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BIR Registration Process in the Philippines
Local and foreign investors seeking to set up a company in the Philippines are required to register with various government agencies before they are allowed to commence business operations. The first step in the process is registering with the Securities and Exchange Commission (SEC) to obtain an SEC Certificate of Registration.
The next step is to secure a Mayor’s Permit from the local government unit (LGU) where the business will be located. Thereafter, corporations must obtain from the Bureau of Internal Revenue (BIR) a BIR Certificate of Registration.
Why Am I Required to Register With BIR?
As the taxing authority in the Philippines, the BIR regulates finance, taxation, and monetary policy in the country and collects internal revenue taxes, fees, and charges. It also enforces all forfeitures, penalties, and fines to individuals/organizations that fail to file their taxes.
Corporations that seek to do business in the Philippines are required to register with BIR for tax collection purposes and issuance of the BIR Certificate of Registration.
Registering your business with BIR enables you to do the following:
- Authority to print your official receipts and invoices
- Formally register the Tax Identification Number (TIN) provided for your company in the SEC Certificate of Registration
- Register the books of accounts you are required to annually register with BIR (to serve as official record of your business transactions for the fiscal year)
The Certificate of Registration issued by BIR (BIR Form 2303) contains an enumeration of the types of taxes that are required to be paid to the government, which includes the following:
- Corporate income tax
- Value-added tax
- Withholding taxes (on compensation, fringe benefits, etc.)
Steps in Registering Your Business with the BIR
- Accomplish BIR Form 1903 (Application for Registration for Corporations/Partnerships [Taxable/Non-Taxable]) and submit the same together with the required supporting documents to the Revenue District Office (RDO) that has jurisdiction over the location of your business. The supporting documents to be attached to the Form 1903 are as follows:
- SEC Certificate of Registration (or License to Do Business in the Philippines for resident foreign corporations)
- Mayor’s Permit or application for Mayor’s Permit (must be submitted prior to the issuance of the BIR Certificate of Registration)
- Contract of Lease
- Other documents to be submitted if applicable:
- Certificate of Authority (if Barangay Micro Business Enterprises (BMBE) registered entity)
- Franchise Agreement
- Proof of Registration/Permit to Operate with BOI, PEZA, SBMA, or BCDA
- Pay the Annual Registration Fee (P500.00) at the Authorized Agent Banks (AABs) of the concerned RDO
- Pay the Documentary Stamp Tax (DST) on Subscription and Lease (BIR Form 2000). The DST on Subscription depends on the amount of your capital while the DST on Lease depends on your monthly rental.
NOTE: After receipt of these requirements, BIR officials will notify you when your BIR Certificate of Registration (BIR Form 2303) is available for claiming.
Next Steps After Securing a BIR Certificate of Registration
- Apply for Sales Invoices/Official Receipts through BIR Form 1906 (Application for Authority to Print Receipts and Invoices). The documentary requirements for obtaining such are as follows:
- BIR Form 1906 (Authority to Print)
- BIR Certificate of Registration (BIR Form 2303)
- Final and clear sample of Principal and Supplementary Commercial Receipts and Invoices
- BIR Certificate of Registration of Accredited Printer
- BIR Annual Registration Fee (BIR Form 0605) of Accredited Printer
- Job order
- Quarterly Report of Accredited Printer
- Register books of accounts and have them stamped by the RDO where your business is registered. Note that the BIR examiner will usually advise you the types of books and taxes applicable to your business upon the initial taxpayer’s briefing. The documentary requirements you have to submit upon registering your books of account are the following:
- BIR Certificate of Registration (BIR Form 2303)
- New sets of books of accounts, such as but not limited to:
- General Journal
- General Ledger
- Cash Receipt
- Cash Disbursement
- Subsidiary Sales Journal
- Subsidiary Purchase Journal
- Attend the taxpayer’s initial briefing to be conducted by the RDO for new registrants to inform them of their rights and duties/responsibilities.
- An “Ask for Receipt” Notice (ARN) will be issued together with the BIR Certificate of Registration and both documents must be posted in your business establishment.
- Your corporation, as well as its branches, must accomplish and file the application on or before you commence operations. Doing otherwise is prohibited by Philippine laws.
- You are required to pay the Documentary Stamp Tax (DST) on the Articles of Incorporation (AOI) on the 5th day of the month following the date of issuance of the AOI (as prescribed under Section 175 of the National Internal Revenue Code of 1997).
- If the DST is required to be paid within 5 days after the close of the month, BIR Registration shall be conducted on or before payment of DST is due.
- Once your BIR Certificate of Registration is issued to you, you are given 30 days to have your official receipts and sales invoices printed.