Processing and Issuance of Tax Clearance to Exporters

March 25, 1977 REVENUE REGULATIONS NO. 04-77 SUBJECT : Processing and Issuance of Tax Clearance to Exporters TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 6 of Presidential Decree No. 930 requiring the promulgation of the requisite rules and regulations for the availment of quarterly tax clearance authorized in the said Section, the following regulations are hereby promulgated to govern the manner of issuance of tax clearance certificates to regular exporters and shall be known as Revenue Regulations No. 4-77. aisa dc SECTION 1. Scope . These regulations shall implement the pertinent provisions of Presidential Decree No. 930 and Rule XIII of the Rules and Regulations to implement the intent and provisions of Presidential Decree No. 930 issued by the National Economic and Development Authority. The pertinent provisions of Presidential Decree No. 930 regarding tax clearance are quoted hereunder: "Section 6. Tax Clearance for Regular Exporters . Regular exporters, as defined in the Rules and Regulations issued pursuant hereto, shall be granted tax clearances on a quarterly basis for the purpose of facilitating the processing of their export documents. Such clearances, however, shall not constitute a waiver by the government of any tax, penalty or interest that may be due from the exporter. At the end of every fourth quarter, a final liquidation of the taxes due the government shall be made by the exporter and no further clearance shall be issued until such liquidation is made. The quarterly tax clearance herein authorized shall be used in lieu of the tax clearances now required for every shipment. The Secretary of Finance, upon the recommendation of the Bureau of Internal Revenue, shall issue the requisite rules and regulations for the availment of the quarterly tax clearance authorized in this section. Section 10. Export Procedure Simplification and Documentation . In addition to the adoption of a simplified export procedure and the standardization of export documents provided for in the Rules and Regulations issued pursuant hereto, all government agencies concerned should exert efforts in simplifying export procedures and the documentation on a continuing basis." SECTION 2. Definition of " Regular Exporter ". Rule I(K) of the Rules and Regulations to implement the intent and provisions of Presidential Decree No. 930 as promulgated by the National Economic and Development Authority states that a "Regular Exporter" shall refer to the producer and/or trader of export products who is granted a periodic commodity clearance by the government commodity office concerned or a quarterly tax clearance by the Bureau of Internal Revenue based either on, or combination of, historical data, nature of the product, adopted processing system of the export product, volume of export trade carried and other relevant considerations that may be determined by said offices. SECTION 3. Officers authorized to issue tax clearance to exporters . The Commissioner of Internal Revenue, the Deputy Commissioner of Internal Revenue, the Chief, Receivable Accounts Division or any official designated by the Commissioner are hereby vested with the exclusive authority to issue tax clearance certificates to exporters, where the export documents are to be processed in Metro Manila and in the provinces of Rizal, Bulacan, and Cavite. Where the export documents are to be processed outside the above-mentioned area (Metro Manila, Rizal, Bulacan and Cavite), the Regional Director or the Revenue District Officer as the case may be shall process and issue the tax clearance certificate. SECTION 4. Documents required for tax clearance of exporters . Regular exporters shall accomplish an application (BIR Forms 17.61 I-EX or 17.61 C-EX) which are available at the offices authorized to issue the tax clearance certificate. SECTION 5. Tax clearance certificate . After the application for tax clearance has been duly processed, the tax clearance certificate (BIR Form No. 17.61-EX) shall be issued and the corresponding documentary and science stamp tax due pursuant to Section 235 of the National Internal Revenue Code, as amended, shall be affixed on the certificate and duly cancelled in accordance with Section 237 of the said Code. SECTION 6. Period of validity of the tax clearance certificate . The tax clearance issued to exporter (BIR Form No. 17.61-EX) shall be valid for one (1) quarter, and exporters are required to secure a tax clearance certificate for every quarter. cdt At the end of the fourth quarter, a final liquidation of tax due the government shall be made by the exporters, and no further clearance shall be issued until such liquidation is made. The quarterly tax clearance herein issued shall be used in lieu of the tax clearance previously required for every shipment. SECTION 7. Verification of tax liability . In accordance with Section 6 of Presidential Decree No. 930, a final liquidation of tax due the government shall be made by the exporters after the end of every fourth quarter, and no further clearance shall be made until such liquidation is made. The Chief, Receivable Accounts Division in the Central Office, the Regional Director or the Revenue District Officer, who issued the tax clearance to exporters shall upon the initial issuance of the tax clearance certificate for exporters compile a list thereof. On the basis of the list, the pending tax liabilities of the exporters issued tax clearance certificates shall be compiled and updated on a continuing basis through the additions of additional tax liabilities or the deduction of payments so that at any given time the amount of pending tax liabilities can be determined. At the close of the fourth quarter, the revenue officer who issued the tax clearance shall determine from the compiled records the exporters with pending tax liabilities, and they should be informed in writing of his pending tax liabilities in the first week after the end of the fourth quarter with the statement that unless they are settled within ten (10) days from the date of notice, no tax clearance for the first quarter of the current year shall be issued. SECTION 8. Effectivity . These Regulations shall take effect immediately. PEDRO ALMANZOR Acting Secretary of Finance Recommending Approval: EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8 ANNEX A BIR FORM 17 . 