RMC No. 108-2021: Clarifies certain issues on the utilization of Tax Payment Certificate issued under the Comprehensive Automotive Resurgence Strategy (CARS) Program

Key points

1. What a TPC cannot pay. A TPC cannot be used as advance payment or deposit for Excise Tax, for deficiency tax liability, for the quarterly Income Tax or for the monthly VAT. Income Tax is settled in the annual return with a copy of the TPC attached, and the TPC pays the VAT declared in the quarterly VAT returns.
2. Tax treatment and forfeiture. Receipt of a TPC is not taxable. A TPC that is not presented or used for tax payment is forfeited in favor of the government.
3. Reporting in returns. TPC details go under Others or Others (specify) in the Details of Payment of the return. For removal of CARS automobiles, the Eligible and Registered Participants (ERP) attach a Detailed Schedule of Removals of Automobiles to the Excise Tax return (BIR Form No. 2200-AN), in addition to the TPC.
4. Authentication and validity. BIR personnel authenticate the TPC only after receiving its hard copy with the return and other documents. Using the TPC as tax payment stops the running of its validity period.
5. Spurious TPC. If a TPC is spurious, the ERP is liable for the tax still due with applicable penalties, without prejudice to criminal or civil action.

Who is affected

• Eligible and Registered Participants (ERP) in the CARS Program
• Authorized BIR personnel who authenticate the TPC

Deadlines and effectivity

• Utilization of the TPC stops the running of its validity period