COMPLIANCE GUIDE FOR SELF-EMPLOYED INDIVIDUALS/PROFESSIONALS

I. REGISTRATION

Processing of Application for TIN and Registration of Self-Employed Individuals,

Estates, Trusts including their branches and facilities

Who may Avail : Individuals engaged in trade or business or those in the practice of their

professions, Estates and Trusts with proprietary activities including their branches

and facilities, if any.

Where to Avail : 1) Revenue District Office (RDO) having jurisdiction over the place where the

Head Office and branch is located, respectively;

2) RDO having jurisdiction over the place of residence, in the case of those who

conduct business transactions in a nomadic or roving manner, such as

peddlers, mobile stores operators, privilege store owners and the like;

3) Estate - RDO having jurisdiction over the domicile of the decedent at the time

of death. In the case of a non-resident decedent, the estate shall be

registered with the RDO where the executor or administrator is registered.

Provided, however, that in case of such executor or administrator is not

registered, registration of the estate shall be made with the RDO having

jurisdiction over the legal residence of the executor or administrator; and

4) Trust – RDO having jurisdiction over the registered address of the Trustee.

Provided, however, that in case of such Trustee is not registered, registration of

the estate shall be made with the RDO having jurisdiction over the business

address of the Trustee.

What are the

Documentary

Requirements

: BIR Form 1901* For single proprietors, mixed income earners

› Mayor’s Business Permit or duly received Application for Mayor’s Business

Permit, if the former is not available

For Professionals and where PTR is not required (i.e. Consultants, Agents, Artists,

Underwriters & the like):

a) Occupational Tax Receipt (OTR)/ Professional Tax Receipt (PTR);

b) Birth Certificate;

c) Marriage Contract, if applicable; and

d) Contract/Company Certification.

Other documents for submission only if applicable:

a) Contract of Lease;

b) DTI Certificate of Registration of Business Name, if business trade name

shall be used;

c) Certificate of Authority, if Barangay Micro Business Enterprises (BMBE)

registered entity;

d) 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);

e) Franchise Agreement;

f) Sworn Statement of Capital;

g) Working Permit for non-resident;

h) Waiver of husband, if wife claims additional exemption;

i) Marriage Contract; and

j) Birth Certificate of declared dependents.

For Estate (under judicial settlement)

In addition to the requirements enumerated under ‘a’ to ‘j’ above, photocopy of

the Death Certificate of the deceased.

In the case of registration of branch/Facility type:

a) Copy of the Certificate of Registration (COR) of the Head office for

facility type 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;

c) DTI Certificate of Registration of Business Name, if business trade name

shall be used; and

d) Contract of Lease, if applicable.

Documentary Requirements for new application of Authority to Print (ATP)

› BIR form 1906* together with the following:

- Job order;

- Final & clear sample;

- Photo copy of COR/paid Annual Registration Form (ARF) of Taxpayer

(TP) & Printer;

- Printers’ Certificate of Delivery (PCD).

Documentary Requirements for new Registration of Books of Accounts

› BIR form 1905* together with the following:

- New sets of books of accounts;

- Photocopy of COR & paid current ARF (for immediate verification

and in case of systems downtime).

Duration

:

1 hour and 18 minutes**

How to Avail of

the Service

:

Step Taxpayer RDO Activity Processing

Time

Person

Responsible Fees

1 Submit duly

accomplished BIR

Form 1901,

together with the

required

documents

Receive application

form and verify

existence in the ITS

Check completeness

of supporting

documents

Inform TP to submit

requirements for ATP

and books of

accounts

5 minutes

5 minutes

Taxpayer

Assistance

Officer (TAO)

TAO

Annual

Registration

Fee (P500.00);

Documentary

Stamp Tax

(DST) (P15.00)

2 Proceed to the

Officer-of-the Day

(OD)

