BIR Ruling

July 1, 1969 Action Line c/o The Manila Times P. O. Box 775 Manila S i r : This is in reply to the questions posed in the letter of Mr. Alfredo Buenaflor. cdlex The increased cost of securing a tax clearance certificate is brought about by the imposition of the science tax prescribed by R. A. No. 5448. The requirement of tax clearance to be secured by persons leaving the Philippines is provided for by Section 343 of the Tax Code. The documentary stamp tax on tax clearance certificate is not a mere service fee but an internal revenue tax prescribed by Section 225 of the Tax Code. A tax clearance is valid for thirty days from date of issue, renewable for another thirty days upon application before its expiry date. The efficacy of a tax clearance certificate is of limited duration because in the interim it is possible that the taxpayer will incur a tax liability. The individual income tax return is no proof at all that a person has no tax liability. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue