The Philippines’ Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular (RMC) No. 74-2024, providing guidelines and requirements for processing tax credit certificates (TCC) and cash refunds that have been illegally or mistakenly collected on 1 July 2024.

The recent RMC No. 74-2024 follows after BIR issued Revenue Memorandum Order (RMO) 27-2024 following the Ease of Paying Taxes (EOPT) Law. This order outlines the guidelines for processing claims for tax credit certificates or cash refunds related to taxes illegally or erroneously collected or penalties imposed without authority as per the Tax Code.

As outlined in the issued RMO, the BIR stated that a taxpayer can claim a tax credit or refund under Section 204(C) of the Tax Code if they meet the following requirements:

  • The tax credit or refund claim must be related to taxes received or collected erroneously, and penalties have been imposed without authorisation;
  • The tax credits or refund claims must be filed within two years of paying the tax or penalty;
  • Taxes received or collected in error must be accompanied by a copy of the filed tax return and proof of payment to the BIR;
  • Taxpayers need to submit the Application for Tax Credits/Refunds (BIR Form No. 1914) with complete documentation to the relevant revenue office, along with a notarised Taxpayer Attestation, verification documents issued by Revenue Officers, and a Delinquency Verification Certificate.

Failure to comply or provide the requested documents may result in the denial of the taxpayer’s claim.