BIR cuts red tape on issuing tax clearances

True to President Rodrigo R. Duterte’s promise to cut on red tape, the Bureau of Internal Revenue (BIR) has made it easier and faster to secure tax clearance certificates (TCCs) as well as certificates authorizing registration (CARs).

Under Revenue Memorandum Circular (RMC) No. 74-2016 issued by BIR Commissioner Caesar R. Dulay last June 13, internal revenue officers were ordered to process and release TCCs within two working days upon submission of complete documentary requirements.

From nine previously, only three documents were now required: a notarized application form with two pieces of loose documentary stamp tax (DST); a delinquency verification issued by the concerned BIR office; as well as a print-out of the certification fee paid through the BIR’s electronic filing and payment system (eFPS), with payment confirmation.

BIR offices were also ordered to issue the delinquency verification within 24 hours after the taxpayer filed the application, RMC 74-2016 said.

The delinquency verification will have a one-month validity period, the BIR said in a statement.

According to the BIR, approval of TCC applications will still be covered by criteria put in place by previous issuances, including: having no delinquent account; no open valid “stop filer” case; no unpaid annual registration fee; not tagged as “cannot be located” taxpayer; and should be a user of the eFPS for at least two consecutive months prior to the TCC application.

Also, Dulay issued Revenue Memorandum Order (RMO) No. 41-2016 last July 12, which mandated strict adherence to the BIR’s Citizen Charter as well as the provisions of Republic Act No. 9485 or the Anti-Red Tape Act of 2007 when processing and issuing CARs.

According to the BIR, RMO 41-2016 “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.”

Under the order, CARs must be issued within five days of submission of complete requirements; in contrast, the previous time frame was five up to 10 days.

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

The BIR explained that Dulay’s order “responds to complaints raised by taxpayers of CARs issued well beyond the prescribed period.” JE/rga