Capital Gains Tax LAW 101

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Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller
from the sale, exchange, or other disposition of capital assets located in the Philippines,
including pacto de retro sales and other forms of conditional sale.
Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers
evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property
incident thereto.
Donor's Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property
between two or more persons who are living at the time of the transfer.
Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful
heirs and beneficiaries at the time of death and on certain transfers which are made by law as
equivalent to testamentary disposition.
Income Tax is a tax on all yearly profits arising from property, profession, trades or offices or as
a tax on a person’s income, emoluments, profits and the like.
Percentage Tax is a business tax imposed on persons or entities who sell or lease goods,
properties or services in the course of trade or business whose gross annual sales or receipts do
not exceed P550,000 and are not VAT-registered.
Value-Added Tax is a business tax imposed and collected from the seller in the course of trade
or business on every sale of properties (real or personal) lease of goods or properties (real or
personal) or vendors of services. It is an indirect tax, thus, it can be passed on to the buyer.
Withholding Tax on Compensation is the tax withheld from individuals receiving purely
compensation income.
Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain
payors and is creditable against the income tax due of the payee for the taxable quarter year.
Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors
and is not creditable against the income tax due of the payee for the taxable year. Income Tax
withheld constitutes the full and final payment of the Income Tax due from the payee on the said
income.
Withholding Tax on Government Money Payments is the withholding tax withheld by
government offices and instrumentalities, including government-owned or -controlled
corporations and local government units, before making any payments to private individuals,
corporations, partnerships and/or associations.
* Sorry, but this pages are being updated in line with the TRAIN Law
Primary Registration
• Application for Taxpayer Identification Number (TIN)
• Application for Registration Update
Secondary Registration
• Registration of Book of Accounts
• Application for Authority to Print Receipts & Invoices
• Application for Authority to Use Computerized Accounting Systems and/or Components
thereof/Loose-leaf Book of Accounts
• Application for Permit to Use Cash Register Machine (CRM) and/or Point of Sales
Machine (POS)
Application for Taxpayer Identification Number (TIN)
DESCRIPTION
Any person, whether natural or juridical, required under the authority of the Internal Revenue
Code to make, render or file a return, statement or other documents, shall be supplied with or
assigned a Taxpayer Identification Number (TIN) to be indicated in the return, statement or
document to be filed with the Bureau of Internal Revenue, for his proper identification for tax
purposes (Sec. 236 (i) of the Tax Code).
FOR SELF-EMPLOYED AND MIXED INCOME INDIVIDUALS
Tax Form
BIR Form 1901- Application for Registration for Self-Employed and Mixed Income
Individuals, Non-Resident Alien Engaged in Trade/Business, Estates/Trusts
Documentary Requirements
› BIR Form No. 1901
› Any identification issued by an authorized government body (e.g. Birth Certificate, passport,
driver’s license, Community Tax Certificate) that shows the name, address and birthdate of the
applicant;
› Photocopy of Mayor’s Business Permit; or Duly received Application for Mayor’s Business
Permit, if the former is still in process with the LGU; and/or Professional Tax
Receipt/Occupational Tax Receipt issued by the LGU [For Professionals where PTR is not
required (e.i. Consultants, Agents, Artist, Underwriters & the like)]; or DTI Certificate;
› Proof of Payment of Annual Registration Fee (ARF) (if with existing TIN or applicable after
TIN issuance);
› BIR Form No. 1906;
› Final & clear sample of Principal Receipts/ Invoices;
Other documents for submission only if applicable:
› Special Power of Attorney (SPA) and ID of authorized person, in case of authorized
representative who will transact with the Bureau;
› Franchise Documents (e.g. Certificate of Public Convenience) (for Common Carrier);
› Photocopy of the Trust Agreement (for Trusts);
› Photocopy of the Death Certificate of the deceased (for Estate under judicial settlement);
› Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity;
› Proof of Registration/Permit to Operate BOI/BOI-ARMM, PEZA, BCDA and SBMA
Procedures
a) Accomplish BIR Form 1901 and 1906 and submit the same together with the documentary
requirements with the New Business Registrant Counter of the RDO having jurisdiction over the
place where the head office and branch, respectively.
b) Pay the Annual Registration Fee (P500.00) and/or payment for the BIR Printed
Receipt/Invoice (if taxpayer opted to buy for use) at the New Business Registrant Counter in the
BIR Office.
c) The RDO shall then issue the Certificate of Registration (Form 2303) together with the “Ask
for Receipt” notice, Authority to Print, BIR Printed Receipt/Invoice (if applicable) and eReceipt
as proof of payment.
Note: Taxpayer may attend the scheduled initial briefing for new business registrants to be
conducted by the concerned RDO in order to apprise them of their rights and
duties/responsibilities.
Deadline
› All Individuals engaged in trade or business shall accomplish and file the application on or
before the commencement of business, it shall be reckoned from the day when the first sale
transaction occurred or within thirty (30) calendar days from the issuance of Mayor's
Permit/Professional Tax Receipt (PTR) by LGU, which ever comes earlier
ESTATES (under judicial settlement)
Tax Form
BIR Form 1901- Application for Registration for Self-Employed and Mixed Income
› Photocopy of the Death Certificate of the deceased and judicial settlement;
a) DTI Certificate of Registration Business Name, if business trade name shall be used;
b) Certificate of Authority if Barangay Micro Business Enterprises (BMBE) registered entity;
c) Proof of Registration/Permit to Operate with Board of Investment (BOI/Board of Investment
for Autonomous Region for Muslim Mindanao (BOI-ARMM), Philippine Export Zone Authority
(PEZA), Bases Conversion Development Authority (BCDA) and Subic Bay Metropolitan
Authority (SBMA);
d) Franchise Documents;
e) Marriage Contract.
Procedures
a) Accomplish BIR Form 1901and submit the same, together with the required attachments, to
the Revenue District Office having jurisdiction over the registered address of the estate.
b) Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO
Deadline
› Application for registration shall be accomplished and filed before filing a return, statement or
declaration as required in the Tax Code and payment of any tax due.
TRUSTS
Tax Form
BIR Form 1901 - Application for Registration for Self-Employed and Mixed Income
› Photocopy of Trust Agreement
a) DTI Certificate of Registration Business Name, if business trade name shall be used;
b) Certificate of Authority if Barangay Micro Business Enterprises (BMBE) registered entity;
c) Proof of Registration/Permit to Operate with Board of Investment (BOI/Board of Investment
for Autonomous Region for Muslim Mindanao (BOI-ARMM), Philippine Export Zone Authority
(PEZA), Bases Conversion Development Authority (BCDA) and Subic Bay Metropolitan
Authority (SBMA);
d) Franchise Documents.
Procedures
a) Accomplish BIR Form 1901and submit the same together with the required attachments to the
Revenue District Office having jurisdiction over the registered address of the trusts.
b) Pay the Annual Registration Fee (P500.00) at the Authorized Agent Banks of the RDO
Deadline
› Application for registration shall be accomplished and filed before filing a return, statement or
declaration as required in the Tax Code and payment of any tax due
INDIVIDUALS EARNING PURELY COMPENSATION INCOME
Tax Form
BIR Form 1902 - Application for Registration For Individuals Earning Purely Compensation
Income (Local and Alien Employee)
1. Any identification issued by an authorized government body (e.g. Birth Certificate, passport,
applicant;
2. Marriage Contract, if applicable;
3. For Alien Employee - Passport; and
4. Working Permit; or Photocopy of duly received Application for Alien Employment Permit
(AEP) by the Department of Labor and Employment (DOLE)
For employers using eREG System, the above requirements shall be required from their
employees
Procedures
1. Accomplish BIR Form 1902 and submit the same together with the documentary requirements
to the employer.
2. The employer shall accomplish the applicable sections of the application form.
3. Submit BIR Form 1902 to the Revenue District Office (RDO) having jurisdiction over the
place of office of the employer where such employee is expected to report for work.
Deadline
› New employees shall accomplish and file the application within ten (10) days from date of
employment.
OCWs/SEAMEN EARNING PURELY FOREIGN-SOURCED INCOME
Tax Form
BIR Form 1904 - Application for Registration for One-Time Taxpayer and Person Registering
under E.O. 98
- Birth certificate or any valid identification showing name, address and birth date; or -Passport
with visa; or
- Employment contract
Procedures
- Accomplish BIR Form 1904 and submit the same, together with the required attachments to the
RDO having jurisdiction over the place of residence of the applicant.
Deadline
Application for registration shall be accomplished and filed before filing a return, statement or
CORPORATIONS/PARTNERSHIPS (Including Government-Owned and -Controlled
Corporations) (Taxable /Non-Taxable)
Tax Form
BIR Form 1903 - Application for Registration for Corporations/ Partnerships (Taxable/Non-
Taxable)
For Corporations/Partnerships
› Photocopy of SEC Certificate of Incorporation; or
› Photocopy Certificate of Recording (in case of partnership); or
› Photocopy of License to Do Business in the Philippines (in case of foreign corporation);
› Articles of Incorporation; or
› Articles of Partnerships
› Photocopy of Mayor’s Business Permit; or
› Duly received Application for Mayor’s Business Permit, if the former is still in process with the
LGU;
› New sets of permanently bound books of accounts;
› Proof of Payment of Annual Registration Fee (ARF)(not applicable to those exempt from the
imposition of ARF);
› BIR Form No. 1906;
› Final & clear sample of Principal Receipts/ Invoices;
› Board Resolution indicating the name of the authorized representative and Secretary’s
Certificate, in case of authorized representative who will transact with the Bureau;
› Franchise Documents (e.g. Certificate of Public Convenience) (for Common Carrier);
› Memorandum of Agreement (for JOINT VENTURE)
› Franchise Agreement;
› Certificate of Authority, if Barangay Micro Business Enterprises (BMBE) registered entity;
› Proof of Registration/Permit to Operate with BOI, BOI-ARMM, SBMA, BCDA, PEZA
For Cooperatives
› Copy of Cooperative Development Authority (CDA) Certificate of Registration and Articles of
Cooperation;
For GAIs, GOCCs and LGUs
› Copy of the Unit or Agency's Charter
For Home Owner's Association
› Copy of Certificate of Registration issued by Housing and Land Use Regulatory Board
(HLURB) and Articles of Association;
In the case of registration of branch/facility type:
a) Copy of the COR of the Head office for facility type to be used by the Head office and COR
of the branch for facility types to be used by a particular branch;
b) Mayor’s Permit or duly received Application for Mayor’s Business Permit, if the former is not
yet available; and
c) Contract of Lease, if applicable.
Procedures
a) Accomplish BIR Form 1903 and 1906 and submit the same together with the documentary
requirements with the New Business Registrant Counter of the RDO having jurisdiction over the
place where the head office and branch, respectively.
b) Pay the following at the New Business Registrant Counter in the BIR Office.
(i) Annual Registration Fee (P500.00);
(ii) Documentary Stamp Tax (if applicable)
(iii) BIR Printed Receipt/Invoice (if opted to buy for use)
c) The RDO shall then issue the Certificate of Registration (Form 2303) together with the “Ask
for Receipt” notice, Authority to Print, BIR Printed Receipt/Invoice (if applicable) and eReceipt
as proof of payment.
Note: Taxpayer may attend the scheduled initial briefing for new business registrants to be
conducted by the concerned RDO in order to apprise them of their rights and
duties/responsibilities.
Deadline
› Corporations and their branches shall accomplish and file the application on or before the
commencement of business, it shall be reckoned from the day when the first sale transaction
occured or within thirty (30) calendar days from the issuance of Mayor's Permit/PTR by LGU, or
Certificate of Registration issued by the Securities and Exchange Commission (SEC), whichever
comes earlier
› In the case of corporations (Taxable or Non-taxable) where documentary stamp tax (DST) is
required to be paid within five (5) days after the close of the month, BIR Registration shall be
done on or before payment of DST due
› Partnerships, Associations, Cooperatives, Government Agencies and Instrumentalities (GAIs)
shall accomplish and file the application before or upon filing of any applicable tax return,
statement or declaration as required by the Code, as amended
GOVERNMENT AGENCIES AND INSTRUMENTALITIES
Tax Form
BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/Non-
Taxable), including GAIs and LGUs
Unit or Agency’s Charter
Procedures
Accomplish BIR Form 1903 and submit the same, together with the required attachments, to the
