Miss a step, miss your refund – RR 8-2025 is here

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May 27, 2025 | 12:00am

In the Philippines, claiming tax refunds can be an arduous and bureaucratic process due to several factors such as complex documentation requirements, lengthy processing time and stringent requirements and deadlines.

Given how complex and time-consuming tax refunds can be, taxpayers and tax practitioners welcomed the request for reconsideration provision in the CREATE MORE Act. It offers them a second chance to challenge a denial without immediately resorting to costly legal action.

To implement this, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 8-2025 on Feb. 27, 2025 to provide guidelines and procedures for handling requests for reconsideration relating to creditable input value-added tax (VAT) under Section 112 and excise tax on petroleum products under Section 135-A of the Tax Code, as amended, filed on or after April 1, 2025.

Let’s take a closer look at RR 8-2025 and its key provisions.

The taxpayer will only have 15 days from receipt of the Notice of Full or Partial Denial to file a request for reconsideration. It is noteworthy that failure to file a request for reconsideration within the prescribed period will render the decision of the BIR final and executory.

To avoid any delay, the designated Processing Office must act within 15 days of receiving the request. If the corresponding request is approved, the refund must be processed within 20 days from the date the decision is issued.

Although allowing a request for reconsideration is a procedural step forward, it is not an opportunity to correct or supplement factual errors. The RR is strictly confined to legal arguments based on the original record. Since no new documents or evidence can be introduced, any factual issues not properly raised or supported in the initial filing are deemed final. As such, the RR explicitly states that factual matters will no longer be entertained, reinforcing the need for accuracy and completeness in the original submission.

The RR 8-2025 also provided the required form and contents of the request for consideration:

1. Title of the request for reconsideration must be in all capital letters and bold-faced;

2. Description of the claim, indicating the:

a. Name of taxpayer-claimant;

b. Tax Verification Notice number;

c. Amount of the original claim and amount denied; and

d. Taxable period/s covered.

3. Date of receipt of full or partial denial;

4. Statement of facts, assignment of errors of law and legal citations to support the arguments;

5. One set of the following documents as annexes:

a. Original secretary certificate (for corporation) or special power of attorney (for individual), for authority to file the request for reconsideration;

b. Certified true copies of:

i. Original application for VAT Refund with the receiving stamp from concerned Large Taxpayer’s Service (LTS) office or revenue district office, whichever is applicable;

ii. Notice of full or partial denial of the claim, its attachments, with proof of date of receipt;

iii. Checklist of mandatory requirements prepared by Processing office and acknowledged by taxpayer-claimant or authorized representative;

c. Other relevant documents previously submitted in the original claim for refund with proof thereof.

The proper venue for filing requests for reconsideration is clearly outlined in the RR. For denials issued within the BIR National Office, including those signed by the Assistant Commissioner of the Large Taxpayers Service, the request for reconsideration must be filed with the Appellate Division. Conversely, for denial letters signed by a Regional Director, the request should be filed with the Legal Division of the respective BIR Regional Office.

Under the RR, taxpayer-claimants have an option to withdraw their requests for reconsideration at any point before a final resolution. In such cases, the original denial remains in effect, as though no reconsideration request had been filed. Additionally, the full or partial denial becomes final upon the lapse of the 15-day period following receipt of the denial.

For cases where reconsideration is denied or remains unacted upon, the taxpayer-claimant has 30 days to escalate the matter to the Court of Tax Appeals, either from the date of denial or the expiration of the 15-day review period.

With RR 8-2025 now in force, strict adherence to deadlines and documentation is essential to safeguard reconsideration and appeal rights. One wrong move, and your refund is gone. RR 8-2025 makes deadlines and documentation non-negotiable—miss a step and you miss your refund. Precision and timeliness are your best allies in securing what’s rightfully yours.

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Mariel Tio is a tax analyst under the Tax Group of KPMG in the Philippines (R.G. Manabat & Co.), a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. For more information, you may reach out to tax analyst Mariel Tio or head of tax Maria Myla Maralit through [email protected], social media or visit www.home.kpmg/ph.