Interview TP to

determine the

applicable tax type,

Philippine Standard

Industrial Code (PSIC),

Alpha Numeric Tax

Code (ATC), compute

Documentary Stamp

Tax (DST) for

subscribed capital

and contract of lease,

if applicable and

15 minutes

OD

compute penalty for

late registration, if

applicable

Stamp received on

the application and

assign Document

Locator Number (DLN)

Encode and generate

TIN

Note: if TP has TIN, do

not generate new TIN,

update records of TP

under issued TIN

5 minutes

7 minutes

TAO

Registration

Officer

3 Receive TIN Release TIN - indicate

in taxpayer’s receiving

copy of BIR Form 1901

3 minutes TAO

(releasing)

4 Pay Annual

Registration Fee

(ARF) with

Authorized Agent

Banks (AABs) /

Collection Officers

Pay DST (loose

DST / BIR Form

2000* for DST on

Contract of Lease,

etc)

Present proof of

payment

Receive proof of

payment of ARF, and

DST (if applicable),

Application for ATP,

Job Order, final and

clear Layout of

invoice/receipts, new

sets of books of

accounts

5 minutes TAO

5 Submit

requirements for

ATP and

registration of

books of accounts

Process Authority to

Print (ATP)

Encode details of

books for registration in

ITS

Generate Certificate

of Registration

(COR)/ATP and

forward to TSS Chief

for review and initial

Review and initial

COR/ATP/Books of

Accounts

Review and sign COR

/ ATP / Books of

Accounts

3 minutes

2 minutes

5 minutes

5 minutes

15 minutes

Registration Unit

Head

Registration

Officer

Registration Unit

Head

Taxpayer Service

Section (TSS)

Chief

Asst. Revenue

District Officer

(ARDO)/Revenue

District Officer

(RDO)

6 Receive COR,

ARN, ATP and

Books of Accounts

Release COR and Ask

for Receipt Notice

(ARN), ATP and Books

of Accounts

3 minutes TAO

(releasing)

*Form is available FREE OF CHARGE

**Processing Time per Application

II. TAXES TO BE PAID

› Annual Registration Fee – An annual Registration Fee (ARF) of Five Hundred Pesos (P500.00) for

every separate or distinct establishment or place of business shall be paid upon registration and

every year thereafter on or before January 31 by any person subject to any internal revenue tax

.

› Income Tax - 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.

› Creditable 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

› Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax withheld by National

Government Agencies (NGAs) and instrumentalities, including government-owned and

controlled corporations (GOCCs) and local government units (LGUs), before making any

payments to VAT registered taxpayers/suppliers/payees on account of their purchases of

goods and services.

› 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.

› Percentage Tax - is a tax on any person whose sales or receipts are exempt from the payment

of value-added tax and who is not a VAT-registered person equivalent to three percent (3%) of

his gross quarterly sales or receipts: Provided, That cooperatives shall be exempt from the three

percent (3%)gross receipts tax herein imposed.

› 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.

III. FILING of RETURNS and SCHEDULE of PAYMENT

A. Annual Registration Fee Return:

BIR Form 0605 to be paid annually on or before January 31

B. Income Tax Returns – WHO SHALL FILE:

1. A resident citizen engaged in trade, business, or practice of profession within and

without the Philippines.

2. A resident alien, non-resident citizen or non-resident alien individual engaged in trade,

business or practice of profession within the Philippines.

3. A trustee of a trust, guardian of a minor, executor/administrator of an estate, or any

person acting in any fiduciary capacity for any person, where such trust, estate, minor, or

person is engaged in trade or business.

4. An individual engaged in trade or business or in the exercise of their profession and

receiving compensation income as well.