Revenue District Office having jurisdiction over the registered address of the government
agencies and instrumentalities.
Deadline
declaration as required in the Tax Code and payment any tax due
LOCAL GOVERNMENT UNITS
Tax Form
BIR Form 1903 - Application for Registration for Corporations/Partnerships (Taxable/Non
Taxable), including GAIs and LGUs
Unit or Agency’s Charter
Procedures
- Accomplish BIR Form 1903 and submit the same, together with the required attachments, to
the Revenue District Office having jurisdiction over the registered address of the government
agencies and instrumentalities or local government units.
Deadline
ONE TIME TAXPAYERS (With No Previously Issued TIN)
1. PAYOR OF CAPITAL GAINS TAX INVOLVING SHARES OF STOCKS
Tax Form
BIR Form 1904 - Application for Registration of One Time Taxpayer And Persons Registering
Under EO 98 (securing a TIN to be able to transact with any government office)
- Birth Certificate or any valid identification card that will show the applicant's complete name,
address, birth date and signature, such as but not limited to:
1. Driver's License;
2. Integrated Bar of the Philippines (IBP) identification card;
3. Professional Regulation Commission (PRC) identification card; and/or
4.Passport (also in cae of non-resident alien not engage in trade or business)
- Marriage Contract, if the applicant is a married woman
-Deed of Sale
Procedures
the Revenue District Office having jurisdiction over the registered address of the seller /
transferror.
Deadline
Application shall be accomplished and filed before filing a return, statement or declaration as
required in the Tax Code and payment of any tax due.
2. PAYOR OF FINAL CAPITAL GAINS TAX INVOLVING REAL PROPERTIES
Tax Form
4. Passport (also in cae of non-resident alien not engage in trade or business)
- Deed of Sale
Procedures
Accomplish BIR Form 1904 and submit the same, together with the required attachments, to the
Revenue District Office having jurisdiction over the location of the property.
Deadline
Application shall be accomplished and filed before filing a return, statement or declaration as
required in the Tax Code and payment of any tax due.
3. PAYOR OF DONOR’s TAX FOR RESIDENT OF THE PHILIPPINES
Tax Form
BIR Form 1904 - Application for Registration of One Time Taxpayer and Persons Registering
- Marriage Contract, if the applicant is a married
- Deed of Donation
Procedures
If Donation Is Real Property
the Revenue District Office having jurisdiction over the place of domicile of the donor at the
time of donation.
If Donation Is Personal Property
the Revenue District Office having jurisdiction over the address/domicile of the donor at the time
of donation.
Deadline
4. PAYOR OF DONOR’s TAX FOR NON-RESIDENT OF THE PHILIPPINES
Tax Form
- Deed of Donation
Procedures
If Donation Is Real Property
the Revenue District Office No. 39 – South Quezon City.
If Donation Is Personal Property
- Accomplish BIR Form 1904 and submit the same, together with the required attachments, at
RDO 39 – South Quezon City.
Deadline
5. PAYOR OF ESTATE TAX - Decedent with legal residence in the Philippines at the time of
death
Tax Form
- Marriage Contract, if the applicant is a married woman.
- Death certificate of decedent
Procedures
the Revenue District Office having jurisdiction over the domicile/permanent residence of the
decedent at the time of death.
Deadline
- Application for registration shall be accomplished and filed before filing a return, statement or
6. PAYOR OF ESTATE TAX – Non-Resident Decedent Without Administrator in the
Philippines
Tax Form
- Marriage Contract, if the applicant is a married woman.
Procedures
Accomplish BIR Form 1904 and submit the same, together with the required attachments, at
RDO 39 – South Quezon City.
Deadline
7. PAYOR OF ESTATE TAX – Non - Resident Decedent With Administrator in the Philippines
Tax Form
- Birth Certificate or any valid identification card that will show the applicant's complete name
(Philippine Administrator), address, birth date and signature, such as but not limited to:
Procedures
the Revenue District Office having jurisdiction over the place where administrator is registered
or in the absence of registration, in the place of residence of the administrator.
Deadline
8. PAYOR OF FINAL TAX ON WINNINGS
Tax Form
- Certification from awarding company/person
Procedures
the Revenue District Office having jurisdiction over residence of the applicant.
Deadline
9. VEHICLE REGISTRANT
Tax Form
- Deed of Sale or COR with LTO, in the case of a sale of second-hand vehicle
- Cash Invoice or Official Receipt for brand new vehicles in case of claim of winnings involving
personal properties subject to registration
Procedures
the Revenue District Office having jurisdiction over the registered address of the applicant.
Deadlines
- Application shall be accomplished and filed before transacting with any government agencies
or instrumentalities.
PERSONS REGISTERING UNDER E.O. 98 (securing a TIN to be able to transact with
any government office, e.g. LTO, NBI, DFA, etc.)
Tax Form
BIR Form 1904 - Application for Registration for One-Time Taxpayer and Persons Registering
under E.O. 98 (Securing a TIN to be able to transact with any Government Office)
› Individual
1) Any identification issued by an authorized government body (e.g. Birth Certificate, passport,
applicant;;
2) Passport (in case of non-resident alien not engaged in trade or business);
3) Marriage Contract, if the applicant is a married woman;
› Non-Individual
› Document to support transaction between a non-resident foreign corporation and the
withholding agent(e.g. bank certification, invoice, contract, etc.).
Procedures
Accomplish BIR Form 1904 and submit the same together with the documentary requirements to
the RDO having jurisdiction over the residence of the applicant.
Deadlines
› Application shall be accomplished and filed before transacting with any government agencies
or instrumentalities.
FREQUENTLY ASKED QUESTIONS
1) Who are required to register with the BIR?
Every person subject to any internal revenue tax shall register once with the appropriate Revenue
District Officer:
1. Within ten (10) days from the date of employment, or
2. On or before the commencement of business, or
3. Before payment of any tax due, or
4. Upon filing of a return, statement or declaration as required in the NIRC.
5. Death of individual;
6. Full settlement of the tax liabilities of the estate;
7. Discovery of a taxpayer having multiple TINs; and
8. Dissolution, merger or consolidation of juridical person.
2) Are non-resident aliens and non-resident foreign corporations receiving income from sources
within the Philippines required to register with the BIR?
Yes, Non-Resident Aliens Not Engaged in Trade or Business (NRANETB) or Non-Resident
Foreign Corporations (NRFC) shall be issued TINs for purposes of withholding taxes on their
income from sources within the Philippines. The withholding agent shall apply for the TIN in
behalf of the NRANETB or NRFC prior to or at the time of the filing of their monthly
withholding tax return as applicant under EO 98, series of 1998 (Sec.4.1v of RR 7-2012).
3) If the taxpayer is engaged in VATable activity, but the gross sales or receipts from business or
practice of profession is P 3,000,000.00 or below, is he required to register?
Yes, he is required to register as a Non-VAT taxpayer. However, if his gross sales or receipts is
more than P 100,000.00 but does not exceed P 3,000,000.00, he has the option to register as
VAT taxpayer. In the case of marginal income earners with gross sales or receipts of P 100,000
and below, they have no other option but to register as non-VAT taxpayer.
4) Are taxpayers required to register their business annually?
No, taxpayers are required to register only once before commencing their business. However,
they are required to pay the registration fee of P 500.00 annually.
5) When is the taxpayer required to apply for registration and pay the registration fee?
New taxpayers shall apply for registration and pay the registration fee before commencing their
business. Thereafter, taxpayers should pay the annual registration fee not later than January 31
every year.
6) Where should a taxpayer register?
All taxpayers are required to register with the RDO having jurisdiction over the head office,
branch office, place of production or storage place where inventory of goods for sale or use in
business are kept.
7) Are branches, storage places and places of production also required to pay the Annual
Registration Fee (ARF) of P 500.00?
Each branch is required to pay the ARF of P 500.00. However, storage and production places are
liable to the ARF only when sales operations are conducted thereat.
8) Who are required to register without paying the ARF?
a) Cooperatives duly registered with the CDA;
b) Individual residents earning purely compensation income
c) OCWs/OFWs;
d) Marginal Income Earners;
e) GAIs, in the discharge of their governmental functions;
f) LGUs, in the discharge of their governmental functions;
g) Tax exempt corporations such as those enumerated under Section 30 of the Code, as amended,
in pursuance of tax-exempt activities;
h) Non-stock/non-profit organizations not engaged in business;
i) Persons subject to tax under one-time transactions;
j) Persons registered under EO 98, series of 1998; and
k) Facility/ies where no sales transactions occur.
9) Are taxpayers transferring business address within the year either within the same district or to
another district required to pay another registration fee of P 500.00?
No, since the ARF is payable annually, they are no longer required to pay the registration fee to
the new district office, provided the P 500.00 was already paid.
10) After complying with all the requirements for registration, what document will be issued to
the taxpayer as proof of registration?
Certificate of Registration (BIR Form 2303) for newly registered taxpayer and validated
Payment Form (BIR Form 0605) for every renewal.
However, Employees, ONETT taxpayers, and/or persons who have secured a TIN under EO 98,
series of 1998 with the BIR shall not be issued a COR.
11) When will the Certificate of Registration (COR) be issued to the taxpayer?
The COR (BIR Form 2303) shall be issued within the period/time prescribed under the existing
“BIR Citizens Charter” together with the approved Authority to Print and Registered books of
accounts.
12) Who will issue the COR?
The RDO having jurisdiction of the head office or branch shall issue the COR.
13) How many COR (BIR Form 2303) shall be issued by the Revenue District Office?
For every Application for Registration, there shall be a corresponding COR to be issued to the
head office and each branch being registered.
14) What will the taxpayer do with the COR and the Proof of Payment of ARF?
The original copy of COR and the duly validated BIR Form 0605 as proof of payment of ARF
are required to be displayed in any conspicuous place in the head office and branch office.
15) What are the instances when a taxpayer can apply for cancellation of his registration?
The TIN/Registration cancellation shall take place upon:
All taxpayers who filed for cancellation of registration due to closure/cessation or termination of
business, except for branches, shall be subjected to immediate investigation by the BIR office
concerned to determine the taxpayer’s tax liabilities.
16) Is there a particular form prescribed for Application for Cancellation of Registration?
Yes, BIR Form 1905 (Application for Registration Information Update).
17) Where shall the Application for Registration Information Update be filed?
It shall be filed with the RDO who issued the COR. For VAT taxpayer, he shall further notify the
RDO where the Home Office is registered.
18) If a taxpayer is in doubt of his status as VAT taxpayer, what is he supposed to do?
Go to the RDO who has jurisdiction over his place of business and seek assistance.
RELATED REVENUE ISSUANCES
RR No. 13-93, RR No. 2-96, RR No. 11-99, RR No. 11-2000, RR No. 3-2003, RR No.12-2003
and RR. No. 7-2012, RR No. 8-2018, RR No. 13-2018
RMO No. 22-91, RMO No. 23-91, RMO No. 41-94, RMO No. 48-94, RMO No. 54-97, RMO
No. 54-98, RMO No. 82-99, RMO No. 11-2000 and RMO No. 10-2002
RMC No. 58-91, RMC No. 39-95 and RMC No. 6-2003
CODAL REFERENCE
Section 232 to 235 of the National Internal Revenue Code
Application for Registration Update
DESCRIPTION
Pursuant to Section 236 of the National Internal Revenue Code, any registered taxpayer shall,
whenever applicable, update his registration information with the Revenue District Office where
he is registered, specifying therein any change in tax type and other taxpayer details (i.e. change
in registered activities/line of industry, change in registered name/ trade name and change in
accounting period).
APPLICATION FOR CLOSURE OF BUSINESS/CANCELLATION OF TIN
A. Venue
RDO where TIN is registered.
B. BIR Form
BIR FORM 1905 - Application for Registration Information Update for Updating / Cancellation
of Registration / Cancellation of TIN / New Copy of TIN Card / New Copy of Certificate of
Registration
C. Documentary Requirements
1. Notice of closure or cessation of business;
2. Notice of Death and Death Certificate, in case of death of an individual;
3. Estate Tax Return of the decedent, if applicable;
4. List of ending inventory of goods, supplies, including capital goods;
5. Inventory of unused sales invoices/official receipts (SI/OR);
6. Unused sales invoices/official receipts and all other unutilized accounting forms (e.g.,
vouchers, debit/credit memos, delivery receipts, purchase orders, etc.) shall be physically
submitted to the RDO where the Head Office is registered or where the Authority to Print (ATP)
was secured;
7. All business notices and permits as well as the COR shall be surrendered for cancellation;
8. Other documents necessary to support the changes applied for.

