BIR RR 7-2012 Registration Seminar

Welcome

OPENING PRAYER

NATIONALANTHEM

OPENING REMARKS

MESSAGE from theGUEST SPEAKER

Hon. Emmanuel O.

FrondaMAYOR, Balayan,

Batangas

1. Registration / Tax Compliance / Bookkeeping (RR 7-2012)

2. Accredited Printers (RR 15-2012) OR/SI3. TCVD / Tax Mapping4. Income Tax Filing5. Summary Lists of Sales and Purchases6. Letter Notice7. EFPS

TOPICS TO BE DISCUSSED:

RegistrationRR 7-2012

Definitionof

Terms

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

PRIMARY 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

Secondary Registration

May involve 1 or 2 stages depending on the purpose of the taxpayer applying for 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 stage)


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


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


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)


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

TAX IDENTIFICATION NUMBER (TIN)

WHEN TO REGISTER:1. Employees – Within 10 days from the date of

employment2. Self-employed individuals, professionals and

their branches, if any; branches of corporations – On or before the commencement of business

REGISTRATION: 2nd STAGE

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 Mayor’s Permit/Professional Tax Receipt (PTR) is issued, whichever comes earlier, by the particular LGU where the taxpayer is intending to hold its business transactions

COMMENCEMENT OF BUSINESS

WHEN TO REGISTER:3. Corporations (Taxable or Non-Taxable) – Before

payment of any tax dueExample: 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.


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.


Declared specific or identifiable principal place/head office of business as stated in Articles of Incorporation/Partnership/ DTI-Certificate 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 head office

HEAD OFFICE

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.

BRANCH

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

SEPARATE OR DISTINCT ESTABLISHMENT

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. GV Internet Café 135-536-536-00002. LSM Computer Services 135-536-536-00013. RV Bookkeeping Services 135-536-536-00024. 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 Café in Quezon City, such internet café shall be considered as another branch and therefore shall be assigned a branch code of “0004” and be required to pay another RF.

EXAMPLE:

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

GENERAL RULES IN APPLICATION & ISSUANCE OF TIN

individual whose business do not realize gross sales or receipts exceeding P 100,000 in any 12-month period

Marginal Income Earner

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 taxpayer’s or BIR’s initiative

UPDATES (1905/2305)

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

TRANSFER OF REGISTRATION

process by which the information pertaining to Primary Registration of a taxpayer is tagged as “cancelled” but nevertheless remains as part of the BIR’s registration database

CANCELLATION

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

END-DATING

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)

STOP-FILER CASES

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.

The following violations related to primary registration shall be penalized as follows:

1. DTI (Original & Xerox)2. Mayor’s Permit (Original & Xerox)3. Birth Certificate of the Taxpayer/ Marriage

Contract / Birth Certificate of Qualified Dependents (Xerox)

4. Registration Fee --- P500.00 (Form 0605)5. Form 1901 (2 copies)

Requirements: SOLE PROP.

6. Contract of Lease if Renting; TCT/Tax Dec if owned; SPA if with consent

7. Books of Accounts (Columnar / Ledger / Journal)

8. Sketch of Location9. Printing of Receipts (Form 1906)10. Subs. Sales Journal (if VAT)11. Subs. Purchases Journal (if VAT)

Requirements: SOLE PROP.

1. BIR Form 1903 (2)2. BIR Form 1906 (3) (if Head Office)3. BIR Form 06054. BIR Form 2000 (3) Subs. Cap. Stock5. SEC (Original & Xerox)6. By Laws (Original & Xerox)7. Articles of Incorporation (Original &

Xerox)8. Mayor’s Permit (Original & Xerox)

Requirements: PARTNERSHIP / CORPORATION / COOPERATIVE

9. Sketch of Location10. Contract of Lease if Renting; TCT/Tax Dec if

owned; SPA if with consent11. Sample of Receipt (BIR Form 1906)12. Books of Accounts (Columnar / Ledger /

Journal)13. Subs. Sales Journal (if VAT)14. Subs. Purchases Journal (if VAT)15. CDA; Accreditation Paper

Requirements: PARTNERSHIP / CORPORATION / COOPERATIVE

UPDATES(BIR FORM 1905)

CLOSURE(BIR FORM 1905)

TAX BRIEFINGSEvery Friday 9am BIR RDO 58 – Batangas City

www.bir.gov.ph043-723-3045043-723-2874043-723-6489

http://www.bir.gov.ph/

TAX COMPLIAN

CE

WHAT IS YOUR

BUSINESS?

1st Question:

WHAT IS YOUR BUSINESS

TAX?

1st Question:

ARE YOU A VAT or NON-VAT REG?

