Title
Mandatory TIN in Government Transactions
Law
Executive Order No. 98
Decision Date
Apr 28, 1999
All government agencies and local government units are mandated to require the Taxpayer Identification Number (TIN) in all applications for permits, licenses, and official documents to enhance tax compliance and revenue collection.
A

Mandatory Requirement of TIN in Government Transactions

  • TIN must be a condition for the issuance of any government permit, license, clearance, or official document.
  • Where applicable, permits and licenses must not be issued without a duly issued TIN.
  • Persons with a valid TIN card are entitled to priority or preferential processing in government transactions.

Role and Function of the Bureau of Internal Revenue (BIR)

  • BIR is mandated to assign permanent TINs and to issue permanent TIN cards to all taxpayers within two years from the issuance of the Order.
  • A valid TIN card is sufficient for identification in all official government dealings.
  • For those without TIN cards, presenting a BIR-stamped application for TIN registration suffices temporarily.

Use of TIN as Common Reference Index

  • TIN shall serve as the common secondary reference index for all government agencies during official transactions.
  • Computerized agencies must encode TIN in their official records.
  • Data containing TIN shall be electronically transmitted to revenue authorities as legally required.

Penalties and Sanctions

  • Non-compliance with the TIN requirements attracts sanctions under the National Internal Revenue Code and other relevant laws.
  • This applies to both parties in the transaction and government officials responsible for monitoring or regulating such transactions.

Implementation and Regulatory Authority

  • The Secretary of Finance, upon recommendation by the BIR Commissioner, is empowered to promulgate rules and regulations for the effective implementation of the Order.
  • Lack of such rules does not exempt any agency from compliance.

Budgetary Support

  • The Department of Budget and Management is instructed to prioritize budget support to the BIR to facilitate the issuance of permanent TIN cards.

Effectivity

  • The Order takes effect immediately upon issuance.

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