Period Covered Form to be used Due Date

1st Quarter 1701Q April 15

2nd Quarter 1701Q August 15

3rd Quarter 1701Q November 15

Annual Return 1701 April 15 of the following year

Note:

› 2304 - Certificate of Income Payment Not Subject to Withholding Tax(Excluding

Compensation Income). should be attached to the Annual Income Tax Return

› 2306 - Certificate of Final Income Tax Withheld

› 2307 - Certificate of Creditable Tax Withheld at Source

› For EWT - This should be attached to the Quarterly/Annual Income Tax Return – BIR

Form 1701

C. Withholding Tax Return- WHO SHALL FILE:

This return shall be filed in triplicate by every withholding agent (WA)/payor who is either

an individual or non-individual, required to deduct and withhold taxes on compensation

paid to employees (1601-C), on income payment subject to Expanded/Creditable

Withholding Taxes (1601-E), on income payments subject to Final Withholding Taxes

(1601-F).

1. Compensation, Expanded Withholding Taxes, Final Income Taxes (including dividends

Period Covered Form to be used Under Manual

Due Date

Under EFPS

Due Date

January 1601-C / 1601-E / 1601-F February 10 February 15

February 1601-C / 1601-E / 1601-F March 10 March 15

March 1601-C / 1601-E / 1601-F April 10 April 15

April 1601-C / 1601-E / 1601-F May 10 May 15

May 1601-C / 1601-E / 1601-F June 10 June 15

June 1601-C / 1601-E / 1601-F July 10 July 15

July 1601-C / 1601-E / 1601-F August 10 August 15

August 1601-C / 1601-E / 1601-F September 10 September 15

September 1601-C / 1601-E / 1601-F October 10 October 15

October 1601-C / 1601-E / 1601-F November 10 November 15

November 1601-C / 1601-E / 1601-F December 10 December 15

December 1601-C / 1601-E / 1601-F January 15 January 20

Period Covered Form to be used Under Manual Period Covered

Jan.-Dec. 1600 Every 10th of the

ff. month

Every 10th of the ff.

month

Jan.- Nov. 1602 Every 10th of the

ff. month

Every 15th of the ff.

month

December 1602 January 15 January 20

Note:

› 1601-E,1601-F & 1600 should be attached with Monthly Alphalist of Payees (MAP)

› 1600 - Monthly Remittance –Withholding on VAT

› 1601-C – Monthly Remittance Return of Income Taxes Withheld on Compensation

› 1601-E - Monthly Remittance Return of Creditable Income Taxes Withheld

Expanded)

› 1601-F - Monthly Remittance Return of Final Income Taxes Withheld

› 1602 - Monthly Remittance Return of Final Income Taxes Withheld on Interest Paid

and Yield on Deposit Substitutes/Trust/etc.

2. Fringe Benefits paid to employee other than rank and file:

Period Covered Form to be used Due Date

1st Quarter 1603 April 10

2nd Quarter 1603 July 10

3rd Quarter 1603 October 10

4th Quarter 1603 January 10

› 1603 – Quarterly Remittance Return of Final Income Taxes Withheld on

Fringe Benefits paid to Employees other than Rank & File

3. Annual Information Returns in taxes withheld on compensation and final withholding

taxes shall be submitted in diskette if taxpayer has 10 or more employees

Period

Covered

Form to be used Due Date

For Taxable

Year

1604 –CF (attached with Alphabetical

Lists)

On or before January 31

of the following year

4. Annual Information Returns of Creditable Income Taxes Withheld (Expanded) and

Income Exempt from Withholding Taxes – WHO SHALL FILE:

This return shall be filed in triplicate by every employer or withholding agent/payor who

is either an individual, estate, trust, partnership, corporation, government agency and

instrumentality, government-owned and controlled corporation, local government unit

and other juridical entity required to deduct and withhold taxes on compensation paid

to employees and on other income payments subject to Final Withholding Taxes. The

tax rate for and nature of income payments subject to withholding tax on

compensation and final withholding taxes are printed in BIR Form 1601-C and 1601-F,

respectively.

If the payor is Government of the Philippines or any political subdivision or

agency/instrumentality thereof, or government-owned and controlled corporation, the

return shall be made by the officer or employee having control of the payments or by

any designated officer or employee.

