In the Philippines, taxes are paid in value added tax and through salary deductions for those who are employees from both private and government firms. The business community is not exempted from paying taxes. If you are an aspiring entrepreneur and you have just turned legal age and you have not paid any taxes in your life then you need to secure your TIN ID first or your tax identification number ID. Each Filipino is entitled to have one TIN number in his or her lifetime. Having more than one TIN number is against the law under the National Internal Revenue code of 1997.
Obtaining a TIN number differs if you are an individual from a corporation. We will discuss the steps on how to file for tax identification number ID the easier way for both individual tax payers and corporations. Check out our prepared guidelines below for your reference.
Self Employed Individuals or those with Mixed Income Individuals
Self-employed individuals are those who are earning money through their business venture whether it be a small business venture or a large venture as long as there is only one owner then that individual is categorized under this type. On the other hand, a mixed income individual is a person earning monthly wage from a company and has a business venture at the same time.
The requirements for this type of tax payers are as follows:
- Birth Certificate issued by the Philippine Statistics Authority
- Marriage Certificate for those who are married individuals especially the ladies because they are the ones changing their last names, this should be issued by the Philippine Statistics Authority as well.
- Mayor’s Permit or Business Permit Copy
- Professionals are required to have Occupational Tax Receipt or Professional Tax Receipt
- Certification of the company
- Working permit is an added requirement for the non-residents
- Copy of the franchise agreement is an added prerequisite for the franchisee
The Steps on How to File for Your Tax Identification Number for the Self-Employed or Mixed Income Individuals
- Get the BIR form 1901 from your RDO or Revenue District Officer, fill it out and submit it to the together with the requirements mentioned earlier.
- Payment of Php 500 to the accredited banks is needed. Keep the transaction slip for this would be needed later.
- Rights and responsibilities of the tax payer is discussed by the RDO, and you should attend to this seminar. And once you have completed this, you would be given a certificate or Form 2303. This comes with the “ask for a receipt” notice from the BIR.
- Employed Individuals or those who are earning purely form compensation
Employees from the private and government sector who are earning purely form their monthly salary or compensation falls on this type or category.
The requirements for this type of tax payers are as follows:
- Birth Certificate of the applicant issued by the Philippine Statistics Authority
- Marriage Certificate for those who are married individuals especially the ladies because they are the ones changing their last names, this should be issued by the Philippine Statistics Authority as well. For those whose spouse, waiver of the spouse who has the right to claim is filled out.
- Passport would be needed in case the one applying is not a Filipino.
- Birth Certificate of the declared dependents issued by the Philippine Statistics Authority for the offspring of the taxpayer who are under 18 years of age or over if he/ she has a mental illness or of unsound mind.
The Steps on How to File for Your Tax Identification Number for the Pure Compensation based Income Individuals
- BIR form 1902 should be obtained and filled out. Once it’s accomplished, it should be submitted together with the above mentioned prerequisites.
- The employer would fill out the necessary portions of the form and once completed the form is submitted to the RDO who has the jurisdiction of the area of your work place.
- It is important to know that the employer should file this form on behalf of the employee who has been hired ten days from the date of employment.
- The last type of tax payers are the corporations or partnerships. This includes both business ventures from the public or government and of course from a corporation or partnership.
Requirements for the taxpayers under this category are as follows:
- Certificate of SEC registration or articles of partnership
- Business Permit Copy
- Contract of Lease
- Franchise Terms of Agreement
- Proof of registration to operate with BOI; BCDA; EPZA and SBMI
- Copy of agency’s charter for the LGUs, GAIs, and GOCCs
- For the homeowners, the article of association
- Certificate of Registration issued by Housing and Land Use Regulatory body for the home owners
- On the other hand, for the branch or facility, an additional requirement is needed which is the COR or copy of the COR of the Head office to used
- A new set of accounts is needed as well
The Steps on How to File for Your Tax Identification Number for the Partnerships or Corporations
- Obtain the BIR Form 1903; fill it out completely and submit it together with the needed documents mentioned earlier.
- Php 500 is paid for the annual registration fee and the documentary stamp tax as well. These should be paid at the AAB and the receipts should be kept for verification later on.
- Initial briefing is done by the RDO and once it’s finished the certificate would be issued accordingly. The certificate is issued together with the “ask for receipt” notice from the BIR, book of accounts and the authority to print.
Important Points to Remember:
- On or before the start of the operations of the corporations, the application for TIN should be filed. It shall be reckoned on the first day or within 30 days from the moment the Mayor’s permit is issued or the SEC certificate whichever comes earlier.