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Doctors and physicians, as essential members of the healthcare community, are not free from the responsibility that comes with maintaining tax compliance. With its many stages and legal complexities, the route to BIR registration might be overwhelming.
In this guide, we will break down the steps and equip you with the insights required for a smooth and compliant BIR registration journey geared specifically for medical professionals:
Step 1: TIN Registration/TIN Update
- For doctors/physicians with no prior BIR registration:
- Obtain a Tax Identification Number (TIN) through the BIR eRegistration system.
- Your electronic TIN will be sent to your email. It’s essential to avoid having multiple TINs, which is illegal. Verify your TIN status by calling BIR’s hotline or visiting a local BIR branch.
- For employed doctors transitioning to self-employed:
- Update your TIN and apply for a TIN transfer by submitting the required forms and documents to your previous employer’s RDO.
- The processing of TIN transfer typically takes five working days.
Step 2: Submission of Requirements
- Visit your designated RDO to verify taxpayer information and submit BIR forms and necessary documents.
Step 3: Stamping of BIR Form 0605
- Before paying the annual registration fee, have your BIR Form 0605 copies stamped by a BIR attendant.
Step 4: Payment of Registration Fee
- Present your stamped BIR Form 0605 copies at a BIR-authorized agent bank and pay the P500 registration fee for professionals and mixed-income earners.
- Keep your official receipt as proof of payment and obtain two photocopies of the receipt and the stamped BIR Form 0605 copies.
Step 5: Presenting Your Proof of Payment
- Return to the RDO and present your proof of payment, including the official receipt and stamped BIR Form 0605 copies.
Step 6: Getting Your ATP (Authority to Print) Receipts/Invoices
- Fill in your three copies of BIR Form 1906 for the application for Authority to Print Invoices/Receipts and submit them to the attending officer.
Step 7: Additional Step for Mixed-Income Earners
- If you are a mixed-income earner, secure two columnar books and have them stamped by the RDO entrance guard before filling in the necessary information.
Step 8: Getting Your Books of Account
- Secure and fill in four Books of Accounts (journal, ledger, cash receipts, and cash disbursement), available for purchase at the RDO for P200.
Step 9: Finding an Authorized Company to Print Receipts
- Proceed to an authorized printing press outside the BIR to print the receipt booklets, which usually cost between P1,000 and P1,500.
- After obtaining your booklets, return to the RDO to have them stamped by an attendant.
Step 10: Latest Additional Step: The Taxpayer’s Initial Briefing
- Your designated RDO will schedule a taxpayer’s briefing to educate you on your rights and obligations. Attendance is required before they release your Certificate of Registration (COR) or BIR Form 2303.
Step 11: Receiving Your Certificate of Registration (COR) or BIR Form 2303
- After collecting your printed receipts from the printing press, head to the RDO and submit them along with your books of accounts. Once they verify your attendance, you can obtain your BIR Form 2303, also known as your Certificate of Registration (COR). Essentially, the COR outlines the tax returns you need to file and the taxes you’re required to pay. Your “Ask for a Receipt” Notice (ARN) will be provided alongside your COR.
Step 12: Stamping Your COR
- The attending officer will ask you to pay for the necessary registration fees, which include the P15 Certification fee and the P15 Documentary Stamp. Inquire about the location where you can purchase the Documentary Stamp from the guard and proceed there to have your COR stamped. After completing this step, the officer will give you a form to attach to your registration certificate.
- The COR stamping signifies the end of the challenging BIR registration process. Alongside the registration requirements, you’ll also need plenty of patience. It can indeed be overwhelming and confusing, but with determination and no other option, we’re confident you can successfully navigate it.
Frequently Asked Questions (FAQs):
How long does the BIR registration process typically take?
If you have all the required documents and fees ready, the process usually takes about 5-8 working days. However, the duration may vary depending on the efficiency of the RDO agents and the number of applicants.
How much does the entire registration process cost?
Aside from transportation expenses, the mandatory BIR registration requirements include:
- Registration fee: P500.00
- Books of Account: P200.00
- Documentary Stamp: P15.00
- Official Receipt (OR) Printing: P1,000.00-P1,500.00 (cost may vary based on size)
So, the total cost is approximately P2,215.00.
There you have it – a complete explanation of the 12-step BIR registration process! We understand that many doctors may struggle to find the time to initiate their business registration.