D. Procedures
I. Death of Individual not subject to Estate Tax
1. In case of a decedent registered with the BIR who has no properties subject to estate taxes, the
heirs shall request for cancellation of the decedent’s TIN by accomplishing BIR Form 1905.
2. Notice of Death and Death Certificate shall be submitted to the BIR district office where the
TIN of the decedent is registered.
3. An affidavit shall be submitted by the heirs stating that the decedent has no properties subject
to estate taxes.
4. The BIR district office shall notify the heirs, administrator or executor applying for
cancellation of decedent’s TIN of the status of the request within ten (10) days from complete
submission of the requirements.
II. Settlement of Estate Tax Liabilities
1. In case of death of an individual with properties subject to estate taxes and who was
previously registered in the ITS database, upon submission of Notice of Death and the Death
Certificate of the decedent, the BIR district office shall immediately modify and update the status
of the TIN of said decedent as “cancelled” and proceed with the processing and issuance of the
TIN of the estate upon application by the executor or administrator.
2. If the TIN of such decedent is registered in another BIR district office, the receiving BIR
district office shall inform the BIR district office concerned of the fact of such taxpayer’s death
by furnishing a copy of the decedent’s Death Certificate. Such BIR district office shall then
perform the update as stated in this section.
3. The new TIN shall be used in the filing of the estate tax return of the decedent, as well as in
the filing of other applicable tax returns (e.g. Income, VAT/ Percentage Tax, etc.) if the estate is
under judicial settlement.
4. In case the decedent was engaged in business, the heirs/executor/administrator shall, aside
from submitting the Notice of Death and Death Certificate submit a short-term income tax return
covering the period January 1 until the date of death.
The said return shall be filed within sixty (60) days from the date of death, unless the
heirs/administrator/executor shall request for an extension of time to file the same, but not to
exceed six (6) months or April 15 of the following year, whichever is earlier.
The TIN shall be cancelled once the decedent’s business operations including that covered by the
short-term return has been duly investigated for tax purposes.
5. Decedents with business registration shall be subject to immediate investigation by the BIR
office concerned to determine the decedent’s tax liabilities from his / her business. If the business
is registered in a BIR district office other than where the Estate Tax Return is filed, the BIR
district office which received such return shall inform the BIR district office concerned in
writing, either thru fax or via email, for their corresponding action.
6. Such BIR district office shall issue a Tax Clearance for the decedent’s business registration
within ten (10) days from termination of its investigations and/or full settlement of the taxpayer’s
liabilities, if applicable.
III. Dissolution, Merger or Consolidation of Juridical Persons
1. All taxpayers who filed for cancellation of registration due to closure/cessation or termination
of business, except for branches, shall be subjected to immediate investigation by the BIR office
concerned to determine the taxpayer’s tax liabilities.
2. For juridical persons, the TIN shall be cancelled at the time of the dissolution, merger or
consolidation resulting to termination of their corporate existence through the eventual
cancellation of their registration with the BIR.
In case of business merger or consolidation, the TIN of the dissolved juridical persons shall be
tagged with “Ceased/Dissolved” status. If one of the parties survives, its TIN must be retained,
however if a new corporation shall be established, a new TIN shall be issued to such new
juridical entity.
3. The BIR district office of the HO of the dissolved entity shall inform all the other BIR district
office, where the branches are registered, of the closure/cessation of the business.
4. To avoid generation of stop filer cases, the BIR district office, upon complete submission by
the taxpayer of the requirements shall:
a. “End date” the tax types of the taxpayer;
b. Destroy/shred in the presence of the taxpayer or his authorized representative, the unutilized
SI/ORs and other accounting forms by cutting them crosswise and lengthwise at the middle
thereof so that the same shall be divided into four (4), ensuring that the same will no longer be
used as originally intended; and
c. Return to the taxpayer the destroyed/shredded SI/ORs and other accounting forms for burning
and/or proper disposition.
d. The BIR distinct office shall issue a Tax Clearance to the taxpayer applying for cancellation of
TIN within ten (10) days from termination of its investigations and/or full settlement of the
taxpayer’s liabilities, if applicable
CHANGE IN REGISTERED ADDRESS
1. TRANSFER OF REGISTRATION OF INDIVIDUALS NOT ENGAGED IN BUSINESS
(E.O. 98/ONETT) REGISTERING NEW BUSINESS
A. Venue
RDO having jurisdiction over the intended business address or residence (for transient/nomadic
businesses) with the application copy furnished the old RDO.
B. BIR Forms
Registration
BIR FORM 1901 – Application for Registration for Self-Employed and Mixed Income
Individuals, Estates/Trusts
1. Copy of DTI Certificate of Registration of Business Name, if a business trade name shall be
used, if applicable;
2. Copy of Mayor’s Business Permit or duly received Application for Mayor’s Business Permit,
if the former is still in process with the LGU;
3. Copy of Contract of Lease executed for the new place of business, if applicable.
D. Procedures
1. Taxpayers initially issued TINs for ONETT/ EO 98, series of 1998 shall submit the proper
Application Form to the BIR district office where he intends to establish his business address.
2. The transfer of registration (TIN records) of such taxpayer shall be initiated by the BIR district
office where the request for transfer was filed / submitted. (These procedure shall be observed
once the ITS has been enhanced to provide for the required facility to effect the same.)
3. In the interim, the taxpayer shall submit his request for transfer to the old BIR district office
either personally or by fax. The old BIR district office, upon receipt of the request shall
immediately execute the transfer of taxpayer’s registration records to the new BIR district office.
2. TRANSFER OF REGISTRATION OF LOCAL EMPLOYEES
TRANSFER OF REGISTRATION OF LOCAL EMPLOYEES TO RDO OF NEW
EMPLOYER
A. Venue
RDO having jurisdiction over new employer
B. BIR Form
Registration
1. Proof of exemption claimed (e.g. Marriage Contract/NSO Birth Certificate of declared
dependents)
2. Proof of employment (e.g. Valid ID issued by the employer/Employer’s Certificate)
D. Procedures
1. It shall be the responsibility of the new employer to notify his BIR district office by submitting
the duly accomplished form of the employee.
2. The transfer of registration (TIN records) of such employee shall be initiated by the BIR
district office which received the application.
either personally or by fax.
4. The old BIR district office, upon receipt of the request shall immediately execute the transfer
of taxpayer’s registration records to the new BIR district office
TRANSFER OF REGISTRATION OF LOCAL EMPLOYEES OF TRANSFERRING
EMPLOYERS
A. Venue
RDO having jurisdiction over the new business address of the employer.
B. BIR Form
Registration
1. List of employees to be transferred to the new RDO having jurisdiction over the employer
D. Procedures
1. Registration of employees should follow the BIR district office registration of their employers.
Accordingly, a transfer of employer's BIR district office carries with it the transfer of the
registration of employees earning pure compensation income mainly from said employer.
2. The transferring employer shall require all of its covered employees to accomplish the proper
BIR form and submit the same to the new BIR district office.
3. A list of employees shall likewise be submitted together with the update form by the
transferring employer to the new BIR district office excluding those employees who have been
separated prior to the transfer.
4. In case the employer hires new employees in its new location, application for employees’ TIN
shall be submitted to the new BIR district office.
TRANSFER OF REGISTRATION OF LOCAL EMPLOYEES REGISTERING NEW
BUSINESS IN ANOTHER RDO
A. Venue
RDO having jurisdiction over the business address, with the application copy furnished to the old
RDO
B. BIR Forms
Registration
BIR FORM 1901 – Application for Registration for Self-Employed and Mixed Income
Individuals, Estates/Trusts
1. Copy of DTI Certificate of Registration of Business Name, if a business trade name shall be
used, if applicable;
3. Copy of Contract of Lease executed for the new place of business, if applicable
D. Procedures
1. An individual who is registered as an employee in one BIR district office but subsequently
applies for registration as a business taxpayer / professional in another BIR district office shall
submit the proper form to the BIR district office having jurisdiction over his business address.
2. The transfer shall then be performed by the BIR district office where the application was
submitted. (These procedure shall be observed once the ITS has been enhanced to provide for the
required facility to effect the same.)
either personally or by fax.
4. The old BIR district office, upon receipt of the request shall immediately execute the transfer
of taxpayer’s registration records to the new BIR district office
3. TRANSFER OF TAXPAYERS ENGAGED IN BUSINESS OR PRACTICE OF
PROFESSION (INDIVIDUAL / NON-INDIVIDUAL)
A. Venue
RDO having jurisdiction over the new business address, with the application copy furnished to
the old RDO.
B. BIR Form
Registration
1. Copy of Amended SEC / DTI Certificate bearing the taxpayer’s new business address;
3. Board Resolution approving the transfer of business address, if applicable;
4. Copy of Contract of Lease executed for the new place of business, if applicable.
D. Procedures
