Companies and individuals are required to file a tax statement every year if they do business in the Philippines. Before filing a tax statement with the Philippines government, natural-born and juridicial citizens must receive a Tax ID number. A juridicial citizen is defined as any entity with at least 60 percent capital owned by a natural-born Philippine resident.
Filing BIR Forms
The first step in receiving a Tax ID number is to fill out any and all necessary Bureau of Internal Revenue (BIR) forms relevant to your situation. Form 1901 is used by mixed-income and self-employed individuals as well as estates and trusts. Form 1902 is used by non-resident citizens, resident aliens and employees with purely compensation-based income such as those providing hourly wage services. Form 1903 is used by corporations and partnerships. Form 1904 is used by one-time taxpayers who provided work or services for just the one year in the Philippines.
You must fill out these forms as standard tax documents, complete with identifying information, income, type of tax, marital status, dependents and other such information. Copies of documentation must also be affixed to your form such as your birth certificate, your Department of Trade and Industry (DTI) Business Name Registration, and your mayor’s permit if required by your BIR form. Other documentation may include any relevant lease contracts, franchise agreements, statements of capital, non-resident working permits, marriage contracts and more.
Once you’ve filled out the necessary BIR forms, you must follow the appropriate procedures to submit and file those forms, complete with affixed documentation, to the Philippines government. You must either mail or visit your local Revenue District Office (RDO) in person to submit your tax documents. Keep copies of your BIR forms, as you will need to visit a separate location known as an Authorized Agent Bank of your local RDO to remit your annual registration payment of 500 pesos. You will need to make this payment every year as well as the Documentary Stamp Tax of 15 pesos. You should make the payment and file your paperwork within the same week to avoid audits or other concerns.
Once you file your BIR forms, you may need to attend an initial briefing at your local RDO to become educated on your duties and responsibilities as a Philippines taxpayer. Once you have attended this briefing, the RDO will issue you a form 2303 Certificate of Registration, which will include your tax identification number and give you the authority to conduct business in the country.