1. VAT Zero-rated2. VAT Exempt3. VATable

2nd Question:

A. NON-VAT (Sec. 116-127) B. VAT1. VAT Zero-rated

(Sec. 106(A)(2) / 108(B)2. VAT Exempt

(Sec. 109(A)(1)(A-U)3. 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

BUSINESS TAX

SALES 150,000.00 1,800,000.00 PURCHASES 125,000.00

NON-VAT2551M

150,000.00 3% 4,500.00

VAT2550M/Q

150,000.00 12% 18,000.00 125,000.00 12% 15,000.00

3,000.00

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.

ANNUAL REGISTRATION FEE (RF)

AABTIN Verify or TIN cardPay before the deadlineIf paid beyond the deadline, it will charged with penalties, proceed first to BIR

Payment of TAXES

Consolidated VATConsolidated or Main Office’s PMConsolidated ITConsolidated or Main Officer’s WCConsolidated or Main Office’s WEMain Office’s RF

MAIN OFFICE TO FILE:

Branch’s PMBranch’s WCBranch’s WEBranch’s RF

BRANCH OFFICE TO FILE:

MAP (1601-E)SAWT (2307)Alphalist of

Employees (1604-CF)

Discuss 2307

DISCUSS Main/Branch Sales in

PT

◦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

DEADLINE:

1. SURCHARGE – 25% of the tax due

2. INTEREST – 20% interest per annum

3. COMPROMISE – bracketa)Late Filing – based on Gross

Receipts/Sales/Estateb)Late Payment – based on tax

due

Penalties

Proceed to RDO 58 –

Batangas City

Late Filing and Payment

BOOKKEEPING

HOW TO USE THE LEDGER/

JOURNAL?

Non VAT Taxpayers◦ Journal Book◦ Sales Book◦ Disbursement Book

VAT Taxpayer◦ Journal Book◦ Columnar Book◦ Ledger Book◦ Subsidiary Sales Book◦ Subsidiary Ledger Book

Books

NON-VAT LEDGER/JOURNAL

Food Shop

Date Particulars Debit

(Expenses) Credit

(Receipts)

10-Jan-12 OR 0001 200.00 10-Jan-12 OR 0002 700.00 10-Jan-12 OR 0003 1,200.00 10-Jan-12 OR 0004 1,200.00 10-Jan-12 OR 0005 6,900.00 10-Jan-12 OR 0002 700.00 10-Jan-12 OR 0003 1,200.00 10-Jan-12 OR 0004 1,200.00 10-Jan-12 OR 0005 6,060.00 10-Jan-12 OR 0006 640.00

10-Jan-12 Cash Sales 20,000.00

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

REMINDER

CLAIM ONLY BUSINESS EXPENSES

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

INVOICES

OFFICIAL RECEIPTS

Sale of GoodsSALES INVOICE

Sale of ServicesOFFICIAL RECEIPT

Printing of Receipts (duplicate)use carbon

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)

Sales invoice

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

Official 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

When to issue a receipt

Printing of ReceiptsBusiness Name

ProprietorTIN no. (V/NV)

AddressContact No.

SI # 0001

Qty. Items/Particulars Unit Price Total Total VAT Total

Authority to Print

AUTHORITY TO PRINT

RR 15-2012RR 18-2012

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 printer’s periodic reports with the capability to match and process data and generate discrepancy report of dubious entries

Revenue Regulation 15-2012

No printer shall require minimum number of booklets for printing of the principal and supplementary invoices/receipts.


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,


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.


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.


TCVDTAX

MAPPING

Original Certificate of Registration (display)

Payment Form 0605 – P500 (display)

Official Receipts / Sales Invoices (authorized and updated)

Books of Accounts (authorized and updated)

Documents to be inspected

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

Posting of COR

DISCUSS TCVD

PENALTIES

NATURE OF VIOLATION AMOUNT OF COMPROMISE

Failure to Register

a. Cities 20,000*b. 1st class municipalities 10,000*c. 2nd class municipalities 5,000*d. 3rd class municipalities 2,000** Penalties provided are inclusive of all other violations

Failure to Pay & Display the Annual Registration Fee:(BIR Form 0605)

P 1,000

No Certificate of Registration displayed

P 1,000

For failure to issue receipts or sales orsales or commercial invoices

First Offense P 10,000Second Offense P 20,000

For refusal to issue receipts or sales orcommercial invoices

First Offense P 25,000Second Offense P 50,000

OTHER ISSUES/

REMINDERS

(043)723-2874

BIR Officer of the Day

Books shall be preserved for a period of three years

Shall be subject to examination and inspection by internal revenue officers

Preservation of books, returns and receipts/invoices and other accounting records

Inform immediately

this office upon closure of business

MyLAST

MESSAGE

Pay CORRECT TAXES in

order to have BETTER

PHILIPPINES

THANK YOU and GOOD

DAY!

BIR RR 7-2012 Registration Seminar

Documents

Transcript of BIR RR 7-2012 Registration Seminar