Revenue Memorandum Circular No. 102-2026

I. OBJECTIVE

This Circular is hereby issued to provide clarification and updates on the processing of claims for tax credit certificate or cash refund (tax credit/refund) of excess or unutilized creditable withholding taxes (CWT) on income under Section 76(C), in relation toSections 204(C) and 229 of the National internal Revenue Code of 1997 (Tax Code), as amended, and Revenue Regulations No. 5-2024, and to prescribe the updated Checklist of Mandatory Requirements (Annexes) for the processing of said tax credit/refund. This does not cover requests for tax credits/refunds under the authority and jurisdiction of the Legal Group.

II. AMENDMENT

Section I of RMC No. 75-2024, as amended by RMC No. 14-2025 is hereby amended to read as follows:

“I. GENERAL POLICIES

1. For tax credit/refund claim of CWT on invome, the “Application for Tax Credits/Refunds” (BIR Form No. 1914) shall be filed at the following offices having jurisdiction over the taxpayer-claimant:
   • The Revenue District Office (RDO); or
   • The respective Large Taxpayers Division (LTD) under the Large Taxpayers Service (LTS).
     
2. In case an individual or corporation is entitled to a tax credit/refund of the excess income taxes paid during the year, the excess amount shown on their Annual Income Tax (AITR) may be carried over and credited against estimated quarterly income tax liabilities for the taxable quarters of the succeeding taxable years. Once the option to carry over and apply the said excess income taxes paid against the income tax due for the taxable quarters for the succeeding taxable years has been made, such option shall be considered irrevocable for that taxable period, and no application for tax credit/refund shall be allowed. This is the irrevocability rule. As an exception to the irrevocability rule, taxpayers who choose the option to “carry over” may claim tax refund provided they have permanently ceased operations, as introduced under Section 76(C) of the Tax Code, as amended.
   
   • For regular applications or those filed by taxpayers with “going-concern” status who have chosen the option to apply for tax credit/refund of the excess income tax in their AITRs, the filing of the application for tax credit/refund shall be made within two (2) years from the date of filing of the AITR. A return filed showing an overpayment shall be considered a written claim for tax claim/refund, provided that, purposes of the one hundred eighty (180)-day processing period pursuant to Section 204(C) of the Tax Code, amended, the counting shall commence upon submission of the Application for Tax Credits/Refunds (BIR Form No. 1914) along with the complete documents as precribed by the BIR in support of the application, which shall be submited within the 2-year prescriptive period.
     
   • For application filed by taxpayers undergoing dissolution or cessation of business, Section 76(C) of the Tax Code, as amended, mandates that the processing office shall decide on the application and issue tax credit/refund of the excess/unutilized CWT within 2 years from the date of the dissolution or cessation of business. This is an exception to the 180-day processing of tax credit/refund under Section 204(C) of the Tax Code, as amended. For the purposes of this Circular, the 2-year period to decide and refund the excess taxes shall commence from the submission of the Application for Registration Information Update/Correction/Cancellation (BIR Form No. 1905) together with the complete documentary requirements set by the BIR for the closure of business and the refund of excess income taxes due to the cessation or dissolution of business under Section 76(C) of the Tax Code, as amended.
     
3. Only applications with complete documentary requirements enumerated in the attached Checklist of Mandatory Requirements (Annex “A.1.1” for non-individual taxpayers with “going concern” status; Annex “A.1.2” for individual taxpayers with “going concern” status; or Annex “A.2″ for taxpayers undergoing dissolution or cessation of business) shall be received and processed by the authorized processing office.”