Tax Alert No. 33 [Revenue Memorandum Circular (RMC) No. 75-2024 dated 1 July 2024]

Prescribing the mandatory requirements for claims for tax credit or refund of excess/unutilized Creditable Withholding Taxes on income pursuant to Section 76(C), in relation to Section 204(C) and 229 of the National Internal Revenue Code of 1997, as amended, except those under the authority and jurisdiction of the Legal Group

Please be informed that the BIR issued Revenue Memorandum Circular (“RMC”) No. 75-2024 on 3 July 2024 announcing the mandatory requirements to be submitted by the taxpayer-claimants on processing and granting of claims for issuance of tax credit certificate (TCC) or cash refund (TCC/refund) of excess/ unutilized creditable withholding taxes (CWT) in line with the recently introduced reforms on tax refund under Republic Act (R.A.) No. 11976 also known as the Ease of Paying Taxes (EOPT) Act of 2023. This however, does not cover those under the authority and jurisdiction of the legal group.

1. General policies
   1. The submission of Application for Tax Credits/Refunds (BIR Form No. 1914) on excess/unutilized CWT shall be submitted on the processing office having jurisdiction over the taxpayer-claimant as follows:
      1. Revenue District Office (RDO)
      2. Respective Large Taxpayers Audit Division (LTAD) or Large Taxpayers District Office (LTDO) under the Large Taxpayers Services (LTS).
      3. The processing office/s shall decide on the application and refund the excess taxes within two (2) years from the date of the dissolution or cessation of business, which is an exception to the 180-day processing of TCC/refund under Section 204 (C) of the Tax Code, as amended. For the purpose of this circular, the two (2) year processing period shall commence from submission of the Application for Registration Information Update/Correction/ Cancelation (BIR Form No. 1905), including the complete documentary requirements.
   2. Only applications with complete documentary requirements enumerated in the Checklist of Mandatory Requirements shall be received and processed by the authorized processing office.
2. Documents to be submitted by the taxpayer-claimant upon filing of the application for CWT credit/refund (refer to the Annexes attached to the RMC for further details)
   1. Complete supporting documents enumerated in the Checklist of Mandatory Requirements. (Annex”A.1.” or Annex “A.2.”)
   2. Accomplished comparative matrix of tax withheld (Annex “A.3.”)
   3. Notarized Taxpayer attestation (Annex “A.4.”) certifying to the completeness of the document submitted. Moreover, the taxpayer-claimant shall present the books of accounts and accounting records upon written request of the assigned Revenue Officer (“ROs”). Failure to do so may be grounds for denial of the application for TCC/refund.
   4. All documents that may be requested by the assigned ROs during the verification of issues or findings that need further clarification. Failure to cooperate or submit the requested documents may result in full or partial denial of claims.
   5. Also considered in the processing of the claims are the tax returns filed by the taxpayer-claimant, particularly Quarterly and Annual Income Tax Returns prior to the date of CWT credit/refund application or the issuance of the electronic Letter of Authority (“LoA”), whichever comes first.

You may access the full version of the RMC through the BIR website.

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link