I. Branches / Facilities
1. Request for transfer of registration of branch / facility shall be filed at the BIR district office
where such branch/facility is registered.
2. Where no tax type is registered except ARF, transfer shall be completed by the old BIR
district office within five (5) days from receipt of the request.
3. Transfer of branches with other registered tax types shall observe the same procedures in
transferring a HO.
II. Head Office
1. The old BIR district office shall conduct an ocular inspection in both old and new business
addresses before transferring the applicant’s registration data to the new BIR district office.
2. A taxpayer requesting for transfer of his/her/its HO should not be allowed to transfer to a BIR
district office where his/her/its previous RDO/ARDO is currently assigned.
3. The taxpayer requesting for transfer shall file the proper form to the old BIR district office
together with the prescribed documentary requirements.
4. The new BIR district office shall be furnished by the taxpayer with a copy of the update form
duly received by the old BIR district office.
5. The transfer of HO shall be effective upon approval by the old BIR district office which
should not exceed the ten (10) working days prescribed period from the date of complete
submission of the required documents.
6. If the old BIR district office fails to complete the transfer within the prescribed period, the
Revenue Data Center (RDC) having jurisdiction of over the same shall perform the transfer
electronically.
7. The request for transfer shall be processed by the old BIR district office based on the
supporting documents submitted by the transferring taxpayer.
8. Upon receipt of the update form duly received by the old BIR district office, the new BIR
district office shall immediately conduct an ocular inspection of the transferring taxpayer’s actual
business location.
9. If upon ocular inspection, the new BIR district office has determined that the given business
address is non-existent, inaccurate, unoccupied or occupied by persons other than the transferring
taxpayer, the new BIR district office shall immediately notify in writing the old BIR district
office of such fact so that the old BIR district office shall not allow the requested transfer of
registration.
10. The results of the ocular inspection conducted shall form part of the registration docket of
said taxpayer. Furthermore, the new BIR district office shall include the newly transferred
taxpayer in its regular TCVD activities where ocular inspection of the actual business location of
the newly transferred taxpayer shall be mandatorily conducted.
APPLICATION FOR REPLACEMENT OF CERTIFICATE OF REGISTRATION
Tax Form
BIR FORM 1905 – Application for Registration Information Update
a) Old Certificate of Registration, for replacement;
b) Affidavit of Loss, if lost; and
c) Proof of Payment of Certification Fee and Documentary stamp- to be submitted before the
issuance of the New Certificate of Registration
Procedure
Taxpayer applicant submits duly accomplished BIR Form 1905 to RDO/LTAD I or II/LTDO
where he is registered together with the required attachments.
APPLICATION FOR REPLACEMENT/CANCELLATION OF AUTHORITY TO PRINT
RECEIPTS AND INVOICES
Tax Form
BIR Form 1905 – Application for Registration Information Update
a) Original Authority to Print Receipts and Invoices; and
b) New Application Form 1906, if applicable
Procedure
where he is registered together with the required attachments.
APPLICATION FOR REPLACEMENT OF TAX CLEARANCE CERTIFICATE FOR
TAX LIABILITIES
Tax Form
BIR FORM 1905 – Application for Registration Information Update
a) Affidavit of Loss, if applicable; and
b) Proof of payment of Certification Fee and Documentary Stamp Tax – to be submitted before
the issuance of the New Tax Clearance Certificate
Procedure
where he is registered together with the required attachments
APPLICATION FOR REPLACEMENT OF LOST/DAMAGED TIN CARD
Tax Form
a) Affidavit of Loss, if lost; and
b) Old TIN Card (if replacement is due to damaged card
Procedure
APPLICATION FOR CHANGE IN REGISTERED ACTIVITIES
Tax Form
Original Certificate of Registration
Procedure
APPLICATION FOR CHANGE IN REGISTERED NAME/TRADE NAME
Tax Form
a) Amended SEC Registration/DTI Certificate; and
b) Original Certificate of Registration
Procedure
APPLICATION FOR CHANGE IN TAX TYPE DETAILS
Tax Form
Original Certificate of Registration
Procedure
APPLICATION FOR CHANGE IN ACCOUNTING PERIOD
A. Venue
RDO or Large Taxpayers (LT) Office where TIN is registered.
B. BIR Form
Registration
1. Letter request addressed to the Revenue District Officer or appropriate Large Taxpayers (LT)
Office having jurisdiction over the place of business of the taxpayer, indicating:
a. The original accounting period and the proposed new accounting period to be adopted; and
b. The reasons for desiring to change the accounting period.
2. Duly filled-up BIR Form No. 1905;
3. Certified true copy of the Securities and Exchange Commission approved Amended By-Laws
showing the change in accounting period;
4. Sworn certification of “non-forum shopping” stating that such request has not been filed or
previously acted upon by the BIR National Office, signed by the taxpayer or duly authorized
representative; and
5. A sworn undertaking by a responsible officer of the taxpayer, such as a partner, president,
general manager, branch manager, treasurer or officer-in-charge, to file a separate final or
adjustment return for the period between the close of the original accounting period and the date
designated as the close of the new accounting period on or before the 15th day of the fourth
month following the end of the period covered by the final/adjustment return. The undertaking
shall include a clause stating that failure to comply with such undertaking will result to the
invalidation of the approval of the change in accounting period, and will subject the taxpayer to
criminal offense for failure to file return, supply correct and accurate information punishable
under Section 255 of the NIRC of 1997, as amended. The pro-forma endorsement is attached to
Revenue Regulations No. 3-2011 as Annex “A”.
D. Procedures
1. The requesting corporation shall submit all the documentary requirements for the processing
of its Certificate of Change in Accounting Period.
2. The Officer of the Day in the concerned RDO shall pre-evaluate the application if it
satisfactorily complies with the herein prescribed guidelines using the Action Sheet Checklist of
Requirements.
a. If found complete and in order, he shall then forward the application together with the
supporting documents to the Revenue District Officer or LT Division Chief who, in turn, shall
thoroughly evaluate the same. Otherwise, a Notice to Comply shall be issued by the Revenue
District Officer or LT Division Chief to the representative of the applicant corporation.
b. If after the lapse of the period given in the Notice to Comply, the applicant fails to submit
documents required, a Notice of Archiving shall be issued by the Revenue District Officer.
3. The Revenue District Officer shall prepare an endorsement letter addressed to the Chief, Legal
Division of the Revenue Region having jurisdiction over the RDO.
4. The Revenue District Officer, within five (5) days from receipt of the application together
with complete documentary requirements, shall then transmit his endorsement letter together
with complete set of documents to the Legal Division of the Revenue Region for evaluation.
5. For the Large Taxpayer Service, evaluation and preparation of certificates granting change in
accounting period shall be done by the concerned LT Office.
6. Upon receipt by the Chief, Legal Division of the Regional Office of applications for approval
of change in accounting period, he shall assign the same to an action officer for evaluation and
the appropriate action.
If in order, the Chief, Legal Division shall sign a Memorandum Indorsement for the Regional
Director's issuance of Certificate Granting the Change in Accounting Period, otherwise, the same
shall be returned to the RDO concerned with a memorandum of their review findings and
evaluation.
7. The application for the issuance of Certificate Granting the Change in Accounting Period shall
be signed by the Regional Director if he finds the same to be in order. Otherwise, the same shall
be returned to the Legal Division/RDO with a memorandum of his review findings and
evaluation.
8. Only applications which strictly comply with the legal and documentary requirements
prescribed herein shall be approved by the Regional Director.
9. For taxpayers under the jurisdiction of the Large Taxpayers Service, the application for the
issuance of Certificate Granting the Change in Accounting Period shall be signed by the ACIR,
Large Taxpayers Service, if he finds the same in order. Otherwise, the application shall be
returned to the concerned LT Office with a memorandum of its review findings and evaluation.
10. Immediately after the Certificate Granting the Change in Accounting Period has been
approved and signed by the Regional Director, the same shall be numbered in the upper right
portion of the Certificate and the Legal Division of the Revenue Region or the Large Taxpayer
Service shall prepare the Certificates in three (3) copies to be issued and distributed as follows:
Original - taxpayer’s copy
Duplicate copy - to be attached to the docket
Triplicate copy - to the ACIR, Legal Service
APPLICATION FOR TAX CLEARANCE
Tax Form
1) Letter of request stating the purpose for application
2) Copy of application for tax credit or refund duly received by the DOF
Procedures
1) Taxpayer applicant files BIR Form 1905, together with the attachments, at the RDO where he
is registered.
2) RDO verifies if taxpayer has open cases reflected in the Integrated Tax System. If YES, ask
taxpayer to submit required returns and pay the corresponding tax due/s and penalties, if any.
3) RDO verifies if taxpayer has delinquent cases at the Assessment, Collection, and Legal
Divisions of the Region.
4) RDO verifies if taxpayer has delinquent cases at the Collection Enforcement Division, BIR
National Office.
5) RDO issues Tax Clearance, indicating purpose of the same.
Registration of Book of Accounts

