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Home » RMC No. 121-2020

RMC No. 121-2020

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REVENUE MEMORANDUM CIRCULAR NO. 121-2020 issued on November 17, 2020 announces the pilot implementation of Online Application for Tax Clearance for Bidding Purposes (eTCBP) and Tax Compliance Verification Certificate (TCVC) as additional option for tax payer applicants registered with RR 4-Pampanga; RR 7A-Quezon City; RR 7B-East NCR; Large Taxpayers Service (LTS), except Large Taxpayers Division (LTD) of Cebu and Davao; and for Non-Resident Foreign Corporations (NRFCs) and Non-Resident Aliens Not Engaged in Trade or Business (NRAsNETB).

All prospective government bidders (individuals, partnerships, corporations, cooperatives, associations, whether taxable or non-taxable, etc.), except NRFC, NRA-NETB and large taxpayers, are required to secure a TCVC from the Collection Section of concerned Revenue District Office (RDO) where the individual or non-individual taxpayer is currently and duly registered, as a prerequisite requirement before an application for Tax Clearance for Bidding Purposes (TCBP) shall be
filed. The taxpayer-applicants shall electronically file their applications for TCVC thru the BIR Centralized email address, etcvc@bir.gov.ph using the prescribed template as subject of the email, as a requirement in securing Tax Clearance for bidding purposes.

All applicants for the issuance of prescribed TCBP are encouraged to electronically file and submit the necessary documentary requirements to etcvc@bir.gov.ph using the prescribed template as subject of the email, to be processed and issued by the following concerned BIR offices:
a. Collection Division of the Revenue Regional Office for Non-Large Taxpayers;
b. Large Taxpayers Collection Enforcement Division (LTCED) for other Large Taxpayers not under the jurisdiction of LTD-Cebu and Davao; and
c. Accounts Receivable Monitoring Division (ARMD) for NRFC/NRA-NETB, and other entities authorized by the Commissioner of Internal Revenue (CIR).

The prescribed criteria pursuant to Revenue Regulations No. 8-2016, as amended, shall be observed by the taxpayer-applicant. By submitting the documents online, the taxpayer warrants them to be faithful and true copies from the original and that the taxpayer is bound to present/submit the original copy/ies when required by the processing office. The taxpayer’s email address used in the filing of the application will be the same email address that will be used by the processing office in
communicating with the taxpayer.

The documentary requirements for TCVC for Non-Large Taxpayers; TCBP for Large and Non-Large Taxpayers, and TCBP for NRFC/NRA-NETB are specified in the Circular.

For applications for TCVC/TCBP received by the wrong revenue/issuing-office (tax payer applicant is not registered within their jurisdiction), the receiving office shall reply to the taxpayer via email and advise them to submit their application to the correct revenue/issuing-office.

All applications for TCBP/TCVC shall be processed, issued and released within two (2) working days from the receipt of application, if filed manually, or upon acknowledgement of application via email, if filed electronically. Provided, that the complete documentary requirements are submitted and the prescribed criteria set forth under RR No. 8-2016, as amended, are fully satisfied as stated in the confirmation email that shall be sent to the taxpayer-applicant or issuance of a Claim
Slip for those applicants who filed manually (e.g. Application received on June 22, 2020 shall be released on June 24, 2020). Any application received after 12:00 noon shall be counted on the next working day. Furthermore, applications received during weekends and holidays shall be considered to have been received on the next working day. Taxpayer-applicant shall be required to re-apply for TCBP/TCVC and re-submit the application, together with the complete documentary requirements, and comply with the prescribed 2 criteria as indicated in the received e-mail notification on validation results if the application was denied. The TCVC shall be routed to concerned authorized official of the concerned Section, for checking of the prescribed criteria and for final approval of the Revenue District Officer.

In the absence of the concerned official, the next in rank shall initial/ sign/approve the TCVC. The TCBP shall be signed/approved by the following BIR officials:
a. Chief, Collection Division of the Revenue Regional Office – for taxpayers under the jurisdiction of Regional Offices;
b. Chief, LTD-Cebu/Chief, LTD-Davao/Chief, LTCED – for large taxpayers; and
c. Chief, ARMD – for NRA-NETB, NRFC and other entities authorized by the CIR.

In the absence of the aforesaid officials, the next-in-rank shall sign/approve the Tax Clearance. The TCVC shall have a validity period of ninety (90) days from the date of issuance, unless sooner revoked for valid reasons, while the TCBP has a validity period of one (1) year from the date of issuance, unless sooner revoked for valid reasons.

The TCBP/TCVC shall be prepared, approved by the authorized official and issued to the taxpayer-applicant who filed electronically by forwarding a scanned copy to the authorized email address of the taxpayer-applicant, while for those taxpayer-applicants who filed manually, the original copy shall be issued personally.

Tax Clearance Certificate for Bidding Purposes shall only be valid after the same have been posted in the BIR Website (www.bir.gov.ph). The information to be posted in the BIR Website shall include the taxpayer’s name, TIN, RDO where the taxpayer is registered, Tax Clearance’s control number and date of issuance.

The TCVC shall be verified for authenticity from the concerned RDO while the TCBP shall be verified for authenticity from the List of Tax Clearances Issued through the BIR Website www.bir.gov.ph/index.php/tax-clearance/released-tax-clearance.html. Tax Clearance Certificate not listed/posted in the BIR website shall be deemed to have originated from an illegal source.

The policies, guidelines and procedures in the conduct of post-evaluation and revocation of issued TCBP, including the processing of request for validation of its authenticity and filing of criminal charges against taxpayers presenting spurious Tax Clearances and documentary requirements, shall be observed pursuant to Revenue Memorandum Order No. 46-2018.

The procedures for taxpayer-applicants in getting the TCVC (for Non-Large Taxpayers only) and TCBP are specified in the Circular.

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