Welcom

OPENING
PRAYER

NATIONAL
ANTHEM

OPENING
REMARKS

MESSAGE from the

GUEST SPEAKER

Hon.
Emmanuel O.
Fronda
MAYOR, Balayan,
Batangas

TOPICS TO BE DISCUSSED:
1.

2.
3.
4.
5.
6.
7.

Registration / Tax Compliance /

Bookkeeping (RR 7-2012)
Accredited Printers (RR 15-2012) OR/SI
TCVD / Tax Mapping
Income Tax Filing
Summary Lists of Sales and Purchases
Letter Notice
EFPS

Registratio
nRR 72012

Definition
of
Terms

PRIMARY REGISTRATION
Process

by which a person, or a
corporation and other juridical
entities, upon application and
full compliance with the
registration requirements
prescribed, is registered with
and consequently included in
the registration database if the
BIR

Secondary Registration

subsequent registration activities after

the issuance of BIR Certificate of
Registration (COR) relative to the
printing and issuance of official
receipts/sales invoices;
keeping/registering of books of
accounts and other accounting records;
applying for certain accreditation
requirements and securing other
applicable registration-related permits

PRIMARY REGISTRATION
May

involve 1 or 2
stages depending on
the purpose of the
taxpayer applying for
registration

PRIMARY REGISTRATION
INITIAL

STAGE
Application and issuance of TIN (all
persons subject to any internal
revenue tax or required to render a
return, statement, or other
document as required by the
provisions of the Code, as
amended; or who have been
mandated by other laws to secure
TIN for the execution of certain
documents must undergo this

PRIMARY REGISTRATION
SECOND

STAGE
Subsequent registration of the
employment, business, profession
and/or undertaking which the
person, natural or juridical, intends
to pursue on account of which he/it
is expected to regularly file tax
returns, pay taxes and fees
prescribed for by the Code, as
amended

PRIMARY REGISTRATION
BIR

FORMS
1901 For self-employed and Mixed
Income Individuals, Estates and
Trusts
1902 For individuals earning
Purely Compensation Income and
Non-residents
Citizens/OCWs/Seaman Earning
Purely Foreign-Sourced Income
1903 For Corporations /
Partnerships (Taxable / Non-Taxable,
including GAIs and LGUs

PRIMARY REGISTRATION
BIR

FORMS
1904 For One-Time Taxpayer and
Person Registering under E. O. 98
(Securing a TIN to be able to
transact with any government
office)

TAX IDENTIFICATION NUMBER

(TIN)
Reference index number issued and
assigned by the BIR to each and every
person registered in its database
Comprises of a 9-13 digit numeric code
first 9 digits = TIN Proper
Last 4 digits = Branch Code (in case of
business entities)
265-848-337-0001

REGISTRATION: 2nd STAGE

WHEN

TO REGISTER:

1. Employees Within 10 days from the

date of employment
2. Self-employed individuals, professionals
and their branches, if any; branches of
corporations On or before the
commencement of business

COMMENCEMENT OF BUSINESS
In

the case of pursuit of business or

practice of profession, shall be
reckoned from the day when the
first sale transaction occurred or
within thirty (30) days from the day
Mayors Permit/Professional Tax
Receipt (PTR) is issued, whichever
comes earlier, by the particular LGU
where the taxpayer is intending to
hold its business transactions

REGISTRATION: 2nd STAGE

WHEN TO REGISTER:
3. Corporations (Taxable or Non-Taxable)
Before payment of any tax due
Example: ABC Corporation was issued with
SEC Certificate of Registration on June 2,
2012. Immediately thereafter, it secured
TIN with the BIR. It has subscribed capital
stock of P1,000,000 and therefore required
to pay DST of P5,000 on or before July 5,
2012. In this case, registration shall be
done on or before payment of DST due.

REGISTRATION: 2nd STAGE

WHEN TO REGISTER:
4. Partnerships, Associations, Cooperatives,
Government Agencies and instrumentalities
Before or upon filing of any applicable tax
return, statement or declaration as required by
the Code, as amended
Example: ABC Corporation was issued with SEC
Certificate of Registration on June 2, 2012.
Immediately thereafter, it secured TIN with the
BIR. It has subscribed capital stock of
P1,000,000 and therefore required to pay DST
of P5,000 on or before July 5, 2012. In this
case, registration shall be done on or before
payment of DST due.

