Issuance of Multiple Tax Clearance for Filipino Businessmen

December 4, 1973 REVENUE MEMORANDUM CIRCULAR NO. 73-73 SUBJECT : Issuance of Multiple Tax Clearance for Filipino Businessmen TO : All Internal Revenue Officers and Others Concerned In his Memorandum dated September 7, 1973 designed to further encourage investments in the Philippines and to ensure mobility of those engaged in business or industry, the President desires that Filipino nationals working with multi-national companies established in the Philippines as well as Filipino businessmen whose business activities make it necessary for them to move in and out of the country be accorded the same treatment and facilities for travel granted to foreign personnel of multi-national companies with regional offices in the Philippines. Accordingly, in compliance therewith, said Filipino national or businessman may be issued a multiple tax clearance instead of the tax clearance ordinarily issued to a person every time he leaves the Philippines. A. Definition of a " Multiple Tax Clearance " A multiple tax clearance is a certificate issued to a qualified applicant who may use it for a period of six (6) months from the date of its issue subject to the payment of documentary and science stamps each time the holder or bearer desires to leave the country. B. Conditions for the issuance 1. That the Filipino national or businessman has been issued multiple exit permit by the Department of Foreign Affairs pursuant to its Implementing Order No. 9 dated September 26, 1973. 2. That he has filed his income tax returns during the last five years if he has been in business or has been engaged in the exercise of his profession or occupation during the same years. 3. That he has no outstanding internal revenue tax liability, as of the time he filed his application for multiple tax clearance. 4. That he shall have a guarantor who shall guarantee the payment of his tax liability. The liability of the guarantor shall subsist during the six-month period when the multiple tax clearance is in force and the same shall continue when the principal is still abroad. 5. The multiple tax clearance shall be subject to the corresponding documentary and science stamp taxes. C. Procedure in Processing Application for Multiple Tax Clearance The applicant after he has been granted a multiple exit permit by the Department of Foreign Affairs pursuant to its Implementing Order No. 9, dated September 26, 1973 may file his application for multiple tax clearance with the Chief, Tax Accounts Division, Bureau of Internal Revenue, Manila. He shall have at least one guarantor who shall guaranty payment of his tax liabilities which may be assessed against him after he is granted a multiple tax clearance. The guarantor should be of sound financial condition or one who owns unencumbered real property. The company where he is working is one of the desired guarantors. The guarantor's guaranty liability shall terminate only upon written notice to the Commissioner of Internal Revenue and this fact shall be indicated in the "guaranty" portion of the application form. Together with his accomplished application form, the applicant shall present proof that he has been granted "multiple exit permit" by the Department of Foreign Affairs; proof that he has filed his income tax returns during the proceeding five (5) years, if he had during said years, been engaged in business or in the exercise of his profession; and proof that all his taxes, if any, had been paid. Approved applications for "multiple tax clearance" shall be filed separately and each shall be numbered serially. A ledger control for each approved application shall be kept to record the name of the applicant, number of the multiple tax clearance certificate issued, the amount and date of its original issue, the amount and date of the subsequent affixture of documentary and science stamps. D. Use of Multiple Tax Clearance Certificate As soon as the application for multiple tax clearance is approved, the applicant shall be issued his multiple tax clearance certificate which will bear the words "Multiple Tax Clearance" stamped across the certificate. The "multiple tax clearance certificate" shall be shown (not surrendered) to the international carrier concerned by the applicant as his clearance at the port of departure. The multiple tax clearance shall be kept in the possession of the taxpayer until it expires. Each time the permittee desires to leave the country, he shall present his multiple tax clearance certificate to the Chief, Tax Accounts Division for the affixture of new or additional documentary and science stamps on it. This procedure is repeated each time the applicant desires to leave the country until the clearance expires. E. Duties of the International Carriers . International airlines and vessels shall upon being presented with a "multiple tax clearance" indicate in their passenger manifest the number and date of issue of the certificate. For expediency, the holder of a multiple tax clearance certificate may, upon booking of his departure trip, telephone the international carrier concerned the number and date of his multiple tax clearance certificate. From time to time, any international carrier may request the Chief, Tax Accounts Division, a list of applicants who were granted multiple tax clearance certificate. Strict compliance of all concerned is hereby enjoined. cdta MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Secretary ANNEX 1st Indorsement March 4, 1974 Respectfully returned to the Commissioner of Internal Revenue, Manila, the within Revenue Memorandum Circular No. 73-73, dated December 12, 1973, relative to the issuance of multiple tax clearance for Filipino businessmen, duly approved. CESAR VIRATA Secretary