Net manufacturer’s price/importer‘s selling price

• Up to Six hundred thousand pesos (₱600,000)

Traditional 4% MSP/ISP

Hybrid 2% MSP/ISP

• Over Six hundred thousand pesos (₱600,000) to One million pesos (₱1,000,000)

Traditional 10%

Hybrid 5% MSP/ISP

• Over One million pesos (₱1,000,000) to Four million pesos (₱4,000,000)

Traditional 20%

Hybrid 10% MSP/ISP

• Over Four million pesos (₱4,000,000)

Traditional 50%

Hybrid 25% MSP/ISP

• Hybrid vehicles / Pick Ups (purely electric - exempted) 

DEPRECIATION:

• No-Dollar Importations of Motor Vehicles:

Automobile Year Model Multiplier   

    1ST YEAR 100% 0.90       

    2ND YEAR 90% 0.80

    3RD YEAR 80% 0.70

    4TH YEAR 70% 0.60

    5TH YEAR 60% 0.50

    6TH YEAR 50% (MAXIMUM)

• Rate of Duty - Automobiles

Automobiles for transport of 10 or more seaters   20% Ad Valorem

Automobiles for transport of 9 seaters below 30% Ad Valorem

• For purposes of computing the duties due where either Methods 2, 3 and 6 are used to determine the value of the motor vehicle based on the Japanese or Red Book as the case may be the rate of depreciation shall computed using the straight line method at 10% for every year but not exceeding 90%. 

• For trucks and heavy equipment, the rate of depreciation shall follow the straight line method at 10% per year but in no case shall it exceed 90%. 

Current Year No Depreciation 

One-Year Old 10% 

Two-Year Old 20% 

Three-Year Old 30% 

Four-Year Old 40% 

Five-Year Old 50% 

Six Year Old 60% 

Seven Year Old 70% 

Eight Year Old 80% 

Nine Year Old and Older 90% 

(Note: Depreciation table used for Local Purchase Scheme) 

• Automobile shall mean any four (4) or more wheeled motor vehicle regardless of seating capacity, which is propelled by gasoline, diesel, electricity or any other motive power. Provided, That for purposes of this Act, buses, trucks, cargo vans, jeeps/jeepneys substitutes, single cab chassis and special-purpose vehicles shall not be considered as automobiles.

• Trucks/cargo van shall mean a motor vehicle of any configuration that is exclusively designed for the carriage of goods and with any number of wheels and axles: Provided, that pick-ups shall be considered as trucks.

• Jeepney/jeepney substitutes shall mean as ”Philippine jeep or jeepney“ which are of the jitney type locally designed and manufactured generally from surplus parts and components. It shall also include jeepney substitutes that are manufactured from brand-new single cab chassis or cowl chassis and locally customized rear body that has continuous sideway row seats with open rear door and without retractable glass windows.

• Bus shall mean a motor vehicle of any configuration with gross vehicle weight of 4.0 tons or more with any number of wheels and axles, which is generally accepted and specifically designed for mass or public transportation.

• Single cab chassis shall mean a motor vehicle with complete engine power train and chassis equipped with a cab that has a maximum of two (2) doors and only one (1) row of seats.

• Special purpose vehicle shall mean a motor vehicle designed for specific applications such as cement mixer, fine truck, boom truck, ambulance and/or medical unit, and off-road vehicles for heavy industries and not for recreational activities.

• Hybrid electric vehicle shall mean a motor vehicle powered by electric energy, with or without provision for off-vehicle charging, in combination with gasoline, diesel or any other motive power. Provided, That, for purposes of this Act, a hybrid electric vehicle must be able to propel itself from a stationary condition using solely electric motor.