TAXATION

1
 Registration

Primary Registration
It may involve the following:

1. TIN ISSUANCE AND REGISTRATION —issuance of TIN to persons who will engage in
business, practice of profession or employment, including registration of its branch/es;

2. PURELY TIN ISSUANCE —issuance of TIN to:

✓ applicants under Executive Order (EO) 98

✓ ONETT Taxpayers
✓ Overseas Filipino Workers (OFWs)/Overseas Contract Workers (OCWs)
✓ Non-Resident Foreign Corporations (NRFC)
✓ Non-Resident Alien not engaged in Trade or Business (NRA-NETB)

2
 Registration

Primary Registration
ONETT = One-Time Transactions

✓ Donor’s tax
✓ Estate Tax
✓ Sale of Land

3
 Registration

Tax Identification Number

▪ The TIN comprises of a 9 to 13 digit numeric code.
➢ The first 9 digits is the TIN proper; and
➢ the last 4 digits is the branch code.

XXX – XXX – XXX - XXXX

TIN Proper Branch Code

4
 Primary Registration

Before going to
the BIR (Indv)
Check of you have the following documents.

6
 Primary Registration

Before going to
the BIR (Corpo)
Check of you have the following documents.

7
 Primary Registration

When to register?
▪ General Rule: on or before commencement of business.

Commencement of business shall be reckoned from the day when:

a. the first sale transaction occurred

b. within 30 days from the issuance of Mayor's Permit/Professional Tax

Receipt (PTR) by LGU, or Certificate of Registration issued by the SEC/DTI

Whichever comes earlier.

8
 Primary Registration

When to register?
▪ Exemptions:

✓ Employees – within 10 days from date of employment

✓ ONETT – on or before payment of tax

✓ E.O. 98 – anytime before completement of transaction

9
 Primary Registration

Where to register?
▪ Register with the Revenue District Office (RDO) where your
business, head office, branch, or residential address is
located.

▪ For persons who conduct business in a nomadic or roving

manner, such as peddlers, "tiangges", mobile store
operators, common carriers/school bus operators without
designated garages/terminals, etc., their place of residence
shall be considered as the head office.
10
 Primary Registration

What form to use?

BIR Form Purpose
Payment of annual registration fees.
0605
Application for Registration for Self-Employed (Single Proprietor/Professional),
1901 Mixed Income Individuals, Non-Resident Alien Engaged in Trade/Business, Estate
and Trust
Application for Registration For Individuals Earning Purely Compensation Income
1902
(Local and Alien Employee)
Application for Registration For Corporations, and Partnerships
1903
Application for Registration For One-Time Taxpayer (ONETT) and Persons
1904
Registering under E.O. 98
Application for Registration Information Update, Correction, or Cancellation
1905

11
 Cert. of Registration

Certificate of Registration (COR)

▪ A.K.A. BIR Form No. 2303

▪ Each head office, and branch has their own COR

▪ A registered facility is issued a COR of Facility (BIR Form 2303-F)

▪ The COR shall only be issued to individuals engaged in business or

practice of profession and to juridical persons (whether taxable or
exempt).

13
Cert. of Registration

Sample

14
Cert. of Registration

15
Cert. of Registration

16
 Cert. of Registration

Penalties

Violation Penalty
• Failure to Register fines of between P5,000 and P20,000, and/or
imprisonment of between six months and two
years.
• Late Registration Compromise penalty of P1,000.00, in addition to
the unpaid ARF and penalties due thereon for
every year that the business is in operation.

17
 Annual Reg. Fee

Annual Registration Fee (ARF)

▪ Amount: P 500
▪ Deadline: January 31 of every year
▪ BIR Form: 0605

19
 Annual Reg. Fee

Annual Registration Fee (ARF)

▪ It is paid upon registration and every year thereafter.

▪ The ARF to be paid by the HO and by all branches of the
taxpayer.

