2017-12-20

NPM No. 045-2017

Requesting Entity: Department of Trade and Industry – Region X

Issues Concern: Tax Clearance for Small Value Procurement

 

Details

Whether the Tax Clearance is a compulsory requirement for Negotiated Procurement - Small Value under Section 53.9 of the 2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184, the Government Procurement Reform Act.


[T]he GPPB recently approved amendments (effective 5 December 2017) to the documentary requirements for Negotiated Procurement under the Small Value Procurement modality per Appendix A, Annex “H” of the 2016 Revised IRR. Thus, Income or Business Tax Returns shall be required for procurement projects with Approved Budget for the Contract (ABC) above 500,000.00 and the Omnibus Sworn Statement shall be required only for procurement projects with ABC above 50,000.00.


From the abovementioned, from 28 October 2017 up until 4 December 2017, the Omnibus Sworn Statement shall be required for Negotiated Procurement under the Small Value Procurement modality regardless of amount of the ABC. From 5 December 2017 onwards, Omnibus Sworn Statement shall be required only for procurement projects with ABC above 50,000.00. It is worthy to note, however, that the submission of a Tax Clearance is not required for procurement undertaken through Negotiated Procurement under the Small Value Procurement modality.