The Bureau of Internal Revenue (BIR) is a government agency in the Philippines under the Department of Finance, tasked to assess and collect internal revenue taxes, fees and charges. Somewhat similar to Internal Revenue Service (IRS) of United States of America, Australian Taxation Office (ATO) of Australia or Her Majesty’s Revenue and Customs (HMRC) of United Kingdom.
Arguably one of the most feared government agency in the Philippines. But if you know what you’re doing and pay taxes on time, there’s nothing to worry about. I suggest you hire a good Tax Lawyer or Accountant for your tax planning and compliance. Once the plan is laid out then start with the registration. Here’s a quick guide for you:
- SEC Registration and Articles of Incorporation/Articles of Partnership (photocopy but bring the original copy as well)
- Business Permit but if still on process, a copy of the Application for Business Permit
- BIR Form 1903 – Application for Registration for Corporations/Partnerships (Taxable/Non-Taxable)
- Other documents needed only if applicable:
- Contract of Lease
- Proof of Registration/Permit to Operate with PEZA, BOI, SBMA or BCDA
- License to Do Business in the Philippines from SEC, in case of resident foreign corporation
- Franchise Agreement
- For branch:
- Copy of the Certificate of Registration of the Head Office
- Mayor’s Permit or Application for Mayor’s Permit if still on process
- Contract of Lease, if applicable
- Buy special books of accounts. These are required upon BIR Registration. Basically you’ll need four books: cash receipts journal, cash disbursements journal, general journal and ledger. If you decide to have an accounting software, you have to register it with BIR. The Computerized System Evaluation Team from BIR will inspect and evaluate the system within 30 days from receipt of the application (BIR Form 1900) and complete documentary requirements.
- Submit the documentary requirements to the Revenue District Office (RDO) that has jurisdiction over the registered address of your business. Proceed to the BIR clerk in-charge of 1903 filing.
- Pay Registration Fee of Php 500.00 using BIR Form 0605 as well as Documentary Stamp Tax (PHP 1.00 for every PHP 200.00 or fractional thereof, of the par value, of such shares of stock) at an Authorized Agent Bank of the RDO. The documentary stamp tax shall be paid on or before the fifth (5th) day after the close of the month of approval of SEC Registration.
- The RDO will issue the Certificate of Registration (COR) Form 2303.
- Secure the Authority to Print Receipts and Invoices. Here are the requirements:
- BIR Form 1906
- Job Order Form (look for an authorized printing company near you and ask for this form)
- Final and clear sample of receipts and/or invoices
- Photocopy of BIR Form 1903 (Application for Registration)
- Proof of Payment of Registration Fee (BIR Form 0605)
- Print Receipts and/or Invoices at the authorized printing company. Usual volume is 25 booklets.
- Have the Books of Accounts and Printer’s Certificate of Delivery stamped by BIR. Secure “Ask for Receipt” poster.
- Place BIR Form 1903, Certificate of Registration Form 2303 and “Ask for Receipt” poster in a conspicuous area at your office.