REVENUE MEMORANDUM CIRCULAR NO. 43-2007 issued on July 6, 2007 prescribes the policies governing the issuance of Tax Clearance Certificates to contractors for bidding and collection purposes pursuant to Revenue Regulations (RR) No. 3-2005.

         To fully implement the requirements of the said RR, the Collection Enforcement Division (CED) of the Collection Service is directed to issue Tax Clearance Certificates only to contractors who are registered with and are using the Electronic Filing and Payment System (eFPS). However, a one-time Tax Clearance Certificate, which is valid for only one month, shall be issued to contractors who have not yet registered with the eFPS, to give them a chance to enroll and use the system and to help them continue with their businesses. Thereafter, they shall be required to comply strictly with the requirements of the law and regulations.

         Moreover, starting July 2, 2007, Tax Clearance Certificates to be issued by the CED shall have an effectivity date beginning with the date of issuance until December 31, 2007. Subsequently, all Tax Clearance Certificates shall have an effectivity date from January 1 to December 31 of each year, except for those contractors who are applying for the first time, in which case the effectivity date sha ll be from the date of issue until December 31 of the year when applications were submitted.