TIN Requirement for Gov't Transactions EO 98

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EXECUTIVE ORDER NO. 98: TIN Requirement for Gov't Transactions EO 98

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Title Source: Supreme Court: TIN Requirement for Gov't Transactions EO 98

Law: Executive Order No. 98

Decision Date: Apr 28, 1999

Joseph Ejercito Estrada mandates all government agencies and local government units to require the Taxpayer Identification Number (TIN) in all applications for permits, licenses, and official documents to enhance tax compliance and revenue collection.

Law Summary

Purpose and Importance of TIN Inclusion

The TIN is prescribed in Section 236 (J) of the National Internal Revenue Code.
It enables efficient traceability of taxable transactions under a computerized tax administration system.
Enhancing tax monitoring through TIN use aims to improve tax compliance and thus increase revenue collection to support infrastructure and poverty alleviation projects.

Procedural Directives for Government Agencies, GOCCs, and LGUs

Agencies shall establish procedures to ensure that permits, licenses, and clearances are not issued to applicants without a duly issued TIN, wherever applicable.
Priority or preferential treatment shall be given in transactions to persons or entities who present a TIN or valid TIN card.

Role of the Bureau of Internal Revenue (BIR)

The BIR is tasked with assigning permanent TINs.
Within two years from the issuance of the order, BIR must distribute permanent TIN cards to all taxpayers.
A valid TIN card is sufficient for identification in all official government dealings.
Applicants without a TIN or TIN card may present a registration application form (BIR Forms 1901, 1902, or 1903) stamped by the BIR as provisional proof.

Use of TIN as a Common Reference Index

The TIN shall serve as a common secondary reference index for all official transactions between the public and government agencies.
Computerized government agencies must encode TIN in official records and electronically transmit data to revenue authorities as required.

Sanctions for Non-Compliance

Individuals or entities failing to comply with the TIN requirements, as well as government officials involved in enforcement, shall face sanctions under the National Internal Revenue Code and other relevant laws.

Rulemaking and Regulatory Authority

The Secretary of Finance, upon recommendation from the Commissioner of Internal Revenue, may promulgate rules and regulations for implementing the order.
The absence of such rules does not exempt government entities from compliance.

Budgetary Support for Implementation

The Secretary of the Department of Budget and Management is directed to provide preferential budgetary support to the BIR to facilitate issuance of permanent TIN cards.

Effectivity

The Executive Order takes effect immediately upon issuance.

END