InTAX: August 2024 Issue 1 | Volume 1

Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) issued the following:

Revenue Memorandum Circular (RMC) No. 74-2024, dated 1 July 2024, to provide the guidelines and prescribe the mandatory documentary requirements in the processing and grant of claims for issuance of tax credit certificates (TCC) or cash refund (refund) of erroneously or illegally received or collected taxes under the Tax Code in line with the Ease of Paying Taxes Act (EOPT Law).

The RMC provides for the general policies such as, but not limited, to the requirement to submit the Application for Tax Credits/Refunds (BIR Form No. 1914) to the Revenue District Office (RDO) or the respective Large Taxpayers Audit Division (LTAD) or Large Taxpayers District Office (LTDO) under the Large Taxpayers Services (LTS), together with complete documentary requirements in the Checklist of Mandatory Requirements (Annex “A.1”) within the prescribed 2-year period after the payment of the tax or penalty. Otherwise, the application shall not be processed by the authorized processing office.

The following are the documents to be submitted by the taxpayer-claimant upon filing of the application for TCC/Refund:

1. Application with complete supporting documents enumerated under Annex “A.1”
2. A notarized Taxpayer Attestation (Annex “A.2”) certifying to the completeness of the documents submitted
3. Any requested documents during verification conducted by the assigned Revenue Officers (ROs) (Note: Any failure to cooperate with the assigned ROs or submit the requested documents may lead to full or partial denial of the claim.)
4. A Delinquency Verification Certificate valid for six (6) months from the Collection Division under the respective Revenue Region or the Large Taxpayer Collection Enforcement Division under the Large Taxpayers Service, whichever is applicable.

RMC No. 75-2024, dated 1 July 2024, to provide guidelines and prescribe the mandatory documentary requirements in the processing and grant of claims for issuance of tax credit certificates (TCC) or cash refund of excess/unutilized creditable withholding taxes (CWT) on income under Section 76(C), in relation to Sections 204(C) and 229 of the Tax Code, in line with the EOPT Law (i.e., due to dissolution or cessation of business).

The RMC provides for the general policies such as, but not limited, to the requirement to submit BIR Form No. 1914 to the processing office/s who shall decide on the application and refund the excess taxes within two (2) years from the date of the dissolution or cessation of business, which is an exception to the 180-day processing of TCC/refund. The 2-year period to process the tax refund shall commence from the submission of the Application for Registration Information Update/Correction/Cancellation (BIR Form No. 1905) together with the complete documentary requirements set by the BIR for the closure of business and refund of excess income taxes due to cessation or dissolution of business.

The following are the documents to be submitted by the taxpayer-claimant upon filing of the application for CWT credit/refund:

1. Application with complete supporting documents enumerated in the Checklist of Mandatory Requirements (Annex “A.1”) for taxpayers of “going concern” status for taxpayers undergoing dissolution or cessation of business
2. A comparative matrix of tax withheld in accordance with the format provided in Annex “A-3”
3. A notarized Taxpayer Attestation certifying to the completeness of the documents submitted
4. Any requested documents during verification conducted by the assigned ROs (Note: Failure to cooperate with the assigned ROs or submit the requested documents may lead to full or partial denial of the claim.)
5. The tax returns filed by the taxpayer-claimant, particularly the Quarterly and Annual Income Tax Returns prior to the date of application of the CWT credit/refund or the issuance of the electronic Letter of Authority, whichever comes first.

Here are the links to the full text of the issuances: RMC No. 74-2024 Annex A.1-A.2, RMC No. 75-2024 and RMC No. 75-2024 Annex A.1-A.4.