frequently asked questions about taxation
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Top 10 Frequently Asked Questions About Taxation

What question do you have in mind regarding TIN number in the Philippines? I know all of us has different questions regarding TIN. Some of these questions are: Who are required to register with BIR?, Is your business required to register annually? Is your business exempted from paying the Annual Registration Fee? I know you still have many questions in mind. Here are the top ten (10) common questions people ask regarding registration with BIR.


What question do you have in mind regarding your business? Let’s find out the frequently asked questions about taxation that you must know.

Learn the top 10 frequently asked questions about taxation. This article includes BIR registrations of you 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 can’t find don’t hesitate to drop your question below.

Are all Non-resident aliens are required to register with BIR? Let’s start with the first question.

Relevant Article: How to Get TIN Number?

1. Who is Required to Register with BIR?

One of the top 1 frequently asked 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 getting TIN.

Every person subject to any internal revenue tax shall register once with the appropriate Revenue District Officer:
  1. Dissolution, merger or consolidation of juridical person.
  2. Death of individual;
  3. Within ten (10) days from the date of employment, or
  4. On or before the commencement of business, or
  5. Before payment of any tax due, or
  6. Full settlement of the tax liabilities of the estate;
  7. Upon the filing of a return, statement or declaration as required in the NIRC.
  8. 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.

3. What if I have branches, Do you need to pay the Annual Registration Fee?

If you have other places of business operations or having a branch, you are required to pay the annual fee of 500.00. However, warehouse or storage separated from your business is not required to pay an annual 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 make sure that your business is registered with BIR you must have a Certificate of Registration (BIR Form 2303) for the newly registered taxpayer and validated Payment Form (BIR Form 0605) for every renewal.

However, Employees, ONETT taxpayers, and/or 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
  • OCWs/OFWs;
  • Persons registered under EO 98, series of 1998
  • GAIs, in the discharge of their governmental functions;
  • LGUs, in the discharge of their governmental functions;
  • Facility/ies 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 for cancellation of registration stating the reason. However, if the branch is terminated the business registration is not yet canceled. For more information, click this link:https://www.bir.gov.ph/index.php/registration-requirements/primary-registration/application-for-registration-update.html

8. Where to update the Registration Information?

Go to the department who 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 number 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 prior to 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?

Every business must be registered 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.


Conclusions

If you’re one of those persons, make sure you will not forget to register with the BIR to avoid any 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.

Do you have other questions that should be included here as frequently asked questions about taxation? Make sure to let us know by dropping it in the comments below.

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Revenue Memorandum Circular No. 72-2020 amends RMC No. 36-2020 relative to the removal of requirement for submission of photocopies of documents evidencing credit extensions and credit restructurings granted by covered institutions during ECQ. RMC 72-2020

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Revenue Memorandum Order No. 23-2020 clarifies the issuance of Authority to Release Imported Goods for VAT Exemption on the sale and importation of prescription drugs and medicines pursuant to Section 1 of RA No. 11467, further amending Section 109 (AA) of the NIRC of 1997, as amended, and as implemented in Revenue Regulations No. 18-2020. ​RMO 23-2020

Revenue Regulations No. 19-2020 prescribes the use of the new BIR Form No. 1709, replacing Form No. 1702H, Series of 1992.​ RR 19-2020/Annex A

Revenue Regulations No. 18-2020 implements Section 1 of Republic Act (RA) No. 11467, further amending Section 109 (AA) of the NIRC of 1997, as amended by RA No. 10963 (TRAIN Law), providing for VAT Exemption on the sales and importation of drugs and medicines prescribed for diabetes, high cholesterol, hypertension, cancer, mental illness, tubercolosis and kidney diseases. RR 18-2020

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