61-C-EX (March 1977) Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE APPLICATION FOR TAX CLEARANCE (For Corporation/Company) File No. _______________ EX TCC Issued No. ______________ REPUBLIC OF THE PHILIPPINES) METRO MANILA) S.S. I, ____________________, with Taxpayer Account No. _______________ Filipino, of legal age, single/married, with postal address at _____________________ ________________________ and presently connected with ______________ _____________________________ as ____________________________ and with business address at _________________________________________________, after having been duly sworn in accordance with law, hereby depose and say: 1. That __________________________________________ with Taxpayer Account No. ______________________ is a corporation/company duly organized and existing under and by virtue of the laws of the Philippines with office located at _____________________________________________________; 2. That our firm name, business trade name or style has been duly registered in the Bureau of Commerce on _________________, 19____, under Registry No. ____________________________ and in the Bureau of Internal Revenue on ____________________________, 19____, under BIR Registry No. _____________________; 3. That _____________________________ is provided with Privilege Tax Receipt for 19____, under Schedule _______________ issued at _____________ on ________________, 19______; 4. That ________________________ is a holder of Residence Certificate No. "C" ___________________ issued at _________________ on ________________________, 19____ and "C-1" ____________ issued at ________________________ on ______________, 19_____; 5. That for the last ______ years, it has been engaged in business as ___________________________ and has such consistently and faithfully paid all taxes, fees, and imports due from it; 6. That for the last five (5) years, it has filed its Income Tax Returns at the following BIR Offices located at: Year Address, BIR Office Gross Income __________ __________________________ ______________ __________ __________________________ ______________ __________ __________________________ ______________ __________ __________________________ ______________ __________ __________________________ ______________ 7. That it has been examined for all internal revenue tax liabilities for the following years: ______________________________________________ Xerox copy of letters of authority (BIR Form No. 19.65A) and letters of confirmation (BIR Form No. 19.65B), hereto attached. 8. That it has been issued an Exporter Tax Clearance Certificate on __________________________, xerox copy of which is hereto attached. 9. That this affidavit is being submitted in order to secure an Exporter Tax Clearance Certificate for the ___________ quarter of 19____. _____________________ Applicant/Affiant SUBSCRIBED AND SWORN to before me this _________ day of ____________, 19____ in ____________________________, affiant exhibited to me his/her Residence Certificate No. A- _______________ issued at _____________ on __________, 19 ___ and B- _______________ issued at _____________ on ___________, 19___. Affix 30 Documentary Stamp ______________________ NOTARY PUBLIC NOTE : To be filled by authorized representative. Named : _______________________________ Address : _______________________________ Signature : _______________________________ ANNEX B BIR FORM 17 . 61-I-EX (March 1977) Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE APPLICATION FOR TAX CLEARANCE (For Individual) File No. _______________ EX TCC No. ______________ REPUBLIC OF THE PHILIPPINES) METRO MANILA) S.S. I, ______________________ with Taxpayer Account No. __________ of legal age, single/married, presently residing at _______________________ ____________________________ and with business address at ___________________________________, after having been duly sworn to in accordance with law, hereby depose and say: 1. That I am a citizen of ______________ with ICR No. _______ issued at _________________ on ______________________; 2. That I have been a resident of the Philippines for _______ years; 3. That I am provided with a ______________ Privilege Tax Receipt for ___________________ under Schedule No. ___________ B/OTR _________________ issued at _________________________ on _______________________; 4. That my business trade name or style has been duly registered with the Bureau of Commerce under Registry No. _________________ on ______________________________; 5. That for the last five (5) years, my source/s of income are as follows: ______________________________________________________ ______________________________________________________ 6. That for the last five (5) years, I have filed my Income Tax Returns at the following BIR Offices located at: Year Address, BIR Office Gross Income __________ __________________________ ______________ __________ __________________________ ______________ __________ __________________________ ______________ __________ __________________________ ______________ __________ __________________________ ______________ 7. That I have been examined for all internal revenue tax liabilities for the following years: ______________________________________; 8. That I have been issued an Exporter Tax Clearance Certificate on _____________________ bearing serial No. _______________, xerox copy of which is hereto attached. 9. That this affidavit is being submitted in order to secure an Exporter Tax Clearance Certificate for the ________ quarter of 19____. __________________ Applicant/Affiant SUBSCRIBED AND SWORN to before me this ________ day of __________________, 19_____ in ___________________, affiant exhibited to me his/her Residence Certificate No. A-_________________ issued at ___________________________ on ______________________ and B-______________________ issued at ________________________ on ___________________. Affix 30 Documentary Stamp _____________________ NOTARY PUBLIC NOTE : To be filled by authorized representative. Named : _______________________________ Address : _______________________________ Signature : _______________________________ Appl. No. ____________ Exporter TCC No. _____________ ANNEX C BIR FORM 17.61-EX (March 1977) Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE TAX CLEARANCE CERTIFICATE FOR EXPORTERS (Section 6, P. D. 930) TO WHOM IT MAY CONCERN: This certifies, that, _______________________________________________ of __________________________________________________________________ holder of PTR No. _________ under Schedule No. ______________ for __________, has been issued this Quarterly Tax Clearance Certificate pursuant to the provisions of Section 6, Presidential Decree No. 930 and Rule XIII of the implementing rules and regulations issued by the National Economic and Development Authority. This certificate is issued at the request of the aforesaid applicant in connection with this exportation. This certificate is valid and effective for the _____ quarter of 19____. Quezon City, _________________. For the Commissioner: Affix 30 Affix 30 Documentary Science Stamp Stamp Chief, Receivable Accounts Divisions Regional Director Revenue District Officer Subject to the payment of a certificate fee of P0.50 in accordance with Executive Order No. 528, S. of 1952. O.R. No. _________________ dated ____________________________ NOTE: NOT VALID FOR TRANSFER OF OWNERSHIP OF REAL PROPERTY FROM THE DECEASED TO THE HEIRS AND/OR DONORS TO DONEE. THEREFORE, THIS SHALL NOT BE PRESENTED TO THE REGISTER OF DEEDS.