DESCRIPTION
All corporations, companies, partnerships or persons required by law to pay internal revenue
taxes shall keep a journal and a ledger or their equivalents such as subsidiary ledgers, simplified
books of accounts.
INDIVIDUALS ENGAGED IN BUSINESS
Newly-Registered (In General)
Tax Form
BIR Form 1905 - Application for Registration Information Update/Correction/Cancellation
a) Permanently bound books of accounts for registration/stamping or the bound journals and/or
ledgers;
Procedures
a) Submit duly accomplished BIR Form 1905 at the RDO or concerned office under the Large
Taxpayer Service having jurisdiction over the place where the head office and branch is located,
respectively; and
b) Present the manual books of accounts for Stamping and registration purposes.
Deadline
Newly registered taxpayers shall present the manual books of accounts to the RDO or concerned
office under the Large Taxpayer Service where the place of business is located for approval and
registration before the deadline for filing of the first quarterly income tax return or the annual
income tax return whichever comes earlier.
Subsequent Registration of Books/Renewal (In General)

Tax Form
a) Photocopy of the first page of the previously registered books;
b) New bound journals and/or ledgers;
c) Proof of Payment Annual Registration Fee (BIR Form 0605) – current year .
Procedures
a) Accomplish BIR Form 1905 at the RDO or concerned office under the Large Taxpayer
Service having jurisdiction over the place where the head office and branch is located,
respectively;
b) Present the manual books of accounts at the RDO or concerned office under the Large
Taxpayer Service where the place of business is located for Stamping and registration purposes.
Deadline
The registration of a new set of manual books of accounts shall only be at the time when the
pages of the previously registered books have all been already exhausted, provided, that the
portions pertaining to a particular year should be properly labeled or marked by taxpayer. This
means that it is not necessary for a taxpayer to register/stamp a new set of manual books of
accounts each and every year.
CORPORATIONS/PARTNERSHIPS
Newly-Registered (In General)
Tax Form
a) Permanently bound books of accounts for registration/stamping or the bound journals and/or
ledgers;
Procedures
respectively; and
Deadline
Newly registered taxpayers shall present the manual books of accounts to the RDO or concerned
office under the Large Taxpayer Service where the place of business is located for approval and
registration before the deadline for filing of the first quarterly income tax return or the annual
income tax return whichever comes earlier.
Subsequent Registration of Books/Renewal (In General)

Tax Form
BIR Form 1905 - Application For Registration Information Update/Correction/Cancellation
a) Photocopy of the first page of the previously registered books;
b) Bound journals and/or ledgers;
c) Proof of Payment Annual Registration Fee (BIR Form 0605) – current year.
Procedure
respectively; and
Deadline
The registration of a new set of manual books of accounts shall only be at the time when the
pages of the previously registered books have all been already exhausted, provided, that the
portions pertaining to a particular year should be properly labeled or marked by taxpayer. This
means that it is not necessary for a taxpayer to register/stamp a new set of manual books of
accounts each and every year.
Note: With the implementation of the E-Commerce Law, the requirement of binding and
stamping of computerized books of accounts and/or receipts and invoices generated by a duly
approved CAS shall no longer be necessary, provided that:
· Soft copy of the computerized books of accounts and other accounting records/documents in
Text File format shall be made available in:
- CD ROM (Read Only)
- Electronically archived information
· A duly notarized certification in the form of an affidavit ascertaining/attesting the accuracy of
the number of receipts and invoices used during the year and soft copy of books of accounts and
other accounting records/documents in Text File Format stamped received within thirty days (30)
from the close of taxable year.
RR No. 7-2012,
RMO No. 29-2002,
RMC No. 13-82,
RMC No. 82-2008
RMC No. 29-2019
CODAL REFERENCE
Application for Authority to Print Receipts & Invoices
DESCRIPTION
All persons who are engaged in business shall secure from the BIR an Authority to Print receipts
or sales or commercial invoice before a printer can print the same.
TAX FORM
BIR Form 1906 (Jan 2000 ENCS) – Application for Authority to Print Receipts and Invoices
DOCUMENTARY REQUIREMENTS
› Final & clear sample of principal and supplementary receipts/invoices
› Photo copy of last issued ATP or Printer's Certificate of Delivery (PCD) or any booklet from
the last issued ATP for subsequent application
PROCEDURES
› For taxpayers:
a. Accomplish BIR Form 1906 and submit the same together with the documentary requirements
to RDO where the HO is located or concerned office under the Large Taxpayer Service;
b. Keep/File PCD and ATP copy duly received/issued by BIR for audit purposes;
c. Taxpayer’s branch office shall furnish its RDO a copy of the ATP issued by the appropriate
BIR office having jurisdiction over the head office.
› For the printer/supplier:
a. Prepare Printer’s Certificate of Delivery (PCD) in five (5) copies and submit to RDO where
the place of business is located or concerned office under the Large Taxpayer Service within
thirty (30) days from date of ATP and prior to delivery of receipts and/or invoices to taxpayer;
b. Furnish the taxpayer and its branches copy of the received PCD and approved ATP together
with the taxpayer’s Sworn Statement within thirty (30) days from the issuance of PCD. One copy
thereof shall likewise be submitted to the BIR Office that has jurisdiction over the head office of
the printer.
DEADLINES
› Secure Application for Authority to Print Receipts and Invoices on or before the
commencement of business
PENALTIES
AMOUNT OF COMPROMISE PENALTY
For failure to issue receipts or sales or First Offense Second Offense
commercial invoices P10,000 P20,000
For refusal to issue receipts or sales or
25,000 50,000
commercial invoices
For issuance of receipts that do not truly
reflect and/or contain all the information 1,000 2,500
required to be shown therein
If the information missing is the correct
2,000 5,000
amount of the transaction
If the duplicate copy of the invoices is
blank but the original copy thereof is 10,000 20,000
detached from the booklet
For possession or use of unregistered
10,000 20,000
receipts or invoices
For use of unregistered cash register
25,000 50,000
machines in lieu of invoices or receipts
For possession or use of multiple or
Not subject to Compromise
double receipts or invoices
For printing or causing, aiding or abetting the printing of:
a) Receipts or invoices without authority
10,000 20,000
from the BIR
b) Double or multiple sets of receipts or
Not subject to Compromise
invoices
c) Receipts or invoices not bearing any of 5,000 10,000
the following:
Consecutive numbers
· Name of Taxpayer
· Business Style
· Business address of the person or entity
to use the same
· Taxpayer Account No.
· Name, address, date, authority no. of
the printer and inclusive serial numbers
of the batch or receipts printed
· VAT No., if taxpayer is VAT-registered
For failure of the printer to submit the
required quarterly report under Sec. 238 1,000 3,000
of the Tax Code as amended
RR No. 18-99, RR No. 12-2003
RMO No. 54-97, RMO No. 69-98, RMO No. 74-98, RMO No. 83-99, RMO No. 56-2000, RMO
No. 28-2002
CODAL REFERENCE
Sections 113, 237 and 238 of the National Internal Revenue Code
1) How can the taxpayer determine if he is under a computerized or a non-computerized RDO?
Click Here for the List of Computerized and Non-Computerized
2) Who will stamp the printed receipts and invoices?
Stamping shall be done by the Taxpayer Assistance Section of the RDO having jurisdiction over
the establishment which will issue the invoice/receipt
3) What are the essential features of the receipts or invoices?
Invoices or receipts must be serially numbered and shall show, among others, the following:
Name of the Professional/Business/Commercial Establishment
Business Style – business name
Taxpayer Identification No.
Business Address of the Person/Entity
Others like:
- Space for date of transaction
- Space for customer name and address
- Serial Number of invoice or receipt
- ATP Number and series approved
- Printer information
4) What are the basic information required to be reflected on Invoices and Receipts issued by
Financial Institutions?
a) name, TIN (with suffix of the word VAT), business style, if any, and address of the financial
institution
b) date of transaction
c) name, TIN, business style, if any, and address of the VAT-registered client;
d) description of the nature of transaction
e) the invoice value or consideration, showing the VAT separately
f) total amount billed and received; and
g) such other information, as required in Section 237 of the Code.
5) Are tape receipts (cash register machine or point of sales machine tape) considered as an
official receipt/invoice?
Yes, as long as the tape receipts are generated from a BIR-registered CRM/POS, as evidenced by
the BIR sticker attached to the machine duly signed by the RDO.
Application for Authority to Use Computerized Accounting Systems and/or Components
thereof/Loose-leaf Book of Accounts
DESCRIPTION
Computerized Accounting System (CAS) refers to the integration of different component
systems to produce computerized books of accounts and computer-generated accounting records
and documents.
TAX FORM
BIR Form 1900 - Application for Authority to Adopt Computerized Accounting System or
Components Thereof
A. Initial Application to Adopt CAS And Or Components Thereof
- Accomplished BIR Form 1900 (Application for Authority to Adopt Computerized Accounting
System (CAS) and/or Components Thereof/Loose-leaf Books of Accounts, 2002 Enhanced
version) and/or BIR Form 1907 (Application for Permit to Use Cash Register Machine/Point of
Sale Machine, 2002 Enhanced Version)
Company Profile:
-Photocopy of BIR Certificate of Registration
- Photocopy of Previously Issued Permit, if applicable
- Photocopy of Current Registration Fee Payment
- Location map of the place of business
- Inventory of previously approved unused Invoices and receipts, if applicable
- List of branches that will use CAS, if any
Technical Requirements:
- Application Name and Software Used (Development & Database)
- Functions and Features of the application
- System Flow/s
- Process Flow
- Back-up Procedure, Disaster and Recovery Plan
- Sworn Statement and Proof of System Ownership
- List of Reports and Correspondences that can be generated from the system with their
description, purpose and sample layout
- Facsimile of System Generated Loose-leaf Books of Accounts and List
thereof/Receipts/Invoices
- Additional requirements in case of affiliated companies/sister companies, franchisees and
branches:
- Photocopy of previously issued permit for mother/sister company or another branch using the
same system, if applicable
- Certification from the Computerized System Evaluation Team (CSET), which previously
evaluated the approve system
B. Application For System Enhancement/Modification

- Photocopy of the previously issued Permit to Adopt CAS or Components Thereof; and
- Letter to the BIR detailing the enhancement/modification to be made on the previously
approved CAS or Components Thereof
PROCEDURES
A. For Initial Application
All Applications for Permit to Use CAS, whether by the Head Office or branches, shall be filed
at the RDO /LTAD I or II/LTDO having jurisdiction over the Head Office (HO) of the taxpayer,
except in the following cases:
1. The branch adopts CAS ahead of the HO - the application shall be filed by the Branch with the
RDO having jurisdiction over the Branch with a certification that the HO does not use CAS. In
the event that the HO later adopts the same CAS and the branch with the previously issued
permit shall be linked to it, the permit to be issued to the HO shall include a new permit for the
said Branch, which shall supersede the previously issued permit.
2. The Branch adopts a different CAS from that of its HO - it shall apply for permit to adopt
CAS at the BIR office having jurisdiction over the Branch.
The Permit for CAS shall be issued after a demonstration of the applied system has been
evaluated and recommended for approval by the CSET.
B. For Application for System Enhancement/Modification on the Previously Approved CAS or
Components Thereof
Taxpayer submits a letter to the RDO or the concerned office of the LTS that previously issued
the permit to adopt CAS about the enhancement and/or modification on the system together with
a photocopy of the previously issued Permit to Adopt CAS or Components thereof.
DEADLINES
Application for authority to use CAS must be filed before the system is used.
RMO No. 21-2000 and RMO No. 29-2002
CODAL REFERENCE
1) What is a Computerized Accounting System (CAS)?
It is the integration of different component systems to produce computerized Books of Accounts
and computer generated accounting records and documents. (RMO 29-2002)
2) What are the components of CAS?

