Requesting Entity: LGU Dipolog City

Issues Concern: Tax Clearance Certificate

Details

Whether the Bids and Awards Committee (BAC) could require, in lieu of a Tax Clearance Certification, the submission of a document specifying the supplier has no outstanding tax obligation or is not in the master list of delinquent taxpayers, issued by the local district revenue office of Bureau of Internal Revenue

[T]his office had the occasion of clarifying that a “Certificate of No Outstanding Tax Liability” from a BIR Regional Office cannot be a substitute to a Tax Clearance Certificate issued by the Accounts Receivable and Monitoring Division at the BIR Central Office.

[T]he BAC can only require its bidders to submit a Tax Clearance Certificate issued by the Accounts Receivable Monitoring Division as a legal eligibility document, in accordance with Sections 23.1(a)(iii) and 24.1(a)(iii) of the revised Implementing Rules and Regulations of Republic Act No. 9184 and Executive Order No. 398, Series of 2005.