Cosmetic
Returns Procedures Performed (please refer to
and prescribed format on Annex A hereof) as an
attachment to the said form for submission via
Payment of email at xcp.attachment@bir.gov.ph.
Excise Tax NAME OF TAXPAYER
"Annex A"

on Invasive Monthly Summary of Invasive Cosmetic Procedures Performed

For the Month _______________

Procedures
COSMETIC
OFFICIAL RECEIPT PROCEDURES AMOUNT COLLECTED
Gross Receipts
(Net of 5% Excise Tax
No. Date PERFORMED VAT /Excise) Withheld 12% VAT Total
             
 The current Certificate of Registration
(COR) shall be updated to include excise
Transitory tax type using BIR Form 1905 and the
same shall be issued to the applicant by
Provision the ELTRD for Large Taxpayers and
Revenue District Office (RDO) having
jurisdiction of the applicant for Non-Large
Taxpayers in compliance with the
requirements for registration.
 The BIR Form No. 1620-XC (Monthly
Remittance Return of Final Withholding of
Excise Tax on Cosmetic Procedures) is
available for downloading from the BIR
Transitory website for purposes of remitting Final
Provision Withholding of Excise Tax on cosmetic
procedures and shall be manually filed with
the BIR, together with the prescribed
attachment to the said form (Summary of
Invasive Cosmetic Procedures Performed) for
submission via email at
xcp.attachment@bir.gov.ph.