BIR updates tax refund, credit claim rules

The Bureau of Internal Revenue (BIR) has updated its procedures for tax credit and refund claims, clarifying where taxpayers should file applications and which offices are responsible for processing, reviewing and approving them.

The changes cover claims for excess or unutilized creditable withholding taxes, as well as taxes erroneously or illegally received or collected and penalties imposed without authority.

Related revenue issuances

The BIR issued three related revenue issuances on 29 September — Revenue Memorandum Circular (RMC) Nos. 102-2026 and 103-2026 and Revenue Memorandum Order (RMO) No. 25-2026 — amending existing procedures for tax credit and refund applications.

“Taxpayers claiming a refund should not have to figure out which BIR office will accept their application, who is responsible for acting on it, or how long their claims will take to be processed,” BIR Commissioner Charlito Mendoza said.

“These amendments establish definite timelines and clear responsibilities within the Bureau to ensure that refund claims for unutilized creditable withholding taxes and erroneously/illegally collected taxes or penalties are handled consistently and in accordance with the law,” he added.