RMO No. 77-98: Prescribes the guidelines and procedures on the issuance and utilization of the Oil Firms’ Reimbursement Certificate and Reimbursement Certificate – Tax Debit Memo

Summary

RMO No. 77-98 sets guidelines and procedures on issuing and using the Oil Firms’ Reimbursement Certificate and the Reimbursement Certificate-Tax Debit Memo.

Key points

1. Limited use. A Reimbursement Certificate duly issued by the Department of Energy (DOE) may be accepted by the BIR only for specific taxes on the oil company’s local production and removal of petroleum products subject to specific taxes.
2. One agency and 10% cap. Each certificate is used with only one collection agency. Use may not exceed 10%, per payment, of the specific tax due on removal of the petroleum products from the place of production.
3. Tax Debit Memo. The Collection Programs Division issues a Reimbursement Certificate-Tax Debit Memo whenever a DOE certificate is used to pay a current excise tax obligation.

Who is affected

• Oil companies using DOE Reimbursement Certificates

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