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BIR cuts processing days for tax clearance, registration certificates

ID-100138536The Philippine Bureau of Internal Revenue (BIR) has issued two issuances cutting the processing of tax clearance certificates (TCC) and the issuance of certificates authorizing registration (CAR).

Revenue Memorandum Circular (RMC) No. 74-2016 streamlines the requirements and process for issuing TCCs, which are requirements under Executive Order No. 398. This issuance mandates that all TCCs be processed and released within two working days from submission of complete documents. The number of documentary requirements is also reduced from nine to three.

BIR, in a statement, said the two issuances heed the new administration’s call to speed up and simplify transactions at government agencies.

TCC applicants now need only submit a notarized application form with two pieces of loose documentary stamp tax (DST), a printout of the certification fee paid through BIR’s electronic filing and payment system (eFPS) with payment confirmation, and the delinquency verification issued by the concerned BIR office.

The issuance further requires the delinquency verification to be issued within 24 hours after the taxpayer files the application, and to have a validity period of one month from the date of issue.

BIR said the criteria for approving applications for TCC will be governed by existing issuances which include the applicant having no unpaid annual registration fee, having no open valid “stop-filer” case, being a user of the eFPS for at least two consecutive months prior to the application for TCC, not being tagged as “Cannot Be Located” taxpayer, and possessing no delinquent account.

Revenue Memorandum Order (RMO) No. 41-2016, on the other hand, mandates strict adherence to the BIR’s Citizen Charter and the provisions of Republic Act (R.A.) No. 9485, otherwise known as the Anti-Red Tape Act of 2007 (ARTA), in the processing and issuance of CARs.

The RMO reiterates the documentary requirements in filing applications for the issuance of CARs covering the sale of real property, transfer or assignment of stocks not traded in the stock exchange, and transfer subject to donor’s tax, estate tax, and other taxes including DST related to the sale or transfer of properties.

It also limits to within five days of submission of complete documentary requirements the number of days for issuing CAR, in contrast to the previous timeframe of five to 10 days.

Officials and employees violating this directive face criminal and administrative penalties provided under ARTA, said BIR.

This RMO is in response to complaints raised by taxpayers about CARs being issued well beyond the prescribed period, it added. – Roumina Pablo

Image courtesy of Keerati at


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