RMC No. 45-2006: Publishes the full text of Department Order No. 20-06 issued by the DOF providing for measures to safeguard the integrity of the tax credit system being administered by the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Center, BIR and BOC as issuing agencies

Key points

1. Special Revalidation Program. All outstanding Tax Credit Certificates (TCCs) are retired or recalled and cancelled, and replaced with new TCCs on updated forms with enhanced security features. The Program covers TCCs issued solely by the BIR, solely by the BOC, solely by the OSS-Center under EO No. 226, jointly by the OSS-Center and the BIR under Section 112 of the NIRC, and jointly by the OSS-Center and the BOC.
2. New forms. The issuing agencies use the new forms exclusively for all TCCs issued beginning August 1, 2006. The form shows the legal basis, the recommending, processing or investigating office, and the approving authority.
3. Revalidation and cancellation. Holders of outstanding TCCs must apply for revalidation with the issuing agency from August 1 to December 31, 2006. From August 1, 2006, all outstanding TCCs are deemed automatically retired, recalled or cancelled and are no longer accepted as payment of the holder’s tax or duty liability.
4. Unused forms and rules. The BIR, BOC and OSS-Center prepare separate inventories of unutilized TCC forms for disposal under existing rules. They also issue orders to speed up revalidation, cover surrender of unissued forms, and prevent the use of fake, tampered, expired or recycled TCCs.
5. Reports to the Secretary of Finance. Inventory and disposition reports are due not later than August 31, 2006, and terminal reports on the revalidation not later than January 31, 2007. The BIR and BOC also submit monthly reports on the issuance, utilization and transfer of TCCs, beginning August 2006.

Who is affected

• Holders of outstanding TCCs
• BIR, BOC and the OSS-Center as issuing agencies

Deadlines and effectivity

• New TCC forms used beginning August 1, 2006
• Revalidation applications: August 1 to December 31, 2006
• Inventory reports: not later than August 31, 2006
• Terminal reports: not later than January 31, 2007