Welcome to The Center

SERVICES OFFERED
	FEE STRUCTURE
	INCENTIVE LAWS ADMINISTERED
	TYPES OF TAX CREDIT ISSUED
	HOW TO APPLY FOR TAX CREDITS
	HOW TO APPLY FOR TAX DEBIT MEMO
	PROCESSING OF TAX CREDIT CLAIMS
	Under Investment Incentives Group
	Under Duty Drawback Group
	Under Tax and Revenue Group

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NEWS AND EVENTS

FEE STRUCTURE

Pursuant to Department Order No. 49-2000, following is the fee structure in filing TCC applications, TCC transfers, TCC replacements and Certifications at the CENTER:

A. Filing Fee: A fee collected from the claimant upon submission of tax credit/duty drawback application, computed according to the following schedule:

Amount of Claim	Filing Fee
PhP 100,000.00 and below	PhP 200.00
PhP 100,000.00 - PhP 400,000.00	PhP 400.00
PhP 400,001.00 - PhP700,000.00	PhP 600.00
PhP 700,001.00 - PhP 1,000,000.00	PhP 800.00
Over PhP 1,000,000.00	PhP 1,000.00

B. Processing Fee: A fee equivalent to one and one-fourth percent (1.25%) of the amount of claims collected from the claimant upon completion of the application documents before the evaluation of the claim; PROVIDED, that the amount of processing fee shall not exceed ONE HUNDRED FIFTY THOUSAND PESOS (P 150,000.00).

C. TCC Transfer Fee: A fee of P 300.00 payable for each application for transfer, regardless of the amount of TCC.

* Where a tax credit certificate is transferred in part, the subsequent application for transfer of the remaining portion of the tax credit certificate shall also be subject to the payment of the transfer fee.

D. TCC Replacement Fee: A fee collected from the claimant for application for the replacement of a TCC lost in the custody of the TCC owner, as provided under Office Order No. 94-01, computed according to the following schedule:

Amount/Unused Portion of Lost TCC	Replacement Fee
PhP 100,000.00 and below	PhP 2,000.00
PhP 100,000.00 - PhP 400,000.00	PhP 3,000.00
PhP 400,001.00 - PhP 700,000.00	PhP 4,000.00
PhP 700,001.00 - PhP 1,000,000.00	PhP 5,000.00
Over PhP 1,000,000.00	PhP 6,000.00

On the other hand, TCCs that are lost while in the custody of the government could be requested for replacement without any expense on the part of the owner pursuant to Department Order 26-01 dated November 5, 2001.

E. Certification Fee: A fee of P 150.00 charged for requests for certifications as follows:

That a firm has no similar, previous and/or outstanding application for tax credit and duty drawback;
That a firm has not used a particular Certificate of Identification, Export Declaration, Bill of Lading or Airway Bill for tax credit or duty drawback application;
The authenticity of Tax Credit Certificates;
Other similar requests for certification.

All fees and charges are non-refundable

INCENTIVE LAWS ADMINISTERED

The CENTER processes claims for tax credits and duty drawback claimed under the following incentive laws:

Executive Order No. 226 (Omnibus Investment Code of 1987), as amended by Republic Acts 7918 and 7369: Tax credits on raw materials and domestic breeding stock for firms registered with the Board of Investments.
Section 106 of the Tariff and Customs Code of the Philippines, as amended: Tax credits on imported raw materials.
Section 112 of the National Internal Revenue Code: Tax credits on creditable input VAT due or paid, attributable to zero-rated or effectively zero-rated sales.
Republic Act 7844 (Export Development Act of 1994): Tax credits for increase in export revenues.
Section 9 of Republic Act 8479 (An Act Deregulating the Downstream Oil Industry): Tax credits on domestic capital equipment for companies registered with the Board of Investments in refining, storage, marketing and distribution of petroleum products.
Section 35 of Republic Act 8550 (Philippine Fisheries Code of 1998): Tax credits on fuel consumption of commercial fishing vessel operators engaged in fishing in the high seas.

TYPES OF TAX CREDIT ISSUED

Incentive Law	Tax Credit Form No.	Uses	Processing Group
EO. 266	OSS-Center Form No. 0301 series of 2005	Duty Portion: for payment of duties and taxes at the Bureau of Customs (BOC) VAT Portion: for payment of internal revenue tax, excluding withholding tax, for which the TCC holder is directly liable at the Bureau of Internal Revenue (BIR).	Investment Incentives Group
Section 106 of the TCCP	OSS-Center Form No. 0302 series of 2006	For payment of duties and taxes at the BOC.	Duty Drawback Group
Section 112 of the NIRC	OSS-Center Form No. 0303 series of 2005	For payment of internal revenue tax, excluding withholding tax, for which the TCC holder is directly liable at the BIR	Tax and Revenue Group
RA 7844	OSS-Center Form No. 0301 series of 2005		Investment Incentives Group
Section 9 of RA 7849	OSS-Center Form No. 0301 series of 2005	Duty Portion: for payment of duties and taxes at the BOC. VAT Portion: for payment of internal revenue tax, excluding withholding tax, for which the TCC holder is directly liable at the BIR.	Investment Incentives Group
Section 35 of RA 8550	OSS-Center Form No. 0301 series of 2005	Duty Portion: for payment of duties and taxes at the BOC. VAT Portion: for payment of internal revenue tax, excluding withholding tax, for which the TCC holder is directly liable at the BIR	Investment Incentives Group

