TAXPAYER’S

COMPLIANCE
GUIDE
THINGS TO DO WHEN ENGAGING IN
BUSINESS OR PRACTICING PROFESSION

A. Register with BIR

B. Issue Official Receipt or Sales Invoice
authorized by the BIR
C. Keep and maintain Books of Accounts
D. File tax returns and pay the corresponding
tax/es due
E. Submit reportorial compliance
 A. Register with BIR

WHO SHALL REGISTER?

Those who are engaged in business activity

or exercise of profession, whether individual
or non-individual.
WHY DO WE REGISTER?

Taxpayer is required to register to comply

with the requirements of the National
Internal Revenue Code.

Taxpayer is required to register each tax

type of internal revenue tax/es for which he
is obligated to file a return (with or w/o
transaction) and/or pay taxes due.
 WHEN TO REGISTER?

– On or before commencement of business

activity or
– Within 30 days from issuance/approval of
business permit/Security and Exchange
Commission Certificate whichever comes
earlier.
– On or before payment of any tax due.
 WHERE TO REGISTER?

Taxpayer shall register with the Revenue

District Office (RDO) having jurisdiction of
the physical place of business.
HOW TO REGISTER?

1. Taxpayer shall accomplish appropriate

Registration Forms and submit the same
to:
a. The New Business Registrant Officer
(NBRO) for BIR Form Nos.
1901/1903
b. Designated counter/s for BIR Form
Nos. 1902/1904
• BIR FORM 1901- FOR SINGLE PROPRIETOR /
PROFESSIONAL

• BIR FORM 1902 – LOCAL EMPLOYEES

• BIR FORM 1903 – FOR NON-INDIVIDUALS

(CORPORATIONS- STOCK/NON
STOCK,PARTNERSHIPS, ASSOCIATIONS,
FOUNDATIONS, COOPERATIVES, JOINT
VENTURE, LABOR UNIONS, TAXABLE GOCCs,
LGUs, GAIs, ETC.

• BIR FORM 1904 – FOR ONETT/EO 98

DOCUMENTARY REQUIREMENTS
• For single proprietor/professionals with
duly accomplished BIR Form No. 1901

1. 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;
2. 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;
• Additional documents, if applicable:

a.Special Power of Attorney (SPA) and IDs of

authorized person of taxpayers and the person
executing the SPA, in case of authorized
representative who will transact with the Bureau;
b.Franchise Documents (e.g. Certificate of Public
Convenience for Common Carrier);
c.Photocopy of the Trust Agreement (for Trusts);
d.Photocopy of the Death Certificate of the deceased
(for Estate under judicial settlement);
e.Certificate of Authority, if Barangay Micro Business
Enterprises (BMBE) registered entity;
f. Proof of Registration/Permit to Operate
BOI/BOIARMM, PEZA, BCDA and SBMA.
• In case of registration of branches/facility
types:
a. 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; or DTI Certificate;
b. Special Power of Attorney (SPA) and ID of
authorized person, in case of authorized
representative who will transact with the Bureau; if
applicable
 • For Non-Individuals with duly
Accomplished BIR Form 1903
1. Photocopy of SEC Certificate of Incorporation; or
Photocopy of License to Do Business (in case of
partnership); or Photocopy of License to Do Business in
the Philippines (in case of foreign corporation);
2. Articles of Incorporation or Articles of Partnerships;
3. 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;
4. For GAIs and LGUs – Photocopy of Unit or Agency’s
Charter;
5. For Cooperatives – Photocopy of Cooperative
Development Authority (CDA) Certificate of Registration
and Articles of Cooperation.
6. For Homeowner’s Association – Photocopy of
Certificate of Registration issued by Housing and Land
Use Regulatory Board (HLURB) and articles of
Association;

7. For Labor Organization, Association or Group of Union

Workers – Photocopy of Certificate of Registration issued
by Department of Labor and Employment (DOLE) and
Constitution and by-laws of application union;

8. For Foreign Embassies – Endorsement from

Department of Foreign Affairs (DFA);

