RMC No. 20-2025: Clarification of certain policies, guidelines and procedures relative to the processing and issuance of Tax Clearance Certificate for Final Settlement of Government Contracts

Key points

1. Contracts covered. A TCFG is required and issued only for government contracts involving goods, consulting services and infrastructure projects done through public bidding under RA No. 9184, as amended by R.A. No. 12009.
2. Small value purchases. Procurement involving small value purchases does not require a TCFG.
3. When it is presented. The TCFG is presented only before final settlement of the contract with the supplier, on a per contract basis. In the example given, a contract with ten (10) installment payments needs it only before the 10th final settlement, and none for the initial and partial payments.
4. General purposes clearance. Under RA No. 11032, a Tax Clearance Certificate for General Purposes for collection purposes is no longer required from the contractor.

Who is affected

• Suppliers and contractors with publicly bid government contracts

Deadlines and effectivity

• TCFG presented before final settlement of each contract
• Issued March 20, 2025