InTAX: December 2020 Issue 2 | Volume 1

Bureau of Internal Revenue

 

The Bureau of Internal Revenue (BIR) issued the following:

Revenue Memorandum Circular (RMC) No. 121-2020, 26 October 2020, to disseminate the availability of the Online Application for Tax Clearance for Bidding Purposes and Tax Compliance Verification Certificate (eTCBP/TCVC) as an additional option to taxpayers in the filing of the application for tax clearance verification certificate and tax clearance for bidding purposes address for taxpayer-applicants registered with Revenue Region (RR) 4-Pampanga, 7A-Quezon City, 7B-East NCR, Large Taxpayers Service (LTS) except Large Taxpayers District Office (LTDO) Cebu and Davao; and for Non-Resident Foreign Corporation and Non-Resident Alien Not Engaged in Trade or Business.

 

The following are the salient points of the RMC:

º  All prospective government bidders except non-resident foreign corporation (NRFC), non-resident alien not engaged in trade or business (NRA-NETS) and large taxpayers, are required to secure a Tax Compliance Verification Certificate from the Collection Section of the concerned Revenue District Office (RDO) where the individual or non-­individual taxpayer is currently and duly registered as a requirement before an application for Tax Clearance for Bidding Purposes (TCBP) shall be filed. The applicants shall electronically file their applications for TCVC through the BIR Centralized email address.

 

º  All applications for the issuance of the prescribed TCBP are encouraged to electronically file and submit the necessary documentary requirements to the BIR Centralized email address using the prescribed template, to be processed and issued by the following concerned BIR Offices:

a.     Collection Division of the Revenue Regional Office for Non-Large Taxpayers

b.     Large Taxpayers Collection Enforcement Division (LTCED) for other Large Taxpayers not under the jurisdiction of LTD-Cebu and Davao; and

c.      Accounts Receivable Monitoring Division (ARMD) for Non-Resident Foreign Corporation (NRFC)/Non-Resident Alien Not Engaged in Trade or Business (NRA­NETB), and other entities authorized by the Commissioner of Internal Revenue.

 

º    Documentary Requirements:

A.        Tax Compliance Verification Certificate (for Non-Large Taxpayers only)

1. Application Form for Tax Compliance Verification Certificate (Annex "C" and "C.1");
2. Proof of payment of certification fee worth P100.00 with payment confirmation; and
3. Proof of payment of documentary stamp tax worth P30.00 with payment confirmation.

B.        Tax Clearance for Bidding Purposes (for Large and Non-Large Taxpayers)

1. Duly accomplished and notarized Application Form for Tax Clearance (Annex “C.2” or “C.3”) with proof of payment of documentary stamp tax worth P30.00;
2. Proof of payment of certification fee worth P100.00 with payment confirmation;
3. Proof of payment of documentary stamp tax worth P30.00 with payment confirmation;
4. For non-large taxpayers, copy of the approved TCVC issued by the Collection Section of the concerned Revenue District Office; and
5. Special Power of Attorney (SPA) or Authorization Letter signed by the applicant.

C.        Tax Clearance for Bidding Purposes (for Non-Resident Foreign Corporation (NRFC)/ Non­-Resident Alien Not Engaged in Trade or Business {NRA·NETB):

1. Duly accomplished and notarized Application Form for Tax Clearance (Annex “C.4”) with attached proof of payment of documentary stamp tax worth P30.00;
2. Special Power of Attorney (SPA) of the Authorized Representative in the Philippines authenticated by the Philippine Consul in the country where the business of the foreign corporation/ individual is located, as authorized by the Board of Directors or governing body of the Foreign Corporation or by the Foreign Individual;
3. Proof of payment of certification fee worth P100.00;
4. Proof of payment of documentary stamp tax worth P30.00;
5. Unexpired and original copy of Non-Registration Certificate issued by Securities and Exchange Commission for NRFC or Department of Trade and Industry for NRA-NETB;
6. Authorization letter originally signed by the Authorized Representative/applicant himself;
7. Copy of TIN Registration (BIR Form No. 1904) (in case of new application).

 

º    All applications for TCBP/TCVC shall be processed, issued and released within two (2) working days from the receipt of application if filed manually, or upon acknowledgement of application via email if filed electronically.

 

º   The TCVC shall have a validity period of ninety (90) days from the date of issuance, unless sooner revoked for valid reasons while the TCBP has a validity period of one (1) year from date of issuance, unless sooner revoked for valid reasons.

 

RMC No. 122-2020, 3 November 2020, to publish the full text of the letter from the Food and Drug Administration (FDA) of the Department of Health (DOH) with regard to the list of VAT-Exempt Drugs under the Joint Administrative Order No. 2-2018.

The RMC was issued to notify and inform all the concerned revenue officers, employees and others, on the clarification letter pertaining to certain drugs included in the initial list provided for by the FDA as circulated through RMC No. 62-2020 and RMC No. 101-2020.

Further, the RMC has annexed the letter issued by the FDA.

RMC No. 123-2020, 3 March 2020, to publish the full text of the Memorandum of Agreement (MOA) between the BIR and the Land Registration Authority (LRA).

The MOA contains consensus between the BIR and LRA to share the personal data or information of the taxpayers and the registered property owners relevant to land titles, respectively, as well as the type of personal data to be shared, the mode of data sharing, frequency, and other operational details as specified in the Technical Annex of the MOA.

The RMC has annexed the MOA as well as the Technical Annex and Annex A – Description of Data to be shared by the LRA to the BIR.

 

Attached are the full texts of the issuances.

FDA letter

RMC No. 121-2020

RMC No. 122-2020

RMC No. 123-2020

RMC No. 123-2020 MOA

RMC No. 123-2020 Annex A

RMC No. 123-2020 Technical Annex