The Bureau of Internal Revenue (BIR) has revoked the provisions in a previous order which required the processing of several requirements for the release of contractors’ final payment on their projects with the Department of Public Works and Highways (DPWH).
The latest order, dated November 2 and posted in the BIR’s website, seeks to address issues and concerns regarding the duplication of requirements being submitted by contractors to the BIR and the DPWH, the tax agency said.
Revenue Memorandum Order (RMO) No. 57-2019 also aims to align the process for the release of the final payment for contactors with Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
The new memo revokes the filing of an application for contractor’s final payment release certificate (BIR Form No. 0217) and the presentation of this certificate duly approved by the BIR to the DPWH.
The BIR said the previous requirement for contractors of government infrastructure projects to file BIR Form No. 0217 together with other documentary requirements aims to ensure that correct taxes are paid on their income from government transactions.