Philippines Court of Tax Appeals Issues Decision Clarifying Tax Refunds for Overpaid Expanded Withholding Tax

The Philippine Court of Tax Appeals (CTA) April 24 issued a decision in CTA Case No. 10807, clarifying tax refunds for overpaid expanded withholding tax (EWT). The taxpayer, a resident corporation, requested a refund or tax credit certificate for erroneously or excessively paid EWT from 2020. The Commissioner of Internal Revenue (CIR) denied the refund request, and the taxpayer appealed, arguing that the EWT payments for accrued excess rent were erroneous or excessive because its total rent for 2020 was later reduced. On appeal, the CTA found that: 1) the taxpayer’s amended tax returns showed that the overpaid EWT wasn’t ...