RMO No. 57-2019: Revokes RMO No. 12-2015 relative to the updated procedures in the implementation of the Memorandum of Agreement between the DPWH and the DOF

Summary

RMO No. 57-2019, issued December 2, 2019, revokes RMO No. 12-2015 on updated procedures under the Memorandum of Agreement between the Department of Public Works and Highways (DPWH) and the Department of Finance.

Key points

1. What is revoked. The RMO No. 12-2015 provision on filing the Application for Contractor’s Final Payment Release Certificate (BIR Form No. 0217) is revoked and no longer enforced. So is the presentation of the BIR-approved certificate to the DPWH for release of a contractor’s final payment.
2. Tax clearance is enough. Under E.O. No. 398, s. 2005 (Revenue Regulations No. 3-2005) and Section 23.1 a) iii) of the 2016 IRR of RA No. 9184, only a BIR tax clearance is required as proof of full and timely payment of taxes. It is already mandatory for bidding on infrastructure projects.
3. Duplicate requirements. The attachments to BIR Form 0217 and the Final Billing requirements under Department Order No. 148 series of 2018 (DoTS) duplicate each other. This burdened contractors dealing with two agencies.

Who is affected

• Contractors of the DPWH

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.