Revenue Regulations No. 7-2012

Revenue Regulations No. (RR) 7-2012

issued on 2 April 2012 amends the consolidated Revenue Regulations on primary registration, updates and cancellation, particularly on the following:

a. Registration, updates and cancellation procedures

b. Venue, forms and documentary requirements

c. Annual registration fee

d. Certification fee

e. Penalties for registration-related violations

The venue, forms and documentary requirements for the registration of each type of applicant-taxpayer are listed in Annex “A” of the Regulations (please refer to www.bir.gov.ph). Application for Taxpayer Identification Number (TIN) with incomplete documentary requirements shall not be processed.

The TIN, once assigned to a particular taxpayer, is non-transferable and there shall be no instance where two or several taxpayers are holders of the same TIN. Only one TIN shall be assigned to the taxpayer, regardless of variety of transactions, e.g., an employee who is also engaged in his/her own business. Once assigned a TIN, a taxpayer is precluded from applying for another TIN, except for banks with both Regular Banking Unit and with Foreign Currency Deposit Unit where each unit is assigned different TINs. Any person who secures more than one TIN shall be subject to the penalty prescribed under Section 15 of the Regulations.

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 on behalf of the NRANETB or NRFC prior to or at the time of the filing of their monthly withholding tax return as applicant under Executive Order No. (EO) 98, Series of 1998.

Branches of identified large taxpayers shall be registered at the Large Taxpayers Service (LTS) where the head office (HO) is registered. All incorporators of corporations/associations (stock and non-stock), partners of partnerships and members of cooperatives must have TINs.

While the application and issuance of a TIN is generally made through the concerned BIR district office, the same, upon certain circumstances provided for by existing rules and regulations, may be obtained through the eREGISTRATION (eREG) facility in the BIR website, through the Securities and Exchange Commission, or through other facilities/ agencies as may be made available in the future.

Applicants whose TINs have been secured through the eREG facility shall complete their registration with the BIR district office (e.g., persons who engage in business/practice of profession), but shall no longer be required to fill out the forms for “Application for Registration.” Instead, a printout of the “System Confirmation Page” and the completed on-line “BIR Form 1901,” which is the proof of e-TIN registration, shall be submitted to the concerned BIR district office, together with the prescribed documentary requirements.

Outsourcing Brief – July 2012

Punongbayan and Araullo