Tuesday, October 14, 2008 Tax notes: Consolidated regulations
THE Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) 11-2008, which consolidates and updates all existing revenue regulations relative to primary registration, subsequent updates and cancellations of registrations. These new regulations provide business owners and taxpayers with updates on the requirements for registration, the procedure for updating changes in information and cancellation of registration.
Primary Registration with BIR
The primary registration process starts with the application and issuance of a taxpayer identification number (TIN). This reference index number, once assigned to a particular taxpayer, is non-transferable. Only one TIN will be assigned to the taxpayer. Once assigned with a TIN, a taxpayer is precluded from applying for another TIN.
The second stage in the process is the registration of the business or undertaking that the taxpayer intends to pursue. Part of the registration requirement of the BIR is the identification of the types of internal revenue taxes for which the taxpayer is obliged to file tax returns, and pay taxes due. The determination of the tax types that should be registered depends on the nature of the business to which the taxpayer belongs.
Updates of the Registration
Any company registered with the BIR may update its registration information with the revenue district office (RDO) concerned using the prescribed BIR form. Among the instances that may require an update is the change in business address, which involves transfer of registration from one RDO to another, change in the nature of the business itself, and any other changes or updates in registration information previously supplied, including cancellation or change in any tax types. This is done by accomplishing the prescribed registration updates form and submitting the required documents.
Cancellation of Registration
The cancellation of registration may pertain to the cancellation of business registration and/or TIN. The cancellation of the business registration shall not automatically cancel the TIN of the person. Cancellation of business registration requires the filing of a notice of closure or cessation of business to the RDO where it is registered, by accomplishing the prescribed registration updates form.
All taxpayers who filed for cancellation of registration due to closure/cessation or termination of business shall be subjected to immediate investigation by the BIR office concerned to determine the taxpayer’s tax liabilities. (Source: Punongbayan & Araullo)
