NPM No. 009-2018

Requesting Entity: Province of Ifugao

Issues Concern: Income/Business Tax Return



Whether the annual or quarterly income or business tax return is the mandatorily required document for projects undertaken through the Alternative Modes of Procurement, particularly, Negotiated Procurement (Small Value) under Section 53.9 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

The mandatory documents to be submitted by the suppliers, manufacturers, distributors, contractors, and consultants are enumerated in Appendix A of the Consolidated Guidelines for the Alternative Methods of Procurement or Annex “H” of the 2016 revised IRR of RA 9184.

Under Appendix A of Annex “H” of the 2016 revised IRR, the following are the documentary requirements prescribed for Negotiated Procurement (Small Value), namely: (1) Mayor`s/Business Permit; (2) Philippine Government Electronic Procurement System (PhilGEPS) Registration Number; (3) Income/Business Tax Return ; and (4) Omnibus Sworn Statement, in addition to (a) Professional License/Curriculum Vitae or (b) Philippine Contractors Accreditation Board (PCAB) License for the procurement for Consulting Services or Infrastructure Projects, as the case may be. (Emphasis ours)

Anent the submission of the Income/Business Tax Returns, we refer you to Sections 3.2 and 3.3 of Revenue Regulation (RR) No. 3-2005, which define what would constitute the latest Income Tax Return (ITR) and business tax return, respectively. For a new establishment having no annual ITR, the latest ITR refers to the most recent quarter`s ITR, while the latest business tax return of a new establishment with less than six (6) months operations refers to the monthly business tax return filed as of date of submission of bids.