RMO No. 25-2024: Providing guidelines, policies and procedures in the processing of claims for tax credit/refund of excess/unutilized creditable withholding taxes on income pursuant to Section 76(C), in relation to Sections 204(C) and 229 of the National Internal Revenue Code of 1997, as Amended (Tax Code), except those under the authority and jurisdiction of the Legal Group

Key points

1. Receiving offices and completeness. The RDO and the LTAD or LTDO under the LTS receive BIR Form No. 1914. The Revenue Officer designated as RO of the Day checks completeness, and only applications with the full Checklist of Mandatory Requirements are processed under the policies of RR No. 05-2024.
2. Filing period. For regular applications and going-concern taxpayers who opted for credit or refund in their AITR, filing is within two (2) years from the date of filing the AITR. A return showing overpayment counts as a written claim. The 180-day period counts from submission of complete documents within the 2-year period.
3. Proof of withholding. The income must be in the gross income declared in the AITR. A Withholding Tax Certificate from the payor, clearly naming the claimant as payee, shows the withholding. No refund is granted unless BIR Form No. 2307 or 1606 is verified as authentic.
4. Outstanding liabilities and stop-filer cases. If the claimant has final and executory tax liabilities, shown by a Certification valid for six (6) months, the Collection offices are notified so the approved credit/refund may be used or garnished to collect them. Stop-filer cases must not delay processing but are resolved separately under RMO Nos. 41-2011 and 28-2012.
5. 180-day period and remedies. Offices must observe the 180-day time frame to grant claims in full or in part. A denial in full or in part states its basis and may be appealed to the CTA within thirty (30) days from receipt. If no action comes within 180 days, the claimant may appeal to the CTA within 30 days after the period or wait for the final decision, and a judicial appeal makes the administrative claim moot.
6. Business closure and refund release. For dissolution or cessation of business, Section 76(C) as amended by the EOPT Act requires decision and refund within two (2) years, counted from submission of BIR Form No. 1905 with complete requirements. The approved refund is released only after the mandatory audit of the preceding year and the short period return, and full settlement of tax liabilities.

Who is affected

• Claimants of excess or unutilized creditable withholding tax refunds
• Processing offices: RDO, LTAD, LTDO

Deadlines and effectivity

• Filing within two (2) years from filing the AITR
• 180-day processing period
• Appeal to CTA within thirty (30) days
• Two (2) years from BIR Form No. 1905 submission for closing businesses