6 Easy Steps to Set Up Your Business’s Tax Permit
Denise Emille Duque
October 11, 2022
Managing your legal documents is a must in operating your business. One requirement that a business needs is tax registration. Much like paying your taxes as an employee, settling your taxes as a business helps fund public services to help your fellow citizens. In the Philippines, the Bureau of Internal Revenue (BIR) is the tax governing agency that handles finance, taxation, and monetary policy in the country. Without registering with them, you may face penalties like various fines and imprisonment.
Let’s get started!
There are two ways to register your business in the bureau: via the BIR’s Revenue District Office in your business’s area, (RDO) or through their online portal.
Onsite
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To start, you need to provide the following requirements:
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Barangay Business Clearance
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Certificate of Lease (rented) or Certificate of Land Title (owned)
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Government-issued Identification ID/Document (Birth Certificate, Driver’s License, Passport, etc.)
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DTI Certificate of Registration
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Mayor’s Permit
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Next, accomplish BIR Form 1901 version 2018 and submit it with the required documents above.
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Pay the Annual Registration Fee (P500.00), loose DST (P30.00), and/or payment for the BIR Printed Receipt/Invoice (if the taxpayer buys for use) at the New Business Registrant Counter in the BIR Office.
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Submit a photocopy of your BIR form payments and requirements to your RDO.
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After that, the RDO shall issue the Certificate of Registration (Form 2303) together with the “Notice to Issue Receipt/Invoice”, Authority to Print, BIR Printed Receipts/Invoices (if applicable), and eReceipt as proof of your payment.
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As you get your Certificate of Registration, you can now apply for Sales Invoices/Official Receipts through BIR Form 1906 (Application for Authority to Print Receipts and Invoices) and register your business’ books of accounts.
Via Online
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Scan all required documents in PDF copy for email. All files should not exceed 4MB in total. Requirements needed are:
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BIR Form No. 1901 version January 2018. You can download it here: https://www.bir.gov.ph/index.php/bir-forms/application-forms.html#af1901
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Any government-issued ID (e.g. Birth Certificate, passport, driver‘s license, Community Tax Certificate, etc.)
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BIR Printed Receipt/Invoice (Available for sale at the New Business Registrant Counter). or
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Final & clear sample of OWN Principal Receipts Invoices (You can download the sample layout here: https://www.bir.gov.ph/images/bir_files/internal_communications_3/Attachments%20of%20RMO%202018/RMO%2019-2018/SingleWindow_Annex_C1_C2_C3.docx).
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Scan the accomplished tax-type questionnaire and include it as an attachment to your email application. You can access the questionnaire here: https://www.bir.gov.ph/newbizreg/tax_types_questions.pdf
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Pay the P500.00 Registration Fee and P30.00 loose Documentary Stamp Tax (DST) through the following ePayment Channels of the BIR.
Taxpayer applicants without an existing TIN shall need to wait for an email instruction from the bureau on when to pay or may pay the fees at the New Business Registrant Counter in the Revenue District Office (RDO). The schedule will also be the same time to pick up the Certificate of Registration.
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Go to https://www.bir.gov.ph/newbizreg/ and fill up the required fields (under Step 4 of the website’s given instructions). Click the "Email your Application" button to get their email address. Note the automated email information below the form for your email format.
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After a maximum of three (3) working days, you will receive an email for your scheduled pickup for the Certificate of Registration and buying of BIR Printed Receipts/Invoices or Authority to Print (if applicable).
Starting a business requires several documents to function legally. As tax registration is part of the requirement, we must be obliged to follow the law. By following the rules, your business can run smoothly as it helps the economy and the people!
Sources:
https://www.bir.gov.ph/index.php/registration-requirements.html
https://www.bir.gov.ph/newbizreg/
https://www.tripleiconsulting.com/how-to-register-business-with-bir-philippines/
