Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 50-2012 (RMC No. 50-2012) dated June 28, 2012 prescribing the issuance of Certificate of Tax Clearance (CTC) as a pre-requisite on the approval of sale and transfer of Certificate of Public Convenience (CPC) by the Land Transportation Franchising and Regulatory Board (LTFRB).
Certificate of Tax Clearance (CTC) is a new requirement in dealing with the LTFRB of public transport operators. This is secured with the Bureau of Internal Revenue (BIR) Revenue District Office (RDO) where the operator is registered. Specifically, CTC will have to be secured on the following transactions with the LTFRB:
The BIR RDO shall process the application and upon finding the above in order, shall release the same for the operators further processing with the LTFRB.
Comments
This seems to be a new requirement comparable to the Certificate Authorizing Registration (CAR) for sales of shares not through the local stock exchange and sale of real property in the Philippines held as capital asset. In effect, the BIR will see to it that taxes on the public transport operator and that on the sale wold be accounted for. In the absence of such Certificate of Tax Clearance, then, the Certificate of Public Convenience (CPC) transfer will not be approved by the LTFRB.
Reference
Read the FULL text of RMC 50-2012
Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances.
Read More Articles…
Tax Seminars, trainings, and workshops…
See how we can help you with our professional services…
Revenue Memorandum Circular 29-2024
Revenue Memorandum Circular No. 22-2024
SEC MC No. 02, series of 2024
Revenue Memorandum Circular No. 16-2024
Revenue Memorandum Circular No. 3-2024
Veto Message of R.A. 11976
Republic Act No. 11976 “Ease of Paying Taxes Act”
Basic Business Taxation Simplified
Returns and Reports Preparation under eBIR and Online Submission Seminar
Input VAT Refund
Basic Accounting & BIR Compliance Seminar -VAT Entity
Live Webinar: Withholding Taxes, Subjects & Applications
Basic Income Taxation and ITR Preparation for Corporation Seminar (Onsite)
BIR Examination: Their Procedures and Our Defenses (Onsite Seminar)
Live Webinar: Winning BIR Tax Assessments Series: Process, Remedies & Writing Effective Protest
Basic Bookkeeping for Non-Accountants
Live Webinar on Ph Payroll Computations and Taxation
Δ
Phone : (02) 5310-2239
Mobile : Smart: 0921-343-2024 Globe: 0917-712-8242
Email : info(@)taxacctgcenter.ph
© Tax and Accounting Center 2024. All Rights Reserved