How long will tax refund or tax credit be acted upon by the BIR?

RMC No. 29-09 dated April 16, 2009. Clarifies that on processing the claim for tax refund/credit certificates, the BIR Commissioner has only within 120 days from date of filing complete documents to process the following claims:

a. Input taxes from VAT zero-rated and/or effectively zero rated;

b. Excess income tax credits;

c. Erroneous tax payments

d. Excise tax from certain importations.

As a matter of procedures, these refunds undergo the normal tax verification procedures and Revenue Officers are encourage to exercise utmost care and prudence in the recommendation for granting tax refund and/or tax credit and sanctions awaits for erring officials.

Thus, applicants of the above claims are encouraged to prepare and complete immediately the required documents and papers so the application could be acted upon. If the BIR could not act immediately within the required time frame, normally two (2) years, then the applicant should elevate the case to the Court of Tax Appeals (CTA). CTA process may take sometime, some efforts and resources. Thus, if the application could be ironed out in the administrative level, then it may prove to be better.


"Taxes affect lives, care for tax and save lives"

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