RMO No. 8-2025 — Amends Certain Provisions and Procedures Under Revenue Memorandum Order (RMO) No. 25-2024 in the Processing of Tax Credit or Refund of Excess/Unutilized Creditable Withholding Taxes (CWT) on Income Pursuant to Section 76(C), in relation to Sections 204(C) and 229 of the National Internal Revenue Code of 1997, as Amended (Tax Code) Digest | Full Text | Annex D.1 | Annex D.2

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building Quezon City FEB "1 9 Z825 PILIPINAS BAGONG

REVENUE MEMORANDUM ORDER NO. 0082025

SUREAU OF iNTERNAL REVENUE Ye 41 S 3S77 A SUBJECT IENT DvISION HER Memorandum Order (RMO) No. 25-2024 in the Processing of Tax Credit or Refund of Excess/Unutilized Creditable WithhoIding Taxes (CWT} (on Income Pursuant to Section 76(C), in relation to Sections] 204(C)(and 229 of the National Internal Revenue Code of 1997, as Amends Certain Provisions and Procedures Under Revenue

FEB 19 2025 Amended (Tax Code)

All Internal Revenue Officials, Employees and Others Concerned ADMIN UNIT - TIME: NS

2024 relative to the verification of the creditable withholding taxes claimed by taxpayer excess/unutilized CWT on income under Section 76(C), in relation to Sections 204(C) and 229 of the Tax Code. The foliowing amendments are hereby introduced to some provisions and procedures of RMO No. 25-2024. claimants, in relation to processing of Tax Credit Certificates or cash refund of This Order is issued to realign inconsistencies on some provisions of RMO No. 25-

I Verification of Proof of Payment of Withholding Taxes by Withholding Agents

granted unless the authenticity and veracity of the BIR Form No. 2307 or 1606, whichever is Section I(6) of RMO No. 25-2024 mentions that no income tax refund shall be

payments, which is the source of the claimed creditable taxes, have been declared and included in the Alphabetical List of Payees filed by the taxpayer-claimant's respective corresponding amounts to the government. applicable, is verified without prejudice to establishing whether the withholding tax withholding agents, and that the aforementioned withholding agents have remitted the

emphasized that proof of withholding is incumbent upon the taxpayer claiming for the income tax credit/refund. However, the remittance of such withholding taxes rests upon the known as the "Ease of Paying Taxes (EOPT)" Act, was enacted with the intention of excluding the proof of payment of taxes withheld by the withholding agents. It is to be withhoiding agent that withheld such taxes from their purchases from the seller taxpayer- For claims of CWT by taxpayer claimants, Republic Act (R.A.) No. 11976, otherwise

claimant who is claiming the corresponding CWT. It is unfair for the seller taxpayer-claimant to be penalized if indeed the taxes were withheld from its sales to the buyer withholding agent but the latter failed to remit, whether inadvertently or intently, the said taxes withheld.

List of Payees submitted by the withholding agents in their BIR Form No. 1604-E or 1601- possible administrative and criminal sanctions for such non-remittance. Hence, inclusion of EQ, whichever is applicable, is sufficient proof that the said BIR Form No. 2307 is valid. Under our existing rules and regulations, it is the withholding agent who shall be liable for the seller taxpayer-claimant with the indication of the amount so withheld in the Alphabetica: This procedure is embodied in Sections A(3) to A(5) both of Annexes "D.1" and "D.2" of RMO No. 25-2024 BIR National Office Bldg., Senator Mifriam Defensor-Santiago Avenue, Diliman, Quezon City Trurkline: 8981-7000 : 8929-7676 Website: www.bir.gov.ph

of the claimed CWT by the taxpayer-claimants. "D.2" of RMO No. 25-2024 are not clear whether the BIR Payment Certifications in accordance with the format prescribed under RMO No. 7-2016 is still part of the verification However, Section A(1)(d)(iv) of Annex "D.1" and Section A(1)(c)(iv) of Annex

read as follows: To eliminate such conifusion, Section I(6) of RMO No. 25-2024 is hereby amended to

"I. GENERAL POLICIES

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6. The burden of proof of withholding is incumbent upon the taxpayer claiming guidelines shall be followed: whichever is applicable, has been verified. To establish such, the following the authenticity and veracity of the BIR Form No. 2307 or BIR Form No. 1606. for the income tax credit/refund. No income tax refund shall be granted uniess

a. For BIR Form No. 2307, which is the source of the claimed creditable taxes. it must be established that the corresponding withholding tax was declared and included in the Alphabetical List of Payees filed by the taxpayer- claimant's respective withholding agents in the BIR Form No. 1604-E or 1601-EQ, whichever is applicable; and

b. For BIR Form No. 1606, the taxpayer engaged in real estate business claiming for the creditable taxes withheld has filed and remitted the taxes withheld to the government."

II. Request for Data/Documents by the Processing Office. Section II(A)(3)(b)(b.2) of RM0 No 25-2024 is hereby amended to read as follows:

"3. Verification and Reporting. The assigned RO and Group Supervisor (GS) investigation procedures prescribed in this Order. shall process and evaluate the claim based on submitted documents and

a.xxx XXXXXX

b. The assigned ROs shall secure/print copies of the documents available at the records/database of the BIR or any other online sources taking into note the following:

b.IXXXXXXXXX

b.2 processing office, either manually or electronically, the following rules shall govern: For data/documents requested from BIR offices other than the

VISION The assigned ROs shall, within 30 days upon official receipt of 553 FEB 19 2025 EE pertinent document/s from the appropriate BIR Office; and the application for income tax credit/refund, request for the

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ii. The BIR office where the data/document/s is/are being requested shall furnish the requesting processing office the requested

in the number of days allotted for the processing office. Hence, caused the delay in the processing of the income tax refund shall data/document/s within fifteen (15) days from receipt of the such request. Note that this allotted number of days is included BIR offices found to have not complied with the request or have

be dealt with pursuant to Section 269(J) of the Tax Code."

IHI. Amendments to Annexes "D.1" and "D.2" of RMO No. 25-2024

credit/refund following the preceding amendment to Section I(6) of the said RMO, Annexes "D.1" and "D.2" of RMO No. 25-2024 are amended, as attached hereto. In order to align the procedures in the verification of claims for income tax

IV. Repealing Clause

modified or revoked accordingly. All revenue issuances: and BIR Rulings inconsistent herewith are hereby amended.

V.Effectivity

income tax credit/refund claims being processed by the appropuat ap: This Order shall take effect immediately and shall cover upcoming and ongoing cessing office(s)

Revenue

R RECORDS MAMAGEMENTDIVISION UREAUDFT Usnmne NtERNAL REVENUE

FE3 1 9 2025

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