NPM 039-2014

Requesting Entity: U-High Solutions, Inc. (UHSI)

Issues Concern: Acceptability of Tax Delinquency Verification Certificate



Whether a Delinquency Verification Certificate can be used as a replacement for the Tax Clearance requirement, which is one of the eligibility requirements for competitive bidding under the revised Implementing Rules and Regulations (IRR) of Republic Act No. (RA) 9184.

In our previous opinions, it is our consistent view that only the Tax Clearance issued by the BIR in the form defined under BIR Revenue Regulations No. 3-2005 shall be accepted by the Procuring Entity.

However, an exception to this rule is the tax clearance requirement for Non-Resident Foreign Corporations (NRFC) and Non-Resident Alien Not Engaged in Trade or Business (NRANETB). As regards the Tax Clearance form required under BIR Revenue Regulation No. 3-2005, the Collection Enforcement Division of the BIR issues Delinquency Verification Certificates to NRFC and NRANETB attesting to the fact that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account. Hence, we previously opined that for NRFC and NRANETB, a Delinquency Verification Certificate may be submitted as a form of Tax Clearance.