DPWH: Contractors now have to get tax clearance

By Pamela F. Dungala

BONTOC, Mountain Province -- The Department of Public Works and Highways (DPWH) is has included  tax clearance as the eligibility requirements of contractors and suppliers intending to do business with the department.

Through Department Order No. 47 series of 2014, DPWH Secretary Rogelio Singson ordered inclusion of tax clearance as  Class “A” document in determining eligibility of prospective bidders for goods, supplies and consulting services.

This is in compliance to Government Procurement Policy Board (GPPB) resolution 21-2013 amending the Revised Implementing Rules and Regulations of Republic Act 9184 and Philippine Bidding Documents for Goods, Infrastructure Projects and Consulting Services.

Previously, RA 9184 only required registration certificate from Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI) for sole proprietorship, or Cooperative Development Authority (CDA) for cooperatives and Mayor’s permit where the prospective bidder is located as Class “A” document requirements.

Tax clearance us required after post-qualification of a bidder with the lowest calculated bid or highest rated bid.

However, with the approval of GPPB Resolution No, 21-2013, Tax clearance is now included as one of the eligibility requirements of prospective bidders.

The Bureau of Internal Revenue (BIR) issues tax clearance which indicates current assets and liabilities as basis for the computation of net financial contracting capacity (NFCC) of prospective bidders.

Assistant district engineer and bids and awards committee (BAC) chairman Charles C. Sokoken of the Mountain Province District Engineering Office instructed strict compliance of said department order.

“According to Sec. Singson, this requirement application will bare the contractors’ financial capacity,” Sokoken said. This will also be enforced to prospective suppliers intending to do business with the district office.”