If the person required to withhold and pay the tax is a corporation, the return

shall be made in the name of the corporation and shall be signed and verified by the

president, vice president or authorized officer and shall be countersigned by the

treasurer or assistant treasurer.

With respect to fiduciary, the return shall be made in the name of the

individual, estate or trust for which such fiduciary acts, and shall be signed and verified

by such fiduciary. In case of two or more fiduciaries, the return shall be signed and

verified by one of such fiduciaries.

Period

Covered

Form to be used Due Date

For Taxable

Year

1604 –E (attached with Alphabetical

Lists)

On or before March 1 of

the following year

D. 2550 M & 2550Q - Value Added Tax Returns : WHO SHALL FILE

2550M - This return/declaration shall be filed in triplicate by the following taxpayers;

1. A VAT-registered person; and

2. A person required to register as a VAT taxpayer but failed to register.

2550Q - This return/declaration shall be filed in triplicate by the following taxpayers;

1. A VAT-registered person; and

2. A person required to register as a VAT taxpayer but failed to register.

Quarter

Covered

Months Forms to be

used

Under Manual

Due Date

Under EFPS

Due Date

Ist Quarter

January 2550M February 20 February 25

February 2550M March 20 March 25

March 2550Q April 25 April 25

2nd Quarter

April 2550M May 20 May 25

May 2550M June 20 June 25

June 2550Q July 25 July 25

3rd Quarter

July 2550M August 20 August 25

August 2550M September 20 September 25

September 2550Q October 25 October 25

4th Quarter

October 2550M November 20 November 25

November 2550M December 20 December 25

December 2550Q January 25 January 25

› 2550M and 2550Q should be attached with SAWT

› 2307 For Percentage Taxes on Government Money Payments - This Certificate is to be

attached to the Quarterly Percentage Tax return (BIR Form No. 2551M and 2551Q).

› 2550Q contains the cumulative transactions for three (3) months of the quarter

E. Percentage Tax Returns – WHO SHALL FILE:

1. Persons whose gross annual sales and/or receipt do not exceed P1,919,500 and

who are not VAT-registered persons;(RR 16-2011)

2. Domestic carriers and keepers of garages, except owners of bancas and owners

of animal-drawn two wheeled vehicle;

3. Operators of international air and shipping carriers doing business in the Philippines;

4. Franchise grantees of gas or water utilities;

5. Franchise grantees of radio and/or television broadcasting companies whose

gross annual receipts of the preceding year do not exceed Ten Million Pesos

(P10,000,000.00) and did opt to register as VAT taxpayers;

6. Banks, non-bank financial intermediaries and finance companies;

7. Life insurance companies; and

8. Agent of foreign insurance companies.

Months Forms to be used Under Manual

Due Date

Under EFPS

Due Date

January 2551M February 20 February 25

February 2551M March 20 March 25

March 2551M April 20 April 25

April 2551M May 20 May 25

May 2551M June 20 June 25

June 2551M July 20 July 25

July 2551M August 20 August 25

August 2551M September 20 September 25

September 2551M October 20 October 25

October 2551M November 20 November 25

November 2551M December 20 December 25

December 2551M January 20 January 25

F. Documentary Stamp Tax Returns – WHO SHALL FILE:

1. In the case of constructive affixture of documentary stamps, by the persons, making,

signing, issuing, accepting, or transferring documents, instruments, loan agreements

an papers, acceptances, assignments, sales and conveyances of obligation, right or

property incident thereto wherever the document is made, signed, issued,

accepted or transferred when the obligation or right arises from Philippine sources or

the property is situated in the Philippines at the same time such act is done or

transaction had;

2. By a metering machine user who imprints the documentary stamp tax due on the

taxable document; and

3. By a revenue collection agent for remittance of sold loose documentary stamps.

Whenever one party to the taxable document enjoys exemption from the tax herein

imposed, the other party thereto who is not exempt shall be the one directly liable for

the tax.

