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RMC No. 46-2003: Circularizes the full text of the Department of Finance’s Order No. 20-03 which provides 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

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Summary

RMC No. 46-2003 circularizes the Department of Finance’s Order No. 20-03 on measures to protect the integrity of the Tax Credit System run by the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS Center).

Key points

  1. Coverage. The Circular covers use of Tax Credit Certificates (TCCs) jointly issued by the OSS Center and the BIR, and by the OSS Center and the Bureau of Customs (BOC).
  2. TDMIA or TDM required. A TCC applied to pay tax liabilities is not honored unless supported by a Tax Debit Memo Issuance Authorization (TDMIA) at the BIR, or a Tax Debit Memo (TDM) at the BOC. The OSS Center issues it, signed by its Executive Director or official designate.
  3. 30-day validity. A TDMIA or TDM is valid for 30 days from issuance. Expired ones are surrendered to the OSS Center and re-applied for as new ones.
  4. DIVAS verification. The BIR or BOC first verifies TCCs and TDMIAs/TDMs through the OSS Center’s Document Imaging for Verification and Authentication System (DIVAS). Only officially designated parties have access. Uploaded information cannot be deleted unless triggered by the Systems Administrator, and any attempt to delete images generates an audit trail. Document imaging in DIVAS is a prerequisite for releasing an approved TDMIA/TDM.
  5. Transition period. A transition period of not more than 60 days comes before full DIVAS implementation. The BIR and BOC IT Groups may audit the system, and the OSS Center also issues a manual certification of authenticity of the TDMIA/TDM during this time.
  6. Mandatory DIVAS. After the 60-day period ends or the BIR or BOC IT groups formally accept DIVAS, whichever comes first, DIVAS verification is mandatory. Its results are deemed sufficient and the OSS Center no longer issues manual certifications.

Who is affected

  • Holders of TCCs applied for payment at the BIR or BOC
  • BIR and BOC
  • OSS Center

Deadlines and effectivity

  • TDMIA/TDM validity: 30 days from issuance
  • DIVAS transition period: not exceeding 60 days

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

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.