Clarifications on the registration procedures under EOPT Act

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 91-2024, which aims to provide clarifications and guidelines on the registration procedures in line with Revenue Regulations No. 7-2024 and 11-2024 under the Ease of Paying Taxes (EOPT) Act.

The following are the pertinent clarifications on registration procedures:

A. Persons required to register with the BIR

Every person subject to any internal revenue tax shall register either electronically or manually with the Revenue District Office (RDO) as follows:

1. On or before the commencement of business for self-employed individuals, estates and trusts, corporations, and their branches, if any, including online sellers with or without physical stores;
2. Before any tax payment for entities involved in One Time Transaction (ONETT);
3.  Employees, including foreign nationals, must be employed within 10 days; and
4. Taxpayers covered under Executive Order No. 98, Series of 1999, involving all applications for government permits, licenses, clearances, and official documents.

Electronic applications can be done through any of the following portals:

1. New Business Registration – https://www.bir.gov.ph/newbizreg/
2. Taxpayer Registration-Related Application – https://www.bir.gov.ph/transportal/
3. Philippine Business Hub - https://business.gov.ph/
4. Online Registration and Update System (ORUS) – https://orus.bir.gov.ph/home

Commencement of business shall be reckoned on the date when the first sale occurred or upon the lapse of the 30 calendar days from issuance of the mayor’s permit, professional tax receipt or occupational tax receipt by the local government unit, or certificates of registration by the Department of Trade and Industry or Securities and Exchange Commission, as applicable, whichever comes first.

B. Certificate of Registration (COR)

A hard copy of the COR shall be displayed prominently in the business establishment for physical stores, while an electronic copy of the COR (eCOR) or Quick Response (QR) code generated from ORUS shall be posted in the seller’s website for online stores. For merchants without a fixed business place or online store, they shall keep in their possession the COR/eCOR subject to presentation upon request of any internal Revenue Officer.

C. Registration of Books of Accounts

1. For newly registered businesses, manual books of accounts shall be registered before the deadline for filing the initial quarterly income tax returns (ITR) or annual ITR, whichever comes earlier. The timing of registration is before the full consumption of the pages of the previously registered books.
2. For existing business taxpayers:

a. Before the use of the books for manual books of accounts, which is done before the full consumption of the pages of the previously registered books;

b. Within 15 days after the end of each taxable year unless extended by the BIR for loose-leaf books of accounts, which is done annually; and

c. Within 30 days from the close of each taxable year, unless extended by the BIR for computerized books of accounts, which is done annually.

The proof of registration is a QR code stamp generated by ORUS, which will be kept for record purposes. There is no need to go to the RDO manually unless the taxpayer is experiencing technical issues in ORUS with proof on the issue, or the taxpayer is already in the office premises of the RDO registering on the day of the deadline, or the taxpayer is a senior citizen.

D. Transfer of registration records to another RDO

The transfer of registration shall be done by mere filing of application (BIR form No. 1905). Documentary requirements, jurisdiction on the submission of application, and timeline on the completion of transfer depends on the type of taxpayer. Refer to RMC No. 91-2024 for the full list of requirements and procedures.

E. Closure of business with BIR

Closure of business registration shall be done by mere filing of application (BIR form No. 1905), with complete documents, namely the original list of ending inventory of goods, supplies, and capital goods, the original inventory list of unused invoices and supplementary invoices, and the original copy of COR, notices, and permits. 

However, the BIR is not precluded from conducting audits in order to determine the tax liability of the taxpayer. Any tax liability shall be settled prior to issuance of tax clearance for business closure.

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants

P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.

As published in SunStar Cebu, dated 04 September 2024