1. BUREAU OF INTERNAL REVENUE Revenue District Office No. 113 Davao City
Orientation Seminar for
New Registrants

2. Do you want to start your own business?

3. HERE'S HOW: Module 1 Module 2 Module 3 Module 4 Module 5 Module 6
APPLY FOR BUSINESS REGISTRATION
Module 2
APPLY FOR REGISTRATION OF BOOKS
Module 3
APPLY FOR AUTHORITY TO PRINT
YOU ARE NOW READY START YOUR BUSINESS
Module 4
FILE AND PAY YOUR TAXES
Module 5
UPDATE YOUR REGISTRATION
Module 6
RETIREMENT OF BUSINESS
Module 7

4. APPLICATION FOR BUSINESS REGISTRATION
Module 1
APPLICATION FOR BUSINESS REGISTRATION

5. TYPES OF BUSINESS REGISTRATION
VAT
NON-VAT

6. VAT REGISTRATION
Sale of goods, properties, or services in the ordinary course of trade or business,
Sells, barters, exchanges, leases, or imports
Gross sales/receipts exceed P1.5-M in a calendar year

7. NON-VAT REGISTRATION Exempt transactions under Sec. 109 of NIRC
VAT taxable transactions but gross sales/ receipts did not exceed P1.5-M
Marginal Income Earners
Associations, Foundations and similar organizations NOT engaged in business.

8. Every separate and distinct establishment
REQUIRED TO REGISTER
Every separate and distinct establishment
Principal place of business
Branch
Storage places/Place of Production

9. Registration Fee
Annual Registration Fee is to be paid upon registration and every January 31 of the year thereafter except for the following:
- Marginal Income Earners – Gross Receipts does not exceed P100,00 during any 12-month period
- Cooperatives
- Storage places where no economic activity is undertaken on the premises

10. Payment of Doc. Stamps (on shares of Stocks)
On the subscription of capital stock equivalent to P1.00 per P200 worth.
Any of the contracting parties
In case of a cooperative, the same shall be collected from the members
Use BIR Form 2000
Pay directly to the Accredited Agent bank or to the Collection Agent

11. When to register? New Registrants: Becoming Liable to VAT
NON-VAT => within 10 days from date
of commencement of business
VAT => within 30 days before the
the start of such business
Becoming Liable to VAT
- Within 30 days after the end of the last month of that period that exceeded the P1.5-M threshold

12. Optional Registration
The following may apply for optional VAT Registration:
- Those VAT exempt under Sec (B) (1) (V) – whose gross sales/receipt do not exceed the threshold;
-Any person who is VAT-reg. but eneters into transactions which are exempt from VAT (mixed transactions) may opt that the VAT apply to his transaction which would have been exempt under Sec. 109 (1);
- Franchise grantees of radio and/or television broadcasting. But once registered it’s irrevocable.

13. When to register? (optional registration)
May apply for registration not later than 10 days before the beginning of the calendar quarter.

14. REGISTRATION OF BOOKS OF ACCOUNTS
Module 2
REGISTRATION OF BOOKS OF ACCOUNTS

15. Registration of Books
Persons required to pay internal revenue taxes shall keep and maintain the following books of accounts.
General Journal
General Ledger
Subsidiary Sales and Purchase books (for VAT Taxpayers)
Subsidiary Ledger for the Acquisition, Purchase, Importation of Depreciable Assets or Capital Goods (Ref: RR )
Register Books to be Kept by Professionals (RR 7-87)

16. Registration of Books
Subsidiary Books (depending on the needs of the taxpayer)
Sales Book
Purchase Book
Cash Receipts Book
Disbursements Book

17. Registration of Books
Taxpayers whose quarterly gross sales/receipts do not exceed P50,000 shall keep and use Simplified set of Bookkeeping Records.
Books of Accounts shall first be registered before use.

