Revised guidelines in the refund or credit of excess taxes withheld on individual incomes and amending certain provisions of Revenue Regulations No. 8-83 dated September 9, 1983

March 20, 1985 REVENUE REGULATIONS NO. 04-85 SUBJECT : Revised Guidelines in the Refund or Credit of Excess Taxes Withheld on Individual Incomes and Amending C ertain Provisions of Revenue Regulations No. 8-8 3 Dated September 9, 1983 TO : All Internal Revenue Officers, Withholding Agents and Others Concerned SECTION 1 . Scope . Pursuant to Section 326, in relation to Sections 91 and 54, all of the National Internal Revenue Code as amended, these regulations are hereby promulgated to govern the refund or credit of creditable withholding taxes on individual incomes. 2 . Tax Refund Notice . A "Tax Refund Notice" shall be issued to the individual taxpayer to whom the refund is due and whose excess withholding taxes is ONE HUNDRED PESOS (P100.00) and above. The said Notice shall entitle the refundee to payment in cash the amount stated thereon upon such presentation to the authorized Disbursing Offices of the Philippine National Bank (PNB) in the branch or office mentioned before the "Payment Expiry Date." If the Refundee fails to claim his refund on or before the expiry date, he shall request in writing, for the reissuance of a new Refund Notice and file the same, together with the expired Refund Notice, with the Withholding Tax division. Otherwise, a Tax Credit Certificate shall be issued. 3 . Tax Credit Certificate (TCC) . If the amount of excess withholding taxes is less than ONE HUNDRED PESOS (P100.00), the refund or credit shall be made with the issuance of the TCC. The TCC may either be: a) Encashed by the refundee with his present employer indicated in the TCC. In case where the refundee changed employment, the TCC may be encashed with his past employer as indicated in the TCC or his present employer. However, if the refundee is unemployed, the TCC may be encashed with the past employer as indicated in the TCC. b) Used by the refundee as credit against the income tax which would otherwise be withheld from him by his employer. In both paragraphs 1 and 2, the employer shall use said TCC as credit against its remittances of taxes withheld to the BIR. c) Used by the refundee as payment of his income tax to the BIR in case where his current income tax return to be filed is taxable. 1) Authority of the employer before the refundee is paid in cash or in credited for the amount of refund, he shall be required to affix his signature on the original copy of TCC. The employer who paid in cash or credited the amount thereof against the tax required to be withheld from the refundee shall attach the said signed certificate to its return, BIR form W-1A, for the month for which the payment or credit was made. 2) Validity of TCC and forfeiture of refund The TCC shall be valid for one year from the date of issue. After the lapse of such period, but within five years from the date of issue, the refundee may request the Commissioner of Internal Revenue for its reissuance. The TCC issued in accordance with these regulations which remain unclaimed or uncashed within five years from the date the original TCC was mailed or delivered, shall be forfeited in favor of the government. SECTION 4 . Meritorious cases . In meritorious cases and with the approval of the Commissioner on Internal Revenue; or Deputy Commissioners; or Chief, Assistant Service Chief, Collection Office; or the Regional Directors; or the Revenue District Officers, refunds may be claimed by an authorized representative of the refundee upon compliance with the prescribed requirements. For this purpose, meritorious cases shall include but not limited to the following: 1) Refundee is abroad, sick or physically incapacitated; 2) Refundee is already dead; and 3) Others as determined on a case to case basis. 5 . Identification requirement . The refundee or his authorized representative shall always be required to identify himself adequately by presenting appropriate identification papers to the PNB Disbursing Office such as the acknowledged copy of his income tax return, Tax Account Number, Identification Card, Office ID, Driver's License, etc., before payment is effected under these regulations. In addition, the authorized representative shall submit the Tax Refund Authorization issued by the BIR Office concerned. cd i SECTION 6 . Repealing Clause . Any provisions of existing regulations or issuance which are inconsistent herewith are hereby repealed or modified accordingly. SECTION 7 . Effectivity . These revenue regulations shall take effect immediately upon approval. (SGD.) CESAR E.A. VIRATA Minister of Finance Recommending Approval: (SGD.) RUBEN B. ANCHETA Acting Commissioner