BIR reduces requirements for tax clearance, orders frontline to issue CAR within 5 days

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Heeding the call of the President of the Republic, the Bureau of Internal Revenue (BIR) begun its journey towards change through two (2) revenue issuances which effectively cuts down on red tape in the processing of Tax Clearance Certificates (TCC) and the issuance of Certificates Authorizing Registration (CAR).

Revenue Memorandum Circular (RMC) No. 74-2016 streamlines the requirements and the process in the issuance of TCCs required under Executive Order No. 398. The said issuance mandates that all TCCs shall be processed and released within two (2) 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 (2) 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.

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The criteria for approving applications for TCC shall be governed by existing issuances which includes no unpaid Annual Registration Fee, no open valid “stop-filer” case, user of the eFPS for at least two (2) consecutive months prior to the application for TCC, not tagged as “Cannot Be Located” taxpayer, and no delinquent account.

Revenue Memorandum Order (RMO) No. 41-2016 on the other hand mandates strict adherence to the BIR’s Citizen Charter and the provisions of Republic Act (RA) No. 9485, otherwise known as the Anti-Red Tape Act of 2007 (ARTA), in the processing and issuance of CARs.

The said RMO 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.

It also pegs at five (5) 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 (5) to ten (10) days. Officials and employees found to have violated this directive shall be subject to the criminal and administrative penalties provided under the ARTA.

The RMO responds to complaints raised by taxpayers of CARs issued well beyond the prescribed period.

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Note: This news was sourced from media release in the official website of the Bureau of Internal Revenue.


Disclaimer: Opinions expressed in this article are that of the author and information provided are for general conceptual guidance for public information and are not substitute for expert advice. Contact support@philcpa.org for more information and if you want to avail professional services. Find us on Facebook!



Orlando Calundan is a CPA who has exposures in FS audit of entities in various industries such as real estate, food/restaurants, manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements.

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