18. Books of Accounts
TP whose quarterly gross sales/receipts exceed P150,000 shall have their books audited and examined yearly by independent CPA.

19. Deadline for Registration of Books of Accounts (RMC 82-2008)
For new registrants
Before commencement of business
For old registrants
Manual Books previously registered but whose pages are not fully exhausted can still be used without need of re-registering
Registration of new sets shall only be at the time when the pages of the previously registered books have all been exhausted

20. Deadline for Registration of Books of Accounts (RMC 82-2008)
Computerized books of accounts
Jan. 30 of the following year
Loose-leaf bound books
15th day after the end of the calendar year

21. Preservation of Books of Accounts
Books of Accounts and other accounting records shall be preserved within three (3) years from the last day prescribed by law for the filing of return.

22. Loose Leaf Books of Accounts (RMC 13-82)
Loose leaf books of accounts should secure prior approval before use.
It is required to be bound and registered within fifteen (15) days after the end of his taxable year.

23. COMPUTERIZED BOOKS OF ACCOUNTS (RMO 21-2000)
Computerized accounting system and/or components thereof need to apply for permit before using the same.

24. INVOICING REQUIREMENTS
Module 3
INVOICING REQUIREMENTS

25. Application for ATP
Application for Authority to Print (ATP) shall be submitted to TSS using BIR Form 1906.
Attachments:
- Photocopy of COR (BIR Form 1556)/ /1903
- Business Permit
- DTI Registration, if available already
- Annual Registration Fee
- Sample Invoice
- Job Order

26. Invoicing Requirements
For sale of goods
Issue Sales Invoice
For sale of services
Issue Official Receipt
Non-VAT Acknowledgement Receipt (ex: for security agencies)

27. Invoicing Requirement
For Non-VAT Seller
25.00 or more
When the customer demands for it
Issue single receipt at the end of the day for those sales below P25.00 not covered with receipt

28. Invoicing Requirement
For VAT Seller
Issue Invoice or Receipt regardless of amount
Output tax should be billed separately

29. CRM / POS Machines
CRM / POS Machines should be registered with the BIR prior to its use.

30. Module 4
BUSINESS PROPER

31. Reminders:
Display Certificate of Registration (COR) at the establishment (BIR Form 1556)

32. Display “Ask For Receipt Poster” which shall be issued upon release of COR

33. Always issue invoices / receipts

34. Proper maintenance of books of accounts

35. REGISTER YOUR EMPLOYEES
Register employees within 10 days from date of employment.

36. Register Your Employees
Fill-up BIR Form 1902 completely and attached the following:
Birth Certificate of Employee
Birth Certificate of Dependents
Marriage Contract
Photocopy of TIN Card, if already issued
Certificate of Employment
Waiver of husband (3 copies)
If legally separated, court decision

37. Employees Registration Update
Employee to fill-up BIR Form 2305 and submit to Employer within 10 days from date of such change.
Attach document that will support any claim for registration update
Marriage Contract
Birth Certificate of dependent
Death Certificate
Waiver
Certificate of Employment Abroad
Employer to submit the filled-up 2305 and attachment to the BIR within 30 days from date of employee’s submission of complete documents.

38. Tax Compliance Verification Drive
Revenue Officers are tasked to regularly conduct Tax Mapping Operation to check on the taxpayers’ compliance of the ff:
B - Books of Accounts
I - Invoicing Requirements
R - Registration Requirements

39. Inventory List
Inventory list of goods intended for sale shall be submitted within ten days after starting the business and the subsequent inventories shall be submitted not later than 30 days after the close of the accounting period.

