Before the signing of the Ease of Paying Taxes (EOPT) Act, refunds had to be filed with the Bureau of Internal Revenue (BIR) and then filed as a petition for review with the Court of Tax Appeals, with both claims having to be filed within two years from the date of payment of said tax.
Under the EOPT, the process has been streamlined, and the newest memorandum from the Bureau aims to explain the finer details of getting these refunds.
I want to file a tax refund claim. What do I need to submit?
For taxpayers who want to claim a tax refund, they have to submit the BIR Form No. 1914, also known as the Application for Tax Credit/Refunds to either the Revenue District Office (RDO), or the Large Taxpayers Audit Division, depending on the jurisdiction of the taxpayer-claimant.
For documents, the following are mandatory:
- Three (3) copies of the filled-out BIR Form No. 1914
- Complete Audited Financial Statements (AFS)
- Original Copy of BIR Form No. 2307 (Certificate of Creditable Tax Withheld at Source)
- Printed and soft copies of the Summary of Revenue declared in Income Tax Return (ITR) with the corresponding taxes withheld following the format in Annex A.3.
- Original copy of Notarized Taxpayer Attestation following the format from Annex A.4.
- Quarterly and Annual Income Tax returns filed prior to the date of application or refund for the issuance of eLOA (electronic Letter of Authority), whichever comes first.
Aside from the requirements above, is there anything else that I need to submit?
Yes. The infographic below has the specific requirements you’ll need to submit in addition to the general requirements:
What’s the difference between a ‘going concern’ taxpayer and a taxpayer that has ‘ceased or dissolved business,’ and how do I know which category I fit into?
Taxpayers who are of “going concern” are those whose businesses are expected to keep operating into the foreseeable future, without any plans to close down or go bankrupt.
In short, it means that the business can continue operations and meet its financial obligations. This assumption is important because it affects how revenues and expenses are recorded, and how assets and liabilities are handled, presuming that they’ll be used and settled in daily business operations.
Meanwhile, taxpayers who have ceased or dissolved business are those whose businesses have officially ended their legal existence — often referred to as “corporate death.” Until your business is formally dissolved, it continues to exist as a legal entity, regardless of internal issues or economic challenges. However, once dissolved, the business’ legal responsibilities, such as taxes or handling debt, have to be settled accordingly.
I submitted the complete requirements listed, why does the Revenue Officer (RO) still ask for additional requirements?
The RO may ask for additional documents if there are issues or findings that need verification, and the taxpayer-claimant should cooperate with the RO to avoid delaying the 180-day processing time. Non-cooperation can be grounds for denial of your TCC/refund application.
What if I am the corporate secretary and I want to follow up on our tax refund application, can I send someone else on our behalf?
Yes. You can file, sign, and follow-up on your application through an authorized representative as long as this is supported by a signed and notarized Secretary’s Certificate.
If you want to know more about how to streamline your tax refund process and keep up with the latest tax updates, CONSULT ACG. – Rappler.com