Streamlined processing of CARs and tax clearance

(Revenue Memorandum Order No. 41-2016 and Revenue Memorandum Circular No. 74-2016, July 12 and 13, 2016 respectively)

This Tax Alert is issued to inform all concerned that processing of Certificate Authorizing Registration (CAR) and tax clearance applications should comply with the timelines prescribed in the regulations.

RMO 41-2016 reiterates that CARs shall be issued within five (5) days from the submission of complete documentary requirements pursuant to the provisions of RMC 39-2015 (Updated BIR Citizens Charter as Consolidated). This refer to CARs covering transactions on sale of real property, transfer or assignment of shares of stock traded in the stock exchange, transfers subject to donor's tax, estate tax and other taxes including the related documentary stamp tax.

RMC 74-2016 streamlines requirements of tax clearance which shall be processed and released within two (2) working days from the submission of the following documents:

a. Duly accomplished and notarized application form with two pieces loose DST;
b. Print-out of Certification fee paid thru BIR’s eFPS, with payment confirmation; and
c. Delinquency Verification issued by concerned LTS or National/Regional Offices with a validity period of one (1) month from the date of issue.

Delinquency verification shall be issued by the concerned BIR offices 24 hours from taxpayer’s filing of application.

Officials and employees found to be in violation of these issuances shall be subject to the administrative and criminal penalties enumerated under RA 9485, otherwise known as the “Anti-Red Tape Act of 2007”