Philippines: Guidelines for tax refunds and credits
Mandatory requirements for processing tax credit certificates or cash refunds for erroneously or illegally collected taxes
The Bureau of Internal Revenue (BIR) in July 2024 issued Revenue Memorandum Circular (RMC) No. 74-2024, outlining guidelines and mandatory requirements for processing tax credit certificates (TCC) or cash refunds for erroneously or illegally collected taxes.
Taxpayers must submit the Application for Tax Credits/Refunds (BIR Form No. 1914) along with complete documentation to the appropriate revenue district office or large taxpayers division. A notarized Taxpayer Attestation must also accompany the application to certify document completeness. Additional documents may be requested during verification by Revenue Officers, and a Delinquency Verification Certificate must also be secured.
The required documents vary based on the tax type and circumstances. Failure to comply or provide requested documents may result in claim denial. Tax refund or credit claims are strictly construed against the taxpayer, who bears the burden of proving entitlement and compliance with all requirements. Compliance and completeness are crucial for successful claims.
Read a September 2024 report prepared by the KPMG member firm in the Philippines