MANILA: THE BUREAU of Customs (BoC) has come out with new rules to allow companies to claim their tax credit certificates (TCCs) covering value-added tax payments.
In a statement issued on Friday, the bureau said firms may now apply to convert to cash their VAT import and VAT drawbacks TCCs by submitting applications before the BoC’s tax credit secretariat. The system covers all outstanding TCCs.
A TCC pertains to the tariff duties and internal revenue taxes paid by a firm for the raw materials, supplies and semi-manufactured supplies used in crafting export products, which entitles the firm for tax refund as part an incentives package for local export-oriented firms.
The Finance department put up a one-stop shop inter-agency tax credit and duty drawback center to process the certificates.
Under the new guidelines, certificate holders must submit application letters, the original TCC, an affidavit to attest to the authenticity of the certificate, and a proof of authority for a representative making the claim.
“The release of the cash equivalent of import VAT TCCs and Drawback TCCs shall be subject to availability of funds appropriated for the purpose as accorded by budget execution subject to existing rules, in consultation with the Department of Budget and Management,” the BoC said.
Firms must first settle any of their outstanding liability with the agency before their TCC money is released, the bureau added.
