MANILA — The Bureau of Internal Revenue (BIR) has clarified the procedures for processing tax refund claims.
In three separate memorandum circulars, the BIR specified which of its offices will accept and process tax refund claims.
Under Revenue Memorandum Circular 102-2026, the BIR clarified that for regular tax refund claims, the 180-day processing period begins upon submission of the application and complete supporting documents. Meanwhile, claims involving dissolution or cessation of business have a special two-year processing period under the Tax Code.
Under Revenue Memorandum Circular 103-2026, the BIR said that claims involving capital gains tax on the sale of real property classified as a capital asset, and its related documentary stamp tax, must be filed with the Revenue District Office (RDO) having jurisdiction over the property's location.
Other covered claims must be filed with the appropriate RDO, the Large Taxpayers Audit Division (LTAD), or the Large Taxpayers Division (LTD) having jurisdiction over the taxpayer.
Revenue Memorandum Circular 25-2026 specifies that the BIR's Assessment Division shall review claims processed by RDOs, and the Regional Director shall approve them.
Meanwhile, the concerned Head Revenue Executive Assistant of the Large Taxpayers Service (LTS) will review claims processed by the LTAD or LTD. The Assistant Commissioner of the LTS will approve them.
“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," said BIR Commissioner Charlito Mendoza.
The BIR paid out P23.67 billion in tax refunds from January to September this year.