So, you’ve made the decision to venture into the world of online selling or freelancing, taking the exciting step to being your own boss. Fantastic! However, before you embark on this journey, there’s an essential requirement – registering with the Bureau of Internal Revenue, or BIR.
The BIR issued a Revenue Memorandum Circular (RMC) on June 10, 2020, which stipulates that any individual engaged in business or earning income in any form must register and adhere to tax regulations. You can review the original RMC here.
This means that whether you’re an online seller or a freelancer, you are obligated to:
- Provide official receipts to your customers.
- Maintain financial records like ledgers and journals.
- Withhold taxes, if applicable.
- File and pay tax returns punctually.
Individuals conducting business without proper registration or tax payment after July 31, 2020, will be subject to penalties under the country’s tax laws.
Once you are registered as an online seller or freelancer, the BIR will issue you a Certificate of Registration (COR), also known as Form 2303. This COR allows you to issue invoices to your customers and specifies the taxes you need to pay.
Read on to learn how to complete the registration process and obtain your COR.
How do I register?
First, visit the Bureau of Internal Revenue’s Revenue District Office (RDO) responsible for your residence or your business location. If your business operates online, determine the RDO that covers your home address. You will visit the RDO to obtain your Certificate of Registration (COR).
Before you receive a COR, you must acquire a Tax Identification Number (TIN). This applies whether you have been conducting business online without a TIN or if you already possess a TIN but haven’t registered your business yet.
Please note: If you already have a TIN, you can only have one TIN permanently. You will not obtain a new or additional TIN; you will be registering your business.
If you do not have a TIN yet, learn how to acquire one here.
What are the requirements for obtaining a COR?
- A Contract of Lease (or proof of rent if you’re renting) or Land Title (proof of land ownership).
- Three copies of the following forms, which can be obtained at the BIR or online:
- BIR Form 1901 – Application Form
- BIR Form 0605 – Payment Form
- BIR Form 2000 – Documentary Stamp Tax on Lease
- A government-issued ID such as your birth certificate, passport, or driver’s license, which is clearly legible and unaltered.
- Photocopies of other documents like a DTI Certificate (if you’re an online seller or sole proprietor with a business name).
What is the process for obtaining the COR?
- Submit all required documents to the designated officer at your RDO, who will assess your registration fees such as:
- Registration fee: Php 500
- Documentary Stamp Tax on Subscription: Dependent on your capital
- Documentary Stamp Tax on Lease: Dependent on your monthly rental
- Pay the required fees at accredited banks. View the list of accredited banks here.
- Return to your RDO and queue up at the Registration Section to submit the following documents:
- BIR Form 1901 – Application Form
- Photocopy of paid BIR Form 0605 – Payment Form
- Photocopy of paid BIR Form 2000 – Documentary Stamp Tax on Lease
- Contract of Lease or Land Title/Tax Declaration
- Photocopy of Mayor’s Permit
- Obtain your receipt and inquire about when you can collect your COR. Some RDOs may require you to attend a tax filing seminar before issuing the COR.
- Purchase your Books of Accounts from any bookstore or office supply store and have them registered at your RDO. You will need your Form 1905 during the registration process. Learn more about Books of Accounts here.
- Apply for BIR Printed Receipts (BPR) or BIR Printed Invoices (BPI) or the Authority to Print (ATP) your own receipts. The cost of these permits varies by RDO and the printing service you choose. If you apply for an ATP, you will require your Form 0605 and Form 1906.
What else do I receive when I get my COR?
- A copy of your Registration Form 1901 or 1903 that has been acknowledged by the BIR.
- A Notice to Issue a Receipt or Invoice (NIRI).
- Your BPR, BPI, or ATP.
- Proof of payment for your registration fee.
Do you live within the NCR area?
You could be qualified for free business registration. Click here to register: https://bit.ly/BeppoBizRegFREE