9. For International Organization – Host Agreement or

any international agreement duly certified by DFA;
 • In case of registration of
branches/facility types:
a.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 Board
Resolution/Secretary Certificate stating the Branch
Establishment;
b.Board Resolution and Secretary Certificate, in case of
authorized representative who will transact with
Bureau; if applicable;
c. Proof of Payment of Annual Registration Fee (ARF) (not
applicable to those exempt from the imposition of ARF);
d.BIR Form No. 1906;
e.Final & clear sample of Principle Receipts/Invoices;
Additional documents, if applicable:

a. Board Resolution indicating the name of the

authorized representative and Secretary’s Certificate,
in case of authorized representative who will transact
with the Bureau;
b. Franchise Documents (e.g. Certificate of Public
Convenience for common carrier);
c. Memorandum of Agreement (for JOINT VENTURE);
d. Franchise Agreement;
e. Certificate of Authority, if Barangay Micro Business
Enterprises (BMBE) registered entity;
f. Proof of Registration/Permit to Operate
BOI/BOIARMM, PEZA, BCDA and SBMA.
2. Claim the Certificate of Registration
(COR-BIR Form 2303), Ask for Receipt
Signage and Authority to Print
Receipts/Invoices (ATP-BIR Form No. 1921
If filed, approved or registered).
Effective Date
of Business
Registration
• BIR shall be informed of
any changes in the
information indicated in the
Certificate of Registration
by accomplishing BIR
Form No. 1905.
USAGE OF BIR FORM NO. 1905

UPDATES:

TRANSFER OF CHANGE OF TAXPAYER TYPE

REGISTRATION CHANGE OF OWNERSHIP
CHANGE OF TAX TYPE CHANGE OF ALPHA
(VAT TO NON- VAT OR VICE
NUMERIC TAX CODE
VERSA)
ADDITIONAL TAX TYPE
CHANGE IN REGISTERED
NAME/ TRADE NAME ADDITIONAL LINE OF
CHANGE IN REGISTERED BUSINESS
ACTIVITY/LINE OF CHANGE OF CIVIL STATUS
BUSINESS CHANGE IN ACCOUNTING
CHANGE ADDRESS PERIOD- FOR NON-
CHANGE/ADD FACILITY INDIVIDUAL TAXPAYER ONLY
TYPE DETAILS
CESSATION OF REGISTRATION(BIR Form
No. 1905) CLOSURE OF
BUSINESS/CANCELLATION OF
REGISTRATION

FOR INDIVIDUAL TAXPAYERS

1. Death Certificate, in case of death of the registered taxpayer if
applicable;
2. List of ending inventory of goods, supplies, including capital
good;
3. Inventory of unused sales invoices/official receipts (SI/OR);
4. Unused sales invoices/official receipts and all other unutilized
accounting forms(e.g. vouchers, debit/credit memos, delivery
receipts, purchase orders, etc.) including business notices
and permits;
5. Certificate of Closure from LGU; and
6. Surrender original Certificate of Registration (COR), Ask for
Receipt and unused receipts/invoices.
CESSATION OF REGISTRATION(BIR Form
No. 1905) CLOSURE OF
BUSINESS/CANCELLATION OF
REGISTRATION

FOR NON-INDIVIDUALS

1. Board Dissolution of the Corporation/Partnership;

and
2. Same with Nos. 2-6 for Individual Taxpayers.
B. Usage of Official Receipt or Sales
Invoice authorized by the BIR
– Issuance of receipt or invoice is also made at the point of sale.
– The threshold amount is P100.00 for Non-VAT taxpayer, for
VAT registered taxpayers regardless of amount.
– Principal and Supplementary receipts/invoices have a validity
of Five (5) years from date of issuance of ATP or actual
consumption whichever comes earlier.
– Subsequent application of ATP not later than Sixty (60) day
prior to actual expiry date or before full consumption.
– Unused/unissued principal/supplementary receipts/invoices
shall be surrendered to the RDO where the taxpayer is
registered on or before the 10th day after the validity period of
the expired receipts or invoices for destruction. An inventory
listing of the same shall also be submitted.
– Only accredited printers have the exclusive authority to print
principal and supplementary receipts/invoices.
– Receipts/Invoices shall be issued in sequential order.
PRINCIPAL RECEIPT/INVOICES
For Sale of Goods – Value Added-Tax/Non-Value Added-Tax - Sales
Invoice

Cash Sales Invoice

Charge Sales Invoice

For Sale of Services – Value Added-Tax/Non-Value Added-Tax -

Official Receipt

SUPPLEMENTARY RECEIPTS/INVOICES

Delivery Receipt, Job Order, Order Slips, Cash Receipt, Debit And
Or Credit Memo,

Collection Receipt, Provisional/ Temporary Receipt, Purchase Order,

Acknowledgement Receipt, Billing Statement, Bill of Lading,
Statement of Account
 Usage of Cash Register Machine (CRM),
Point-of-Sale (POS) Machines, and Other
Sales Machine/ Receipting Software
• Accreditation and Registration:
1. Cash Register Machine (CRM);
2. Point of Sales Machine (POS)- includes bundled
POS or software alone;
3. Sales Receipting System Software;
4. All other sales machines/software such as but not
limited to :
a. Taximeters;
b. Handheld or Mobile Devices;
c. Unmanned bill, coin or token operated
machines;
d. Other Sales Machines/Software
Usage of Cash Register Machine (CRM),
Point-of-Sale (POS) Machines, and Other
Sales Machine/ Receipting Software
• Kinds of Permit issued:
Permit to Use
Permit to Use Special Purpose Machine

