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9 Facts You Should Know on Tax Mapping

Tax penalties and closure of business? 9 Facts You Should Know on Tax Mapping. You will also how tax mapping is conducted.

What comes to your mind when you hear tax mapping?  Here are things that you must know before the tax mapping occurs in your area. Make sure to read this to avoid compromise penalties and criminal liability. If don’t have your tin number, make sure to get yours.

Let’s start to know what is tax mapping!

What is Tax Mapping Meaning?

What is tax mapping? Or what exactly is the meaning of this tax mapping? Well, it is a surprise visit of the BIR staff to the establishment. The objective of this tax mapping in the Philippines is to inspect compliance of business registration and other rules and regulations of the Bureau of Internal Revenue. It is also commonly known as BIR tax compliance or “Oplan Kandado”.

This tax mapping BIR will help them to monitor and to identify those owners who are evading from paying taxes.  Do you know what will happen if you will be caught that your business is not legally complying with the requirements? Let’s know the tax mapping system.

Watch this video to learn more!

Tax Mapping System Philippines

Any BIR representative does this tax mapping at random dates and places. Non-compliance with the BIR regulations is subject to the penalty from one thousand pesos (1, 000) up to fifty thousand pesos (50, 000) depending on the nature of violations.

Some non-compliance to the regulation will lead to a permanent closure of the business establishments and imprisonment of the owner.

BIR Tax Mapping Violations

During the tax mapping, the BIR staff follow tax mapping checklists. If the BIR conducts tax mapping in your area make sure you’re fully aware of these BIR tax mapping violations.

BIR Registration Requirements:

  1. Not Register with BIR
  2. Failure to pay the annual fee registration fee  (BIR Form 0605) and not visible in your business facilities.
  3. The sign or poster “Ask for BIR receipts” is not properly placed in your business are.
  4. No Certificate of Registration and Notice to the Public displayed

BIR Invoicing Requirements

  1. Refusal to issue receipts or sales invoices
  2. Issuing unregistered receipts or invoices to the clients. If you were value-added tax registered can you still issue your vat registered receipt? Yes, you can still issue this vat registered receipts even you’re no longer qualify as a vat registered. To learn more read this VAT Invoices Update under Train Law 2018.
  3. Not issuing official receipts or sales invoice.

Other BIR Tax Mapping Violations

  1. Failure to withhold or remit withheld taxes at the time or times required by law or regulations
  2. Failure to file and or pay any internal revenue tax at the time or times required by law or regulations
  3. Failure to keep or preserve records required by law or regulations
  4. Tax Mapping Penalties in the Philippines

Subject to Compromise Penalties

  1. Failure to pay the annual registration fee or to display in the business is subject to 1,000 per year or during the tax mapping.
  2. Failed to secure a certificate of registration and notice to the public display, failure to display the sign “Ask for BIR Receipts” are subject to 1,000 during tax mapping
  3. Failure to register the business with BIR is subject to according to the location. 20, 000 for cities; 10, 000 for 1st class municipalities; 5, 000 for 2nd class municipalities, and lastly is 2, 000 for 3rd class municipalities.
  4. Refusal to issue receipts or sales invoices and issuance of unregistered receipts are subject to 25, 00 for the first offense and 50, 000 for the second offense.
  5. Failure to issue receipts or other invoices is subject to 10, 000 for the first time and 20, 000 for the second time.

Subject Criminal and Compromise Penalties

Failure to make/file/ submit any return or supply correct information at the time or times required by law or regulations. This violation is subject to a fine not less than 10, 000 and imprisonment of not less than one (1) year but nor more than ten (10) years. For the amount, compromise is determined based on the gross sales, earnings or receipts, or gross estate or gift. Here is the tax table for compromise penalties.

Failure to make/file/submit any return or supply correct information at the time or times required by law or regulation. It is subject to a fine of not less than P10,000 and imprisonment of not less than one (1) year but not more than ten (10) years.

Failure to File Certain Information Returns. If certain information was intentionally or willfully neglected is subject to 1,000 fines for each failure but should not exceed 25, 000 within a calendar year. Fore more BIR violations, visit the BIR website. Read this to learn how to compute interest on tax due 2020.

9 Facts to Avoid Penalties During Tax Mapping?

To avoid penalties during the tax mapping, you need to review these checklists.

