There are many things to consider when doing business in the Philippines, and tax laws are no exception. If you’re not familiar with the taxation system here, you’ll likely have a lot of questions. In this post, we’ll cover the ten most frequently asked questions about Philippine taxes. By understanding the basics of taxation in the Philippines, you can make better-informed business decisions and avoid costly mistakes. Let’s get started!
Learn the top 10 frequently asked questions about taxation. This article includes BIR registrations of your business, renewal fee and how to get TIN in the Philippines. It is also listed below the necessary documents during the business registration.
Let’s find out if you’re question is one of those listed below. If you have other inquiry not listed below, let us know in the comments below.
Relevant Articles: How to Get TIN Number?
1. Who is Required to Register with BIR?
One of the top 1 frequently asked a question about taxation: Who is required to register with BIR? Before you process your application for registration, you must read this article. It will help you to identify if you’re required to register your business or to get TIN.
- Dissolution, merger or consolidation of a juridical person,
- Death of individual;Within ten (10) days from the date of employment, or
- On or before the commencement of business, or
- Before payment of any tax due, or
- Full settlement of the tax liabilities of the estate;
- Upon the filing of a return, statement or declaration as required in the NIRC.
- Discovery of a taxpayer having multiple TINs
2. Are you required to register your Business annually?
The answer is NO. You are mandated to register your business before you start your operations. However, you are not exempted from paying the registration fee of five hundred pesos (500) yearly. Read on how to register your business as BMBE 2021.
3. What if I have branches? Do you need to pay the Annual Registration Fee?
If you have other places of business operations or a branch, you must pay the annual fee of 500.00. However, a warehouse or storage separated from your business is not required to pay a yearly registration fee unless there are already sales.
4. If you change your business address within the year, are you required to pay the annual registration fee again?
If you pay already your annual registration fee within that year, you are no longer required to pay it again even you change your business address that year.
5. What documents will be issued as proof of registration?
To ensure that your business is registered with BIR, you must have a Certificate of Registration (BIR Form 2303) for the newly registered taxpayer and a validated Payment Form (BIR Form 0605) for every renewal.
However, Employees, ONETT taxpayers, and persons who have secured a TIN under EO 98, series of 1998 with the BIR shall not be issued a Certificate of Registration (COR).
6. Who is required to register with BIR without paying the annual registration fee (ARF)?
- Marginal Income Earners
- Tax-exempt corporations such as those enumerated under Section 30 of the Code, as amended, in pursuance of tax-exempt activities
- Cooperatives duly registered with the CDA;
- Individual residents earning purely compensation income
- Persons registered under EO 98, series of 1998
- GAIs, in the discharge of their governmental functions;
- LGUs, in the release of their governmental functions;
- Facility/is where no sales transactions occur.
- Non-stock/non-profit organizations not engaged in business;
- Persons subject to tax under one-time transactions;
7. When to apply for the cancellation of his registration?
When a taxpayer is close to their business operation or terminated because of bankruptcy, he can file to the BIR to cancel registration stating the reason. However, if the branch is completed, the business registration is not yet balanced. For more information, visit BIR homepage.
8. Where to update the Registration Information?
o to the department that issued the certificate of Registration. However, if the business is subject to value-added tax, you should notify the Regional District Office where your office is located.
9. Are all Non-resident aliens are required to register with BIR?
A non-resident alien who is doing business or not engaged in a trade or business in the Philippines must have the TIN for withholding purposes. The income within the Philippines is subject to withholding tax. To know the withholding tax rate for a non-resident alien, you may check the withholding tax train law Philippines.
The withholding agent shall apply for the TIN to withhold the income of NRANETB or NRFC before or at the time of the filing of their monthly withholding tax return as an applicant under EO 98, series of 1998 (Sec.4.1v of RR 7-2012).
10. If a VAT registered Business does not exceed the vat threshold, is it required to register?
You must register every business with BIR regardless of the gross sales. Whether your business is vat or non-vat registered, you are still required to register. Read this article about vat train law to understand more.
If you’re one of those persons, make sure you will not forget to register with the BIR to avoid future problems or charges. Do you know that having a legal business will avoid tax penalties during tax mapping avoid? Learn more about how you stop tax penalties during tax mapping.