BIR cuts tax clearance certificate requirements

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The Bureau of Internal Revenue (BIR) has released two revenue orders it said are meant to align with President Rodrigo Duterte’s call to streamline government process.

The revenue-generating agency said in a statement the new issuances involve the cutting down on red tape in the processing of Tax Clearance Certificates (TCC), and the issuance of Certificates Authorizing Registration (CAR).

Revenue Memorandum Circular (RMC) 74-2016 streamlines the requirements and the process in the issuance of TCCs required under Executive Order 398.

The said issuance mandates that all TCCs shall be processed and released within two working days from the submission of the complete documents.


The number of documentary requirements was also reduced from nine to three.

“Applicants now need only to submit a notarized application form with two pieces of loose Documentary Stamp Tax (DST), Print-out of Certification Fee paid thru the BIR’s Electronic Filing and Payment System (eFPS) with payment confirmation, and Delinquency Verification issued by the concerned BIR office,” it said.

The issuance further requires the issuance of the Delinquency Verification within 24 hours from the filing of the application by the taxpayer and shall have a validity period of one month from the date of issue, it added.

The BIR said criteria for approving applications for TCC shall be governed by existing issuances which includes no unpaid Annual Registration Fee, no open valid “stop-filer” case, user of the eFPS for at least two consecutive months prior to the application for TCC, not tagged as “Cannot Be Located” taxpayer, and no delinquent account.

Meanwhile, Revenue Memorandum Order 41-2016 mandates strict adherence to the BIR’s Citizen Charter and the provisions of Republic Act (RA) 9485, or the Anti-Red Tape Act of 2007 (ARTA), in the processing and issuance of CARs.

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

It also specifies the CAR shall be issued five days from the submission of the complete documentary requirements, in contrast to the previous time frame of five to 10 days.

“Officials and employees found to have violated this directive shall be subject to the criminal and administrative penalties provided under the ARTA,” BIR said.

The RMO is in response to complaints raised by taxpayers of CARs issued well beyond the prescribed period, it added.

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