It’s no question — many people and businesses have been greatly impacted by the global crisis due to the COVID-19 pandemic. Many lost jobs, while others had no choice but to close their businesses and companies.
This is one of the reasons why many Filipinos (and Cebuanos) resorted to online selling and freelancing to keep up with the never-ending bills and other financial obligations.
The Bureau of Internal Revenue (BIR) issued a new memorandum on June 10, 2020, giving notice to all individuals “doing business and earning income in any manner or form” to register and comply with the existing provisions of the Tax Code.
Highlights of RMC No. 60-2020:
All persons doing business and earning income in any manner, specially those into digital transactions should be compliant with the tax code:
- Should be registered with the BIR
- Should issue proper receipts/invoices
- Should keep books of accounts
- Should file and pay tax returns on time
If you register before July 31, 2020, there will be no penalty imposed for late registration and late filing for past transactions.
All those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/unpaid taxes, shall be imposed with the applicable penalties under the law and existing policies.
Basic Registration Guidelines
According to BIR’s memorandum, in general, the registration and its updates are done in the Revenue District Office (RDO) having jurisdiction over the place where the Head Office is located or over the place of residence of the individual taxpayer.
1. Persons doing business online with no Tax Identification Number (TIN) yet – Register business following existing policies in securing TIN and registration of business.
2. Persons doing business online who already have TINs but the business is not yet registered:
- a. Individual – whether the TIN was issued due to ONETT or employment, register the business, using BIR Form 1901, with the RDO having jurisdiction over the place of business, if with physical establishment. Otherwise, with the RDO having jurisdiction over the place of residence. The concerned RDO shall effect the update of taxpayer classification (e.g., employee to sole proprietor, ONETT to sole proprietor); and include the business activity of online selling.
- b. Non-individual – Update business registration, using Form 1905, details to include additional business activity (online selling).
The Certificate of Registration (COR) shall be issued to those engaged in business upon compliance with the requirements as followers:
| Requirements | Individuals | Non-Individuals |
| 1. Fill up Registration Form | BIR Form No. 1901 (2 originals) | BIR Form No. 1903 (2 originals) |
| 2. Present any government-issued ID that is readable and untampered | e.g., Birth Certificate, Passport, Driver’s License, etc. | As applicable: SEC Certificate of Incorporation; or SEC Certificate of Recording; or License to Do Business in the Philippines |
| 3. Other documents required | DTI Certificate (if with business name) | Articles of Incorporation; or Articles of Partnership |
| 4. Payments to the New Business Registrant Officer (NBRO) posted in the New Business Registrant Counter (NBRC) | Registration Fee (P500.00) and loose Documentary Stamp Tax for affixture to COR (P30.00) | Registration Fee (P500.00) and loose Documentary Stamp Tax for affixture to COR (P30.00) |
| 5. Secure BIR Printed Receipts (BPR) / BIR Printed Invoices (BPI) or the Authority to Print (ATP) | BPR/BPI – depending on the printing cost per RDO or ATP – own choice of printer from the list of accredited printers | BPR/BPI – depending on the printing cost per RDO or ATP – own choice of printer from the list of accredited printers |
Upon completion of the above, the taxpayer will receive the ff.:
- Certificate of Registration (COR)
- Copy of BIR-received Registration Form (1901 or 1903)
- Notice to Issue Receipt/Invoice (NIRI)
- BPR/BPI or ATP (per taxpayer’s choice)
- Proof of payment of registration fee
Here’s the copy of BIR Memorandum Circular No. 60-2020:
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