One-year validity for tax clearance of government bidders

 (Revenue Regulations No. 8- 2016, December 7, 2016)

This Tax Alert is issued to inform all concerned on the latest amendments of guidelines for tax clearance of government bidders as required under Executive Order (EO) 398.

The tax clearance shall be valid for one (1) year, stretched from its previous six (6) month validity. As an additional condition, the applicant should not be tagged as “Cannot Be Located” taxpayer.

Applicants with pending application for compromise settlement/abatement shall still be issued with tax clearances provided that full amount offered for compromise is paid upon the application of compromise settlement or abatement of penalties.

When application for compromise settlement/abatement is denied within the one-year validity of the tax clearance, taxpayer-applicant shall be notified accordingly.   The applicant should fully settle unpaid tax liabilities within 30 days to avoid revocation of tax clearance previously issued

If a tax delinquency arises during the one-year period, the applicant shall be notified and the delinquency must be paid within 30 days.