REVENUE MEMORANDUM ORDER NO. 20-2018 issued on May 3, 2018 prescribes the revised policies and procedures on the processing of requests for conversion of Tax Credit Certificate (TCC) into cash refund. All requests for cash conversion shall be filed with the office that originally processed/investigated the claim for issuance of TCC, except for i) claims filed with the Revenue District Offices but were subjected to further review and approval by the concerned offices/officials in the National Office, which shall be filed with the Tax Audit and Review Division (TARD); and ii) revalidated TCCs which shall be filed with the Miscellaneous Operations Monitoring Division (MOMD) of the Collection Service (CS). The concerned offices shall process the requests for cash conversion and certify as to the authenticity and validity of the TCC issued. The following revenue officials shall recommend the approval/disapproval of the requests for cash conversion of TCCs: Office Responsible for Processing of Request for Cash Conversion Signatory of the Memorandum Report Recommending the Approval/ Disapproval of the Request for Cash Conversion of TCCs VAT Credit Audit Division (VCAD) – for TCCs signed by Assistant Commissioner (ACIR) – Assessment Service (AS), Deputy Commissioner (DCIR) – Operations Group (OG) and Commissioner of Internal Revenue (CIR) ACIR – AS Large Taxpayers – Audit Divisions (LTADs)/Large Taxpayers Divisions (LTDs) – for TCCs signed by ACIR – Large Taxpayers Service (LTS) ACIR – LTS Appellate Division – for TCCs signed by DCIR – Legal Group (LG) ACIR – Legal Service (LS) Revenue District Offices (RDOs) – for TCCs signed by the Regional Director Concerned Regional Director TARD – for claims filed with the RDOs but the TCCs were issued in the National Office and signed by ACIR-AS/DCIR-OG/CIR ACIR – AS MOMD – for revalidated TCCs ACIR – CS The DCIR–OG shall approve/disapprove the recommendations for approval/ disapproval for cash conversion of TCCs issued by all offices in the National Office and Regional Offices, prior to submission to the Finance Service for processing of payment of cash conversion of TCCs. In the absence of the DCIR–OG, the Commissioner shall approve/disapprove the same. The original copy of the TCC must be surrendered to the concerned processing office as part of the supporting documents for cash conversion. For approved application for cash conversion of TCC, the cancellation of the original TCC and the entry in the BIR Integrated Tax System – Tax Credits and Refund System (details corresponding to the TCC applied for cash conversion) shall be done by the Accounting Division (AccD) in the National Office. However, if the taxpayer-claimant was found to have an Outstanding Tax Liability (OTL), upon verification by the MOMD, during the processing of the request and/or by the AccD prior to the final approval of the refund, the taxpayer-claimant may use the TCC for payment of the OTL, if applicable. In the latter case, the CS shall be responsible for the manual cancellation of the original TCC upon issuance of the Tax Debit Memo (TDM) by the concerned TDM – Issuing Office, if the TCC is fully utilized after deducting the TDM from the TCC balance. Any request for cash conversion of the amount reflected in the TCC or any unutilized portion thereof may be allowed, subject to the provisions of Section 230 of the Tax Code of 1997, as amended. No cash conversion shall be allowed for TCCs issued under the following cases: a) TCC issued as a result of the availment of incentives granted pursuant to special laws for which no actual payment was made; and b) previously transferred or assigned TCCs prior to Revenue Regulations No. 14-2011. TCCs issued which remain unutilized after five (5) years from date of issue, unless revalidated before the end of the fifth year, shall not be allowed to be converted into cash. All requests for cash conversion of TCCs shall be referred to the ACIR-CS for verification of the taxpayer’s tax liabilities, and subsequently, to the ACIR-Finance Service for funding purposes. However, the validity and correctness of the TCC and the completeness of the supporting documents surrounding the issuance thereof shall still be the responsibility of the office which approved and issued the same. The policies and procedures prescribed in Revenue Memorandum Order No. 38- 2014 regarding the processing of payment of cash conversion of TCCs shall be observed by the concerned offices in the National and Regional Offices. However, the threshold set for the Regional Directors, as mentioned under item III.B.5 and III.B.6 of RMO No. 38- 2014, was revised per Revenue Memorandum Circular Nos. 89-2017 and 17-2018. All pending applications for conversion into cash refund of TCCs filed prior to the issuance of this Order shall be processed in accordance with the policies, guidelines and procedures prescribed in this Order. The documents required and the procedures for the processing and approval of requests for conversion of TCC into cash refund are specified in the Order.