06/10/2026
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The Bureau of Internal Revenue (BIR) has issued three complementary revenue issuances updating the guidelines for tax credit and refund claims for excess or unutilized creditable withholding taxes (CWT) on income and taxes erroneously or illegally received or collected, or penalties imposed without authority. The issuances clarify where taxpayers should file their applications and establish the corresponding processing, review, and approval responsibilities of BIR offices.
Published on September 29, 2026, the three issuancesβRevenue Memorandum Circular (RMC) Nos. 102-2026 and 103-2026 and Revenue Memorandum Order (RMO) No. 25-2026βamend existing procedures governing tax credit and refund applications.
βTaxpayers claiming a refund should not have to figure out which BIR office will accept their application, who is responsible for acting on it, or how long their claims will take to be processed. These amendments establish definite timelines and clear responsibilities within the Bureau to ensure that refund claims for unutilized creditable withholding taxes and erroneously/illegally collected taxes or penalties are handled consistently and in accordance with the law,β BIR Commissioner Charlito Martin R. Mendoza said.
RMC No. 102-2026 updates the guidelines for claims involving excess or unutilized creditable withholding taxes (CWT) on income. It clarifies filing and documentary requirements, including the applicable processing periods for regular refund applications and claims involving dissolution or cessation of business. For regular applications, the 180-day processing period begins upon submission of the application and complete supporting documents. At the same time, claims involving dissolution or cessation of business are subject to a special two-year processing period under Section 76(C) of the Tax Code, as amended.
RMC No. 103-2026 clarifies the proper filing offices for claims involving taxes erroneously or illegally received or collected, or penalties imposed without authority. Claims involving Capital Gains Tax (CGT) on the sale of real property classified as a capital asset, and the related Documentary Stamp Tax (DST), must be filed with the Revenue District Office (RDO) having jurisdiction over the property's location. Other covered claims must be filed with the appropriate RDO, Large Taxpayers Audit Division (LTAD), or Large Taxpayers Division (LTD) having jurisdiction over the taxpayer-claimant.
Complementing this circular, RMO No. 25-2026 establishes the corresponding processing, review, and approval responsibilities of BIR offices, regardless of the amount claimed. Designated Revenue Officers shall receive applications and check the completeness of documentary requirements. The Assessment Division shall review claims processed by RDOs, and the Regional Director shall approve them, while the concerned Head Revenue Executive Assistant of the Large Taxpayers Service (LTS) shall review claims processed by the LTAD or LTD, and the Assistant Commissioner of the LTS shall approve them.
The updated guidelines further support the Bureau's efforts to improve refund administration through clearer filing procedures and defined responsibilities for handling taxpayer claims.
