BIR Tax Registration

 1. Who are required to register with the BIR? 

Every person subject to any internal revenue tax shall register once with the appropriate Revenue District Officer:

1. Within ten (10) days from the date of employment, or
2. On or before the commencement of business, or
3. Before payment of any tax due, or
4. Upon filing of a return, statement or declaration as required in the NIRC;
5. Upon death of individual;
6. Full settlement of the tax liabilities of the estate;
7. Discovery of a taxpayer having multiple TINs; and
8. Dissolution, merger or consolidation of juridical person.

2. Are non-resident aliens and non-resident foreign corporations receiving income from sources within the Philippines required to register with the BIR? 

Yes, Non-Resident Aliens Not Engaged in Trade or Business (NRANETB) or Non-Resident Foreign Corporations (NRFC) shall be issued TINs for purposes of withholding taxes on their income from sources within the Philippines. The withholding agent shall apply for the TIN in behalf of the NRANETB or NRFC prior to or at the time of the filing of their monthly withholding tax return as applicant under EO 98, series of 1998 (Sec.4.1v of RR 7-2012).

3. If the taxpayer is engaged in VATable activity, but the gross sales or receipts from business or practice of profession is P 3,000,000.00 or below, is he required to register?

Yes, he is required to register as a Non-VAT taxpayer. However, if his gross sales or receipts is more than P 100,000.00 but does not exceed P 3,000,000.00, he has the option to register as VAT taxpayer. In the case of marginal income earners with gross sales or receipts of P 100,000 and below, they have no other option but to register as non-VAT taxpayer.

 4. Are taxpayers required to register their business annually?  

No, taxpayers are required to register only once before commencing their business. However, they are required to pay the registration fee of P 500.00 annually.

 5. When is the taxpayer required to apply for registration and pay the registration fee? 

New taxpayers shall apply for registration and pay the registration fee before commencing their business. Thereafter, taxpayers should pay the annual registration fee not later than January 31 every year.

6. Where should a taxpayer register?  

All taxpayers are required to register with the RDO having jurisdiction over the head office, branch office, place of production or storage place where inventory of goods for sale or use in business are kept.

7. Are branches, storage places and places of production also required to pay the Annual Registration Fee (ARF) of P 500.00?

Each branch is required to pay the ARF of P 500.00. However, storage and production places are liable to the ARF only when sales operations are conducted thereat.

 8. Who are required to register without paying the ARF??

1. Cooperatives duly registered with the CDA;
2. Individual residents earning purely compensation income
3. OCWs/OFWs;
4. Marginal Income Earners;
5. GAIs, in the discharge of their governmental functions;
6. LGUs, in the discharge of their governmental functions;
7. Tax exempt corporations such as those enumerated under Section 30 of the Code, as amended, in pursuance of tax-exempt activities;
8. Non-stock/non-profit organizations not engaged in business;
9. Persons subject to tax under one-time transactions;
10. Persons registered under EO 98, series of 1998; and
11. Facility/ies where no sales transactions occur.

9. Are taxpayers transferring business address within the year either within the same district or to another district required to pay another registration fee of P 500.00? 

No, since the ARF is payable annually, they are no longer required to pay the registration fee to the new district office, provided the P 500.00 was already paid. 

10. After complying with all the requirements for registration, what document will be issued to the taxpayer as proof of registration?

No, since the ARF is payable annually, they are no longer required to pay the registration fee to the new district office, provided the P 500.00 was already paid. 

11. When will the Certificate of Registration (COR) be issued to the taxpayer?

The COR (BIR Form 2303) shall be issued within the period/time prescribed under the existing “BIR Citizens Charter” together with the approved Authority to Print and Registered books of accounts.

12. Who will issue the COR?
 

The RDO having jurisdiction of the head office or branch shall issue the COR. 

13. How many COR (BIR Form 2303) shall be issued by the Revenue District Office?

For every Application for Registration, there shall be a corresponding COR to be issued to the head office and each branch being registered. 

14. What will the taxpayer do with the COR and the Proof of Payment of ARF?

The original copy of COR and the duly validated BIR Form 0605 as proof of payment of ARF are required to be displayed in any conspicuous place in the head office and branch office. 

15. What are the instances when a taxpayer can apply for cancellation of his registration? 

The TIN/Registration cancellation shall take place upon:All taxpayers who filed for cancellation of registration due to closure/cessation or termination of business, except for branches, shall be subjected to immediate investigation by the BIR office concerned to determine the taxpayer’s tax liabilities. 

16. Is there a particular form prescribed for Application for Cancellation of Registration?

Yes, BIR Form 1905 (Application for Registration Information Update).  

17. Where shall the Application for Registration Information Update be filed?

It shall be filed with the RDO who issued the COR. For VAT taxpayer, he shall further notify the RDO where the Home Office is registered. 

18. If a taxpayer is in doubt of his status as VAT taxpayer, what is he supposed to do?

Go to the RDO who has jurisdiction over his place of business and seek assistance.