APPLYING FOR TAX CREDITS

Applicants for tax credit and/or duty drawback under any incentive law shall file their applications as follows:

1. Acquire a Claimant Information Sheet (CIS) from the CENTER's Receiving and Transmittal Unit I (RTU-1) located at the Podium Level of the Department of Finance Building.

2. Correctly fill out all the required information of the CIS and have it notarized.

3. Prepare all the documentary requirements listed in the Checklist of Requirements s applicable for the specific incentive law and computation scheme being applied for (i.e. for E.O. 226: Direct Regular, Direct Standard, Indirect Regular, Indirect Standard, ATCS Standard, and ATC Regular), including the necessary tables and schedules. These shall constitute the application docket of the applicant of which, completeness and acceptability shall be a factor in the expediency of processing.

4. Submit the application documents to the processing group tasked to do the evaluation of the claim type according to the following table:

Incentive Law	Processing Group	Location
E.O. 266	Investment Incentives Group	3/F DOF Building, Left wing
Section 106 of the TCCP	Duty Drawback Group	3/F DOF Building, Right wing
Section 112 of the NIRC	Tax and Revenue Group	4/F DOF Building, Left wing
RA 7844	Investment Incentives Group	3/F DOF Building, Left wing
Section 9 of RA 7849	Investment Incentives Group	3/F DOF Building, Left wing
Section 35 of RA 8550	Investment Incentives Group	3/F DOF Building, Left wing

APPLYING FOR TAX DEBIT MEMO (TDM)

A Tax Debit Memo, or the TDM, is the legal authority issued by the CENTER authorizing the use of a TCC as a payment to customs duties and taxes at the Bureau of Customs or internal revenue obligations of the holder at the Bureau of Internal Revenue. A TDM issued to a TCC holder authorizes the use of the TCC equivalent to the amount needed by the claimant as shown by supporting documents. It has a validity period of sixty (60) calendar days from date of official transmittal to the BOC or release to the claimant’s authorized representative for payment to the BIR. The TCC Issuance and Application Division (TCCIAD) of the CENTER is the group tasked to process TDM applications.

Documentary Requirements for TDM Application
A company which intends to use its TCC at the BIR or the BOC should submit an application letter printed on the company’s official letterhead signed by the company officer authorized under the claimant’s Secretary’s Certificate on file at the CENTER, and the TCC/s subject of the request, along with the following documents:

1. For payment of advance duties and taxes at the BOC:
        1.1 Certified true copy of the Import Entry Declaration (IED);
        1.2 Proforma Invoices; and
       1.3 Other applicable documents showing the details of the importation and the assessment therein.

2. For payment of final duties and taxes at the BOC:
2.1 Certified true copy of the Import Entry and Internal Revenue Declaration (IEIRD); and
2.2 Other applicable documents showing the details of the importation and the assessment therein.

3. For payment of national tax, except withholding tax, at the BIR:
3.1 Original or certified true copy of the BIR form to be filed; and
3.2 Other applicable supporting documents such as the company’s audited Financial Statement for payment of corporate income tax return for a given period, etc. In case of TCCs partially used at the BOC, the CENTER shall retrieve the same from the BOC upon the claimant’s filing of the TDM request.

Text Box: Claimant submits documentary requirements to TCCIAD staff Text Box: Pre-Screening Stage: TCCIAD staff checks application as to completeness of submitted requirements Text Box: TDM Preparation Stage: This stage includes:
1.Printing of the TDM; 2.Signing of the TDM by the TCCIAD Chief and the CENTER Executive Director; and 3.Scanning of the TDM Text Box: Issuance Stage: For payments to be made at the BOC, the TDM is transmitted by the CENTER to the BOC. Oval: TCCIAD staff returns documents to claimant Text Box: Evaluation Stage: TCCIAD staff performs the following:
Authenticates the TCC subject of request;
Checks qualification of payment to be made based on criteria set by law;
Checks balance of the TCC based on CENTER records. Oval: TCCIAD notifies claimant as to denial of request

Text Box: Issuance Stage: For payments at the BIR, the TDM is released to the claimant’s authorized representative.

Processing of Claims under the Investment Incentives Group (IIG)

A. Submission of the application with the required basic documents

The application consisting of the Claim Information Sheet (CIS) together with the basic documents as indicated in the Checklist of Requirements shall be submitted by the applicant to the IIG Officer-of-the-Day for pre-screening for checking of the order of documents and proper filling up of the CIS. If the claim passes the pre-screening, the claimant is required to pay the filing fee; otherwise, the application docket is returned to the claimant.
Upon completion of the basic required documents based on the checklist, the claimant is required to pay the processing fee.