HEAD OFFICE
Declared

specific or identifiable
principal place/head office of
business as stated in Articles of
Incorporation/Partnership/ DTICertificate of Registration, as the
case maybe, or, in the absence
thereof, the place where the
complete books of accounts are
kept

HEAD OFFICE
Occupies

a fixed place of business ,

whether rented or owned,
regardless of whether or not the
product/services being sold are
actually located or displayed
thereat
For persons who conduct business
in a nomadic or roving manner,
such as peddlers , mobile stores
operators, etc., their place of
residence shall be considered as the

BRANCH
Separate

or distinct establishment
or place of business where sales
transactions are conducted
independently from the head office,
which branch, like the HO, needs to
be registered in the RDO having
jurisdiction over its physical location
and is subject to the payment of
Registration Fee (RF)

BRANCH
It

is to be clarified that different

lines of business engaged in by a
person located in a single place
shall not be considered a branch if
they are under one single business
name.
It should be noted however that
before a person can register a
branch or facility, it should have
registered first its head office.

SEPARATE OR DISTINCT
ESTABLISHMENT
An

establishment where business

transactions occur at a place other
than where the head office is
located
Shall be treated as a branch
whereby RF of P500.00 shall be
imposed

SEPARATE OR DISTINCT
ESTABLISHMENT
Any

of the various lines of business

pursued by a taxpayer which are
operated and conducted at the
same address and are individually
covered with business trade names
secured from DTI notwithstanding
the fact that such undertakings are
owned by one and the same person
or/an individual

EXAMPLE:
Ms. G is engaged in various line of
business under the ff. business
trade names which are all located at
Rm. 501 M. Building, M. Dela Fuente
St., Sampaloc Manila:
1.
2.
3.
4.

GV Internet Caf
135-536-536-0000
LSM Computer Services 135-536-536-0001
RV Bookkeeping Services 135-536-536-0002
JRR Janitorial Services
135-536-536-0003

EXAMPLE:
Based

on the previous example,

each said business owned by Ms. G
shall be imposed with RF of 500.00
If Ms. G decides to put up another
Internet Caf in Quezon City, such
internet caf shall be considered as
another branch and therefore shall
be assigned a branch code of
0004 and be required to pay
another RF.

GENERAL RULES IN APPLICATION

& ISSUANCE OF TIN

TIN is Non Transferrable

TIN stays with the taxpayer regardless of
cessation or cancellation of business
registration
Only One TIN per taxpayer
TIN of the estate of the deceased person is
different from the TIN of the deceased
issued while he/she is still alive

GENERAL RULES IN APPLICATION

& ISSUANCE OF TIN
No two or several taxpayers can hold just
one identical TIN
Once TIN is assigned, TIN card shall be
issued
Initial issuance of TIN card is free of charge
Minors who are earning and under EO 98
can have a TIN

Marginal Income Earner

individual whose business do not realize

gross sales or receipts exceeding P
100,000 in any 12-month period

UPDATES (1905/2305)

process by which the information

previously supplied during the Primary
Registration process are changed or
modified (e.g. surname, address within
same district office, exemption status
and qualified dependents, etc) either
upon the taxpayers or BIRs initiative

TRANSFER OF
REGISTRATION

process of transmitting the records of a

registered taxpayer from one BIR
district office to another where the new
registered address falls under the
jurisdiction of a BIR district office other
than where it is currently registered

CANCELLATION

process by which the information

pertaining to Primary Registration of a
taxpayer is tagged as cancelled but
nevertheless remains as part of the
BIRs registration database

END-DATING

shall, for purposes of preventing the

creation of stop filer cases, refer to the
process of indicating in the system the
end of the taxable period or date of the
last return period for a particular
registered form type/tax type for which
a return is required to be filed

STOP-FILER CASES

system created cases when a taxpayer

fails to file a return for a required tax
type for a taxable period (e. i. Income
Tax, VAT, Percentage Tax, etc.,) which is
required to be filed regularly (monthly,
quarterly, annually)

The following violations related to primary

registration shall be penalized as follows:

1. Failure to register (those who are found unregistered

during TCVD Subject to the penalties under prevailing
revenue issuances;
2. Late Registration (those who are voluntary registering,
but beyond the prescribed period as indicated in these
Regulations) Compromise penalty of P1,000.00, in
addition to the unpaid ARF and penalties due thereon for
every year that the business is in operation. This
provision shall not apply to application of TIN for
employees;
3. Late payment of ARF Subject to 25% surcharge and
20% interest per annum and P200.00 penalty;

The following violations related to primary

registration shall be penalized as follows:

4. Failure to register a branch or facility Subject to

penalty of P1,000.00 per unregistered branch or facility
(Section 258 of the NIRC, as amended);
5. Acquisition of Multiple TINs Aside from the criminal
liability that may be imposed, P1,000.00 for every TIN
acquired in excess of one;
6. Failure to and/or erroneous supply of information
P1,000.00 for every error/omission, but not to exceed
P25,000.00 (Section 255 of the NIRC, as amended); and
7. Any violation of the provisions of these Regulations
shall be subject to penalties provided in Sections 254 and
275, and other pertinent provisions of the Code, as
amended.

