Tax and Financial Service Committee Meeting – 17 March 2017

March 23, 2017 Financial Services Meeting Reports

The Committee received a presentation from Quisumbing Torres on Foreign Investments and Taxes, with a focus on the Bureau of Internal Revenue’s Revenue Regulation 1-2017.

  • Revenue Regulation 1-2017 was issued in January 2017, which calls for deemed denied provision of the previous issuance – Revenue Memorandum Circular (RMC) 54-2014
  • RMC 54-2014 provided that if the VAT refund of credit claim is not acted upon by the Commissioner within 120 days upon submission of requirements, such application shall be automatically denied
  • Under Section 112 (A) of the Tax Code, as amended, supporting files in claiming for tax credit or refund must be completed between a two-year period, and the Commissioner of his duly authorized representative, within 120 days from the date of submission of complete documents, or from the date of the filing of the application, should have decided on the claim.
  • Under RR 1-2017, the following claims, even if filed before and pending upon the effectivity of RMC 54-2014, shall not be covered:
    • those filed beyond the two-year prescriptive period;
    • those denied in writing by the BIR;
    • those approved or granted fully or partially by the BIR; and
    • those already appealed to and pending with the Court of Tax Appeals (CTA), unless there is proof of withdrawal of the case filed before it

Discussions on Tax Implications of Foreign Sales Activities, and Tax Structuring of Investments were also made in this meeting.