Summary
RMO No. 2-2025 prescribes policies, guidelines and procedures for processing and issuing the Tax Clearance Certificate for Final Settlement of Government Contracts (TCFG).
Key points
- Who must secure a clearance. Natural or juridical persons, local or foreign, with existing government contracts for goods and services, including infrastructure, must secure an updated TCFG. Non-large taxpayer government contractors must also secure the TCVC-FG, and the TCFG is issued per contract.
- Processing offices. The Collection Section of the concerned RDO handles the TCVC-FG for non-large taxpayers. The Tax Clearance Section of the Regional Collection Division handles the TCFG for non-large taxpayers. LTD-Cebu, LTD-Davao or LTCED handle large taxpayers, and the Accounts Receivable Monitoring Division handles NRFC, NRA-NETB and other entities authorized by the CIR.
- Documents. Contractors, except NRA-NETB and NRFC, submit one original Certification of Collectible Final Payment (Annex C) from the government agency. Only applications with complete requirements under the Checklist of Documentary Requirements and the prescribed application forms are accepted.
- Criteria for issuance. No open valid stop-filer cases, and regular eFPS use for renewals (not for new applicants). The applicant must not be tagged Cannot Be Located (CBL) and must have no Accounts Receivable/Delinquent Account, subject to the exception for liabilities under a pending compromise or abatement application under Section 204. A TCFG also needs no pending criminal information from tax or tax-related cases.
- Processing time and validity. Applications are processed within two (2) working days. The TCVC-FG for non-large taxpayers is valid for ninety (90) days and approved by the Revenue District Officer. The TCFG is valid for one (1) year, unless sooner revoked, approved by the Chief of the Collection Division, LTD or LTCED, or ARMD, depending on the taxpayer.
- Posting. A TCFG is valid only after being posted on the BIR Website, which shows the name, TIN, RDO, control number and date of issuance.
Who is affected
- Persons with existing government contracts for goods, services, or infrastructure
- Non-large taxpayers
- Large taxpayers
- NRFC and NRA-NETB
Deadlines and effectivity
- Processing time: two (2) working days
- TCVC-FG valid ninety (90) days
- TCFG valid one (1) year
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.