Revised guidelines for tax clearance of government bidders

Revised guidelines for tax clearance of government bidders

(Revenue Regulations No. 1- 2016, February 10, 2016)
Revenue Regulations 1- 2016 promulgates that only Tax Returns filed thru Electronic Filing and Payment System (eFPS) will be accepted as attachments to government bids/proposals as required under Executive Order (EO) 398.

a. All Tax clearance applications for bidding taxpayers shall be manually filed with the office of the Accounts Receivable Monitoring Division (ARMD) until such time that an on-line application for this purpose has been made available for use of prospective bidders. Tax Clearance with validity period of six months shall be issued by the ARMD to attest that taxpayer has no delinquent account and has satisfied all other criteria for the issuance of tax clearance, as follows: No unpaid registration fee

b. No open valid stop-filer cases

c. Regular user of EFPS for two consecutive months (for new applicants)

d. No pending criminal case with the DOJ or the courts

e. No delinquent account and/or judicially protested tax assessments with decision favorable to the BIR

The Government Procuring Entity shall validate the authenticity of the tax returns from the list of Tax Clearances published in the BIR website. The attached audited financial statements, on the other hand, must be validated with the RDO/LTS where the bidder is registered. Criminal charges shall be filed against bidders found to have submitted spurious tax clearance. No tax clearance shall be issued to them until the criminal case is resolved.

This shall take effect on February 26, 2016.

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Posted in Tax Alerts.