Tax Clearance in 2025 | How to Apply?
Getting a tax clearance is an important procedure in the Philippines for both individuals and companies. A tax clearance is often necessary whether you want to apply for a government permit, renew your company permit, or take part in a public bidding process.
This blog provides a detailed overview of what tax clearance is, why it is important, and how to obtain one.

What is Tax Clearance?
A tax clearance in the Philippines is an official document that certifies the tax compliance status of an individual or company and is provided by the Bureau of Internal Revenue (BIR). This document is frequently needed for several purposes, such as:
Types of Tax Clearances
- Tax Clearance for Bidding Purposes: Required for organizations applying on government contracts, ensuring they have no overdue taxes.
- Tax Clearance for Government Transactions: Needed for various dealings with government agencies, such as securing permits or licenses.
- Tax Clearance for Property Transfer: Essential for the transfer of ownership of real estate properties.
- Tax Clearance for Business Registration: Necessary for registering new businesses or renewing existing ones.
Requirements for Tax Clearance
The general requirements for tax clearance in the philippines are:
- BIR Form 1901: For individual taxpayers.
- BIR Form 1903: For corporations and partnerships.
- BIR Form 1701: For self-employed individuals and professionals.
- BIR Form 1702: For corporations and partnerships.
Proof of Payment: Official receipts or certificates of tax payments, showing that all taxes have been settled. This includes income tax, VAT, and other relevant taxes.
Income Tax Return (ITR): The latest Income Tax Return for the past three years, demonstrating that all income and taxes have been properly reported.
Clearance Form: A specific form related to the purpose of the tax clearance, such as those needed for government contracts, property transactions, or loan applications.
For businesses tax clearance a tax identification number (TIN), Certificate of Registration, Latest Income Tax Return (ITR), Proof of tax payments for the past three years, and Business permits or licenses.
Tax Clearance Online Process in the Philippines
Visit the BIR eServices Portal
Visit the eServices section of the BIR website, specifically the “Tax Clearance Application” portal.
Create or Log In to Your BIR eServices Account
- If you don’t already have an account, you must register for an account using your TIN id and other necessary informationÂ
- Enter your login information to access your account if you already have one.
Complete the Online Application Form
Fill out the online application form for tax clearance. Provide all required details, such as:
- Personal or business information
- Purpose of the tax clearance (e.g., business registration, government contracts)
- Relevant tax returns and payment records
Upload Required Documents
- Prepare and submit all required documents in accordance with the previously mentioned requirements.
- Make ensure the writing in the documents is readable and clear.
Submit the Application
Submit the application online through the portal.
Payment of Fees (if applicable)
Payment of fees may be necessary for some applications. To make an online payment for any relevant fees, follow the instructions given online.
Processing and Tracking
Receive the Tax Clearance
Once processed and approved, you will receive the tax clearance certificate online. Also, you can download and print the certificate for your records. If there are any problems or delays, contact the local BIR office or the BIR helpline for assistance.
Tax Clearance Fee and Processing Time
The fee for tax clearance is P100. pay the fee via eFPS and also attach the confirmation receipt. After paying the fees you have to submit the following documents to the regional office of BIR:
Tax Clearance Renewal and Validity
Tax clearances normally have a one-year validity term from the date of issuance, although this might vary based on the clearance’s purpose. Make sure to renew your tax clearance before it expires for going on needs like renewing the organization permits or submitting applications for government contracts.
FAQs
Conclusion
In many different kinds of legal and business-related actions in the Philippines, obtaining a tax clearance is an essential first step. Knowing the process and preparing the required documentation will help you ensure a perfect application process. Complying with your tax liabilities and getting a tax clearance can help both people and companies to fulfill legal requirements and attain their objectives.