• Validity of Permit issued:

Date of Issuance Effectivity Date Validity Date
Prior to August, 2020 August 1, 2020 July 31, 2025
August 1, 2020 onwards Actual date of issuance Five (5) years
from the date of
issuance
C. Keep and maintain Books of Accounts

All Persons (Juridical or Non-Juridical) who are

required to pay revenue taxes shall keep and use
relevant and appropriate set of bookkeeping records.

- For new registrants, books of accounts shall be

registered before the filing of the initial quarterly
income tax or annual income tax whichever comes
first.
TYPES OF BOOKS OF ACCOUNTS:
-Cash Receipts Journal
-Cash Disbursements Journal
-General Journal
-General Ledger
-Senior Citizens/PWD discount book, if
applicable

For VAT Registered Taxpayers additional books:

-Subsidiary Sales Journal
-Subsidiary Purchase Journal
For MANUAL MANUAL LOOSE-LEAF COMPUTERIZED Books
Subsequent Books of Books of Account of Account
registration Account
FORM to be 1905 1905 1905
filled up

When to Before use of w/in fifteen(15) calendar days w/in 30 calendar days
register? new sets of after the end of each Taxable after the end of taxable
B/A Year or 15 days upon the year
termination of its use.

Documentary New sets of
Requirements permanently
bound B/A
1. Permit to use Loose Leaf 1. Permit to use CAS/
B/A Computerized B/A
2. Permanently Bound 2. DVDs containing
Loose Leaf B/A Electronic B/A
3. Affidavit attesting the 3. Affidavit attesting
completeness, accuracy the completeness,
and correctness of accuracy and
entries in the B/A & the appropriateness of
no. of Loose Leaf used the computerized
for period covered. accounting B/A/
records.

WHERE TO REGISTER? At Revenue District Office (RDO) where the

TP is registered
RETENTION PERIOD

• 10 years from the day following the deadline

in filing annual income tax return.
• If filed after the deadline, the reckoning date
is the date of the last entry made on the
books of accounts.
• The books of accounts and other accounting
records shall be kept in hard copies for the
first 5 years and the same shall be
electronically copied in rewritable compact
disc and kept for the remaining 5 years.
• All taxpayers whose gross annual sales,
earnings, receipts or output exceeds P3M
shall have their books of accounts audited
and examined yearly by independent
Certified Public Accountants (CPAs),
however taxpayers have the option to
have their books of accounts audited
even if their gross sales is less than 3M.
D. File tax returns and pay the corresponding
tax/es due
TAX TYPE TAX FORMS DUE DATE
ANNUAL REGISTRATION FEE 0605 January 31st
INCOME TAX
1. INDIVIDUAL 1701 April 15
1701A April 15
Annual Income Tax Returns

Quarterly Income Tax Returns

1st Quarter 1701Q May 15
2nd Quarter 1701Q August 15
3rd Quarter 1701Q November 15
IT (2nd Installment) April 15
October 15 (Succeeding Year)
2. NON-INDIVIDUAL 1702RT
1702MX
Annual Income Tax Returns 1702EX
Quarterly Income Tax Returns
1st Quarter 1702Q Within 60 days from the end of
2nd Quarter 1702Q the taxable quarter
3rd Quarter 1702Q
TAX TYPE TAX FORMS DUE DATE
VALUE ADDED TAX
Monthly VAT Declaration 2550M 20th day of the following
month
Quarterly VAT Declaration 2550Q 25 day of the month
th

with SLSP following the end of the

attachments quarter

PERCENTAGE TAX 2551Q 25th day of the month

following the end of the
quarter

EXCISE TAX 2200M 10 days before the

WITHHOLDING TAX removal from the place
Compensation of extraction
1601C 10 day of the following
th

month
1604CF with January 31st of the
alphalist succeeding year

DOCUMENTARY STAMP 2000 5th day of the following

TAX month
 TAX TYPE COVERED PERIOD FORM TO USE DUE DATE FOR
FILING AND PAYMENT

Expanded/ Creditable 1st month of the quarter BIR Form No. 0619E 10th day of the
Withholding Tax following month

