Summary
RR No. 05-2000 issued August 15, 2000, prescribes the rules on issuing Tax Credit Certificates (TCCs) and the conditions for their use, revalidation and transfer.
Key points
- Use of a TCC. The grantee or his assignee may use a TCC to pay his direct internal revenue tax liability. It may not be used for any withholding tax, payments from availing a legislated tax amnesty, deposits on withdrawal of exciseable articles, taxes not administered by the BIR, or compromise penalty.
- No refund or TCC for untaxed incentives. No tax refund or TCC is given for incentives under special laws for which no actual tax payment was made.
- Transfer. BIR-issued TCCs may be transferred to an assignee on three conditions. The Commissioner or his authorized representative must approve in advance, only one transfer is allowed, and the transferee uses the TCC strictly for his direct internal revenue tax liability with no conversion to cash.
- Five-year validity. A TCC unutilized five (5) years after issue is invalid unless revalidated before the end of the fifth year. An invalid TCC cannot be used or transferred, and the unutilized amount reverts to the General Fund of the National Government. A revalidated TCC is valid for five years from the date of issue.
- Revalidation. A TCC issued before January 1, 1998 may be submitted for revalidation within six (6) months before the end of the fifth (5th) year. Revalidation requires certification that the applicant has no outstanding tax liability. Any outstanding liability is first applied against the TCC through a Tax Debit Memo.
- Cash refund. A request to convert unutilized tax credits to cash refund may be allowed during the TCC validity period, subject to conditions in the Regulations.
Who is affected
- TCC grantees and their assignees
- Transferees of TCCs
Deadlines and effectivity
- TCC invalid if unutilized five (5) years after issue, unless revalidated before the end of the fifth year
- TCCs issued before January 1, 1998: revalidation within six (6) months before the end of the fifth year
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.