|
|
| |
|
|
|
|
|
|
| |
Acquiring
and Using
Tax Certificates |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
| Office
of Special Concerns |
|
|
|
|
| |
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Services
Offered
|
A.
|
Processing
of Claims for Tax Credits and Duty
Drawbacks |
|
|
| |
The
CENTER processes tax credits
and duty drawbacks under various
investment incentive laws
such as EO 226 and PD 1789
as amended by BP 391,
the Tariff and Customs Code,
the National Internal Revenue
Code, LOI 1355, EO 765, RA
7844, RA 7103, RA 8479, RA
8550 and other applicable
laws.
|
|
|
B.
|
Processing
of Applications for Transfer of Tax
Credit Certificates (TCCs) |
|
|
| 1. |
Transfer
of Tax Credit Certificates
(TCCs) on raw materials and
domestic capital equipment
issued under the EO 226 is
allowed in accordance with
the new Memorandum of Agreement
(MOA) between the Department
of Finance and the Board of
Investments dated 13 October
2000. ( for more details,
see Transferring Tax Credits
Menu)
|
| 2. |
Tax credits
on net value earned and net
local content issued under
PD 1789, as amended, are transferable
only to domestic raw material
or component suppliers of
the registered enterprise.
|
| 3. |
TCCs issued
for non-oil materials under
Section 106 of the Tariff
and Customs Code are negotiable
and transferable, whereas
TCCs issued for fuel oil consumed
are transferable only to oil
companies.
|
| 4. |
Transfer
of VAT TCCs issued under Section
112 of the National Internal
Revenue Code is allowed in
accordance with Revenue Regulation
5-2000 (Prescribing the Regulations
Governing the Manner of the
Issuance of Tax Credit Certificates,
and the Conditions for their
Use, Revalidation and Transfer)
dated 19 July 2000. The following
conditions for transfer of
VAT TCCs should be met:
|
| |
|
i.
|
The
transfer must be with
prior approval of the
Commissioner or his
duly authorized representative
who shall verify whether
or not the TCC sought
to be transferred is
still valid in the hands
of the original holder.
|
|
ii.
|
The
transfer should be limited
to one transfer only.
|
|
iii.
|
The
transferee shall use
the TCC assigned to
him strictly in payment
of his direct internal
revenue tax liability
and in no case shall
the same be available
for conversion to cash
in his hands.
|
|
| 5. |
TCCs issued
under RA 8479 (Philippine
Fisheries Code of 1998) are
transferable only to fuel
oil companies where the commercial
fishing vessel operator sourced
the fuel consumed in their
commercial fishing operations
in the high seas.
|
| 6. |
TCCs issued
under RA 7844 (Export Development
Act) may be transferred to
any person, natural or juridical,
except to local government
units.
|
|
|
C.
|
Processing of Requests
for Tax Debit Memo
No TCC issued by
the CENTER can be utilized without
securing beforehand an appropriate
authority for its use. This authority
is called a tax debit memo (TDM),
which is simply a letter from the
CENTER addressed either to the Bureau
of Internal Revenue or to the Bureau
of Customs, authorizing the debit
of tax credit amount as indicated
in the letter. The TDM contains,
among others, the following information:
TDM number, TCC number, its date
of issue, original TCC value and
outstanding TCC value.
|
|
D.
|
Revalidation
Periodic revalidation
is being done in accordance with
existing provisions of laws and
policies. The purpose of revalidation
is to enable the government to determine
how much TCCs are still outstanding,
and at the same time , to protect
the companies from fraudulent TCCs
which could have been issued in
their name. Revalidation takes into
account the following:
|
| 1) |
the
due issuance of the TCC by the
CENTER; |
| 2) |
the
integrity of the data indicated
on the face of the TCC; |
| 3) |
the creditable
balance of the TCC matches
the records of the CENTER.
Before the end of the validity
period, the TCC can be revalidated,
as follows:
- TCC
issued under the various
investment incentive
laws (such as EO 226,
PD 1789, as amended
by BP 391), EO 765
or LOI 1355 is subject
to revalidation within
one year from its
issuance or last utilization.
- TCC
issued under Section
112 of the National
Internal Revenue Code
has a validity period
of five years from
the date of issue.
Such TCC, which remains
unutilized after five
(5) years from the
date of issue, shall
be considered invalid
and shall not be allowed
as payment for internal
revenue tax liabilities
of the tax payer unless
revalidated prior
to the expiration
of the five year validity
period.
|
· ·
|
|
|
E.
|
Issuance of Certification - A company
may write the Executive Director
to request for the following certifications:
-
Certification of non-availment
of similar, previous and/or
outstanding application
for tax credit and duty
drawback, in connection
with the application for
tax credit on value added
tax paid on purchases of
goods and services
- Certification
of non-utilization of export
declaration, export B/L
or export invoice for tax
credit and duty drawback
availment with the CENTER,
in connection with the application
for exemption from payment
of taxes and duties on rejected/returned
goods previously exported
- Certification
as to authenticity of Tax
Credit Certificates
|
|
|
|
Fee
Structure ( as provided for
under Department Order No. 49-2000)
|
|
a.
TCC
Filing Fee
| Amount
of Claim |
Present
Rate
|
|
| P
100,000 and below |
P
200.00
|
|
|
100,001
- 400,000
|
400.00
|
|
| 400,001
- 700,000 |
600.00
|
|
| 700,001
- 1,000,000 |
800.00
|
|
| Over
P 1,000,000 |
1,000.00
|
|
|
|
b.
TCC Processing Fee
1.25% of amount
of claim but not to exceed P150,000.00
|
|
c.
TCC
Transfer Processing Fee
P300.00
per application for transfer.
|
|
d.
TCC Certification Fee
P100.00 per
Certification.
|
|
|
|
|
|
