Types of tax refund in the Philippines
Which route you use depends on why you overpaid. This table puts them side by side.
| Refund type | Who | How | Deadline to claim | BIR decision | If denied |
|---|---|---|---|---|---|
| Over-withholding on salary | Employees | Employer refunds at year-end annualization; two employers: file Form 1700 | Employer must refund by 25 January of the following year (RR 11-2018) | — | — |
| Excess creditable withholding (corporations) | Corporations with Forms 2307 | Refund (Form 1914) or carry-over on the annual return | 2 years from filing the annual return | 180 days | CTA within 30 days |
| Excess creditable withholding (individuals) | Freelancers, professionals, sole proprietors | Refund (Form 1914) or carry-over on the annual return | 2 years from filing the annual return (RMC 102-2026) | 180 days | CTA within 30 days |
| Erroneous or illegal collection | Anyone who paid tax or penalties by mistake | Form 1914, Secs. 204(C) and 229 | 2 years from payment | 180 days | CTA within 30 days |
| VAT refund on zero-rated sales | VAT-registered exporters and similar | Manual filing at the designated VAT office | 2 years from close of the quarter of the sale | 90 days, to payment | Reconsideration within 15 days (otherwise the denial is final), then CTA within 30 days; CTA also if no action in 90 days |
| Business closing | Taxpayers permanently ceasing business | Form 1905 plus refund request | — | Within 2 years of filing Form 1905 with complete documents | — |
Sources: NIRC Secs. 76(C), 112, 204(C), 229 as amended by RA 11976; RR 5-2024; RR 10-2025; RR 8-2025; RMC 102-2026 (excess creditable withholding, individuals and corporations); RMC 103-2026; employee annualization in RR 11-2018. As of November 2026.
How to claim a tax refund from the BIR
From overpayment to refund
1Overpayment
Excess withholding, a wrong payment, or input VAT on zero-rated sales.
2Choose refund, not carry-over
On the annual return. A carry-over cannot be reversed, for individuals or corporations, unless the business permanently closes.
3File Form 1914 with the checklist
Within two years, at the office with jurisdiction. The clock runs from complete documents.
4BIR decides
180 days for non-VAT refunds; 90 days for VAT refunds.
Granted
Refund paid or tax credit certificate
A certificate cannot be used against withholding taxes.
Done
Denied or no decision
VAT denial: request reconsideration
File within 15 days or the denial becomes final; the BIR decides within 15 days.
Court of Tax Appeals within 30 days
The legal clocks on a refund claim
| Item | Days |
|---|---|
| VAT reconsideration: file | 15 days |
| VAT reconsideration: decision | 15 days |
| Appeal to the CTA | 30 days |
| BIR decision, VAT refund | 90 days |
| BIR decision, other refunds | 180 days |
| Time to file the claim | 2 years |
Tax refund requirements
| Document | Notes | Where to get it |
|---|---|---|
| BIR Form 1914 (application for tax credits or refunds) | Three original copies for an excess-withholding claim | BIR forms page |
| Checklist for your refund type and notarized attestation | Excess withholding: Annex A.1.1 (non-individuals), Annex A.1.2 (individuals) or A.2 (closing a business), RMC 102-2026, with the Annex A.4 attestation. Wrong payments: RMC 74-2024 checklist | BIR; your notary |
| Delinquency Verification Certificate | Original, valid 6 months | Collection Division of your Revenue Region (large taxpayers: LT Collection Enforcement Division) |
| Summary of income and taxes withheld, or proof of payment | Excess withholding: income per return and taxes withheld per 2307 (Annex A.3, hard copy and Excel), plus audited financial statements if not filed through eAFS. Wrong payments: proof of payment | Your files |
| Forms 2307 from payors | Digitally transmitted 2307s are accepted (RMC 14-2025) | Your clients |
| Authority of your representative | Notarized Secretary's Certificate (corporations) or special power of attorney, with one government ID showing three specimen signatures | Your board or notary |
| VAT refunds: streamlined documents | RMC 37-2025 as amended by RMC 96-2026: one checklist for periods before 1 April 2025, another from that date; claims filed manually | BIR |
Excess withholding: RMC 102-2026 and its annexes, amending RMC 75-2024 and RMC 14-2025. Wrong payments: RMC 74-2024 as amended by RMC 103-2026. File at the RDO or Large Taxpayers office with jurisdiction over you; under RMC 103-2026 and RMO 25-2026, refunds of capital gains tax (on real property held as a capital asset) and the related DST go to the RDO where the property is.
