Revenue Bulletin No. 01-03
Revenue Bulletin No. 01-03
Revenue Bulletin No. 01-03
SUBJECT :
TO
SECTION 1.
Background and Scope. Section 4 of the Tax Code of 1997 grants the
Commissioner of Internal Revenue the exclusive and original jurisdiction to interpret the provisions
of the Tax Code of 1997 and other tax laws. On the other hand, the Legal Service, particularly the
Law Division and the International Tax Affairs Division, and the Legal Divisions in the Revenue
Regions, as well as the VAT Review Committee reconstituted under Revenue Special Order No.
413-2001 dated August 31, 2001, are responsible for preparing the rulings to be signed and issued
by the appropriate revenue official. The ruling function is limited to the determination of purely
legal issues, as opposed to questions of fact. Likewise, the ruling function need not be exercised
where the law, rule or regulation is clear, thereby dispensing with the need for the interpretation
thereof. Accordingly, this Revenue Bulletin is issued for the purpose of declaring certain issues or
subject matters as "No-Ruling Areas", on which the appropriate office of the Bureau is hereby
instructed not to accept any request for rulings covered by this Revenue Bulletin or any amendments
thereto.
SECTION 2.
List of No-Ruling Areas. The following shall hereby be construed and
identified as "No-Ruling Areas":
a) Tax treatment of the sale or disposition of Principal Residence under Section 24(D)(2)
of the Tax Code of 1997 as implemented by Revenue Regulations 14-2000 and circularized in
Revenue Memorandum Circular No. 45-2002;
b) Request for tax exemption in connection with a transfer of property pursuant to the
Community Mortgage Program under Republic Act No. 7279 as implemented by Revenue
Regulations No. 17-2001 and circularized in Revenue Memorandum Circular No. 43-2001;
c) VAT treatment of the sale of goods or services to a PEZA-registered enterprise pursuant
to Revenue Memorandum Circular No. 74-99;
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d) VAT treatment of imported articles under Section 109 of the Tax Code of 1997
pursuant to the BIR-BOC Joint Memorandum Circular No. 1-2002 and Revenue Memorandum
Circular No. 48-2002;
e)
Request for confirmation of tax privileges of Senior Citizens under Republic Act No.
7432;
f) Tax treatment of the monetized leave credits of government officials and employees
under Executive Order No. 291;
g) Tax treatment of the monetized value of unutilized vacation leave credits not in excess
of 10 days;
h)
Tax treatment of separation benefits under Section 32(B)(6)(b) of the Tax Code of
1997.
i) Confirmation of tax treatment of a given benefit, regardless of amount, where such
benefit is already expressly enumerated as a "de minimis" benefit under pertinent regulations
particularly Revenue Regulations No. 2-98 and Revenue Regulations No. 398, as amended.
j) Determination of whether there is/there is no substantial change in the ownership or
enterprise (whether as a result of a merger or otherwise) for purposes of applying the Net Operating
Loss Carry-over (NOLCO) provision under Section 34 (D)(3) of the Tax Code of 1997 as defined
under Revenue Regulations 14-2001;
k)
u) Request for rulings that are not accompanied by complete documents or information as
provided in Revenue Memorandum Circular Nos. 39-2001 and 14-2001, Revenue Memorandum
Order Nos. 32-2001, and 1-2000 in relation to BIR Form 0901 or where the relevant regulations or
issuances specify.
SECTION 3.
Issue/s or Transactions Subject of a Pending Investigation, On-Going
Audit, Claim for Refund or Issuance of a Tax Credit. Notwithstanding Section 2, paragraph (r) of
this Revenue Bulletin, the appropriate Office may act on a ruling with respect to issue/s or
transactions subject of a pending investigation, on-going audit, claim for refund or issuance of a tax
credit certificate based on the report of the processing office concerned, provided that the facts are
not disputed which shall first be verified by the Office where the request was filed. In the absence of
a report, the Office acting on the request shall require the processing office to submit a report to
them. Prior to the issuance of the ruling, the taxpayer must submit a certification that a decision on
the claim for tax refund or issuance of a tax credit has not been made or Final Assessment Notice
has not been issued and shall in all stages inform the Office where the request for ruling is pending
if and when a decision on the said claim for refund, issuance of tax credit or Final Assessment
Notice has been subsequently issued. The taxpayer shall forthwith submit to the ruling office a copy
thereof. In which case, the ruling Office shall not issue a ruling but shall forward all documents to
the proper Office having jurisdiction over the case for consolidation of the docket.
SECTION 4.
Posting and Updates. The abovementioned list shall be posted by the
appropriate Office concerned in a conspicuous place for viewing and could also be found in the
following official website (www.bir.gov.ph). Likewise, official copies and any amendments herein
shall be filed with the University of the Philippines Law Center. This list shall be expanded and
updated from time to time by subsequent Revenue Bulletins issued for that purpose.
SECTION 5.
is deemed superseded.
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SECTION 6.
Transitory Provision. Offices which have pending request for rulings
considered as "No-Ruling Areas" shall either advise the taxpayer in writing that they are covered by
this Revenue Bulletin or shall endorse the request to the Office or Committee concerned as provided
in Section 2 subparagraph o, p and q hereof.
DTAHEC
SECTION 7.
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