A Tax Clearance is an official document issued by the Bureau of Internal Revenue (BIR) in the Philippines. It is commonly requested by the taxpayers or businesses used as a verification to the investors or clients that the business is tax compliant or of good standing. This is also a required document to apply for government tenders or render particular services.
If you need to get a Tax Clearance, it is important that you have kept the BIR documents of your business or company. It is also favorable if you don’t miss a tax payment before. Moreover, you must know the location of the Revenue District Office (RDO) in the locality where your company/business belongs and also the BIR Regional Office.
Tax Clearance Requirements
- You need to be a registered taxpayer in the BIR Electronic Filing and Payment System (eFPS), an online portal that allows taxpayers to file and pay income taxes online. If not, you need to go to your Revenue District Office (RDO) to enroll to eFPS and bring the following:
- Certificate of Registration (COR)
- Letter of Request for the enrollment in eFPS. Include 2 authorized users with the following details: name, email, contact numbers and position.
- You should not miss any tax payment before and bring the tax payment form and printed BIR acknowledgement email. Otherwise, you need to settle your taxes in the office and pay for penalty.
- Written request for tax clearance.
How to Get Tax Clearance
- Go to the RDO and bring a written request for tax clearance and other requirements/documents.
- The RDO will check if you have any delinquency or missed tax payment. If you have a payment delinquency, you will be asked to pay for it including a penalty fee.
- If everything is cleared, the RDO will give you the Certificate of No Tax Liability.
- Pay for the Tax Clearance Certification Fee worth ₱100 through eFPS. Then, attach the eFPS Bank Payment Confirmation Receipt.
- Go to the BIR Regional Office and bring the following:
- Certificate of No Tax Liability
- Application Form for Tax Clearance – Application forms can be found on the BIR Website
- BIR Form 0605 (Payment Form) and eFPS Bank Payment Confirmation Receipt (from paying the Tax Clearance Certification Fee – see Step 4)
- Photocopy of Certificate of Registration (COR)
- Previous tax clearance issued
- 2 loose documentary stamps (do not affix)
- Letter of Request for Tax Clearance
- Latest Tax Returns filed and paid through eFPS from the payment for Registration Fee
- After the submission of all your documents, patiently wait for further instructions. If everything is cleared, you’ll be called to claim your Tax Clearance.
The Tax Clearance is valid for 1 year.