REVENUE MEMORANDUM CIRCULAR NO. 44-2012 issued on August 14, 2012 publishes the full text of Joint Circular No. 2-2012 dated May 31, 2012 issued by the Department of Finance (DOF), Department of Budget and Management (DBM) and Bureau of Internal Revenue (BIR) entitled providing for the establishment of the Value-Added Tax (VAT) Tax Credit Certificate (TCC) Monetization Program (“Program”) in relation to the special provisions of Republic Act No. 10155 or the General Appropriations Act of 2012.                                                                                                      Under the Program, the said parties agreed to undertake the following:
          The DOF shall:
          a. Direct the BIR to verify the outstanding VAT TCCs, subject to existing laws, rules and                        regulations;
          b. Provide the confirmation letter of the National Government to acknowledge that the                        outstanding VAT TCCs constitute an obligation of the Republic of the Philippines;
          c. Favorably endorse to the National Government Agency concerned or to the Bangko                        Sentral ng Pilipinas, as the case  may be, the application to secure the necessary financial                features required in the issuance of investment certificates to improve the net proceeds                  of the beneficiaries;
          d. Make arrangements with trustee bank on the requirements for the opening of a special                   account; and
          e. Make available the facilities of the Bureau of Treasury including, but not limited to, the                     Registry of Scripless Securities, the Automated Debt Auction Processing System and                       such other facilities as may be required for the auctioning process in the implementation                 of the Program.
      The DBM shall ensure that the funding requirements for the Monetization Program of outstanding VAT TCCs is included in the National Expenditure Program (NEP) from 2012 to 2016 based on the requests of the BIR and the Bureau of Customs (BOC) through budget preparation and budget execution.
       The BIR shall submit its yearly budget accountability report as required under existing guidelines including a report on the redemptions made on Notice of Payment Schedule (NPS) issued pursuant to the Program vis-à-vis the master list of NPS submitted for budget preparation/execution purposes.
         VAT TCCS solely issued by the BIR must be received by the BIR while VAT TCCs jointly issued by the Department of Finance-One Stop Shop (DOF-OSS) center and the BIR must be received by the DOF-OSS center within 3 months from the effectivity of this Circular.
      The mechanics for the verification of TCCs shall be covered by a separate Revenue Memorandum Order to be issued by the BIR.
          The BIR shall issue to the TCC owner of the verified TCC an NPS confirming the details of his/her entitlement to monetization, the refundable amount, the date of monetization and such other necessary information. Only the duly issued NPS for monetization of covered TCCs shall be accepted by the BIR or the Government Financial Institutions (GFIs), as the case may be.
          The  schedule and manner of giving refund are specified in the Circular but the maturity date corresponds to the expiry date of the VAT TCC, unless revalidated pursuant to Section 230(B) of the NIRC, as amended.
         The NPS must be presented  for payment  by BIR within 30 calendar days before the maturity date. To this end, the NPS shall contain the following statement: “This NPS must be presented for payment within thirty (30) calendar days before the date of maturity; otherwise, the NPS shall be cancelled and the same shall be forfeited in favor of the government.”
           If the last day  for the  presentation of  the NPS falls  on a Saturday,  Sunday, holiday (regular or special) or a declared non-working day due to force majeure, the NPS shall be presented on the next succeeding business day.
              Where a taxpayer opts to monetize before the maturity date, he shall surrender the NPS to the GFIs. The GFIs shall give the equivalent of the refundable amount less the applicable discount. The GFIs shall provide the BIR a list of actual availments under the Program.
            Any holder of a covered TCC who fails or does not intend to enroll in the Program shall retain the right to:
               a. Credit his TCCs against tax liabilities in accordance with existing rules on TCC                                    utilization; or
               b. Apply, subject to conditions of law and pertinent rules and regulations, for TCC                                 revalidation under Section 230(B) of the NIRC and/or tax refund (cash conversion)                           under Section 204(C) of the same Code.
            All  requests for cash conversion  of VAT TCCs that are already in the possession of the BIR as of the effectivity of Executive Order No. 68 may still be processed pursuant to the provision of Section 5(b) of Revenue Regulations No. 5-2000 regardless of the issuance dates of the covering TCCs, subject to the availability of funds.
             In case any provision of this Joint Circular is declared unconstitutional or contrary to law, other provisions which are not affected thereby shall continue to be in force and in effect.
             This Joint Circular shall take effect 15 days from its publication in the Official Gazette and in at least 2 newspapers of general circulation.