The Bureau of Internal Revenue (BIR), through two revenue issuances, will effectively cut down red tape in processing Tax Clearance Certificates (TCCs) and issuing Certificates Authorizing Registration (CAR).
Revenue Memorandum Circular (RMC) 74-2016 streamlines requirements and process in issuance of TCCs required under Executive Order 398.
The 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 (9) to three (3).
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.
The issuance further requires the issuance of the Delinquency Verification within twenty four (24) hours from the filing of the application by the taxpayer and shall have a validity period of one (1) month from the date of issue.
The criteria for approving applications for TCC shall be governed by existing issuances which include 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.
Revenue Memorandum Order (RMO) 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 CAR.
This RMO reiterates the documentary requirements relative to applications for the issuance of CAR 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 pegs at five days from the submission of the complete documentary requirements the number of days within which the CAR shall be issued in contrast to the previous time frame of five to ten days.
Officials and employees found to have violated the directive shall be subject to the criminal and administrative penalties provided under the ARTA.
The RMO responds to complaints raised by taxpayers of CAR issued well beyond the prescribed period.