NPM 012-2015

Requesting Entity: Toyota Tacloban, Leyte, Inc.

Issues Concern: Tax Clearance Certificate



Whether a "Certificate of No Outstanding Tax Liability" issued by the Bureau of Internal Revenue (BIR), Revenue Region (RR) No. 14, will suffice in lieu of the Tax Clearance Certificate issued by the BIR National Office for eligibility purposes.


The requirement to submit the bidder's Tax Clearance under Section 34.2 of the IRR of RA 9184 is based on Executive Order (EO) No. 398. Section 1 of EO 398 requires the submission of Tax Clearance issued by the BIR to prove full and timely payment of taxes of all persons desiring to enter into or participate in any contract with government. Tax Clearance as defined under BIR RR No. 3-2005 refers to the clearance issued by the Accounts Receivable Monitoring Division (ARMD) attesting that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account.


Since the Tax Clearance required under Section 34.2 of the IRR is that issued by the BIR-CED, which should be in the form defined in RR 3-2005, a Certification issued by a BIR Revenue Regional Office is not the clearance contemplated under Section 34.2 of the IRR of RA 9184.