The components of CAS are:
a) General Journal and other subsidiary records
(Note: For General Ledger, though it is a component of CAS, taxpayer must apply for Permit to
Adopt a complete CAS)
b) Sales Book, Purchases Book, Accounts Receivable Book, Accounts Payable Book, Inventory
Book, Payroll Ledgers, Subsidiary Ledgers and other accounting records
c) Any application system which generates subsidiary ledger and is part of official accounting
documents such as official receipts (OR), sales and cash invoices, cash vouchers, journal
vouchers, billing statements, sales tickets, etc.
d) Any application system which generates reports required by the BIR (e.g. a separate report for
void and suspended transactions to explain the deduction from sale, compilation of their
integrated/consolidated sales report produced every end of the day); and
e) Point of Sale (POS) Machine/Cash Register Machine (CRM) connected to a network or linked
to CAS. (RMO 29-2002)
3) Who are required to apply for a Permit to Adopt CAS or Components Thereof?
a) Taxpayers who will use/adopt:
· A complete CAS
· Any or some of the components of CAS
· e-Invoicing System
b) Taxpayers with valid permits to adopt CAS or component/s thereof but made systems
enhancement/modification that result to change in system release and/or upgrade in version
number. (RMO 29-2002)
4) Who shall apply for permit to use CAS or components thereof if taxpayers’ consultants
provided the system?
Taxpayers whose CAS are provided by their consultants (e.g. accounting firms) shall apply for a
separate permit for the use thereof. (RMO 29-2002)
5) In cases of affiliated companies, sister companies, franchisees and closely held corporations,
who shall apply for Permit to Use CAS or Components thereof?
Affiliated companies, sister companies, franchisees and closely held corporations shall secure
separate permits for the use of CAS at LTAD I or II, LTDO or RDO. This requirement is without
regard whether they are sharing a server and using exactly the same system previously approved
for use by its mother company or other sister companies. (RMO 29-2002)
6) Where should taxpayers apply for permit to adopt CAS or components thereof?
All applications for CAS or components thereof whether by Head Office or Branches shall be
filed by the Head Office at the Large Taxpayer Assistance Division (LTAD) I or II, Large
Taxpayer District Office (LTDO) and Revenue District Office (RDO) having jurisdiction over
the taxpayer’s Head Office except in the following cases:
· In case the branch adopts CAS ahead of the Head Office, the application shall be filed by the
Branch with the RDO having jurisdiction over the branch with a certification that the Head
Office does not use a CAS. In the event that the Head Office later adopts the same CAS and the
branch with a previously issued permit shall be linked to it, the permit to be issued to the Head
Office shall include a new permit for the said branch, which shall supersede the previously
issued permit.
· In case the branch adopts a different CAS from that of its Head Office, it shall apply for permit
to adopt CAS at the BIR office having jurisdiction over the branch (RMO 29-2002)
7) When should the application be filed?

The application for permit to use CAS should be applied before the system is used or the
enhanced system is adopted.
8) What are the documents required to be submitted in applying for Permit to Use CAS?
· Accomplished BIR Form 1900 and/or BIR Form 1907
· Photocopy of BIR Certificate of Registration
· Photocopy of Previously Issued Permit, if applicable
· Photocopy of Current Registration Fee Payment
· Location map of the place of business
· Inventory of previously approved unused invoices and receipts, if applicable
· List of branches that will use CAS, if any
· Application Name and Software used (Development and Database)
· Functions and Features of the Application
· System Flow/s
· Process Flow
· Sworn Statement & Proof of System Ownership
· Back-up Procedure, Disaster and Recovery Plan
· List of Reports and Correspondences that can be generated from the system with their
description, purpose and sample lay out
· Facsimile of System Generated Loose-leaf Books of Accounts and List thereof,
Receipts/Invoices
· Photocopy of previously issued permit of mother/sister company, another branch using the
· Certification from Computerized System Evaluation Team (CSET) which previously evaluated
the approved system, if applicable (RMO 29-2002)
9) Is the CSET limited to the requirements indicated in the checklist stated in RMO 29-2002?
As a general rule, yes, provided that CSET shall be allowed to ask for additional requirements if
the need arises during a system demo or upon evaluation of the application. Provided further,
that the taxpayer shall submit the additional requirements within the required period to process
the application otherwise, the same shall be denied.
10) Will the BIR issue a temporary permit for the use of CAS?
As a general rule, no temporary permit to adopt CAS shall be issued except upon approval of the
Deputy Commissioner for Operations Group. Temporary permit shall be issued only based on
valid and meritorious cases (e.g., systems enhancement that need to be done abroad)
The validity of temporary permit approved by the Deputy Commissioner of Operations may
either be shortened or renewed depending on the compliance on the reason(s) for issuance of the
temporary permit by the taxpayer. (RMO 29-2002)
11) After filing the application, when will the Permit to Adopt CAS and/or Components Thereof
be issued?
Application not requiring systems demo and no cross RDO evaluation 10 days
Application not requiring systems demo with cross 20 days
RDO evaluation
Application requiring systems demo with no cross 30 days
RDO evaluation
Application requiring systems demo with cross 40 days
RDO evaluation (RMO 29-2002)
12) In case there is an open case, would the issuance of permit be allowed?
Existence of open cases (stop-filer (RCS) cases, audit cases, accounts receivable (AR) cases,
etc.) in the name of the applicant-taxpayer should not be a hindrance to the issuance of the permit
to use CAS and/or Components thereof.
13) Will BIR hold the issuance of permit in case the taxpayer has a penalty payable, pending
collection or audit case?
No, the collection of the penalty or pending collection or audit case is not a condition precedent
in the issuance of permit.
14) In case there is a transfer of application to adopt CAS of the taxpayer from one district to
another, who shall issue the permit to adopt CAS?
In case the evaluation on the application for permit to adopt CAS or components thereof requires
a system demonstration, the RDO that performed the system demonstration shall issue the permit
to adopt CAS or components thereof. Otherwise, if system demonstration was not yet conducted,
the application including the corresponding documents submitted should be forwarded to the
transferee RDO within five (5) days upon receipt of notice of transfer who shall then continue
the processing of the application. The period to process shall start as day one (1).
In cases where system demonstration is not required, the originating office where the application
for CAS was submitted shall issue the permit if at least 80% of the required period (10, 20 days
whichever is applicable) to process/issue the permit has been consumed. Otherwise, the permit
shall be issued by the transferee RDO.
15) In cases of applications for permit requiring Cross-RDO evaluation, who shall coordinate?
The CSET of the BIR office where the application was filed shall co-ordinate with the CSET of
the other concerned BIR Office in case of evaluation of application involving branch within the
jurisdiction of other office.
16) What is e-Invoicing (Electronic Invoicing System)?

