RR 8-2025: Stricter framework for requests for reconsideration of denied refund claims

On Feb. 27, 2025, the Bureau of Internal Revenue issued Revenue Regulations (RR) 8-2025, to streamline the procedure for handling requests for reconsideration of fully or partially denied claims for refund of creditable input taxes under Section 112(A) and (B) of the Tax Code; and excise tax paid on petroleum products under Section 135-A of the Tax Code.

This regulation aims to establish consistency and efficiency, but it does so by placing a far greater burden on taxpayers to comply with strict procedural rules.

In prior years, taxpayers often benefitted from informal leniency, submitting additional documents post-filing or clarifying factual matters directly with the BIR officer handling the claim. Now, the new process has removed any opportunity to correct or clarify factual concerns administratively.

Effective April 1, 2025, the regulation marks a sharp departure from past practices and imposes a more rigid structure for taxpayers seeking to reverse a denial of a refund claim from the BIR.

Under the new regulations, a request for reconsideration is defined as a plea for re-evaluation of a pure question of law on a given set of facts or circumstances based on previously submitted documents and arguments without need for introduction of new or additional documents.

Meanwhile, a question of law arises when there is doubt as to what the law is on a certain state of facts. It must not involve an examination of the probative value of the evidence presented by the applicant.

Based on RR 8-2025, the BIR will not revisit questions of fact, review additional submissions or entertain any new supporting documents. Hence, a request for reconsideration is simply a request to re-evaluate a denial based solely on legal grounds, using only the documentation that was originally submitted.

Taxpayer-claimants must now file the request for reconsideration within 15 calendar days from receipt of the notice of full or partial denial. This deadline is non-extendible and must be strictly observed. Late filings will result in the finality of the denial. Moreover, taxpayer-claimants may no longer submit new or missing documents with their reconsideration request. Only legal issues based on the original record will be entertained and any factual argument will be automatically disregarded.

The RR also mandates that taxpayer-claimants are only given a single opportunity to file such request for reconsideration, and no supplemental submissions or amended requests are permitted. Additionally, no second request for reconsideration shall be allowed. The filing of a second request for reconsideration shall not toll the running of the prescriptive period to file an appeal before the Court of Tax Appeals (CTA).

The BIR has 15 days to act on the reconsideration from the date of actual receipt of the request for reconsideration by the concerned Processing Office. Consequently, failure to file with the Processing Office shall render it invalid and shall not toll the running of the 15-­day period to file the request for reconsideration. Hence, the partial or full denial of the refund shall become final and executory.

With the implementation of RR 8-2025, incomplete or unclear original applications cannot be cured at a later point in time, and even factual misinterpretations cannot be corrected within the BIR, unless a judicial appeal is sought. In case of full or partial denial of the request for reconsideration, or in case of inaction by the CIR or his duly authorized representative, the taxpayer-claimant may appeal the full or partial denial of the request for reconsideration or the full or partial denial of the claim for refund in case of inaction on the request for reconsideration to the CTA within 30 days from receipt of the decision or from the lapse of the 15-day period to decide thereon.

RR 8-2025 affirms the intention of the BIR to streamline the handling of refund claims under Sections 112(A) and (B) and 135-A of the Tax Code. However, in doing so, BIR has significantly tightened procedural requirements, leaving taxpayers with less flexibility and more responsibility in ensuring that their requests for reconsideration will adhere to the requirements of the new regulation. The burden now lies squarely upon taxpayers to submit error-free, fully substantiated applications and to act decisively if those claims are denied. In this new environment, compliance is no longer just about eligibility, It’s about precision and timing.

Finally, given that the BIR is required to resolve the reconsideration within 15 days from filing, taxpayers must also ensure that their request is logically and legally sound. A well-drafted, concise legal argument citing applicable laws, BIR rulings or Supreme Court decisions can be the difference between a reversal and a reaffirmed denial.

Maria Evita Igot is a supervisor from the Tax Group of R.G. Manabat & Co. (KPMG in the Philippines), 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 Maria Evita Igot or Kathleen Saga through [email protected], social media or visit www.home.kpmg/ph.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.