Revenue Memorandum Circular No. 21-2012 dated May 3, 2012 circularizes the full text of Executive order No. 68 dated March 27, 2012 (E.O. 68 – 2012) entitled “Monetization Program of Outstanding Value-added tax (VAT) tax Credits Certificates (TCs)”
For easy reference, hereunder are the summary of rules laid down in EO 68 – 2012:
- Collect from a trustee bank a discounted value of their TCCs. Government Financing Institutions shall serve as trustee bank for the purpose and a special trust account shall be established; or
- Collect the full cash value of the TCCs upon certain maturity date, to be determined by the Bureau of Internal Revenue (BIR) or Bureau of Customs (BoC) in accordance with the implementing rules of EO 68-2012 to be issued jointly by BIR and BoC later;
On comment, this seem to be a surprising development in the midst of government’s collection struggles, but is most welcomed! For VAT TCC holder’s, this might be a good option to convert such TCCs to cash that you may use for funding the operations, settlement of obligations, and for other purposes.
In the meantime, let us await the joint implementing rules and regulations of the BIR and BoC. Let us determine the specific details of its implementation as our guide.
Consultancy and Assistance on Securing VAT TCC Monetization. Under this, we will guide you in determining whether or not your VAT TCC is qualified under the monetization program, determine application requirements and documentations, develop approaches to fast track the processing and approval of the monetization, and assist in securing such monetization. Please contact us for related concerns.
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