The electronic invoicing system or e-Invoice System refers to the system developed and
maintained by the e-Buyer or e-Seller or both in issuing invoice electronically through the
Internet.
E-Invoice shall include sales invoice, official receipt, billing invoice, debit/credit notes or such
other similar accounting documents issued electronically through the internet.
17) Is Authority To Print (ATP) Receipts/Invoices still required if the taxpayer adopts CAS?
Yes. In case of systems downtime, taxpayer shall be required to use pre-printed receipts and
invoices with ATP which shall not exceed one thousand (1,000) sets or issue its remaining
receipts/invoices out of the inventory of previously approved unused manually printed receipts
and invoices. Also, in cases wherein the taxpayer’s system cannot generate official receipts and
invoices and the like, ATP shall be applied following RMO No. 28-2002. (RMO 29-2002)
18) In cases where taxpayers do not qualify under the guidelines on RR No. 10-99 and RMO No.
29-2002, what guidelines shall be imposed?
Applications for permit that do not qualify in either issuance shall be elevated to CSET for
proper evaluation and necessary recommendation.
19) Is the manual cash register machine sales book still to be maintained in case the taxpayer
adopts CAS?
Taxpayer with approved CAS capable of generating reports such as but not limited to daily sales,
accumulated sales, etc. need not be required to maintain manual Cash Register Machine Sales
Book provided that all information required in the manual CRM Sales Book are reflected in the
computerized reports.
However, these computerized reports shall be made available during post system evaluation of
CAS, or duly authorized tax audit of taxpayer’s records. (RMO 29-2002)
20) What are the procedures in the application/approval of the range of serial numbers to be used
for computer-generated receipts and invoices?
Taxpayers shall be required to fill up BIR Form No. 1907 in applying for the initial range of
serial numbers of computer-generated invoices/receipts which shall be issued.
For the 2nd and succeeding range of serial numbers to be issued in the generation of
invoices/receipts using a Global/National System of Environment, the following procedures shall
be followed:
a) Taxpayers with approved CAS adopting a Global/National System shall be required to fill up
Annex “A” (Application for Authority to Use the Range of Serial Number in Generating
Invoices/Receipts for a Global and National System of Environment) for the succeeding range of
serial numbers to be issued in generating computerized invoices/receipts;
b) The properly accomplished Annex “A” shall be submitted to the TSS of the BIR office having
jurisdiction over the taxpayer’s principal place of business;
c) The TSS shall receive the properly accomplished Annex “A” and evaluate the succeeding
range of serial numbers to be issued in generating invoices/receipts; and
d) After evaluation, the TSS shall prepare a Letter of Approval for the Range of Serial Numbers
to be Used in Generating Invoices/Receipts in a Global/National System Environment (Annex
“B”) for signature of approving official and shall issue it to the taxpayer.
21) Are taxpayers with Global System and using invoices and receipts printed abroad, required
to seek advance approval of the range of serial numbers for said invoices/receipts?
No, taxpayers with Global System and using invoices and receipts printed abroad (BIR Ruling
No. DA 295-98) shall not be required to seek advance approval of the next set of pre-approved
range of serial number for use in the Philippines but shall present the pre-numbered invoices and
receipts to BIR concerned office for registration prior to their use. The invoices/receipts herein
referred to shall be tracked using office automation tools of the BIR Office.
For global system under which invoices and receipts are system-generated, the serial number of
invoices/receipts issued or used during the year shall be stated/presented in chronological
sequence of issuance by date of issue in the CD-ROM that will be registered, together with other
accounting records, with the BIR Office having jurisdiction over the taxpayer within 30 days
following the end of the accounting period.
The taxpayer shall also submit a report on the range of serial numbers of receipts and invoices
which have been consumed and/or cancelled during the immediately preceding taxable year to
the concerned office within 30 days from the close of the taxable year (RMO 29-2002).
22) Is the taxpayer adopting a CAS required to maintain a hardbound computer generated books
of accounts, receipts and invoices and other accounting records and have them stamped?
The requirement of binding and stamping of a hardbound computerized books of accounts,
receipts and invoices and other accounting records shall no longer be necessary provided that the
taxpayer shall submit an Affidavit on the Post Reporting Requirements for CAS in Lieu of
Hardbound Computer Generated Books of Accounts, Receipts and Invoices and other
Accounting Records/Documents (Annex N of RMO 29-2002) and a soft copy in text file format
of the books of accounts and other accounting records in CD-ROM properly labeled with the
name of taxpayer, taxable year and serial no. and volume no. of the books of accounts and other
accounting records, within 30 days from the close of the taxable year.
However, in case the taxpayer has no capability to submit in CD-ROM form, procedures under
the manual system shall prevail.
23) Where does a taxpayer with a permit to use CAS, register his books of accounts and submit
other accounting records?
The taxpayer shall register with the LTAD I or II, LTDOs or RDOs having jurisdiction over the
principal place of business of taxpayer.
24) Are taxpayers with web-enabled electronically generated receipts/invoices (e.g. payment
through credit card, payment through ATM and other similar web-enabled electronically
operated receipts/invoices) required to secure permit to adopt CAS?
Yes, taxpayer with web-enabled electronically generated receipts and invoices are required to
secure permit to adopt a complete CAS.
25) Who shall conduct the post system evaluation of the approved CAS of a branch?
The CSET of LTAD I or II, LTDO or RDO having jurisdiction over the Head Office of the
branch shall conduct the post system evaluation of the approved CAS, provided that there should
be proper coordination with the concerned CSET having jurisdiction over the branch.
26) If during the Post System Evaluation, the CSET members discovered that the taxpayer is
using a system other than that of the approved CAS or a modified version of the approved CAS,
would the recommendation for revocation of permit be final?
Yes, the revocation of the previously approved permit to use CAS shall be final and executory.
Hence, it is mandatory for the taxpayer to apply for a new permit.
27) Shall the CSET members be allowed to conduct post system evaluation in case taxpayers
modify/enhance its CAS?
The CSET shall have the authority to conduct post system evaluation through a Mission Order
that shall be secured prior to its conduct.
28) What shall be the alternative course of action by CSET members in case the taxpayer
prohibits them to check into its server during the post system evaluation?
The CSET members shall report the taxpayer to the Legal and Enforcement Service, Attention:
Tax Fraud Division.
29) Is the six (6) – month period of interval from the date of approval of permit required before
the CSET can conduct post system evaluation?
There is no required period of interval to post evaluate the approved CAS of the taxpayer. The
CSET can conduct post system evaluation of the approved CAS as the need arises.
30) What are the guidelines/procedures for stamping the CDs of books of accounts and other
accounting records submitted by the taxpayer?
Taxpayer Service Section (TSS) shall:
a) Check if the CD is properly labelled (using the Checklist for checking CD Annex “C”) in
permanent ink with name, TIN, taxable year and the serial number and volume number of the
books of accounts and other accounting records/documents;
b) Scan the CD using the prescribed virus scan utilities (it should be virus free);
c) Get the file size (in case there are two (2) or more file for a month, it should be properly
labelled as volumes 1, 2, etc. of that particular month etc);
d) Open the file using any text editor (example: WordPad, Notepad, etc.);
e) Check the validity of the content of the file (it should be on a monthly basis and in a text file
format.)
f) If CD passes the check criteria, stamped the CD “Registered” with a permanent ink and affix
the signature of the BIR employee and the date
g) Return duly stamped CD to the taxpayer.
However, if any of the above requirements is not satisfied, return the CD to the taxpayer with the
CD Checklist indicating the reason for rejection.
31) What are the responsibilities of TSS in receiving the CD?

The TSS shall be responsible in the following:
a) Ensure that they have the latest version of the virus signature;
b) Raise all technical issues relative to the submission of the CD which should be forwarded to
RDC – Helpdesk;
c) Monitoring the issues raised;
d) Keep the CD checklist for future use.
32) What is the difference between cash receipts and invoices under CAS and loose-leaf
receipts/invoices under the manual system?
As long as the contents of the receipts/invoices, in accordance with Sections 237, 238 and 113 of
the Tax Reform Act of 1997, are generated by the system, taxpayer’s receipts/invoices shall be
considered under CAS.
Loose-leaf receipts/invoices under the manual system shall refer to invoices/receipts that are not
generated by CAS or components thereof. Hence, the CRM/POS machines not linked to CAS
used to generate receipts/invoices shall adhere to the provisions of Revenue Regulations No. 10-
99.
33) Is it necessary for the RDO having jurisdiction over the branch that adopts a CAS to issue a
certification of the last serial number of Sales Invoice/Receipt consumed/cancelled?
The RDO having jurisdiction over the branch is not required to issue a certification of the last
serial number of Sales Invoice/Receipt consumed /cancelled. Instead, the Taxpayer shall inform
the BIR Office having jurisdiction over the branch by accomplishing Annex “M” of RMO No.
29-2002 (Report of the Range of Serial Numbers of Receipts and Invoices
Consumed/Cancelled). (RMO 29-2002)
34) Is modification of header of receipt allowed? Is modification of the header of accounting

reports allowed?
Modification of header of receipt shall be allowed provided that the taxpayer shall follow the
provisions of Sections 237 and 238 of the NIRC of 1997.
Modification of report header is allowed which shall depend on the taxpayer’s nature of
business. Provided however, that it should comply with Sec 232 of the NIRC and its
implementing Bookkeeping Regulations and other related issuances.
35) In cases of taxpayers adopting an Off The Shelf CAS, would there be a need to evaluate and
conduct Demonstration of the system?
In case there is prior evaluation and approval of an Off The Shelf CAS, hence a precedent
application, the system shall not undergo systems demonstration in its evaluation. Provided that
the Off the Shelf CAS has not been customized in any manner.
In this regard, a list of approved off-the-shelf CAS shall be monitored and provided by
Information System Group (ISG) to all the CSET members through a technical bulletin for
proper reference.
36) What is the jurisdictional limitation of the divisions under Large Taxpayer Service in the
issuance of permit to use CAS or components thereof?
LTAD I or II and LTDOs, are authorized to issue permit to use CAS or components thereof of
branches of identified taxpayers of LTAD I or II and LTDOs nation-wide. Provided however,
that the concerned RDO where the branch(es) is(are) located shall be properly notified and
necessary coordination shall be made.
Application for Permit to Use Cash Register Machine (CRM) and/or Point of Sales
Machine (POS)
DESCRIPTION
A point-of-sale (POS) terminal is a computerized replacement for a cash register. Much more
complex than the cash registers of even just a few years ago, the POS system can include the
ability to record and track customer orders, process credit and debit cards, connect to other
systems in a network, and manage inventory. Generally, a POS terminal has as its core a
personal computer, which is provided with application-specific programs and I/O devices for the
particular environment in which it will serve. A POS system for a restaurant, for example, is
likely to have all menu items stored in a database that can be queried for information in a number
of ways. POS terminals are used in most industries that have a point of sale such as a service
desk, including restaurants, lodging, entertainment, and museums.
Increasingly, POS terminals are also Web-enabled, which makes remote training, and operation
possible, as well as inventory tracking across geographically-dispersed locations.
TAX FORM
BIR Form 1907- Application for Permit to Use Cash Register Machine/Point of Sale Machine
(2002 Enhanced Version)
A. For Initial Application
For Stand Alone CAS or POS Machines (not linked to CAS)
1) Accomplished BIR Form 1907 Application for Permit to Use Cash Register Machine/Point of
Sale Machine (2002 Enhanced Version)
2) A joint sworn declaration by the applicant and the distributor/dealer or vendor of the machines
containing the following:
- Name, address, business name/style of the applicant, TIN of the applicant, kind/line of business
and the address where the machine shall be used
- Name, business style, address and TIN of the distributor/dealer or vendor of the machine
- For CRM, brand, model, serial number and type of all its parts, whether electronic or
mechanical, whether with resettable or non-resettable accumulating grand total, and whether new
or second hand
- For POS machines, brand, model, serial numbers and type of all its parts, whether new or
second hand, and software to be used
- Maximum accumulating sales capacity
- Reset Counter number; and,
- Other essential features
3) Photocopy of proof of payment of Registration Fee
4) Photocopy of Certificate of Registration (COR) issued by BIR
5) Photocopy of Certificate of Registration of business style/name issued by DTI (in case of
individual) or a copy of SEC Registration (in case of corporation);
6) Sample receipts for a “no sale” transactions identified to the particular issuing machine legibly
showing the heading (company logo, business name, trade name, proprietor’s name if applicant
is single proprietor, address where the machine is going to be used including branch
identification) consecutive receipt numbers and date;
7) Sample receipt showing the reading of the accumulated grand total recorded in the machine,
and in case of electronic and POS machines, the reset counter number;
8) For machine with resettable accumulating grand total, all the proprietor’s reset keys and/or
copy of the software to be used in the actual operation of the POS machines and customizations
made thereto; and
9) Operating Manuals.
CRM/POS Machines linked to CAS
1) Company Profile:
- Photocopy of BIR Certificate of Registration
- Photocopy of Previously Issued Permit, if applicable
- Photocopy of Current Registration Fee Payment
2) Location map of the place of business
3) Inventory of previously approved unused Invoices and receipts, if applicable
4) List of branches that will use CAS, if any
5) Technical Requirements:
- Application Name and Software Used (Development & Database)
- Functions and Features of the application
- System Flow/s
- Process Flow
- Back-up Procedure, Disaster and Recovery Plan
- Sworn Statement and Proof of System Ownership
- List of Reports and Correspondences that can be generated from the system with their
description, purpose and sample layout
- Facsimile of System Generated Loose-leaf Books of Accounts and List
thereof/Receipts/Invoices
6) Additional Requirements in case of affiliated companies/sister companies, franchisees and
branches:
- Photocopy of Previously Issued Permit for mother/sister company or another branch using the
- Certification from the CSET which previously evaluated the approve system
B. CRM/POS Machines For Repair, Upgrade, Change, Modification, Update Or
Removal/Withdawal
Prior to machine repair, upgrade, change, modification or update
a) Written notice to the RDO/LTAD I or II/LTDO that issued the previous permit
After the machine repair, upgrade, change, modification or update
a) New Application Form
b) Joint Sworn Statement executed by the proprietor and the person who made the repair
In case of removal/withdrawal of the machine
a) Written notice to the RDO/LTAD I or II/LTDO that issued the previous permit
PROCEDURES
A. Initial Application
- For Stand Alone Cash Register Machine (CRM) or Point Of Sales (POS) Machine (not linked
to CAS)
File duly accomplished BIR Form 1907 Application for Permit to Use Cash Register
Machine/Point of Sale Machine, (2002 Enhanced Version) with the RDO within whose
jurisdiction the business establishment where the machine will be used is located.
- For Cash Register Machine (CRM) /Point of Sales Machine (POS) Machines linked to
Computerized Accounting System (CAS)
File duly accomplished BIR Form 1907 Application for Permit to Use Cash Register
Machine/Point of Sale Machine, (2002 Enhanced Version) with the RDO/LTAD I or II/LTDO
within whose jurisdiction the business establishment where the machine will be used or located
RDO/LTAD I or II/LTDO having jurisdiction over the Head Office (HO) except for the
following cases:
- In the case the branch adopts CAS ahead of the HO, the application shall be filed by the Branch
with the RDO having jurisdiction over the Branch with a certification that the HO does not use
CAS. In the event that the HO later adopts the same CAS and the branch with the previously
issued permit shall be linked to it, the permit to be issued to the HO shall include a new permit
for the said Branch, which shall supersede the previously issued permit.
- In case the branch adopts a different CAS from that of its HO, it shall apply for permit to adopt
CAS at the BIR office having jurisdiction over the Branch.
B. Repair, Upgrade, Change, Modification, Update, Removal/Withdrawal
a) Repair, upgrade, change, modification or update of the machine/s
- Prior to repair, upgrade, change, modification or update
Taxpayer files written notice to the RDO/LTAD I or II/LTDO that issued the previous permit
- After the repair, upgrade, change, modification or update
Taxpayer shall submit new BIR Form 1907 together with the required documents to the
RDO/LTAD I or II/LTDO that issued the previous permit.
b) Removal/withdrawal of the machine/s
- Taxpayer files written notice to the RDO/LTAD I or II/LTDO that issued the previous permit
DEADLINES
Before using Cash Register Machine (CRM) and/or Point of Sales Machine (POS)
RR No. 10-99 and RMO No. 29-2002
CODAL REFERENCE
Sec. 237 of the National Internal Revenue Code
1) What is Point-Of-Sale (POS) Terminal?
A point-of-sale (POS) terminal is a computerized replacement for a cash register. Much more
complex than the cash registers of even just a few years ago, the POS system can include the
ability to record and track customer orders, process credit and debit cards, connect to other
systems in a network, and manage inventory. Generally, a POS terminal has as its core a
personal computer, which is provided with application-specific programs and I/O devices for the
particular environment in which it will serve. A POS system for a restaurant, for example, is
likely to have all menu items stored in a database that can be queried for information in a number
of ways. POS terminals are used in most industries that have a point of sale such as a service
desk, including restaurants, lodging, entertainment, and museums.
Increasingly, POS terminals are also Web-enabled, which makes remote training, and operation
possible, as well as inventory tracking across geographically dispersed locations.
2) What is Cash Register Machine (CRM)?

