RMC No. 108-2021 - Revenue Memorandum Circular

Sep 19, 2026

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Revenue Memorandum Circular No. 108-2021 (issued October 19, 2021) clarifies how Tax Payment Certificates (TPC) issued under the Comprehensive Automotive Resurgence Strategy (CARS) Program may be utilized. It prohibits using TPC as advance payment or deposit for Excise Tax and for quarterly income tax and monthly VAT. It explains taxation treatment, forfeiture rules, required declarations in the tax return, and documentation for excise tax removals. It also covers authentication steps for BIR personnel, validity stopping upon utilization, spurious TPC liability, and required online system processing and encoding before recording in government systems.

LanguageEnglish

CategoryLetters

FormatPDF

Pages1

AccessFree to download

Key Provisions on TPC Use

Prohibited Uses for TPC

Tax Treatment and Forfeiture

Declaration Requirements in Tax Returns

Documentation and Filing Requirements

Excise Tax Removal Schedule Attachment

Submission and Authentication Process

Validity and Spurious TPC Liability

Operational Procedures

Online Authentication via OFS

Encoding and Uploading in Government Systems

REVENUE MEMORANDUM CIRCULAR NO. 108-2021 issued on October 19, 2021 clarifies certain issues on the utilization of Tax Payment Certificate (TPC) issued under the Comprehensive Automotive Resurgence Strategy (CARS) Program. A TPC shall not be used as advance payment or deposit for Excise Tax due and for payment of deficiency tax liability. The issuance of TPC by the DTI-BOI is based on the statutory deadline for payment of tax and/or duty (Item 6.3 of DOF-DBM-DTI-BOI Joint Administrative Order No. 01-2015) . A TPC shall not be used for payment of the quarterly Income Tax due and monthly Value-Added Tax (VAT) due. The basis of computation of the quarterly Income Tax are transactions that are still subject to final determination at the end of the taxable year. Hence, the Income Tax liability is finally determined at the end of the taxable year where the amount ofTPC shall be applied by submitting a copy ofthe TPC submitted to the BIR as attachment to the annual Income Tax return. In a similar manner, the TPC shall be used as payment for the VAT due declared in the quarterly VAT returns, such being a final return. The receipt of TPC is not taxable. TPC is intended for payment of taxes. If it is not presented or utilized for tax payment, the TPC shall be forfeited in favor of the government (Item 6. 7 of DOF-DBM-DTI-BOI Joint Administrative Order No. 01-2015) . The TPC details shall be indicated under the "Details of Payment" located at the lower portion of the tax return, specifically under the item, "Others" or "Others (specify)", wherein the corresponding boxes are provided for the details of payment. For the removal of automobiles that are covered by the CARS Program, the Eligible and Registered Participants (ERP) shall attach to the Excise Tax return, aside from the TPC, a Detailed Schedule of Removals of Automobiles, as a breakdown to Schedule 1A under Part V of the Excise Tax return (BIR Form No. 2200-AN) . Under the existing revenue issuances, the hard copies of tax returns and the corresponding prescribed attachments are submitted to the Revenue District Office (RDO) where the taxpayer is duly registered within a prescribed period according to the filing and payment facilities availed of by the taxpayer. Thus, the authorized BIR personnel shall authenticate the TPC only after receipt of its hard copy, together with the tax return and other prescribed documents. The utilization of TPC as payment of the tax due (i.e., the TPC details are declared in the tax return with the amount of TPC applied against the tax due and copies of the tax return and TPC are filed with the RDO) shall already stop the running of the period of validity of the said TPC. In case the TPC is found to be spurious, the ERP shall be liable to the amount of tax still due, inclusive of applicable penalties for failure to pay the tax, without prejudice to the filing of an appropriate criminal or civil action against the ERP for using a spurious TPC. The step-by-step procedures in using the DTI-BOl's Online Facility System (OFS) that shall be followed by the authorized BIR revenue personnel in authenticating the TPC is provided in Annex "B" (CARS TPC SCANNER USER GUIDE) of the Circular. Prior to the transmittal of the BIR copy of TPC by the LT Document Processing and Quality Assurance Division (LTDPQAD)/concerned RDO to the Revenue Accounting Division (RAD) for recording purposes, the TPC details shall be encoded/uploaded in the Integrated Tax System-Collection and Bank Reconciliation (ITS-CBR) and/or Internal Revenue Integrated System-Collection, Remittance and Reconciliation (IRIS-CRR), as the case may be, pursuant to existing policies and procedures.

FAQs

Can a Tax Payment Certificate (TPC) be used as advance payment or deposit for Excise Tax?

No. A TPC shall not be used as advance payment or deposit for Excise Tax due, nor for payment of deficiency tax liability.

May TPC be used to pay quarterly Income Tax and monthly VAT?

No. TPC shall not be used for payment of the quarterly Income Tax due and monthly Value-Added Tax (VAT) due.

What happens if the TPC is spurious or not properly utilized for tax payment?

If the TPC is spurious, the ERP is liable for the tax still due, including applicable penalties. If the TPC is not presented or utilized for tax payment, it is forfeited in favor of the government.

Sep 19, 2026

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