40. FILE AND PAY YOUR TAXES CORRECTLY AND PROMPTLY
Module 5
FILE AND PAY YOUR TAXES CORRECTLY AND PROMPTLY

41. Filing of Returns
Know your taxability and their deadlines to avoid penalties!

42. Filing and Payment of Taxes
Income Tax Return
For Individual
First Quarter April 15 of the current year
Second Quarter - August do-
Third Quarter November do-
Annual Return - April 15 of the following year
Forms to be used:
Quarterly returns - BIR Form 1701Q
Annual Return BIR Form 1701

43. Filing and Payment of Taxes
Income Tax Return
For Taxable Juridical Entities
1st qtr within 60 days after the
2nd qtr close the quarter
3rd qtr
Final Return on or before the 15th day of the
fourth month following the close of the accounting period.
Tax Rate 35% effective Nov. 1, (RA 9337) and 30% effective Jan. 1, 2009.

44. Value-Added Tax Monthly VAT Declaration Quarterly VAT Return
1st two months of the quarter
Use BIR for 2550M
Due every 20th day of the following month
Quarterly VAT Return
Every end of the quarter
Use BIR Form 2550Q
Due every 25th day after end of quarter

45. Percentage Tax Return
Applicable to all manufacturers, traders, contractors and brokers whose gross annual sales/receipts do not exceed P1.5-M.
Persons subject to Percentage Tax under Title V of the NIRC
Due date – every 20th day after end of each month.

46. Withholding Tax on Wages
Employees are subject to Withholding Tax on Wages except:
Those whose salary do not exceed the minimum wage or P5,000/mo or P60,000/year.
Those compensation income of employees of the gov’t. with salary grades 1 to 3.
The aforementioned individuals shall remain liable to Income Taxes and shall continue to file Income Tax Returns.

47. Expanded Withholding Tax
The following Income Payments are subject to Withholding Tax at Source:
Rental – 5%
Professional fees – 10% / 15%
Contractors - 2%
Etc.

48. Due Dates: Jan. to Nov. - 10th day of the following month
Dec th day of Jan. of the following year

49. Forms to be prepared: Remittance (together with MAP)
1601C – for withholding tax on wages
1601E – for expanded withholding tax *
1601F - For final taxes withheld *
For Fringe Benefit Tax
For government money payments *
* To be filed with Monthly Alphalist of Payees (MAP) under RR

50. Forms to be prepared: Certificate to be issued to payees:
Form 2316 – for withholding tax on wages to be issued not later than Jan. 31 of the following year
Form 2304 – For income payment not subject to withholding tax
Form 2307 – for creditable withholding tax at source
Form 2306 – for final withholding tax

51. Forms to be prepared: Annual Return (with diskette reporting)
Form 1604CF – For withholding tax on wages and final withholding tax and to be submitted not later than Jan. 31 of the succeeding year
Form 1604E - For expanded withholding tax and to be submitted not later than March 1 f the following year.

52. UPDATING OF REGISTRATION
Module 6
UPDATING OF REGISTRATION

53. Business Registration Updates
Change in registered address
Change in business trade name
Change in tax type
Additional line of activity
Cancellation of Registration/Retirement of business/transfer of registration
Other changes in registration information

54. Business Registration Updates
What to do….?
Fill-up BIR Form 1905 and check appropriate boxes
Attached documents to support the change/s in the application
Submit to TSS-Business Registration Unit within 15 days from date of such change
Receive triplicate copy of “Received” 1905
Claim new BIR Form 155 (COR)

55. RETIREMENT OF BUSINESS
Module 7
RETIREMENT OF BUSINESS

56. Retirement of Business
Should you decide to cease from business operation, please inform our office immediately by submitting BIR Form 2305.
Taxpayers who are temporarily suspending their business operations are still required to file tax returns on time. They may indicate the phrase “No transaction”.

57. Cancellation / Retirement
Attach Retired Business Permit
Surrender Original Certificate of Registration
Submit inventory of unused invoices for destruction
Submit Income Tax Return, VAT/Percentage Tax Returns, and other returns required under your type of registration
Letter of Application

58. For more information…
Taxpayer Service Section Revenue District Office No.113 RDL Bldg., F. Torres St., Davao City Tel. Nos to 19 Website: