Summary
RR No. 14-2020 amends Section 5.b of RR No. 5-2000 on the cash conversion of unutilized Tax Credit Certificates (TCCs).
Key points
- Cash refund during validity. A request to convert unutilized tax credits into a cash refund may be allowed during the TCC’s validity period. The original TCC showing the creditable balance is surrendered to the Assistant Commissioner, Collection Service or other authorized Revenue Officer for verification and cancellation.
- Uncashed refund checks. A refund check or treasury warrant left uncashed or unclaimed within five (5) years from the date of issue, mailing or delivery, whichever comes later, is forfeited in favor of the Government. The amount reverts to the general fund.
- Automatic conversion. A TCC unutilized for more than one (1) year at any given interval during its validity is converted into cash with prior written notice by the BIR. This is subject to availability of funds and to procedures the BIR will issue.
- Expired TCCs. All expired TCCs are automatically cancelled when the Regulations take effect. TCCs held by the BIR for Tax Debit Memo use, conversion or revalidation before their expiry are excepted.
- Notice of the list. The list of expired TCCs and their owners is circularized or posted on the BIR Website within thirty (30) days from effectivity. That posting counts as sufficient notice to the owner.
Who is affected
- Owners of Tax Credit Certificates
Deadlines and effectivity
- List of expired TCCs posted within thirty (30) days from effectivity
- Uncashed checks forfeited after five (5) years
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.