Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

The Philippines adopts online tax clearance system for government bidding

Tax clearance processing for government bidding is set to be more seamless in the Philippines after a rollout of an online system anticipated to give traditional bidding procedures a massive boost.

In a press release, the Bureau of Internal Revenue announced the launch of its Electronic Tax Clearance for Bidding Purposes and Tax Compliance Verification Certificate (eTCBP-TCVC) as part of the government’s most recent additions to its roster of online systems.

BIR Commissioner Cesar Dulay noted that the online tax clearance system was driven by the need to encourage more investments and cultivate a more conducive business atmosphere for interested investors amid restrictions brought by the COVID-19 pandemic.

Dulay added that they “are targeting to implement this online application [for] all prospective bidders nationwide soon, [as] part of our initiatives to fast track the processing and be more efficient in releasing tax clearances. This will also promote “no contact” taxpayer transactions that could lessen corrupt activities in the Bureau”.

According to a memorandum released, individuals, corporations, partnerships, cooperatives and associations, taxable and non-taxable, must first secure a Tax Certificate (TCVC) from the Collection Section of the Revenue District Office where he or she is registered. The TCVC, which can be accessed through the BIR website, is required for any application for tax clearance in relation to bidding transactions. The applicant may then send the application with all the required documents to the BIR’s email address for processing.

The online application is an additional method for taxpayers which can be utilised by those in certain areas in the country including the East-National Capital Region and the province of Pampanga. The system can also be availed of by non-resident aliens who are not currently engaged in any business in the Philippines.

The memorandum further stated that all tax documents shall be processed, issued and released in two working days, counted from the day the application is received, if filed manually, or upon acknowledgement of application via email, if filed electronically.

Earlier this month, the Department of Finance noted that 86% of tax payments made to the BIR were coursed through online channels. The finance department added that this figure constitutes PHP 1.24 trillion (US$ 25.8 billion) of BIR’s total collected taxes which amounted to PHP 1.45 trillion (US$ 30.1 billion) during the January to September period. This comes after BIR’s online transactions took a beating from restrictions made due to the COVID-19 pandemic.

The introduction of the online bidding system forms part of a slew of government-led initiatives aimed at infusing innovative technology to an otherwise traditional way of handling transactions. As earlier reported by OpenGov Asia, the Department of Information and Communications Technology (DICT) has formally launched an e-business application. This application, called the Electronic Business Permits and Licensing System or the eBPLS, allows businesses applying for permits and licenses to secure these documents online, hence, foregoing the need to wait in line at government offices.

The government-initiated programs come after President Rodrigo Duterte issued directives for an improved internet connectivity in the country, alongside orders to accelerate the implementation of innovative projects that would help citizens adapt to the new normal sparked by the pandemic.

One of these projects is the National Broadband Program under the wing of the DICT. The NBP is the country’s main blueprint for fibre optic and wireless technology programs that are anticipated to create faster and affordable connectivity channels even in remote or far-flung areas.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and consulting services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,800 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity, and service. For more information, visit www.ibm.com