NPM No. 010-2018

Requesting Entity: Presidential Management Staff

Issues Concern: Lease of Real Property



Whether or not a prospective lessor that offers the most economical rental rate but who is not willing to submit a Tax Clearance may be awarded the contract if all of the interested providers cannot submit any one of the legal requirements under Republic Act (RA) No. 9184 and its 2016 revised Implementing Rules and Regulations (IRR).

As a clarification, a Tax Clearance is not among the documentary requirements for Negotiated Procurement under the Lease of Real Property and Venue modality embodied in Section 53. 10 of the 2016 IRR of RA 9184. Under Appendix “A” of Annex “H” of the 2016 IRR of RA 9184, only the following requirements are prescribed for the lease of privately-owned real property and venue, thus: (1) Mayor`s or Business Permit; (2) PhilGEPS Registration Number; and (3) Income or Business Tax Return.

For Lease of Real Property and Venue, which includes lease of office space, the contract shall still be awarded to the lessor that submitted the lowest calculated and responsive quotation, that is, the lessor complied with the requirements prescribed in Appendix “A” of Annex “H” of the 2016 IRR of RA 9184 and passed the technical and financial requirements set by the procuring entity.