Form to be used Due Date

For document made, signed,

accepted, transferred within the

month

2000 On or before the 5th of the

following month when the

document was made signed,

accepted and transferred

Note: For one time transactions (ONET) 2000-OT

G. Others

1. Inventory List – to be submitted every 30th of the following month.

2. Annual Inventory List – to be submitted to the Revenue District Office where Head

Office place of business is located on or before January 30 of the following year

IV. PAYMENT OF TAXES

A. MODES OF PAYMENT

1. Over the Counter Cash Payments- maximum amount allowed per tax payment shall not

exceed ten thousand pesos (P10,000.00)

2. Bank Debit System is allowed only if the taxpayer has a bank account with the AAB, provided

said AAB is within the jurisdiction of the BIR Revenue District Office (RDO)/Large Taxpayer

District Office (LTDO) where the tax payment is due and payable

3. Tax Debit Memo (TDM) together with the photocopy of the Tax Credit Certificate (TCC)

should be attached to the BIR tax return/payment form.

4. Checks – the taxpayer shall indicate in the space provided for “PAY TO THE ORDER OF” the

following data:

a. Presenting/ collecting bank or the bank where the payment is to be coursed ;

b. For the Account Of (FAO) BUREAU OF INTERNAL REVENUE as payee; and

c. Under the “ACCOUNT NAME” the Taxpayer Identification Number (TIN)

SAMPLE CHECK FORMAT ( where the drawee bank &presenting bank are different from each other)

ACCOUNT No.

000-249-15522-6

ACCOUNT NAME

JUANA DELA CRUZ

TIN: 012-345-678-000

Check No.

0765695

R/T No.

01028

September 13, 2011

PAY TO THE

ORDER OF

LANDBANK – BATASAN

FAO BUREAU OF INTERNAL REVENUE_______

P 1,000,000.00__________

PESOS ONE MILLION ONLY_____________________________________________________

RCBC RIZAL COMMERCIAL

BANKING CORPORATION

A VOC Company

LEGASPI VILLAGE BRANCH

SALCEDO ST., LEGASPI VIL.

MAKATI

______________________________

(Signed)

0765695”01028”007=:000249155226

SAMPLE CHECK FORMAT ( drawn and presented to the same bank)

ACCOUNT No.

000-249-15522-6

ACCOUNT NAME

JUANA DELA CRUZ

TIN: 012-345-678-000

Check No.

0765695

R/T No.

01028

September 13, 2011

PAY TO THE

ORDER OF

RCBC – Legaspi Village

FAO BUREAU OF INTERNAL REVENUE_______

P 1,000,000.00__________

PESOS ONE MILLION ONLY_____________________________________________________

RCBC RIZAL COMMERCIAL

BANKING CORPORATION

A VOC Company

LEGASPI VILLAGE BRANCH

SALCEDO ST., LEGASPI VIL.

MAKATI

______________________________

(Signed)

0765695”01028”007=:000249155226

The following checks are not acceptable as check payments for internal revenue taxes:

1) Accommodation checks- checks issued or drawn by the party other than the taxpayer

making the payment;

2) Second endorsed checks – checks issued to the taxpayer as payee who indorses the same

as payment for taxes;

3) Stale Checks – checks dated for more than six (6) months prior to the presentation to the

AAB;

4) Postdated Checks- checks dated a day or several days after the presentation to the AAB.

5) Unsigned Checks- checks with no signature of the drawer; and

6) Checks with alterations or erasures.

7)

B. WHERE TO PAY

I. If there is tax to be paid:

1. Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where

the registered taxpayer concerned is registered.

