The Bureau of Internal Revenue (BIR) is the Philippines’ primary taxation agency. It is authorized to assess and collect taxes from all income-generating entities in the country.
Before any business can commence operations, they are required to register with the BIR or be penalized in accordance with Philippine law.
Here are the steps to registering your corporation with the BIR:
1. Fill out the required application forms, specifically,
• BIR Form 1903, or the Application for Registration for Corporations/Partnerships;
• BIR Form 0605, i.e., the Payment Form, for tax type RF (i.e., registration fee); and
• BIR Form 2000, for documentary stamp tax.
2. Submit the required documents at the revenue district office (RDO) in charge of the area where your office is located. These documents include
• your filled-out BIR Form 1903;
• your SEC certificate;
• your business/mayor’s permit; and
• your contract of lease.
You may also be asked for a sketch of your head office location.
Note that in some RDOs, you will need to bring your original business permit plus a photocopy of the same, while in others, even just the official receipts (OR) of the payments you made for your business permit application will suffice.
You may also be asked for a sketch of your head office location.
Note that in some RDOs, you will need to bring your original business permit plus a photocopy of the same, while in others, even just the official receipts (OR) of the payments you made for your business permit application will suffice.
3. Pay the annual registration fee. This is a fixed cost of ₱500 every year.
You will also need to pay for documentary stamps; the BIR will advise you on the exact amount you will need to pay for that.
In some places, RDOs will accept these payments onsite; in others, you will be asked to make the payments at the nearest authorized agent bank (AAB).
Each RDO has a list of its own AABs – but not all AABs actually do accept BIR payments.
4. Attend the BIR seminar. Some days after you submit your application requirements, your Certificate of Registration (COR) will be ready for pickup. Before the RDO will release this certificate, you or your authorized representative will need to attend a 1–2 hour seminar about your tax duties, the different kinds of taxes you need to file and pay, and the various tax deadlines. CORs will be given out after the seminar.
5. Register your accounting system. With your COR on hand, you are practically done registering your business.
The next step is to register your accounting system using the BIR Form 1900 (Application for Authority to Use Computerized Accounting System or Components thereof/Loose-Leaf Books of Accounts).
Or if you will be using manual books of accounts fill out BIR Form 1905.
6. Get your receipts and invoices printed. This involves another application process, and it should be done promptly because you need to begin issuing ORs and sales invoices (SI) within 30 calendar days from the date of registration indicated in your COR.
To get BIR-authorized ORs and SIs, you need to apply for an Authority to Print receipts using the BIR Form 1906. Submit this to your RDO along with a clear sample of the receipts you intend to get printed.
ORs and SIs must be printed by BIR-authorized printers only. These receipts will be valid for a period five years from the date of printing, after which any unused ones will need to be destroyed and you will need to obtain a new authority to print.
The BIR registration is the last step in legalizing your corporation’s business presence in the Philippines. Your next steps – registrations with the Department of Labor and Employment, etc. – will come when you are hiring your first employees.
About David Elefant
Philippines business consultant specializing in assisting companies setup their operations in the Philippines.
- Find more about me on:
