Philippines: Guidelines for tax credit certificates and refunds
Process for issuing tax credit certificates and cash refunds under the “Ease of Paying Taxes Act”
The Bureau of Internal Revenue (BIR) in July 2024 released two Revenue Memorandum Circulars (RMCs) to streamline the process for issuing tax credit certificates and cash refunds under the “Ease of Paying Taxes Act” (EOPT Law).
RMC No. 74-2024: This circular outlines the mandatory documentary requirements for processing claims for TCCs or refunds of erroneously or illegally collected taxes under the tax code. Key guidelines include:
- Application submission: Taxpayers must submit the application for tax credits/refunds (BIR Form No. 1914) to the Revenue District Office or the appropriate Large Taxpayers Audit Division or Large Taxpayers District Office within two years of the tax payment.
- Required documents: The application must include a notarized taxpayer attestation (Annex “A.2”) and a delinquency verification certificate valid for six months. Failure to submit complete documents or cooperate with Revenue Officers (ROs) may result in claim denial.
RMC No. 75-2024: This circular provides guidelines for claims related to excess/unutilized creditable withholding taxes on income due to business dissolution or cessation under section 76(C) of the tax code. Highlights include:
- Application process: Taxpayers must submit BIR Form No. 1914 along with the Application for Registration Information Update/Correction/Cancellation (BIR Form No. 1905) and complete documentary requirements within two years from the business cessation date.
- Required documents: The application must include a comparative matrix of tax withheld (Annex “A-3”), a notarized taxpayer attestation, and relevant tax returns. Non-cooperation with ROs or incomplete submissions may lead to claim denial.
Read an August 2024 report prepared by the KPMG member firm in the Philippines