2nd month of the quarter BIR Form No. 0619E 10th day of the
following month
Calendar Quarter BIR Form No. 1601EQ Last day of the month
with alphalist of payees following the close of
the quarter
Annual Information BIR Form No. 1604E March 1st of the
Return with alphalist of payees succeeding year

Final Withholding 1st month of the quarter BIR Form No. 0619F 10th day of the
following month
2nd month of the quarter BIR Form No. 0619F 10th day of the
following month
Calendar Quarter BIR Form No. 1601FQ / Last day of the month
1602 following the close of
the quarter
Annual Information BIR Form No. 1604CF January 31st of the
Return succeeding year

Fringe Benefit Tax Calendar Quarter BIR Form No. 1603 Last day of the month
following the close of
the quarter
MODE OF FILING OF TAX RETURNS
1. Electronic Filing and Payment System (EFPS)
2. eBIR Forms
3. Manual Filing

MODE OF TAX PAYMENTS

1. Electronic Tax Payment
2. Manual (Over-the-Counter to Accredited Agent Banks
(AABs)/Online Payment facility/MRCOS-RCO)
3. Gcash
4. LINKBIZ (LBP, DBP)
FORMS OF PAYMENTS
1. Cash
2. Checks (Personal, Cashiers or Managers)
3. Auto Debit Account (ADA)

INCOME TAX
Tax Regime:

4. Graduated Rate

5. 8% Preferential Rate
KINDS OF DEDUCTION

* Itemized Deduction
* Standard Deduction
* 40% Optional Deduction
COMPUTATION OF INCOME TAX:
40% Optional Standard Deduction

Gross receipt 1,000,000.00

Less : 40% of Gross Receipt 400,000.00
Net taxable income 600,000.00
Tax due:
• on 400, 000 30,000.00
• on excess (600,000-400,000)x 25% 50,000.00
80,000.00
less: creditable withholding tax
30,000.00
Income Tax payable 50,000.00
Not Over P250,000 0%
*Over P250,000 but not over 20% of the excess over
P400,000 P250,000
*Over P400,000 but not over P30,000 + 25% of the excess
P800,000 over P400,000

*Over P800,000 but not over P130,000 + 30% of the

P2,000,000 excess over P800,000

*Over P2,000,000 but not P490,000 + 32% of the

over P8,000,000 excess over P2,000,000

*Over 8,000,000 P2,410,000 + 35% of the

excess over P8,000,000
 8% PREFERENTIAL INCOME TAX RATE

GROSS SALES/ RECEIPTS 1,000,000.00

LESS: ALLOWABLE DEDUCTION 250,000.00

TAXABLE INCOME 750,000.00
TAX RATE 8%

TAX DUE 60,000.00

BUSINESS TAX:
VAT PAYABLE

OUTPUT TAX

1,120,000.00 X 0.12 = 120,000.00

1.12
INPUT TAX
896,000.00
X 0.12 = 96,000.00
1.12

TAX DUE 24,000.00

BUSINESS TAX:

PERCENTAGE TAX

GROSS SALES/
RECEIPTS 120,000.00
X
3%
TAX DUE 3,600.00
Submit reportorial compliance
NAME OF FREQUE DEADLINE WHERE TO SUBMIT
REPORT NCY
Quarterly Quarterly Last day of the eSubmission and
Alphalist of month following Compliance Section for
Payees the close of the the acknowledgement
quarter receipt

Summary List Quarterly 25th day of the eSubmission,

of Sales, month following designated RDO email
Purchases the end of the address (rdo
and quarter code)wtalphalist@bir.go
Importations v.ph and Compliance
Section for the
acknowledgement
receipt

Inventory List Annual January 31st of Compliance Section

the succeeding with Compact Disc
year
Submit reportorial compliance
NAME OF FREQUENCY DEADLINE WHERE TO
REPORT SUBMIT
Sworn Semi-annual January 15th and Compliance
Statement of July 15th Section
Payees
Printers Report Quarterly 25th day following Client Support
the close of the Section
quarter
Annual Annually January 31st of the Compliance
Alphalist of succeeding year Section
Employees
Annual Annually March 1st of the Compliance
Alphalist of succeeding year Section
Payees
Certificate of Annually February 28th of Compliance
Compensation the succeeding Section
and Tax year
Withheld (2316)
For Cooperatives
NAME OF FREQUENC DEADLINE WHERE TO
REPORT Y SUBMIT

Certified True Annually April 15th of the Compliance

Copy of the succeeding Section
current and year
effective
Certificate of
Good Standing
from CDA

