Summary
RR No. 5-2024 implements Sections 76(C), 112(C), 112(D), 204(C), 229 and 269(J) of the Tax Code as amended by RA No. 11976, on tax refunds.
Key points
- Covered claims. The Regulations cover tax credit/refund claims filed starting July 1, 2024. They do not cover claims processed under final and executory court judgments.
- Section 112(C) risk-based approach. This section introduced a risk-based approach to verifying VAT refund claims.
- Section 112(D) COA disallowance. This section clarifies the liability of the taxpayer-claimant and the BIR when the Commission on Audit disallows a claim.
- Section 76(C) excess income tax credit. The whole provision is covered. It allows refund of unutilized excess income tax credit on dissolution or cessation of business and sets policies for taxpayers who opted for credit or refund in their Annual Income Tax Returns.
- Sections 204(C) and 229. Section 204(C) sets a one hundred eighty (180)-day processing period for refund claims, except VAT refunds under Section 112. Section 229 sets policies for judicial claims and repeals the supervening clause.
Who is affected
- Taxpayers filing tax credit or refund claims
Deadlines and effectivity
- Claims filed starting July 1, 2024
- 180-day processing period for refunds other than VAT refunds
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.