RMO No. 20-2018: Prescribes the revised policies and procedures on the processing of Tax Credit Certificates (TCCs) for cash conversion

Key points

1. Where to file. Requests go to the office that originally processed the TCC claim. Exceptions: claims filed with Revenue District Offices but reviewed by National Office officials go to the Tax Audit and Review Division (TARD), and revalidated TCCs go to the Miscellaneous Operations Monitoring Division (MOMD) of the Collection Service.
2. Recommending and approving. Designated officials sign the memorandum report recommending approval or disapproval, depending on the processing office. The DCIR-OG approves or disapproves before payment processing, and the Commissioner acts in the DCIR-OG’s absence.
3. TCC surrender and outstanding liability. The original TCC must be surrendered as a supporting document. If the claimant has an Outstanding Tax Liability, the TCC may be used to pay it, and the Collection Service manually cancels the TCC once it is fully used.
4. What cannot be converted. Cash conversion is allowed under Section 230 of the Tax Code of 1997, as amended. It is not allowed for TCCs issued from incentives under special laws with no actual payment made, or for TCCs transferred or assigned before Revenue Regulations No. 14-2011.
5. Five-year limit. A TCC unutilized after five (5) years from issue date cannot be converted to cash unless revalidated before the end of the fifth year.
6. Related rules and pending requests. RMO No. 38-2014 continues to govern payment processing, with the Regional Director thresholds revised by RMC Nos. 89-2017 and 17-2018. Pending applications filed before the Order follow it.

Who is affected

• Taxpayer-claimants requesting cash conversion of TCCs

Deadlines and effectivity

• TCCs unutilized after five (5) years from issue date are not convertible unless revalidated before the end of the fifth year