Requirements: SOLE PROP.

1.
2.
3.

4.

5.

DTI (Original & Xerox)

Mayors Permit (Original & Xerox)
Birth Certificate of the Taxpayer/
Marriage Contract / Birth Certificate
of Qualified Dependents (Xerox)
Registration Fee --- P500.00 (Form
0605)
Form 1901 (2 copies)

Requirements: SOLE PROP.

Contract of Lease if Renting;
TCT/Tax Dec if owned; SPA if with
consent
7. Books of Accounts (Columnar /
Ledger / Journal)
8. Sketch of Location
9. Printing of Receipts (Form 1906)
10. Subs. Sales Journal (if VAT)
11. Subs. Purchases Journal (if VAT)
6.

Requirements: PARTNERSHIP /
CORPORATION / COOPERATIVE
1.
2.
3.
4.
5.
6.
7.

8.

BIR Form 1903 (2)

BIR Form 1906 (3) (if Head Office)
BIR Form 0605
BIR Form 2000 (3) Subs. Cap. Stock
SEC (Original & Xerox)
By Laws (Original & Xerox)
Articles of Incorporation (Original &
Xerox)
Mayors Permit (Original & Xerox)

Requirements: PARTNERSHIP /
CORPORATION / COOPERATIVE
9.
10.

11.
12.

13.
14.
15.

Sketch of Location
Contract of Lease if Renting; TCT/Tax Dec if
owned; SPA if with consent
Sample of Receipt (BIR Form 1906)
Books of Accounts (Columnar / Ledger /
Journal)
Subs. Sales Journal (if VAT)
Subs. Purchases Journal (if VAT)
CDA; Accreditation Paper

UPDATES

(BIR FORM 1905)

CLOSURE

(BIR FORM 1905)

TAX

BRIEFINGS

Every Friday 9am BIR RDO 58

Batangas City

www.bir.gov.ph
043-723-3045
043-723-2874
043-723-6489

TAX
COMPLIAN
CE

1st Question:

WHAT IS
YOUR
BUSINESS?

1st Question:

WHAT IS YOUR
BUSINESS
TAX?

2nd Question:

ARE YOU A VAT or

NON-VAT REG?
1. VAT Zero-rated
2. VAT Exempt
3. VATable

BUSINESS TAX
A.
B.

1.

NON-VAT (Sec. 116-127)

VAT
VAT Zero-rated
(Sec. 106(A)(2) / 108(B)

2.
3.

VAT Exempt
(Sec. 109(A)(1)(A-U)
VATable

BUSINESS TAX

NON-VAT (PERCENTAGE TAX) 3%

Less than Php 1,919,500 Gross Sales/Receipts in year
2551M every 20th day of the following month

VAT (VALUE-ADDED TAX) 12%

2550M - every 20th day of the following month
2550Q 25th day following the close of the quarter
Vatable Sales *12% = Output Tax
Vatable Purchases * 12% = Input Tax
Output Tax less Input tax = VAT Payable
Php 1,919,500 and above Gross Sales/Receipts in a year
May opt to register as one even if Gross Sales < 1.9195M

ANNUAL REGISTRATION FEE

(RF)

An annual registration fee (RF) in the

amount of Five Hundred Pesos
(P500.00) for every separate or distinct
establishment or place of business shall
be paid upon registration and every
year thereafter on or before January 31
by every person subject to any internal
revenue tax.

Payment of TAXES
AAB
TIN

Verify or TIN card

Pay before the deadline
If paid beyond the deadline, it
will charged with penalties,
proceed first to BIR

MAIN OFFICE TO FILE:

Consolidated

VAT
Consolidated or Main Offices PM
Consolidated IT
Consolidated or Main Officers WC
Consolidated or Main Offices WE
Main Offices RF

BRANCH OFFICE TO FILE:

Branchs

PM
Branchs WC
Branchs WE
Branchs RF

MAP (1601-E)
SAWT (2307)
Alphalist of
Employees (1604CF)

Discus
s 2307

DISCUSS
Main/Branc
h Sales in
PT

DEADLINE:
RF (Jan. 31 of the year)
IT
1st 3rd (Apr 15,Aug15,Nov 15)
Annual (April 15)
VAT
2550M (20th day after month's end)
2550Q (25th day after quarter's end)
PT
2551M (20th day after month's end)
WE 1601-E (10th day of the ff month)
WC 1601-C

Penalties
1.

