RMO No. 46-2018: Prescribes the procedures in the decentralized processing and issuance of Tax Clearance for Bidding Purposes required under RA No. 9184 and EO No. 398

Key points

1. Who needs a TCVS. Prospective government bidders must secure a Tax Compliance Verification Sheet (TCVS) from the Collection Section of the RDO where they are registered. Non-Resident Foreign Corporations, Non-Resident Aliens Not Engaged in Trade or Business, and large taxpayers are excepted. The RDO processes the TCVS within twenty-four (24) hours from receipt.
2. Criteria. The applicant must have no unpaid Annual Registration Fee, no open valid stop-filer case, must not be tagged Cannot Be Located, and must be a regular eFPS user for renewals (not required of new applicants). The applicant must have no Accounts Receivable/Delinquent Account, unless the liability is under a pending Section 204 compromise or abatement application and the amount offered has been fully paid. Tax Clearance also requires no pending criminal information on tax or tax-related cases.
3. Where and how fast. Applications are filed manually with the Collection Division of the Revenue Regional Office for non-large taxpayers, with LTD-Cebu, LTD-Davao or LTCED for large taxpayers, and with ARMD for NRA-NETB, NRFC and others authorized by the CIR. They are processed and released within two (2) working days from receipt with complete requirements.
4. Validity and posting. The Tax Clearance is valid for one (1) year from date of issuance unless sooner revoked. It is valid only after being posted on the BIR website, which shows the taxpayer’s name, TIN, RDO, control number and date of issuance.
5. Revocation. Grounds are disapproved compromise or abatement applications, spurious documents, non-compliance with the criteria, and misrepresentation. A Preliminary Notice of Revocation gives thirty (30) days from receipt to comply, followed by a Notice of Revocation, and spurious clearances are referred for investigation and criminal charges.
6. Renewal and transition. Renewal is by a new application under the same requirements, valid for another one (1) year. Clearances issued earlier by ARMD stay valid until their expiry dates, and holders apply for renewal with their Regional Offices or LTS at least two (2) months before expiry.

Who is affected

• Prospective government bidders
• Large taxpayers, NRFC and NRA-NETB (processed by designated offices)

Deadlines and effectivity

• TCVS processed within 24 hours; Tax Clearance released within two (2) working days
• Valid for one (1) year from date of issuance
• Compliance within thirty (30) days from receipt of Preliminary Notice of Revocation
• Earlier clearances: renewal applications at least two (2) months before expiry