News: Gov't aims to further reduce backlog in TCC issuance -
03 Jan 2008
Government hopes to reduce further the backlog in the issuance of tax credit certificates (TCCs) to exporters, which has already been significantly cut to two years from the previous five years.
Instead of paying the exporters cash, the government issues TCCs, which the exporters use to settle their normal tax obligations. This move aims to help exporters become more globally competitive.
The tax credits are applicable for any imported materials exporters use to manufacture their products. These also cover the exporters' exemption from the 12% expanded value-added tax (EVAT) and various duties.
Exporters registered with the Board of Investments (BOI) are required to submit applications for tax credits at the Department of Finance's One-Stop Shop Inter-agency Tax Credit and Duty Drawback Center, commonly known as "the tax credit center."
The release of every TCC takes time as it is subject to the verification and approval of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).