Before any government agency awards you a contract, they need proof that you’ve been paying your taxes. That’s where the tax clearance comes in. Under RA 9184, a valid tax clearance is a mandatory Class A eligibility document — no clearance, no bid. Period. The Bureau of Internal Revenue issues this document, and getting it requires a clean tax compliance record.
A tax clearance certificate certifies that your business has filed all required tax returns and paid all taxes due up to the date of issuance. For government bidders, this specifically refers to BIR Revenue Memorandum Circular No. 37-2019, which outlines the requirements for bidding-related tax clearances.
- The tax clearance must be issued within 30 days before the bid submission deadline — older clearances are considered invalid and will be rejected by the BAC
- Apply at the BIR Revenue District Office (RDO) where your business is registered — bring a completed BIR Form No. 2316 or a notarized request letter stating the purpose (government bidding)
- You’ll need to present: Certificate of Registration (BIR Form 2303), latest audited financial statements, proof of filing and payment of all tax returns for the past 3 years, and valid Mayor’s Permit
- The BIR will check your tax compliance status, including income tax, VAT or percentage tax, withholding taxes, and any tax assessments or deficiencies
- Processing time is typically 5 to 10 working days, but it can take longer if there are discrepancies in your tax records or if you have outstanding tax liabilities
- A Tax Clearance Certificate is different from a Certificate of Tax Exemption — make sure you’re applying for the right one: Certificate of Tax Clearance specifically for government bidding purposes
- If the BIR finds any deficiency, you’ll need to settle it first before the clearance can be issued — unpaid taxes or unfiled returns are the most common reasons for denial
You can find the relevant forms and procedures on the BIR website at bir.gov.ph. For the full list of eligibility documents that go with your tax clearance, refer to the Omnibus Sworn Statement, which includes a certification that you’re tax-compliant. You’ll also need your PhilGEPS Certificate and a statement of net worth as part of the same eligibility packet. Our guide on bidding documents for government projects covers how all these documents fit together.
Don’t wait until the last week before bid submission to apply for a tax clearance. If there’s any issue with your BIR records — even a small unfiled quarterly return — the clearance won’t be issued until you fix it. Start the process at least a month before your target bid date so you have time to resolve any problems.
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