Fact No. 1: Make sure your business is not illegal in the BIR

Fact No. 2 Make your registration documents visible these are BIR Certificate of Registration (BIR Form 2303), Notice to the Public “Ask for Receipts” signage and lastly, the Annual Registration Fee (BIR Form 0605)

Fact No. 3: Always pay the annual registration fee on or before January 31st of each year.

Fact No. 4: Register your Cash Registered Machine (CRM) or Point of Sales Machine (POS) to the Bureau of Internal Revenue (BIR).

Fact No. 5: Attach the original authorization sticker to any device in your business.

Fact No. 6: Use prescribed manuals or invoices by the BIR.

Fact No. 7: Make sure to issue receipts or invoices for every transaction.

Fact No. 8: Maintain a registered book of accounts and record the business transactions

Fact No. 9: Pay regularly the taxes monthly, quarterly, and annually, including those withholding taxes from the employees and others withhold taxes.

Therefore, in just a few minutes, you were able to avoid paying less than fifty thousand pesos for BIR penalties. Compliance with the BIR regulations will help us to save a more significant amount of money that was having tax evasion. You might wonder, is your business needs to register in the BIR? Read this on how to legally reduce tax 2020.

If you have any experiences of tax penalties because of this, we’re happy to hear it. If have any questions above, drop your questions below, and we’ll be happy to help you. If we’re missing something, we’ere open to hearing your thoughts. Don’t forget to share and rate this article.


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Revenue Regulations No. 20-2020 amends certain provisions of RR No. 06-2008 (Consolidated Regulations Prescribing the Rules on the Taxation of Sale, Barter, Exchange or Other Disposition of Shares of Stock held as Capital Assets). ​RR 20-2020

Revenue Memorandum Circular No. 83-2020 addresses the issues and concerns of taxpayers regarding the tax implications of measures being implemented to prevent the spread of COVID-19 on cross-border matters. ​RMC 83-2020

Revenue Memorandum Circular No. 82-2020 prescribes the guidelines on the use of the eAFS System for the submission of attachments to the Income Tax Returns of taxpayers with Fiscal Year Accounting Period and in the submission of attachments to the quarterly Income Tax Returns.​ RMC 82-2020

Revenue Memorandum Order No. 28-2020 prescribes the updated policies and procedures for the granting and revocation of system access. ​RMO 28-2020

Revenue Memorandum Order No. 27-2020 prescribes the BIR Digital Transformation Roadmap for 2020-2030. RMO 27-2020

Revenue Memorandum Order No. 26-2020 prescribes the use of the revised Exchange of Information Manual, amending for this purpose Revenue Memorandum Order Nos. 2-2013 and RMO No. 3-2013. RMO 26-2020

Revenue Regulations No. 17-2020 implements the Tax Neutrality provision of Republic Act No. 11439 (An Act Providing for the Regulation and Organization of Islamic Banks). ​RR 17-2020

Inventory and Inspection Report of Unserviceable Property. more

Revenue Memorandum Circular No. 80-2020 amends the Revenue District Offices covered by RMC No. 79-2020. 

Bank Bulletin No. 2020-12 advises all BIR Authorized Agent Banks to accept tax payments also from taxpayers under RDO Nos. 55, 56 and 57 (even out-of-district returns) during MECQ period. BB 2020-12

Revenue Memorandum Circular No. 79-2020 provides the guidelines in the filing of various returns and payment of tax due thereon of taxpayers under the jurisdiction of National Capital Region, Bulacan, Cavite, Laguna and Rizal. RMC 79-2020

Bank Bulletin No. 2020-11 advises all Authorized Agent Banks to accept tax payments from taxpayers under the jurisdiction of National Capital Region, Bulacan, Cavite, Laguna and Rizal. ​BB 2020-11

Revenue Memorandum Circular No. 78-2020 prescribes the guidelines for the filing of various returns and payment of tax due thereon of taxpayers under the jurisdiction of Revenue Region No. 13-Cebu City. RMC 78-2020

Revenue Memorandum Circular No. 77-2020 clarifies ECQ as referred to under RMC No. 74-2020. RMC 77-2020

Revenue Memorandum Circular No. 75-2020 extends the deadline for business registration of those into digital transactions under RMC No. 60-2020. ​RMC 75-2020

Revenue Memorandum Circular No. 74-2020 amends and/or clarifies certain provisions of RMC No. 34-2020 relative to the suspension of the running of the Statute of Limitations. ​RMC 74-2020


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