The Bureau of Internal Revenue's central office in Quezon City. Mark Demayo, ABS-CBN News

BIR Central Office

Arthur Fuentes

ABS-CBN News

<div><br/></div><div><br/></div><p>MANILA - Government contractors will have to present an Updated Tax Clearance before they can receive their final payment, the Bureau of Internal Revenue said on Wednesday. </p><p>BIR Commissioner Romeo Lumagui Jr. said government contractors are now required to secure an updated tax clearance from the agency certifying that the contractor does not have any outstanding tax liabilities, and that the contractor has duly filed its latest income and business tax returns and paid the corresponding taxes due. </p><p>Lumagui said this is needed before the contractor can be given the final settlement of a government contract.</p><p>&quot;Otherwise, the Government has the power to suspend the final settlement of the government contract,&quot; Lumagui said.</p><p>The BIR chief said that the agency wants to ensure that before government contractors get the final payment in their contracts, these firms are cleared of any tax liabilities.</p><p>&quot;In this way, the BIR will be able to protect the taxes collected from our hardworking taxpayers against Government Contractors who do not even pay their taxes&quot; Lumagui said.</p><p>The BIR said the amount of final settlement on the government contract which was suspended for failure to present an updated BIR tax clearance will be subject to a tax lien in favor of the government to satisfy the contractor&#x27;s outstanding tax liabilities.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/5XrEz72WkFw?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>Government contractors will have to present an Updated Tax Clearance before they can receive their final payment, the Bureau of Internal Revenue said.</p>

Government contractors will have to present an Updated Tax Clearance before they can receive their final payment, the Bureau of Internal Revenue said.

Updated tax clearance required for gov't contractors before final payment | ABS-CBN

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Updated tax clearance required for gov't contractors before final payment

Updated tax clearance required for gov't contractors before final payment

Arthur Fuentes,

ABS-CBN News

Published Jan 08, 2025 02:54 PM PHT

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BIR

government contractor

Romeo Lumagui Jr

tax clearance

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