Employee tax refund: worked example
Employees usually do not file anything. At year-end the employer recomputes the tax on the year's taxable compensation. A shortfall is withheld from the last pay of the year; an excess must be credited or refunded to you not later than 25 January of the following year, or with your last pay if you leave before December (RR 11-2018, annualization Step 4). If you had two employers in the year, or tax was not withheld correctly, you file Form 1700 yourself.
- 1
January–June: ₱60,000 taxable a month; withheld ₱7,208.40 a month
Monthly table: ₱1,875 + 20% × (₱60,000 − ₱33,333). Six months: ₱43,250.40.
- 2
July–December: ₱20,000 a month after moving to part-time; withheld ₱0
₱20,833 and below is in the 0% bracket.
- 3
Annual taxable compensation: ₱480,000
Tax: ₱22,500 + 20% × (₱480,000 − ₱400,000) = ₱38,500.
- 4
Over-withheld: ₱43,250.40 − ₱38,500 = ₱4,750.40
The employer must return this by 25 January of the following year.
Refund from the employer
₱4,750.40
Shown on your Form 2316. If the employer does not refund it, raise it with HR first, then your RDO.
Freelancer refund of excess Form 2307 credits
- 1
Gross receipts ₱900,000; 8% option
Tax: 8% × (₱900,000 − ₱250,000) = ₱52,000.
- 2
Creditable tax on clients' Forms 2307: ₱90,000
Here the credits covered each 1701Q, so no quarterly payment was made.
- 3
Excess credit: ₱90,000 − ₱52,000 = ₱38,000
Shown as an overpayment on the annual return.
Overpayment to refund or carry over
₱38,000
Rates withheld depend on the payment; see the expanded withholding tax rates.
| Option | What happens | Watch-out |
|---|---|---|
| Carry over | Credit used against next year's quarterly income tax | Irrevocable for that year, for individuals and corporations (RMC 102-2026) |
| Refund | File Form 1914 with your 2307s within two years of filing the annual return | 180-day review; keep every 2307 |
| Tax credit certificate | Issued instead of cash | Cannot be used against withholding taxes |
Sec. 76(C); Sec. 204(C) as amended by RA 11976; 8% option per RR 8-2018; monthly withholding table Annex E.
Common mistakes and consequences
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Ticking carry-over, then asking for cash | Refund barred for that year (Sec. 76(C); RMC 102-2026), unless the business permanently closes | Decide before filing |
| Filing after two years | Claim prescribed | Diary the payment date, the annual return's filing date or the quarter-end |
| Incomplete Form 1914 package | The BIR will not receive it, and the 180 or 90 days do not start | Follow the checklist for your refund type |
| Waiting past 30 days to appeal | Right to go to the CTA lost | Count from the denial or the end of the 180 days (90 for VAT) |
| Missing Forms 2307 | Credit disallowed | Chase clients every quarter |
Buod sa Tagalog
Kung sobra ang naibawas na buwis sa sahod mo, ang employer ang magbabalik nito, hindi lalampas sa 25 Enero ng susunod na taon. Ang ibang refund ay isinasampa gamit ang BIR Form 1914 sa loob ng dalawang taon. May 180 araw ang BIR para magdesisyon (90 araw para sa VAT refund). Kapag tinanggihan o hindi inaksyunan, puwedeng umapela sa Court of Tax Appeals sa loob ng 30 araw.
Frequently asked questions
+How do I claim a tax refund in the Philippines?
Employees usually get over-withheld tax back from the employer at year-end. Others file BIR Form 1914 with the required checklist, notarized attestation and supporting documents at the RDO or LTS office with jurisdiction, within two years. VAT refunds are filed manually at the designated VAT office. Keep proof of every payment and every Form 2307.
+How long does a BIR tax refund take?
The BIR has 180 days from receipt of complete documents to decide non-VAT refunds, under Section 204(C) as amended by RA 11976. VAT refunds must be decided within 90 days of complete documents, up to release of payment, under RR 10-2025. The clock does not start until your package is complete.
