Tax Clearance Online Process, Requirements and Fee

Tax clearances are issued by the Bureau of Internal Revenue. It’s a document that many businesses or taxpayers request in order to bid on government contracts or provide government services.

Additionally, this document can serve as proof that a business is in good standing or is tax-compliant. It is important to note that this tax clearance is only valid for one year after it is issued. It can, however, be revoked at any time if it is not in compliance with tax codes.

Business owners who need a tax clearance must renew it annually if they want to do business. You may miss out on important opportunities if you don’t have this document. Discover how the tax clearance process works by reading on.

To qualify, you must be a registered taxpayer in eFPS or the BIR Electronic Filing and Payment System. You cannot simply register today if you need a tax clearance now. There is no such thing as a free lunch.  

In order to renew your Tax Clearance Certificate, you must be a regular user of the eFPS from the time you enrolled. You must register in eFPS and provide two authorized users’ names, email addresses, positions, and contact numbers if you are not already registered.

If you are a new applicant, submitting your latest income tax and business tax returns that were filed elsewhere is essential. Additionally, you should consider the following factors:

It is not too late to overcome any of the above noted issues. The full amount for your compromise settlement or the penalties you incurred can still qualify you for a tax clearance certificate. The arrears of taxes must be paid if you have neglected accounting and bookkeeping.

To begin, you must submit a written request along with other requirements to the Revenue District Office. Wait for the RDO to verify that you have no unpaid taxes after submitting the appropriate documents.

In case you missed a tax payment, you will have to pay it as well as the penalty fee. The RDO or the Revenue District Office should give you the No Tax Liability Certificate once you have been cleared of unpaid taxes. P100 is the fee for tax clearance certification. Attach the confirmation receipt to the payment via eFPS. 

Tax certification fees must be paid at the regional BIR office and the following documents must be submitted:

Tax clearance has historically been a lengthy and tedious process, taking weeks or even months. Processing times have improved significantly as a result of technological advancements and administrative processes. Certain jurisdictions have achieved a 10-hour tax clearance processing time.

There is a P100 fee for tax clearance certification. Please attach the confirmation receipt when you pay the fee via eFPS. The following documents need to be submitted to the regional office of BIR after you have paid the tax certification fee: Letter of Request for Tax Clearance.

Please wait for further instructions after submitting the documents listed above. When you’re securing the tax clearance, extend your patience and prepare to wait since the process will take some time.

If you are interested in participating in government tenders or projects, you should prepare for the tax clearance in advance.

Verify your accounting records and past tax returns to ensure you’re compliant. Only after you are cleared will the BIR representatives contact you to obtain your tax clearance.

In order to have a smooth tax clearance process, make sure you satisfy the requirements outlined. In order to prove that your business is compliant with tax laws, you should obtain a tax clearance certificate if you own one.

By using this document, you’ll never miss an opportunity again. Contact our accounting firm if you need assistance securing a tax clearance.

We provide advice on BIR problems and solutions in addition to bookkeeping, accounting, and auditing.

The ability to obtain tax clearance within a short timeframe offers several benefits to taxpayers and businesses:

Tax clearance is vital for businesses seeking government contracts or providing services. It verifies tax compliance, essential for various transactions. With a 10-hour processing time in some areas, timely renewal is crucial. Understanding requirements and utilizing online processes can expedite clearance, ensuring no missed opportunities.