B. Claim Evaluation and Approval

The evaluation proper is composed of 3 main parts:
(1) checking whether the transactions being claimed are indeed qualified for tax credit based on criteria set by law;
(2) verification of the transactions being claimed for tax credit through:
(2.1) confirmation of the documents submitted with issuing entities and government agency/ies; and
(2.2) validation of transaction in the claimant’s Books of Accounts.
(3) computation of tax credit due.

These tasks are performed in an assembly-line type of processing called the “process-based system.”

If any issue or question comes up at any point during the evaluation, the claimant is notified and required to explain the issue and/or submit substantiation documents.

Upon completion of the evaluation process, a report is prepared by the claim evaluator, for review of the IIG Head and final approval of the CENTER Executive Director.

Corresponding TCC is prepared afterwards, or a denial notice, depending on the action taken on the claim.

see process flow

Processing of Claims under the Duty Drawback Group (DDG)

Applications under Section 106
of the Tariff and Customs Code of the Philippines

A. Submission of the application with the required basic documents

The DOF Receiving Section then forwards the application documents to the Duty Drawback Group (DDG) for checklisting. If the documents accompanying the application are complete, the DDG notifies the claimant for the payment of the processing fee. Otherwise, the claimant is informed of the lacking documents and given 30 days to submit the same. After compliance, the claimant pays the processing fee.

B. CLAIM EVALUATION

Evaluation is composed of 3 main parts:
(1) checking whether the transactions being claimed are indeed qualified for tax credit based on criteria set by law;
(2) verification of the transactions being claimed for tax credit through confirmation of the documents submitted; and
(3) computation of tax credit due.

These tasks are performed by DDG examiners.

If any issue or question comes up at any point during the evaluation, the claimant is notified and required to explain the issue and/or submit substantiation documents.

Upon completion of the evaluation process, a report is prepared by the examiner, for review of the DDG Head and endorsement of the CENTER Executive Director to the BOC Tax Credit Committee.

C. REVIEW AND APPROVAL OF THE EVALUATION REPORT

Upon approval of the evaluation report by the CENTER Executive Director, the claim is reviewed and further evaluated at the Tax Credit Committee-Bureau of Customs where additional documents and/or report revisions may be required. After compliance therewith by the evaluating DDG examiner, the report will be submitted again for approval and subsequent issuance of a corresponding Tax Credit Certificate, or Notice of Denial, whichever is applicable.

see process flow

Processing of Claims under the Tax and Revenue Group (TRG)

Applications under Section 112 the National Internal Revenue Code

A. Submission of the application with the required basic documents

The application consisting of the Claim Information Sheet (CIS) together with the basic documents as indicated in the Checklist of Requirements shall be submitted by the applicant to the Tax and Revenue Group (TRG) at the CENTER for checklisting. If the documents accompanying the application are complete approval sheet duly signed by the TRG Head shall be issued to the claimant or the authorized representative for the payment of the corresponding filing and processing fees at the CENTER Cashier; otherwise the applications with the accompanying documents shall be returned to the applicant and will be accepted only upon completion of the required basic documents.

B. Claim Evaluation

Tax Verification Notices (TVNs) are issued on officially accepted claims and assigned to evaluating groups at the TRG for evaluation.

Conduct of audit or evaluation of claims under Section 112 NIRC is guided primarily by Revenue Memorandum Order 2-93 and other applicable BIR issuances and NIRC provisions.

Field Audit is conducted at the Office of the claimant where the records are kept (Head Office of the company or the place where the company is registered). The books of accounts of claimants are verified and the corresponding source documents for purchases, sales and related accounts are vouched to determine the correctness and validity of claims filed and to determine VAT liabilities , if any, of the claimant.

Verification of registration of claimants and their suppliers against the BIR Integrated Tax System is also made. The claim processing, as provided under Section 112 (D) of the NIRC, is 120 days upon submission of complete documents. In case of failure of the claimant to submit the complete documents, they are given up to three notices to comply; otherwise, the TRG will submit a recommendation to deny the claim to the Executive Director of the CENTER and the claimant will be notified accordingly. The claimant may file an appeal within thirty (30) days from receipt of notice of denial.

On completed evaluations, after conferring with claimants as to audit results, the corresponding TRG evaluation reports as prepared by the TRG examiners and reviewed by the TRG Head are submitted to the Center Executive Director for approval.

C. REVIEW AND APPROVAL OF THE EVALUATION REPORT

Upon approval of the evaluation report by the CENTER Executive Director, the claim is reviewed and further evaluated at the BIR National Office-Assessment Service where additional documents and/or report revisions may be required. After compliance therewith by the evaluating TRG group, the report will be submitted again for approval and subsequent issuance of a corresponding Tax Credit Certificate, or Notice of Denial, whichever is applicable.

see process flow