+Can employees get a tax refund from the BIR, or only from the employer?
Normally from the employer. RR 11-2018 requires the employer to recompute your annual tax and refund any excess not later than 25 January of the following year (with the last pay if you leave earlier). If you had two employers in the year or tax was not withheld correctly, you file Form 1700, which can show the overpayment. Ask your RDO how to claim it.
+What is BIR Form 1914 and when is it used?
Form 1914 is the BIR's application for tax credits or refunds. It is used for erroneously or illegally collected tax, excess creditable withholding refunds of individuals and corporations, refunds on closure of a business, and VAT refunds. RMC 74-2024 (wrong payments), RMC 75-2024 as amended by RMC 102-2026 (excess withholding) and RMC 37-2025 (VAT) set the packages; RMC 103-2026 and RMO 25-2026 updated the filing offices.
+What is the deadline for filing a tax refund claim?
Two years. For tax paid by mistake, two years from payment (Secs. 204(C) and 229). For VAT refunds, two years from the close of the quarter when the zero-rated sales were made. An excess creditable withholding refund, for individuals or corporations, is counted from the filing of the annual return (RMC 102-2026). Late claims are lost.
+What documents are required for a BIR tax refund?
Form 1914 (three original copies for an excess-withholding claim), the checklist for your refund type and a notarized attestation, a Secretary's Certificate or special power of attorney for your representative, a Delinquency Verification Certificate valid for six months from the Collection Division of your Revenue Region, and Forms 2307 or proof of payment. Digitally transmitted 2307s are accepted under RMC 14-2025. VAT refunds follow RMC 37-2025 as amended by RMC 96-2026.
+Can I get a refund if I already chose to carry over my excess tax credits?
No. Once you choose carry-over, the choice is irrevocable for that year, and RMC 102-2026 applies this to individuals as well as corporations, so the excess can only be credited against later income tax. The exception is a business that has permanently ceased operations: the BIR must decide and refund within two years of your Form 1905 filing with complete documents.
+What happens if the BIR does not act on my refund claim within 180 days?
You may appeal to the Court of Tax Appeals within 30 days after the 180 days end, just as you would after a written denial. Do not wait for a late decision past that window. RA 11976 also removed the old 'supervening cause' clause from Section 229.
+Does filing a refund claim trigger a BIR audit?
For VAT refunds, RR 5-2024 sorts claims into low, medium and high risk, and medium and high-risk claims are audited. Any refund claim is checked against your returns and payments before it is granted, so file only claims you can document fully.
+How do freelancers claim excess creditable withholding tax (Form 2307)?
Credit every 2307 in your quarterly and annual returns. If credits exceed the tax due, the annual return shows an overpayment: carry it over to next year, or claim a refund on Form 1914 with your 2307s within two years of filing the annual return, using the individual checklist (Annex A.1.2 of RMC 102-2026).
Sources and references
- RA 11976 (Ease of Paying Taxes Act) — amended Secs. 112, 204(C) and 229 (checked November 12, 2026)
- NIRC (RA 8424) — Sec. 112(A) two-year VAT refund period (checked November 12, 2026)
- RR 5-2024 — 180-day refunds; risk-based VAT refunds (checked November 12, 2026)
- RR 10-2025 — VAT refund rules for claims from 1 April 2025 (checked November 12, 2026)
- RR 8-2025 — VAT refund reconsideration, 15 days (checked November 12, 2026)
- RMC 102-2026 — excess creditable withholding refunds: individuals and corporations, 2-year rule, carry-over, new checklists (checked November 12, 2026)
- RMC 103-2026 — filing office for refunds of tax paid by mistake; CGT and DST at the RDO where the property is (checked November 12, 2026)
- RMO 25-2026 — processing offices for refund claims (checked November 12, 2026)
- RMC 37-2025 — VAT refunds: 90 days to payment, manual filing (checked November 12, 2026)
- RMC 96-2026 — VAT refund checklists before and from 1 April 2025 (checked November 12, 2026)
- RR 11-2018 — employer year-end annualization (checked November 12, 2026)
- RR 8-2018 — 8% income tax option (checked November 12, 2026)
Related tools and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the National Internal Revenue Code or a BIR issuance and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
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