NPM No. 002-2016

Requesting Entity: Provincial Government of Nueva Ecija

Issues Concern: Continuing Validity of Tax Clearance



Whether a Tax Clearance, which was valid at the time of bid opening, should be renewed by the bidder if it has expired prior to the award of the contract.

EO 398 requires that a bidder should not have any tax liability with the Government from the time of submission of its bid up to the time of contract award. Accordingly, bidders are required to secure and submit a valid Tax Clearance issued by the BIR as proof of compliance with the requirements of EO 398. In the event that the submitted Tax Clearance expires prior to award of contract, the bidder is obligated to renew and update its Tax Clearance.