BIR extends tax clearance validity to 1 year

The Bureau of Internal Revenue (BIR) has extended tax clearance validity to one year from six months as among the streamlining efforts of the government to help local contractors participate in the bidding of government projects under the Public-Private Partnership (PPP) program.

This was clarified by the Bureau of Internal Revenue (BIR) during the 2nd Dialogue of the Department of Trade and Industry Philippines-Construction Industry Authority of the Philippines (DTICIAP) with the key players in the industry to keep up with the latest in the Philippine construction scene.

The dialogue was aimed to seek updates on the first CIAP dialogue held last February 16, 2017 on changes and new pronouncements on the provisions for tax clearance as part of bidding requirements, issuance of Civil Works Registry, hotline for contractor complaints, simplified procurement process in infrastructure building, 2017 investment priority plans, and flagship projects.

DTI Undersecretary Ruth B. Castelo, undersecretary for Competitiveness and Ease of Doing Business Group said the dialogue has sought to encourage more local and smaller contractors to participate in future government projects.

During the dialogue, Grace Lacerna of the BIR said that the effectivity of the tax clearance is now extended to one year, giving contractors more time to process their papers to participate in the PPP program.

To be able to participate in the bidding of any of the PPP projects, a contractor must also present a tax clearance as it is part of the documentation.

The BIR suggested that to avoid difficulties in entering a bid, contractors must duly accomplish a tax clearance. The BIR also clarified that the effectivity of the clearance is now extended to one year.

The Department of Public Works and Highways (DPWH) noted that there are 6,000 contractors enrolled in the registry but only 2,000 were participating in PPP projects.

Nimfa Potante of DPWH said they are trying to improve the capabilities of smaller contractors and encourage them to participate in the biddings. Contractors who will secure projects with the government may opt to upgrade their category in the registry.

DPWH has also emphasized the dedicated hotline for contractor’s complaints. The information can be viewed in the DPWH website and is currently being disseminated through e-mail and SMS.

According to the DPWH, some projects have already been rolled out for bidding by the department. Contractors to participate and submit documents through PhilGeps.

To simplify the procurement process, implementing agencies were also advised to get training every 6 months for knowledge updates. They also consolidated alternative methods of procurement to allow for faster and more convenient acquiring of infra services.

“Despite the hurdles, there is no doubt that the construction industry is more than ready, and excited to build, build, build,” said Castelo.

Now that issues have been pointed out and the implementing agencies are actively taking part in bringing resolutions, Castelo said the industry is evidently entrusting the local contractors to handle major infrastructure projects.

The CIAP is the central authority of the construction industry mandated to promote, accelerate, and regulate growth and development of the construction industry in conformity with the national goals.

The DTI-CIAP said that the dialogue provided a platform for all industry sectors to exchange notes and express intent to ramp up the Infrastructure agenda in the Golden Age of Infrastructure.

Participating in the 2nd dialogue were representatives from Department of Transportation (DOTr), BIR, Board of Investments (BOI), Bases Conversion Development Authority (BCDA), Department of Labor and Employment (DOLE), Philippine Overseas Employment Authority (POEA), Government Procurement Policy Board (GPPB), Technical Education and Skills Development Authority (TESDA), Clark Development Corporation (CDC), Department of Public Works and Highways (DPWH), Philippine Government Electronic Procurement System (PHILGEPS), Philippine Contractors Association (PCA), and the Chairmen of the different Implementing Boards of CIAP.