RR No. 8-2016 — Amends certain provisions of RR No. 1-2016 re: processing of applications for Tax Clearance for participation in government procurement (Published in Manila Bulletin on December 7, 2016)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE PUEDAN OF HTDRNAL REVENUE WECORES MGT DIVISIOS DEC 0 6 201S. 1: 40**-: tkreOA

RECEIVE

November 2, 2016

Revenue regulations no. 8. 201e

SUBIECT Amending Certain Provisions of Revenue

Regulations No. 1- 2016

TO All Internal Revenue Officers and Others Concerned

SEcrioN 1. ScoPE.- Pursuant to Sections 7(a) and 244 of the National Internal Revenue Code, these regulations are hereby promulgated for the purpose of amending certain provisions of Revenue Regulations No. 1-2016.

Revenue Regulations 1-2016 is hereby amended. A new Item 4.0 is inserted to read as follows: SEctIon 2. AmENdmENT.- Item 4.0 (Specific Provisions) of

4.0 Specific Provisions

X X X X X X X X X X X X

4.2 Acceptable Tax Returns Submissions for Participation Government Procurement--Only tax returns filed thru the BIR's Electronic Filing and Payment System (eFPS) will be accepted as the reguired submission under Section 1 of Executive Order No. 398.

4.3 Validation of Tax Return and its applicable attachment/s by the Procuring Government Entity--The tax returns and its attachments

concerned Office under the Large Taxpayers_.Service,if the bidder is (e.g. Audited Financial Statements, etc)must be validated with the

-lassified as a large..taxpnver or with the Revenue District Office where the bidder is registered.

4.4 Tax Clearance--The.filina.and processing of applications for Tax Clearance for Bidding Purposes_shall be governed by the following guidelines and policies:

in accordance with the requirement under RA No. 9184 and E0 No. 398 shall be manually filed with the Office of the 4.4.1 All applications for the issuance of Tax Clearance

National Office, until such time that an online application for Accounts Receivable and Monitoring Division (ARMD) in the this purpose has been made available for use of prospective bidders.

4.4.2 To prove full and timely_payment of taxes as required under Executive Order No. 398._a Tax Clearance with a validity period of one (i) year.from the.date oi issuance, unless sooner revoked.for valid reasons, shall be issued to any applicant whohas satisfied the following criteria:

a. No unpaid annual registration fee: b. No open valid "stop-filer" cases; c. A regular user of the BIR's eFPS for at least two (2)

consecutive months prior to the application for Tax Clearance;

The reguired two (2) consecutive months usage of eFps shall only apply to new applicants. For those which were previously issued Tax Clearance for bidding purposes, the requested Tax Clearance sha!l only be issued if they are found to be regular eFPs users from the time of enrollment up to the time of filing of application.

d. Not tagged as "Cannot Be Located" taxpayer: C No pending criminal information has been filed in any.

court of competent jurisdiction arising from any tax_or tax related cases: and

e. No delinguent account.

For purposes of this regulations, delinquent account shall refer to the outstanding tax Habilities arising either frorn self-assessed taxes (i.e. unpaid second installment of incorne tax due per income tax return filed, unredeemed

POJ INTERNALPEWN diahonored check. tax royments using expired RACeRS MOE DVeON Tax Debit Memo and any unpaid tax due as

DEC 0 26.1

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declared in the tax return filed) or as a result of an audit or third party information through the issuance of an assessment notice which was not validly protested within the prescribed period.

For applicants with delinquent accounts but the tax liabilities involved...were the...subject...of .a pending..application for compromise_settlement or abatement_of penalties pursuant to Section Clearance shall 2o4 of..the Tax..Code...as amended, .a Tax nevertheless.....be issued. Providedhowever, that the applicant has fully paid the amount offered for payment upon the application.for..compromise....settlement.or abatement of.penalties. In cases where during the one (i...year validity period_of the Tax Clearance,..the application for...compromise settlement/abatement...was....denied...by:the National/Regional Evaluation Board/Commissioner as the case may be,.the taxpayer-applicant..shal...... be notified of such denial. The taxpayer will be given..a period of thirty_(30) days within which to fully settle the unpaid tax liabilities....otherwise, the.tax clearance issued to him shall be revoked.

4.4.3 In the event...that a.tax delinguencywill.arise during the one (1) year validity period of the Tax Clearance. the concerned taxpayer shall be notified thereof._A period of thirty (30) days will be given to the taxpayer to fully settle the tax liabilities; otherwise, the Tax Clearance shall cease to be valid.

4.4.4 The name of the prospective bidders/taxpayers who shall be found to have submitted a spurious Tax Clearance to any Procuring Office shall be forwarded to the Prosecution Division of the Bureau for the filing of the appropriate criminal charges. The Procuring Agency, on the other hand, shall impose the appropriate administrative penalty, in accordance with Section 69 of Republic Act No. 9184.

No Tax Ciearance shall be issued to the prospective

TRAU CF INTERNAY RTVENE ECOXTSMGT DEC 06 2061# 141 ia the criminal case filed against the prospective bidder is resolved or the administrative sanctions imposed by the provided under 4.4.2 of this regulations, until such timc that tidder, notwithstanding the satisfaction of the criteria

concerned procuring agency has been lifted, whichever is applicable.

4.5 Validation of Tax Clearance by the Procuring Government Agency-- A Tax Clearance obtained under paragraph 4.4 above must be verified for authenticity from the list_of of Tax Clearances issued and published in.. the_.BIR.website(www.bir.gov.ph...by..accessing.Tax Clearance_under."announcement" then.choose the applicable_period of issuance...Those. Tax Clearances which have been revoked for valid reasons are also posted in the BIR website.

SEcTION 3. REPEALING CLAUSE.* Al! issuances which are inconsistent herewith are hereby amended, modified or repeaied accordingly.

This Order shall take effect immediately

CARLOS G. DOMINGUEZ III Secretary

Recommending Approval: oC PUREAU OT INTEKNAL REYENUE HEEORDS MGT DIVISKOI DEC 0 6 2016 T:4DA M

Commissioner of Internal Revenue CAeSAr r. DULAY FECEIVED

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