RMC No. 89-2017: Amends RMC No. 51-2007 relative to the processing of claims for issuance of tax refund/Tax Credit Certificate (TCC) and the revenue officials authorized to approve and/or issue the tax refund/TCC

Summary

RMC No. 89-2017, issued on October 24, 2017, amends RMC No. 51-2007 on processing tax refund and Tax Credit Certificate (TCC) claims and on the officials who approve or issue them, except claims processed under the Large Taxpayers Service (LTS) and the Legal Service.

Key points

1. Direct exporters. Claims of direct exporters are filed with and processed by the VAT Credit Audit Division (VCAD). LTS taxpayers may file with their LT Division or with the VCAD. The Tax Audit Review Division (TARD) reviews all VCAD claims before approval, and the ACIR-AS approves and signs the eLAs.
2. Approving officials for VCAD claims. Amounts not more than P 75,000,000.00 (granted below P 50,000,000.00) go to the ACIR-AS. More than P 75,000,000.00 up to P 150,000,000.00 (granted P 50,000,000.00 up to P 100,000,000.00) go to the Deputy Commissioner-Operations Group. Above P 150,000,000.00 (granted more than P 100,000,000.00) go to the Commissioner of Internal Revenue.
3. RDO claims. Income and other tax claims of RDO-registered taxpayers, and VAT claims of indirect exporters, are reviewed by the Assessment Division. The Regional Director approves claims of Ten Million (10M) Pesos and below. For larger claims, the Regional Director recommends approval and the docket goes to TARD, then to the approving officials under the thresholds.
4. Pending claims and absent DCIR-OG. Regional Office claims of more than 1M Pesos at the National Office when the Circular was approved are acted on under the thresholds. Without a duly appointed DCIR-OG, the CIR approves the claims for that official.
5. Processing periods. The 120-day period under Section 112 (C) of the NIRC starts from the actual date of filing. RDO claims above 10M Pesos and all VCAD claims go to TARD within eighty (80) calendar days from filing, and the National Office accepts no docket beyond 80 days except for justifiable reasons such as fortuitous events. TARD sends the docket to the approving official within One Hundred (100) days, and approving officials act not later than the 120th day from receipt.

Who is affected

• Direct exporters
• Indirect exporters
• Taxpayers registered with RDOs claiming tax refunds or TCCs

Deadlines and effectivity

• 120-day processing period from actual date of filing
• Docket to TARD: within eighty (80) calendar days from filing
• Docket to approving official: not later than One Hundred (100) days from filing

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