AUTHORIZED AGENT BANKS

Allied Banking Corporation Metropolitan Bank & Trust Company*

Bank of Commerce Philippine Bank of Communications*

Bank of the Philippine Islands* Philippine National Bank*

China Banking Corporation* Philippine Veterans Bank

Citibank, N.A.* Philtrust Company*

Chinatrust Corporation* Rizal Commercial Banking Corporation*

Deutsche Bank* Security Bank*

Development Bank of the Philippines* Standard Chartered Bank*

Eastwest Banking Corporation Union Bank of the Philippines*

Hongkong & Shanghai Banking Corp.* United Coconut Planters Bank*

Landbank of the Philippines*

*eFPS AAB

2. In places where there are no AABs, proceed to the Revenue Collection Officer or Duly-Authorized City or Municipal Treasurer within the Revenue District Office where the registered

taxpayer concerned is registered and present the duly accomplished BIR Form, together with

the required attachments.

3. Electronic Payment

a. eFiling and ePayment can also be made with the BIR’s Electronic Filing and Payment

System (eFPS) in accordance with the provisions of existing applicable revenue issuances

b. G-Cash – for payments not exceeding Ten Thousand Pesos (P10,000.00)

c. Efficient Service Machines (ESM) of the Lanbank of the Philippines selected branches

Branch Bank

Code

Address Revenue Region / District

Office No.

Tuguegarao 086-011 Nat’l. Hiway San Gabriel,

Tuguegarao

RDO No. 13-Tuguegarao,

Cagayan

Baclaran 086-025 RDO – Paranaque, GRAM Center

Bldg., Dr. A. Santos cor. Schilling St.,

Brgy. San Dionisio, Paranaque City

RDO 52-Paranaque

East Avenue 086-058 QSGC Progress, 13 East Avenue, QC RDO 39-South, QC

Intramuros 086-027 Palacio del Gobernador Bldg.,

Aduana, Intramuros

RDO 33 – Intramuros

Caloocan 086-060 Along Samson Rd., Caloocan RDO 27-Caloocan

Makati –

Tellering Booth

086-296 G/F The Atrium Makati, Makati Ave.,

Makati City

RR 8 – Makati

Malabon 086-070 Concordia 684 Rizal Ext., Malabon RDO 26 – Malabon-Navotas

Novaliches 086-135 ENV Bldg., 1039 Quirino Hi-way,

Novaliches, QC

RDO 28 – Novaliches

Mandaluyong 086-057 Shaw Blvd. cor. San Clemente,

Mandaluyong City

RDO 41 – Mandaluyong

Taytay 086-246 Manila East Arcade Road, Taytay

Rizal

RDO 46- Cainta-Taytay

Biñan 086-185 Bonifacio, Canlalay, Biñan, Laguna RDO 57 – San Pedro,

Laguna

Calamba 086-051 Brgy. Real, National Road.,

Calamba, Laguna

RDO 56 – Clamba, Laguna

Iloilo 086-002 Corner Iznart & Solis Sts., Iloilo RDO 74 – Iloilo City

Cebu 086-014 Jones Avenue, P. del Rosario, Cebu

City

RR 13 – Cebu

Lapu-lapu 086-112 MEPZ Admin. Bldg., National Hi-way,

Pajo, Lapu-lapu, Mandaue

RDO 80 – Mandaue City

d. China Bank E-Z Pay Kiosks

BRANCH ADDRESS REVENUE DISTRICT OFFICE

Makati Main G/F CBC Bldg., Paseo de Roxas cor Villar St.,

Makati City

RDO 50 – South Makati

Ayala-Alabang CBC Bldg., Acacia Ave., Madrigal Bus. Park,

Ayala-Alabang, Muntinlupa City

RDO 53B – Muntinlupa City

Banawe CBC Bldg., 680 Banawe Ave., Sta. Mesa

Heights, Quezon City

RDO 38 – North Quezon

City

Caloocan CBC Bldg., 167 Rizal Ave., Ext., Grace Park,

Caloocan City

RDO 27 – Caloocan

Marikina 308 J.P. Rizal St., Sta. Elena, Marikina City RDO 45 Marikina

II. If there is no tax to be paid:

Proceed to the Revenue District Office where the registered taxpayer concerned is registered

and present the duly accomplished BIR Form, together with the required attachments.

Prepared by:

Taxpayer Information and Education Division February 14, 2012