2.

3.

SURCHARGE 25% of the tax

due
INTEREST 20% interest per
annum
COMPROMISE bracket
a) Late Filing based on Gross
Receipts/Sales/Estate
b)Late Payment based on tax
due

Late Filing and Payment

Proceed to
RDO 58
Batangas City

BOOK
KEEPING

HOW TO USE
THE LEDGER/
JOURNAL?

Books

Non VAT Taxpayers

Journal Book
Sales Book
Disbursement Book

VAT Taxpayer

Journal Book
Columnar Book
Ledger Book
Subsidiary Sales Book
Subsidiary Ledger Book

REMINDER
All

reported sales,
receipts, expenses
shall be supported
by valid invoices. for
audit purposes

CLAIM

ONLY BUSINESS
EXPENSES
HOUSEHOLD EXPENSES
SHOULD NOT FORM
PART OF COST OF
SALES OR OPERATING
EXPENSES

INVOICES
OFFICIAL
RECEIPTS

Printing of Receipts
(duplicate)
use carbon

Sale

of Goods
SALES INVOICE
Sale of Services
OFFICIAL RECEIPT

Sales invoice

A written account evidencing the sale of

goods and/or properties issued to a
customer in an ordinary course of business
whether cash sales or on account
(credit)

Official receipt
Proof of sale of service and/or leasing of
properties which shall be the basis of the
Percentage Tax or Output Tax Liability
of the seller
A written admission or acknowledgment
that cash has been received for the
payment or settlement between persons
rendering services and its customers

When to issue a receipt

For Percentage Tax Registered Taxpayer

Issue Receipt for transactions in the amount of
P25.00 and above

For VAT Registered Taxpayer

Regardless of the amount of transaction

Printing of Receipts
Business Name
Proprietor
TIN no. (V/NV)
Address
Contact No.

SI # 0001
Qty.

Items/Particulars

Unit Price

Total
VAT
Total
Authority to Print

Total

AUTHORITY
TO PRINT
RR 15-2012
RR 18-2012

Revenue Regulation 152012

Only BIR Accredited Printers shall have an
exclusive authority to engage in printing of
principal and supplementary receipts and
invoices.
ATP System caters the on-line processing of
ATP and the on-line submission of printers
periodic reports with the capability to match
and process data and generate discrepancy
report of dubious entries

Revenue Regulation 152012

No printer shall require minimum number of

booklets for printing of the principal and
supplementary invoices/receipts.

Revenue Regulation 182012

Principal Receipts/Invoices

VAT Sales Invoice

VAT Official Receipt
Non-VAT Sales Invoice
Non-VAT Official Receipt

Supplementary Receipts / Invoices AKA

Commercial Invoices
includes but not limited to: delivery receipts,
order slips, debit/credit memo, purchase order,
job order,
provisional/temporary/acknowledgment/collection
/cash receipts, bill of lading, SOA,

Revenue Regulation 182012

All unissued/unused invoices/receipts
printed prior to the effectivity of the
aforementioned RR shall only be valid until
June 30, 2012
A taxpayer with expiring ATP for its
invoices/receipts (principal and
supplementary) shall apply for a new ATP
mot later than 60 days prior to actual expiry
date.

Revenue Regulation 182012

All unused/unissued
principal/supplementary receipts/invoices
shall be surrendered to the RDO where the
taxpayer is registered on or before the 10th
day after the validity period of the expired
receipts/invoices for destruction. An
inventory listing of the same shall also be
submitted.

TCVD
TAX
MAPPING

Documents to be inspected
Original

Certificate of Registration
(display)
Payment Form 0605 P500
(display)
Official Receipts / Sales Invoices
(authorized and updated)
Books of Accounts
(authorized and updated)

Posting of COR
Persons

shall post or exhibit its/ his

COR and duly validated
Registration Fee Return at a
conspicuous place in its/his
principal place of business and at
each branch in a way that is clearly
and easily visible to the public.
Together with Payment Form 0605
and OR

DISCUSS
TCVD
PENALTIE
S

OTHER
ISSUES/
REMINDE
RS

BIR Officer of the Day

(043)
723-2874

Preservation of books,
returns and
receipts/invoices and
other accounting
records
Books shall be preserved for a period of
three years
Shall be subject to examination and
inspection by internal revenue officers

Inform
immediately
this office upon
closure of
business

My
LAST
MESSAGE

Pay CORRECT
TAXES in
order to have
BETTER
PHILIPPINES

THANK YOU
and GOOD
DAY!