Cash Register Machine uses a firmware, which is installed on a chip called electronic
programmable Read only Memory (EPROM). In electronic engineering, the term firmware is
interpreted as a program which is burned on a non-volatile memory, and which is used for the
organization of an exactly defined field of application. A machine-near program code ensures
shortest execution times and highest operation- and data security. Compared with traditional PC-
systems, the hardware of firmware-controlled machines is usually specially made, what enables
to take also ergonomic requirements into consideration.
3) What is CRM/POS Machines Linked to CAS?

Cash Register Machines/Point of Sale Machines that are electronically connected to a CAS or
connected to a CAS through a central server via network.
4) In applying for permit to use CRM/POS machines linked to CAS, is it part of the procedure
that it should pass the Case Monitoring System (CMS) of the Bureau?
For monitoring purposes, LTAD I and II, LTDOs and computerized RDOs shall create a case for
the CRM/POS Machines in the CMS and assign the same to a case officer prior to the
preparation and issuance of the corresponding stickers. The corresponding template for
CRM/POS shall likewise be filled out by the case officer assigned. (RMO 29-2002)
5) Is automatic resetting of the range of serial numbers on POS machines allowed?
As a general rule, automatic resetting of serial numbers on POS machines is not allowed.
6) What BIR issuance/guidelines shall be applied in processing application for use of CRM/POS
machines not linked to taxpayer’s CAS? Is it RMO No. 29-2002 or RR No. 10-99?
Application for use of stand-alone (not linked to CAS) POS Machine/CRM shall be processed
under the provisions of RR No. 10-99 or any later regulations that may be issued amending RR
No. 10-99. (RMO 29-2002)
7) What does a pool of CRM/POS machines mean?

These are CRM/POS machines reserved for use during peak season by the taxpayer and which
shall be registered under the Head Office. These machines shall only be allowed to be
transported and be used in rove around the branches of the taxpayer upon written approval from
BIR concerned office having jurisdiction over the Head Office on the corresponding CRM/POS
machines stating therein the duration of use and the branch/place where said machines shall be
used. (RMO 29-2002)
8) Will the taxpayers be allowed to have or maintain a pool of Cash Register Machines
(CRM)/Point of Sale (POS) machines linked to CAS?
Yes. Taxpayers that opt to maintain a pool of CRM/POS Machines in their business operations
during peak season (stand-by/roving machines) shall identify such in their applications. These
machines shall be treated as Head Office machines and shall be issued permits by LTAD I or II,
LTDO or RDO having jurisdiction over the Head Office. Only CRM/POS machines belonging to
the pool shall be allowed to be transported for use in the branches or to any place of business of
the taxpayer.
Transfer to the taxpayer’s branch/es of CRM/POS machines belonging to the pool shall be
subject to the approval of LTAD I or II, LTDO or RDO having jurisdiction over the Head Office,
which shall then inform the branch/es’ RDOs where the machines shall be used. (RMO 29-2002)
9) Is the roving of stand -alone POS machines allowed?

Roving of stand-alone CRM/POS machines is not allowed. Only POS machines linked to CAS
belonging to the pool may be transferred to the taxpayer’s branch/es or other place of business.
(RMO 29-2002)
10) How do we monitor pool of CRM/POS machines?

The taxpayer shall give prior notice to the BIR that the CRM/POS machines shall be transferred
from Head Office to its branch. (RMO 29-2002)
11) How can we identify machines belonging to the pool of CRM/POS machines?
The pool of CRM/POS machines is registered under the Head Office. To properly identify the
CRM/POS machines belonging to the pool, the issuing BIR office shall indicate in the Permit to
Use Cash Register Machine (CRM) or Point of Sale (POS) Machine (Annex “G” of RMO 29-
2002) after the box for Head Office the word “Pool” in parenthesis. [e.g. Head Office (Pool)].
12) Who shall issue stickers for CRM/POS machines linked to CAS?
Stickers for CRM/POS machines linked to CAS shall be issued by the following:
• For machines to be used by the branch/es
By the BIR office having jurisdiction over the branch/es upon presentation by the taxpayer and
submission of a copy of the Branch Permit issued by the BIR office having jurisdiction over the
Head Office.
• For machines to be used by the Head Office and those belonging to the pool
By the BIR office having jurisdiction over the Head Office. (RMO 29-2002)
13) How can the CRM/POS Machines stickers issued under RMO No. 29-2002 and RR No. 10-
99 be distinguished?
A template for the CRM/POS machines sticker was provided in RMO No. 29-2002. This shall
serve as a format that shall distinguish the stickers issued under RMO No. 29-2002 from that
issued under RR No. 10-99.
14) Is the manual cash register machine sales book still to be maintained in case the taxpayer
adopts CAS?
Taxpayer with approved CAS capable of generating reports such as but not limited to daily sales,
accumulated sales, etc. need not be required to maintain manual Cash Register Machine Sales
Book provided that all information required in the manual CRM Sales Book are reflected in the
computerized reports.
However, these computerized reports shall be made available during post system evaluation of
CAS, or duly authorized tax audit of taxpayer’s records. (RMO 29-2002)
15) For Stand Alone POS Machine that can generate a detailed Cash Register/POS Machine
Sales Report, would the taxpayer still be required to maintain a Cash Register Sales Book?
Taxpayer with stand alone POS Machine not linked to CAS is still required to maintain a Cash
Register Sales Book except when said taxpayer applies for a permit to use a Component of CAS
on Sales, provisions under RMO 29-2002 shall be adhered to.
16) Under what issuance applications for permit to use vending machines shall be processed?
Applications for permit to use Vending Machines shall be processed following the provisions of
RR No. 10-99.

Capital Gains Tax LAW 101

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Capital Gains Tax LAW 101

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Republic of the Philippines

2. Notice of Death and Death Certificate, in case of death of an individual;

3. Estate Tax Return of the decedent, if applicable;

4. List of ending inventory of goods, supplies, including capital goods;

5. Inventory of unused sales invoices/official receipts (SI/OR);

8. Other documents necessary to support the changes applied for.

Registration of Book of Accounts

Subsequent Registration of Books/Renewal (In General)

Subsequent Registration of Books/Renewal (In General)

B. Application For System Enhancement/Modification

2) What are the components of CAS?

7) When should the application be filed?

16) What is e-Invoicing (Electronic Invoicing System)?

31) What are the responsibilities of TSS in receiving the CD?

34) Is modification of header of receipt allowed? Is modification of the header of accounting

2) What is Cash Register Machine (CRM)?

3) What is CRM/POS Machines Linked to CAS?

7) What does a pool of CRM/POS machines mean?

9) Is the roving of stand -alone POS machines allowed?

10) How do we monitor pool of CRM/POS machines?

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