MANDATORY REQUIREMENTS FOR CLAMS FOR TAX CREDIT OR REFUND OF EXCESS/UNUTILIZED CREDITABLE WITHHOLDING TAXES ON INCOME

REVENUE MEMORANDUM CICULAR NO. 75-2024

This circular outline the documentary requirements for processing and granting tax credit certificates or cash refunds of excess/ unutilized creditable withholding taxes under Section 76(C) of the Tax Code. It excludes, however, request for tax credit/refund based on writ of execution issued by the Supreme Court and the Court of Tax Appeals (CTA).

1. General Policies
   
   Section 76(C) of the Tax Code addresses the taxpayer-claimant shall submit the Application for Tax Credits/Refunds of BIR Form No. 1914. The taxpayer-claimant should submit BIR Form No. 1914 to the Revenue District Office (RDO) or to the respective Large Taxpayers Audit Division (LTAD) or Large Taxpayers District Office (LTDO) under the Large Taxpayers Service (LTS), in relation to Section 204(C) and 229.
   
   The Tax Code allows processing offices to refund excess taxes within two years of a business’s dissolution or cessation, except for the 180-day processing period for TCC/refund under Section 204(C). The processing period is determined by the application for registration information. Update/Correction/Cancellation (BIR Form No. 1905) and the complete documentary requirements set by the BIR for business closure and refund of excess income taxes post-dissolution. Only applications with complete documentary requirements are processed by the authorized processing office.
2. Documents to be by submitted the Taxpayer-Claimant upon Filing of the Application for CWT Credit/ Refund
   1. Complete supporting documents listed in the Checklist of Mandatory Requirements (Annex “A.1” for taxpayers with “going concern” status or Annex “A.2” for taxpayers undergoing dissolution or cessation of operation) must be included with the application/s.
   2. The taxpayer-claimant must complete and submit a comparative matrix of the taxes withheld using the template found in Annex “A.3.”
   3. For the claims to be processed, the taxpayer-claimant must supply a notarized taxpayer attestation (Annex “A.4”) certifying the completeness of the documents submitted. If the taxpayer-claimant fails to provide the appointed Revenue Officers (ROs) with the books of accounts and accounting documents upon written request, the revenue officers may apply for a TCC or refund.
   4. To avoid unduly delaying the 180-day processing of the CWT credit or refund, the taxpayer-claimant must cooperate with assigned ROs and guarantee the availability of all documents that may be requested during the verification in case there are any questions or findings that require additional clarification. The claims may be fully or partially denied for failure to comply and provide the documents requested by the assigned ROs.
   5. The tax return filed by the taxpayer-claimant, particularly the Quarterly and Annual Income Tax Returns prior to the date of application of the CWT credit/refund, shall be considered in the processing of the claims.