NPM 021-2013

Requesting Entity: Alexis Security Agency Provider Phils. Co., Inc. (Alexis)

Issues Concern: Tax Clearance Requirement



Whether a bidder may merely submit a certification of clearance issued by the Regional District Office (RDO) of the Bureau of Internal Revenue (BIR) in lieu of a valid/current Tax Clearance as required under Section 34.2 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

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 Revenue Regulations (RR) No. 3-2005 refers to the clearance issued by the Collection Enforcement Division (CED) attesting that the taxpayer has no outstanding Final Assessment Notice and/or delinquent account.

Considering the foregoing, 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. Thus, a certification issued by the RDO of the BIR is not in compliance with Section 34.2 of the IRR of RA 9184.