RMO No. 86-98: Prescribes the policies relative to the payment of national internal revenue taxes in the form of Tax Credit Certificate

Summary

RMO No. 86-98 sets the policies on paying national internal revenue taxes with a Tax Credit Certificate (TCC), under certain conditions, pursuant to Section 204 of the Tax Code of 1999.

Key points

1. TCCs issued under the Tax Code. A TCC validly issued under the Tax Code beginning January 1, 1998 may be used by its grantee to pay internal revenue taxes. Withholding tax liability is excepted.
2. TCCs issued under other laws. TCCs issued under laws other than the National Internal Revenue Code, such as the Omnibus Investment Code and the Tariff and Customs Code, may be used only within the limits of the law and regulations under which they were issued.

Who is affected

• Grantees of Tax Credit Certificates

Deadlines and effectivity

• Applies to TCCs validly issued beginning January 1, 1998 under the Tax Code

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