QuestionsQuestions (BIR REVENUE REGULATIONS NO. 11-2008)
Primary Registration is the process by which a person who applies and fully complies with registration requirements is registered with the BIR and included in the BIR’s registration database. It may involve two stages: (1) issuance of a TIN, and (2) subsequent registration of employment, business, profession, and/or undertaking.
The first stage is application and issuance of a Taxpayer Identification Number (TIN). The second stage is registration of the employment, business, profession, and/or undertaking the taxpayer intends to pursue, including information required to file returns and pay taxes periodically.
“Updates” are changes made to information supplied during primary registration upon the taxpayer’s or the BIR’s initiative. “Cancellation” tags the taxpayer’s registration information as “cancelled,” but the information remains in the BIR database.
It is reckoned from the day when the first sale transaction occurred or within thirty (30) days from the day the Mayor’s Permit/PTR is issued by the LGU, whichever comes earlier.
Once assigned, a TIN is non-transferable. For natural persons, the TIN stays with the taxpayer permanently regardless of cessation/cancellation of business registration. For juridical persons, the TIN is cancelled upon dissolution/merger/consolidation resulting to termination of corporate existence via BIR registration cancellation.
Only one TIN shall be assigned to a taxpayer, and a taxpayer is precluded from applying for another TIN. Multiple TIN acquisition is subject to penalties under Section 20 of the regulations. It should also not happen that two or more taxpayers share one identical TIN.
Employees must proceed to the second stage within ten (10) days from the date of employment.
They must do so on or before the commencement of business, where commencement is determined by the regulation’s definition (first sale or within 30 days from Mayor’s Permit/PTR issuance, whichever is earlier).
Corporations required to pay documentary stamp tax (DST) on original issuance/subscription of shares must proceed to the second stage on or before payment of the DST due, within five (5) days after the close of the month when taxable transactions are recorded.
Once the TIN is assigned and application is approved, the corresponding TIN card must be released to the applicant within the same day the complete documentary requirements are submitted to the concerned RDO. It is free for first issuance; a PHP 100 fee applies if reissued due to loss or damage upon request.
The annual registration fee is PHP 500 for every separate or distinct establishment. It must be paid upon registration and every year thereafter on or before January 31.
The regulations exempt cooperatives duly registered with CDA, individuals earning purely compensation income, Overseas Workers, GAIs/Government entities in governmental functions, marginal income earners, LGUs in governmental functions, tax-exempt persons under Section 30, non-stock/non-profit organizations not engaged in business, persons subject to one-time transactions, and facilities where no sales transactions occur.
A branch is a separate/distinct establishment where sales transactions are conducted independently and must be registered in the RDO with jurisdiction over its location, generally subject to annual registration fee (RF). A facility (e.g., warehouse, storage, bus terminal, production place, real property for lease) is required to be registered in the RDO having jurisdiction but facility registration is not subject to payment of the registration fee.
The text requires BIR-prescribed registration forms plus attachments such as a photocopy of the Mayor’s Business Permit/PTR, lease contract (if applicable), DTI Certificate of Registration of business name (if a trade name is used), and other items depending on circumstances (e.g., franchise agreements, BOI/PEZA permits, proof of authority for BMBE, proof of dependents, marriage contract, etc.).
VAT registration is generally required for persons whose sales or services are subject to VAT under the Code. It becomes mandatory when gross sales/receipts for the past 12 months exceed PHP 1,500,000 (excluding VAT-exempt transactions under Sec. 109), or there are reasonable grounds they will exceed that threshold. Those subject to other percentage taxes, VAT-exempt transactions under Sec. 109, and marginal income earners are generally not required to register for VAT, though some may opt for VAT registration depending on conditions.
The taxpayer must inform the old/new RDOs through the prescribed update form and copy-furnish the new RDO. The old RDO transfers accountabilities. Filing and payment of taxes to the new RDO commence when the transfer is effected by the old RDO; both RDOs must notify the taxpayer.