BIR Registration in the Philippines

Our BIR Registration Service

Our Bureau of Internal Revenue (BIR) registration service is part of our company formation/business registration package offered to local and foreign companies and entrepreneurs who want to set up a business in the Philippines. We also offer the same service to sole proprietors, professionals, independent contractors, and all types of taxpayers.      

Drafting and Preparation of Forms and Other Documents

For all BIR-related transactions, we ensure that we secure copies of the latest versions of the forms and carefully draft them, ensuring accuracy of details and adherence to the standards of the agency. 

There are three major BIR forms to accomplish: the BIR Form 1906 for the registration, BIR Form 1906 for application for authority to print receipts and invoices (ATP), and BIR Form 1905 for the registration of books of accounts. While Mayor’s Permit is no longer required, supporting documents usually include the Articles of Incorporation (AOI), notarized contract of lease, and proof of payment of documentary stamp taxes.    

RDO Application Filing and Monitoring

Once all documentary requirements are reviewed by our specialists, they are filed immediately with the Revenue District Office (RDO) with jurisdiction over the principal business address. Depending on the RDO, the registration may be completed on the same day or for follow-up on the next few days. Either way, we make sure that you are updated with the progress of the transaction. 

Submission of Books of Accounts for Stamping

As soon as we receive the BIR Certificate of Registration (COR) and other initial documents, we proceed to the registration of the books of accounts. Based on the BIR regulations, these must be submitted and stamped within thirty (30) days from the registration date. 

Processing and Printing of Actual Receipts

Simultaneously, we coordinate the printing of the required booklets of primary and secondary receipts and invoices with our partner printing company (BIR-accredited) after the issuance of the Authority to Print Receipts and Invoices (ATP). While we need to submit the actual receipts and invoices to the BIR within thirty (30) days for their inspection, we make sure that we are on the same timelines with the printing company. 

Securing BIR COR and Other Registration Documents 

We understand how important it is that you start your legal business operations as soon as possible. With our streamlined BIR registration service, we ensure that we turn over to you the BIR Certificate of Registration (COR), Authority to Print Receipts and Invoices (ATP), Notice to Issue Receipts and Invoices (NIRI), stamped books of accounts and primary and secondary receipts within the promised timeline. 

BIR Registration FAQs

What Is BIR Registration? 

It provides the authority to (a) formally register the Tax Identification Number (TIN) for the company as issued in the SEC certificate, (b) issue official receipts and invoices, and (c) register the books of accounts that serve as the official records of the business transactions for the fiscal year.

Who Needs to Register with BIR?

All business entities, i.e., sole proprietorships and professionals, corporations, partnerships, cooperatives, and associations, require BIR Registration.

Where Is the BIR Registration Filed?

The BIR registration should be filed at the Revenue District Office (RDO) that has jurisdiction over the principal address of the company or business.

How Long Does the BIR Registration Process Take?

The estimated timeline for the processing of BIR Registration depends on the business entity, the RDO, and other factors. For a regular stock corporation, the BIR Certificate of Registration (COR/BIR Form 2303) and other documents may already be secured in fifteen (15) to twenty-five (25) days after the deal with the client is sealed.

Do I Need to Register for VAT?

You need to register for Value Added Tax (VAT) if your annual gross sales or receipts exceed PHP 3,000,000. If your sales are below this threshold, you may register as a non-VAT taxpayer.

What Are the Penalties for Non-Registration?

If a company or business operates without BIR Registration, it will face a series of consequences which may include penalties for non-registration, charges of tax evasion, closure of business, imprisonment, and other civil penalties. Equally important, it may also find it difficult to have access to essential financial services, e.g.,bank loans, and enter into legal contracts or transactions that require proof of legitimate business operations.

What Is the Difference Between a TIN and BIR Registration?

A Tax Identification Number (TIN) is a unique identifier assigned to individuals or businesses for tax purposes. BIR registration encompasses obtaining a TIN and completing additional steps to legally operate and comply with all tax obligations.

What Are the Common Types of Taxes in the Philippines?

[a] Tax Incentives. Businesses registered with the Board of Investments (BOI) or the Philippine Economic Zone Authority (PEZA) enjoy tax holidays and exemptions as well as other fiscal and non-fiscal incentives.

[b] Corporate Income Tax. Resident foreign corporations are taxed on net income derived from sources within the Philippines at a rate of 30%. Generally, nonresident foreign corporations are taxed on gross Philippine-sourced income at a rate of 30%. Regional operating headquarters (ROHQs) that don’t derive income from the Philippines are not subject to income tax. If they do have Philippine-sourced income, then a tax rate of 10% applies.

[c] Excise Taxes. Imported articles as well as those produced in the Philippines are subject to taxation. Specific and ad valorem excise taxes are levied on goods such as distilled spirits, wine and liquor; tobacco products; manufactured oils and other fuel products; automobiles; mineral products; saccharine; yachts and other pleasure or sports vessels; and non-essential goods. 

[d] Percentage Taxes. Certain entities are subject to percentage taxes, which are typically imposed on gross receipts. These include non-VAT businesses or individuals with gross annual sales that don’t exceed PHP1,919,500. Banks and non-bank finance firms, life insurance companies, operators of communication equipment for overseas, and international common carriers are also subject to percentage tax with varying rates. 

[e] Real Property Tax. A real property tax is imposed on owners of real property at a rate based on the property’s assessed value and location. 

[f] Value-Added Tax (VAT). Value Added Tax (VAT) at a rate of 12% of the gross selling price is levied on virtually all sales of goods and services in the Philippines. Entities are subject to VAT when their gross sales or receipts exceed PHP1,919,500.

[f] Withholding Taxes. There are different types of withholding taxes for corporations and individuals in the Philippines — namely, the Final Withholding Tax, Expanded Withholding Tax, and Withholding Tax on Compensation.

What Are the Taxpayers’ Obligations After BIR Registration? 

Once registered with the BIR, the taxpayer, whether individual or corporate, is obligated to file regular tax returns (e.g., monthly, quarterly, or annually), pay applicable taxes and fees, maintain accurate records of all business transactions, and comply with other BIR regulations and requirements. 

Why Do You Need Expert Assistance in BIR Registration? 

Due to the complexity of tax regulations and documentation requirements, expert assistance is needed to ensure that all BIR forms are accurately drafted and filed, streamline the registration process, and avoid common pitfalls that often result in delays and hefty penalties.