Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 11-2008)
It consolidates and updates all existing revenue regulations related to primary registration, including registration, updates, cancellation procedures, documentary requirements, registration forms, annual registration fee, certification fee, and penalties for registration-related violations under the National Internal Revenue Code as amended.
Primary Registration is the process where a person, whether an individual or juridical entity, upon full compliance with registration requirements, is registered and included in the BIR database. It involves obtaining a Taxpayer Identification Number (TIN) and, if applicable, subsequent registration of business or profession for tax filing and payment.
Every person subject to any national internal revenue tax or required to render returns or documents with TIN, including natural persons, corporations, estates, trusts, and persons mandated by other laws, such as employees, business owners, and trustees.
The first stage is the application and issuance of TIN. The second stage involves registering the specific employment, business, profession, or undertaking to ensure regular tax filing and payment.
A branch is a separate establishment where sales transactions occur independently from the head office and must register with the RDO where it is physically located. It includes sales outlets, separate business lines with distinct DTI-registered names, franchises, unmanned sales outlets, mobile stores, and other distinct establishments conducting sales.
Self-employed individuals, professionals, estates, trusts, and branches must register on or before commencement of business. Corporations must register before payment of any tax due, such as documentary stamp tax, within specified deadlines.
Yes, employees must proceed to the second stage of registration within ten days from date of employment, usually done by the employer.
The annual registration fee is Five Hundred Pesos (P500) per separate establishment payable every year. Exemptions include cooperatives registered with CDA, pure compensation earners, overseas workers, GAIs, LGUs in governmental functions, marginal income earners, tax-exempt persons, non-stock/non-profit organizations, one-time taxpayers, and facilities without sales transactions.
Failure to register incurs penalties under prevailing revenue issuances. Late registration carries a compromise penalty of P1,000 plus unpaid fees and penalties. Late payment of annual registration fee incurs a 25% surcharge, 20% interest, and P200 penalty. Failure to register a branch or facility is penalized P1,000 per unregistered branch/facility. Acquisition of multiple TINs incurs P1,000 penalty per extra TIN.
Name, address, business trade name, taxpayer type, RDO code, TIN and branch code, date of registration and issuance, registered tax types and rates if VAT, tax incentives granted, registration numbers with other government agencies, line of business and classification codes, name and signature of the approving officer, and date of approval.
Cancellation may refer to business registration or TIN. Business registration cancellation occurs upon closure, dissolution, merger, or death and requires filing notice, inventory submission, surrender of records and forms, and destruction of unused official receipts. TIN cancellation happens upon death, dissolution or when multiple TINs are discovered. Cancellation of head office cancels branches using the same trade name unless a branch is designated as new head office.
The Commissioner of Internal Revenue may deny applications due to deliberate misrepresentation, omission of material facts, non-submission of required documents, erroneous or fraudulent applications, or if the applicant already has a TIN.
Birth certificate or valid ID showing name, address, birth proof, and signature, such as driver’s license, PRC ID, or passport; marriage contract if applicable.
For corporations/partnerships: SEC Certificate and Articles of Incorporation/Partnership; for cooperatives: CDA registration and Articles of Cooperation; for homeowners associations: HLURB Certificate; for government agencies: unit or agency charter; for estates: death certificate; for irrevocable trusts: trust agreement; and proof of authority for authorized representatives.
It is the principal place of business as declared in articles of incorporation/partnership or DTI registration, or where complete books of accounts are kept. For nomadic businesses like peddlers, the residence is considered the head office.
Different lines of business under one person with distinct DTI-approved trade names at the same location are considered separate branches and each must be registered with payment of the registration fee per branch.
Changes in VAT status, nature of exempt business, cancellation of VAT registration after three years, failure to meet VAT threshold, or any other changes/updates including tax types, or registration details.
Persons with gross sales exceeding P1,500,000 in 12 months or expected to exceed it must register for VAT. Some may opt for VAT registration even if exempt or under the threshold but once registered VAT status cannot be cancelled within 3 years. Franchisees of TV/radio have specific thresholds for VAT registration.
File with the Revenue District Office (RDO) having jurisdiction over the head office for corporations, or residence/place of business for individuals, branches or facilities where located, or as specifically provided (e.g., employees with employer's office jurisdiction).