RR No. 14-2020 — Amends the pertinent provisions on cash conversion of unutilized Tax Credit Certificate under RR No. 5-2000 (Published in Manila Bulletin on May 29, 2020)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE MAY 2 8,2020 "9DAM 1aA u

Quezon City RECORDS MGT.DIVISION

January 30, 2020

REVENUE REGULATIONS NO. 14- 2020

SUBJECT: Amending the Pertinent Provisions on Cash Conversion of Unutilized Tax Credit Certificate under Revenue Regulations No.5-2000

TO All Internal Revenue Officials,Employees and Others Concerned

BACKGROUND

As defined by Revenue Regulations No. 5-2000, the amount reflected in a Tax Credit

case the taxpayer-owner has no longer use for it. any tax liability by way of applying for Tax Debit Memo (TDMor may be converted into cash,in Certificate (TCC) represents the amount due to a taxpayer resulting from an overpayment of a tax liability or erroneous payment of a tax due. A TCC may be applied for by the taxpayer instead of filing a claim for refund with the Bureau of Internal Revenue (BIR). It may be used as payment of

While TCCs,thru the TDMs, are used in payment of internal revenue taxes, it is not

the taxes prescribed and sought to be generated by the Tax Code. The attainment of targeted by the amount of cash actually collected by the BIR. Thus, the need for this Regulations in order to achieve this objective. collections from any tax initiative, whether thru legislative or administrative, should be measured generally recognized as actual tax collections because it does not represent the real or true yield of

National Internal Revenue Code (NIRC) of 1997, as amended, these Regulations are hereby No. 5-2000, re: Prescribing the Regulations Governing the Manner of the Issuance of Tax Credit Certificates, and the Conditions for their Use, Revalidation and Transfer. promulgated to amend the pertinent provisions of Section 5.b) under Revenue Regulations (RR) SECTION 1.SCOPE. - Pursuant to the provisions of Sections 244 and 245 of the

under RR No. 5-2000 are hereby amended and shall be read as follows: SEC. 2. AMENDATORY PROVISIONS. - The pertinent provisions of Section 5.b)

SEC.5.PERIOD OF VALIDITY,CONVERSION AND REVALIDATION

a)Validity Period.-xxx

b Conversion Period. - Any request for conversion into cash refund of from the date of issue,mailing or delivery, whichever comes later, shall be Provided, however, that the original copy of the Tax Credit Certificate showing a creditable balance is surrendered to the Asst. Commissioner, Collection Service or other duly authorized Revenue Officer for verification as amended, which shall remain uncashed or unclaimed within five (5) years unutilized tax credits may be allowed during the validity period of the TCC. and cancellation. Provided, further, that a refund check or treasury warrant issued in accordance with the pertinent provisions of the Tax Code of 1997.

forfeited in favor of the Government and the amount thereof shall revert to the general fund.

than one (J year at any given interval of time during its validity shall be Converted into cash with prior written notice by the BIR. subject to the Will be issued by the BIR for this purpose. Provided. furthermore, that, any TCC which remains unutilized for more availability of funds in accordance with the procedural requirements that

c) Revalidation Period. -- xxx

before the expiration of their respective dates of validity: Provided, however, That the list of expired TCCs and names of its taxpayers-owners shall be circularized/posted with the BIR's TCCs which are with the BIR, for purposes of utilization thru TDM, conversion or revalidation. official website, within thirty (30) days from the date of effectivity of these Regulations. The said circular or posting of the list is deemed a sufficient notice to the concerned taxpayer-owner of the upon the effectivity of this Reguiations shall be automatically cancelled by the BIR, except those TCC. SEC. 3. TRANSITORY PROVISIONS. - All TCCs which are already expired

of these Regulations are hereby"amended, modified or repealed accordingly. SEC. 4. REPEALING CLAUSE. -- All revenue issuances inconsistent with the provisions

fifteen (1 5) days immediately following the date of publication thereof in any newspaper of general circulation. SEC.:5. EFFECTIVITY. - The provisions of these Regulations shall take effect after

CARLOS G. DOMINGUEZ III Secretary of Finance

Recommending Approval: MAR 6 6 2028

Teusaluea

Commissioner of Internal Revenue CAESAR R. DULAY BUREAUGE TNTERNAL REVENUE

J-5 032626 NTYYN MAY.2 8 2!20 G:O+AM. woy

ReCords Mgt. divisioN Uu

i

2