Question & AnswerQ&A (EXECUTIVE ORDER NO. 98)
All persons transacting business with government agencies, instrumentalities, local government units, and GOCCs, whether natural or juridical persons, are required to include their TIN in applications for government permits, licenses, clearances, official papers, or documents.
The TIN is prescribed under Section 236 (J) of the National Internal Revenue Code for all taxpayers.
The TIN serves as a vital information for tracing a person's taxable transactions under a computerized system of tax administration and acts as a common secondary reference index for all government agencies.
Government agencies, GOCCs, and LGUs must develop procedures such that permits, licenses, and clearances shall not be issued to persons or entities without a duly issued TIN. They must also prioritize or give preferential action to persons with valid TIN cards.
The Bureau of Internal Revenue (BIR) is required to assign permanent TINs and supply permanent TIN cards to all taxpayers within two years from the issuance of the order.
Yes, a person without a TIN card can still transact by presenting their application for registration of a TIN (BIR Form 1901/1902/1903) duly stamped by the BIR, which shall be sufficient for the purposes of this Executive Order.
Persons who fail to comply with the requirements of this Executive Order, including government functionaries involved in monitoring or regulating transactions where TIN is prescribed, shall be subject to appropriate sanctions under the National Internal Revenue Code and other pertinent laws and regulations.
The Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, is authorized to promulgate rules and regulations for the effective implementation of this Executive Order.
No, the absence of such rules and regulations does not exempt any government agency from complying with the requirements of this Executive Order.
The Secretary of the Department of Budget and Management is directed to give preferential budgetary support to the Bureau of Internal Revenue to enable it to supply permanent TIN cards to all taxpayers.
Executive Order No. 98 took effect immediately upon its signing on April 28, 1999.