The Bureau of Internal Revenue (BIR) has tightened and clarified its tax refund procedures, seeking to reduce filing confusion, prevent applications from being sent to the wrong offices and give taxpayers clearer expectations on processing times.
The BIR issued Revenue Memorandum Circular (RMC) Nos. 102-2026 and 103-2026 and Revenue Memorandum Order (RMO) No. 25-2026 on Sept. 29, updating rules for claims involving excess or unutilized creditable withholding taxes (CWT), erroneously or illegally collected taxes, and penalties imposed without legal authority.
“Taxpayers 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,” BIR Commissioner Charlito Martin R. Mendoza said.
Under RMC 102-2026, taxpayers seeking refunds of excess or unutilized CWT will have clearer documentary requirements and processing timelines. Regular claims are subject to a 180-day processing period, counted from submission of the application and complete supporting documents.
A separate two-year processing period applies to claims arising from the dissolution or cessation of a business, consistent with the Tax Code.
RMC 103-2026 sets out where taxpayers must file claims involving erroneously or illegally collected taxes and unauthorized penalties. Claims involving capital gains tax on real property and the related documentary stamp tax must be lodged with the Revenue District Office covering the property’s location.
Other refund claims are to be filed with the BIR office that has jurisdiction over the taxpayer.
Meanwhile, RMO 25-2026 establishes specific responsibilities for processing, reviewing and approving refund claims within the BIR, regardless of the amount involved.
The measures aim to make the refund system more predictable by clarifying filing points, internal accountability and statutory processing periods—potentially reducing delays caused by misrouted applications and incomplete submissions.