Original Copy of Annually April 15th of the Compliance

certificate under succeeding Section
oath by the year
Chairperson/Gen
eral Manager
For Cooperatives
NAME OF REPORT FREQUENCY DEADLINE WHERE TO
SUBMIT
Original Copy of Annually April 15th of the Compliance
yearly summary of succeeding Section
records of year
transactions clearly
showing which
transactions
correspond to
members or in case
the cooperative deals
with members and
non-members, yearly
summary of records of
transactions clearly
showing which
transactions
correspond to
members and non-
members
 For Cooperatives

NAME OF FREQUEN DEADLINE WHERE TO

REPORT CY SUBMIT
Certified photocopy of Annually April 15th of the Compliance
the list of Cooperative succeeding Section
Members with their year
Respective Capital
Contributions
submitted by the
cooperatives in
obtaining their
Certificate of
Confirmation of New
Registration and
Certificate of Good
Standing with the
Cooperative
Development
Authority (CDA). (as
amended by RMC No.
81-2010
BUREAU OF INTERNAL REVENUE
eSERVICES
 All taxpayers (TPs) are mandated to use
with or without tax payment (version.7.4.2)
 All government bidders are mandated to
enroll register and use the system
 Registration and accreditation of cash
register machine (CRM),point-of-sale
machines (POS),special purpose machines
(SPMs), and other sales machines or
software with permits to use (PTUs)
 Monthly submission of sales report every
8th day or 10th day of the month for TP with
CRM/POS
 Evaluation of taxpayers’ compliance
WHO SHALL USE eBIRFORMS?
• All taxpayers except those who are enrolled to EFPS,
filing without transactions/ income /“No Operation”, or
no payment returns.
WHO SHALL USE eFPS?

• All taxpayers who are government bidders and

• All government withholding agents using electronic tax
remittance advice (eTRA)
• All taxpayers under the Tax Account Management
Program(TAMP)
Things to be presented during Taxpayer
Compliance Verification Drive (TCVD)

1. Certificate of Registration (COR,BIR Form 2303)

2. Payment of Annual Registration Fee (BIR Form
0605)
3. Ask For Receipt
( Items No. 1, 2 & 3 shall be displayed in a
conspicuous place)
4. For every sale/transaction issue a receipt (sales
invoice, official receipt).
5. Books of Accounts (daily transaction/s must be
recorded).
BIR Official Website:
https://www.bir.gov.ph

eMail Address:
rdo_14@bir.gov.ph
rdo_14css@bir.gov.ph
 BIR Vision

“The Bureau of Internal Revenue is

an institution of Service Excellence
and Integrity”
 BIR Mission

“We collect taxes through just

enforcement of tax laws for nation-
building and the upliftment of the lives of
Filipinos”
 Revenue Region No. 3 Officials
CLAVELINA S. NACAR – Regional Director
LORNA B. BINARAO – Asst. Regional Director
DAISY W. QUIRINO – Chief, Collection Division
ELDA BERNADETTE M. CALIMAG – Chief, Assessment Division
CORNELIO CHITO M. DELA PEÑA – Chief, Legal Division
ELEANOR M. FERI – Chief, Regional Investigation Division
MA. ADELFA P. PALATTAO – Chief, Finance Division
CIRILA R. ALEGRE – Chief, Admin. & HRM Division
ALMA A. VENTURA – Chief, Document Processing Division
MA. TERESA P. AVILA – Head, Client Support Unit
Tel. Nos. (078) 304 – 3788
(078) 377 – 2637
 Revenue District Office No. 14,
Bayombong, Nueva Vizcaya
VIVIAN V. TARECTECAN – Revenue District Officer
MARLON B. CABANCE – OIC Asst. Revenue District Officer
ARNOLD M. MAGGAY – OIC Chief, Assessment Section
GLADYS B. GARCIA – Chief, Client Support Section
JOJIT M. PASCUAL – OIC Chief, Collection Section
MARYLOU T. BAUTISTA – OIC Chief, Compliance Section
VILMA S. CADIENTE – Chief, Administrative Section

Tel. No. (078) 392 – 1789

LEGAL BASES:
• Sec. 236 of NIRC;
• RR NO. 11-2008,
• RR NO 7-2012,
• RMC NOs.70-2013,37-2016, 93-2016,,137-2016,
and 30-2018,
• RMO 12-2013,
• RMC No. 29-2019,
• SEC. 232 OF R.A. NO. 10963,
• RMO 19-2018,
• RA 10173,
• RMO 6-2018,
• RMO 9-2018,
• RR No. 3-2011
 “We can never go wrong if we
properly comply with all the tax
laws, rules and regulations.”

PAY YOUR CORRECT TAXES

ON TIME
RMC-17-2008_List of Municipalities and its Classification