20
 Annual Reg. Fee

BIR Form 0605

21
 Annual Reg. Fee

BIR Form 0605

22
 Annual Reg. Fee

Exempt from AFR

1. Cooperatives duly registered with the CDA;
2. Individual residents earning purely compensation income;
3. OCWs/OFWs;
4. Marginal Income Earners;
5. GAIs, in the discharge of their governmental functions;
6. LGUs, in the discharge of their governmental functions;
7. Tax exempt corporations;
8. Non-stock/non-profit organizations not engaged in business;
9. Persons subject to tax under one-time transactions;
10. Persons registered under EO 98, series of 1998; and
11. Facility/ies where no sales transactions occur.
23
 Annual Reg. Fee

Paying the AFR

24
 Annual Reg. Fee

Penalties

Violation Penalty
• Late payment of ARF 25% surcharge and 12% interest per
annum and P1,000 penalty.

25
 Other Requirements

Other Compliance Reminders

▪ Display your COR, latest 0605, and proof of payment.

27
 Other Requirements

Penalties

Violation Penalty
• No COR displayed Fine of P1,000 or imprisonment of not
more than 6 months

• Failure to Pay & Display BIR Form 0605 Fine of P1,000 or imprisonment of not
more than 6 months.

28
 Other Requirements

Other Compliance Reminders

▪ Taxpayers shall post in their business, branches, and mobile stores, in an
area conspicuous to the public, the “BIR Notice to the Public”.

Old Format New Format

29
 Other Requirements

Penalties

Violation Penalty

• Failure to display the “BIR Notice to Fine of P 1,000 or imprisonment of not

the Public " more than 6 months, or both.

30
 Branch Registration

Registration Requirements

32
 Branch Registration

Penalties

Violation Penalty

• Failure to register a branch or Subject to penalty of P1,000.00 per

facility unregistered branch or facility.

33
 Receipts and Invoices

Principal Invoice and receipts

• Sales Invoice

✓ evidences the sale of goods, whether cash sales or on account.

✓ Cash Sales Invoices and Charge Sales Invoices falls under this
definition.

• Official Receipt

✓ proof of sale of service and/or leasing of properties

✓ It is a written acknowledgment that money has been paid and
received.
35
 Receipts and Invoices

Principal Invoice and receipts

Receipts and invoices can be further classified into:

a) VAT Sales Invoice

b) VAT Official Receipt

c) Non-VAT Sales Invoices

d) Non-VAT Official Receipts

36
 Receipts and Invoices

Official Receipt

37
 Receipts and Invoices

Official Receipt

38
 Receipts and Invoices

Official Receipt

39
 Receipts and Invoices

Official Receipt
▪ Header

40
 Receipts and Invoices

Official Receipt
▪ Body

41
 Receipts and Invoices

Official Receipt
▪ Breakdown

42
 Receipts and Invoices

Official Receipt
▪ Authority to Print

43
 Receipts and Invoices

Sales Invoice

44
 Receipts and Invoices

Close-up

45
 Receipts and Invoices

Tape Receipt

46
 Receipts and Invoices

Tape Receipt

47
 Receipts and Invoices

Supplementary Invoice and receipts

• also known as COMMERCIAL INVOICES.

• It is a written account evidencing that a transaction has been made between the
seller and the buyer of goods and/or services.

• Example:
a. Delivery receipts
b. Order slips
c. Debit and/or credit memo
d. Acknowledgement receipt
e. Billing statement
f. Statement of account

48
 Receipts and Invoices

Supplementary
Invoice and
receipts

49
 Receipts and Invoices

Supplementary Invoice and receipts

50
 Other Matters

Cancellation of TIN

The cancellation of registration may either pertain to cancellation of

business registration and/or the assigned TIN. Application for
TIN/Registration cancellation shall take place upon:

1. Death of individual;
2. Full settlement of the tax liabilities of the estate;
3. Discovery of a taxpayer having multiple TINs; and
4. Dissolution, merger or consolidation of juridical person.

52
 Other Matters

Penalties

Violation Penalty

• Acquisition of Multiple TINs Aside from the criminal liability that

may be imposed, P1,000 for every TIN
acquired in excess of one;

53