RMC No. 10-2004: Supplements RMC No. 9-2004 issued in relation to the implementation of Republic Act No. 9238 for banks and non-bank financial intermediaries, specifically for the reimposition of Gross Receipts Tax

Summary

RMC No. 10-2004 supplements RMC No. 9-2004 on implementing RA No. 9238. It sets how government agencies and instrumentalities treat VAT transactions entered before RA No. 9238 was published on February 16, 2004.

Key points

1. No deduction by banks. Banks and non-bank financial intermediaries do not deduct from their VAT liability or gross receipt tax the VAT collected from government agencies and instrumentalities. Those agencies deducted and withheld the VAT at 6% on gross receipts for services rendered and remitted it to the Bureau.
2. Refund to government agencies. The Bureau refunds the VAT charged by the banks and intermediaries to the government agencies and instrumentalities, on their application. They must prove that the amount required to be withheld was actually remitted to and collected by the Bureau.
3. Refund request deadlines. The BIR must receive the refund request on or before April 30, 2004 for transactions entered into in January 2004. For transactions in February 2004, the deadline is May 31, 2004.
4. Late filing relief. Banks and intermediaries may file their VAT return and pay the VAT due for January 2004 transactions on or before February 25, 2004. No surcharge, penalty or interest for late filing and payment applies.
5. Inter-bank transactions. The Circular also specifies the treatment of inter-bank financial transactions entered into in 2004 before RA No. 9238 was published.

Who is affected

• Banks and non-bank financial intermediaries
• Government agencies and instrumentalities that withheld VAT at 6%

Deadlines and effectivity

• Refund requests for January 2004 transactions: on or before April 30, 2004
• Refund requests for February 2004 transactions: on or before May 31, 2004
• VAT return and payment for January 2004 transactions: on or before February 25, 2004

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.