Registration Requirements

Updates

July 23, 2012

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REVENUE REGULATIONS NO. 7-2012 - Consolidated Revenue Regulations on Primary Registration, Updates and Cancellation

Primary registration may involve two scenarios depending on the purpose of the taxpayer applying for registration as follows:

TIN Issuance and Registration – refers to issuance of TIN to all persons who will engage in business, practice of profession or employment and who may or may not be subject to any national internal revenue tax but may be required to file the corresponding tax return, statement or other documents as required by the Code (VAT, IT,DST, etc.),including registration of its branch/es.

Purely TIN Issuance – refers to issuance of TIN to applicants under EO 98, series of 1998 e.g., in the case of individuals to incorporate the TIN in all forms, permits, licenses, clearances, official papers and documents which they secure from other government agencies/offices.

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Principal or Main Employer- shall refer to the employer to whom an employee renders his services for most of his time during the taxable year.

Mixed Income Earner – shall refer to a compensation-earner who at the same time is engaged in business or practice of profession.

Marginal Income Earner – shall refer to those individual whose business do not realize gross sales or receipts exceeding P100,000 in any 12-month period.

Self-employed Individual – one who may either be a single proprietor engaged in business or in the practice of his profession.

Transfer of Registration – shall mean the process of transmitting the records of a registered taxpayer from 1 RDO to another where the new registered address falls under the jurisdiction of the RDO other than where it is currently registered.

Cancellation – shall mean the process by w/c the info pertaining to Primary Registration of a taxpayer is tagged as cancelled but nevertheless remains as part of the BIR’s registration database.

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General Rules in the Application and Issuance of TIN

1. The TIN , once assigned to a particular taxpayer, is non-transferable and there shall be no instance where two or several taxpayers are holders of the same TIN;

2. Only 1 TIN shall be assigned to the taxpayer, regardless of variety of transactions e.g., employee who is at the same time engaged in business. Any person who shall secure more than 1 TIN shall be subject to the penalty provision under Section 15 of this regulations.

3. The Estate of a deceased person or a Trust under an irrevocable trust agreement shall be issued a TIN separate and distinct from the TIN of the deceased person and/or trustee.

4. Minors who are earning and/or who are under the circumstances prescribed under EO No. 98 shall be supplied a TIN.

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5. Employees registering/securing TIN

- Within ten (10) days from date of employment, for individual registering with the BIR for the first time by reason of employment.

- The submission of the fully accomplished registration forms to BIR may either be done by the employer or the employee.

- Employers filing on behalf of their employees shall submit within ten (10) days following receipt from the employees.

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PERSONS WHO ARE REQUIRED TO or MAY SECURE TIN

1. Every person subject to any internal revenue tax such as : IT, VAT, estate and donor’s taxes, percentage tax, w/tax, excise tax and DST, including its branches. It also includes persons subject to taxes under ONETT;

2. Any person although exempt from the imposition of the taxes imposed under the Code, is nevertheless required to withhold taxes on account of income tax payments made to taxable individuals or entities.

3. Pursuant to Sec 236 of the Tax Code, any person required to make, render or file a return, statement or other document whereby he is required to indicate his TIN in such return, statement or document filed with the BIR for tax purposes and which he shall indicate in certain documents. 4. Pursuant to EO 98, persons dealing with all gov’t agencies and instrumentalities, GOCCs and LGUs, which are required to indicate their TIN in all forms, permits , licenses, clearances, official papers and documents.

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SECURING OF TIN THROUGH OTHER FACILITY

While the application and issuance of TIN is generally made thru the concerned BIR district office, the same may be obtained through our eRegistration System in the BIR website.

ISSUANCE OF TIN CARDIssuance of TIN card for the first time shall be free of charge. The same shall be processed and released to the applicant within the same day upon the submission to the BIR district office of the complete doc requirements.

Where do employees register?-BIR district office having jurisdiction over the place of office of the employer where such employee is expected to report for work with or without registered tax type WC.-Employees of LTs and corporations included under the TAMP and other EFPS registered employers, their employers shall be responsible to secure the employee’s TIN via eReg facility or system.

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- Employees of employers other than LT or TAMP may secure the TIN of their employees thru eReg or thru the BIR district office having jurisdiction over the employer.

- Employees with concurrent multiple employment, at the BIR district office having jurisdiction over main employer.

What are the required documents for registration?a.Accomplished BIR form 1902;b.NSO certified birth certificate of declared dependents;c.Waiver of husband on his right to claim additional exemptions, if wife will claim; and d.Marriage contract, if applicable

If the husband wants to reacquire from his wife the privilege of claiming the additional exemption for the dependent children, he shall execute a cancellation of the previously executed waiver of the privilege to claim such additional exemptions in favor of the wife, w/c Notice of Cancellation of Waiver of the Privilege shall be filed separately, together with the reg update form w/ the Rdo having jurisdiction over the reg of the H & W.

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Requirements in the Change in Exemption Status

-BIR form 2305

-Marriage contract in case of change of exemption status from single to married;

-NSO certified Birth Certificate of qualified dependents in cas eof additional dependent children;

-When husband waives right – Sworn Declaration of Waiver of Rights to Claim Exemption; and

-When husband revokes right - Notice of Cancellation of Waiver of Rights to Exemption.

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Instances when required to Update Registration due to Transfer

-When an individual originally issued TIN under EO 98 or ONETT subsequently becomes employed and the place of business/profession or employer’s address is different from residence;

-An individual who is registered as an employee and subsequently engages in business or profession and place of business or profession is different from where s/he is currently registered;

-Registration of purely compensation employees of transferring employer shall simultaneously be transferred with the employer’s transfer. The employer shall submit the duly accomplished Application for Registration Information Update of the Employee;

-Employees w/ multiple employments where transferring employer is not his/her main employer are excluded.

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- Individuals earning purely compensation income who change employers, thereby resulting in a transfer, it shall be the responsibility of the new employer to notify its BIR district office by submitting the duly accomplished form of the employee.

Note:

- Registration of purely compensation employees of transferring employer shall simultaneously be transferred with the employer’s transfer.

- For those establishing business or practice of profession, employee shall update w/ BIR district office having jurisdiction over place of business or practice of profession, or if no permanent place of business, BIR district office having jurisdiction over residence.

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- The required documents for employees whose employers are transferring are the following:

a. List of Employees as of Transfer

b. Update Forms of Employees

c. And other documents as may be deemed necessary.

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REMEMBER……..- A Taxpayer MUST have only one (1) Taxpayer Identification Number

(TIN) in possession.

- Your TIN is your lifetime number.

- TIN is free of charge, subsequent request for TIN card will be charged P100.00 (RR No. 5-2010, RR No. 7-2012).

- File your return and Pay your taxes on time to avoid inconvenience.

- Those under the employer-employee relationship shall be under the substituted filing of returns unless fall under the exceptions.

- With or without tax due/payment, you have to file the corresponding required return/s.

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THANK YOU AND GOD BLESS!

Lani Santos-Mariano

09285072653 / 9263711