The Tax Identification Number (TIN) is the combination of unique digits that is exclusive for each taxpayer in the Philippines. The TIN is issued by the Bureau of Internal Revenue to any individual prior to being employed or starting up his or her own business. This is also necessary for paying taxes as a law-abiding citizen.

There is just a single TIN that will be issued to you for the rest of your life.

Every government-issued transaction will require you to present your TIN especially if you are an earning individual. You can file for returns on income taxes, VAT, and percentage taxes to ascertain that your employment or your business is in accordance with the Philippine-mandated rules and regulations.

The documents and statements issued by the BIR require you to indicate your TIN. Using more than a single TIN will be a criminal charge punishable by law.
Tax_Identification_Number_Guide_in_Philippines

BIR TIN Application

As proof of your Filipino citizenship and identity, the TIN card has always been required by all private or concerned government entities. Other than employment, you will also be required to submit your TIN number if you will be filing your driver’s license from the LTO. Issuance of the TIN number and the TIN Card has always been free of charge.

These are the following individuals and existences which must have and secure their very own TIN:

1. Individuals or Employees

These are the ones who are earning from purely compensation or income from the company that they work for.

2. Self-Employed/ ‘Single Proprietors’/Professionals

You are considered as self-employed if you are part of those who work for themselves without any direct supervisor or a concrete company that they work who received an income.

BIR has defined the ‘self-employed’ as follows:

  • These are the people who are engaged in business services or outsourcing who has derived their income from much of the business of the name.
  • You are also considered as self-employed if you are professional who derives your own income from practicing your professional. For example lawyers, dentists, doctors, certified public accountants who are affirmed by the Professional Regulation Commission (PRC) to practice their field for their own career.
  • If you are working for the sake of art, sports, and crafts and make living out of it, you are considered as ‘self-employed’. These include the following: writers, painters, sketch artists, and athletes.
  • If you are working from home as a freelancer, you are also working as a ‘self-employed’ professional.

3. Mixed-Income Earning Individuals

These are individuals who are earning from their own business or from their profession where they receive compensation.

4. Corporations and Partnerships

These are forms of businesses that employ taxpayers for the purpose of carrying our a specific business purpose. including Government Agencies and Instrumentalities (GAIs) as well as all Local Government Units (LGUs) from the different provinces in the Philippines.

Items that qualify as expenses against capital gains include the following:

  • Mortgage-related items
  • Title Fees
  • Legal fees
  • Recording Fees
  • Title insurance
  • Other fees required to take ownership of the property

5. Estates and trusts

These may be those who are related to real-estate businesses as well as homeowners associations who generate income from the collectibles from their contributors and payors. Tax deductions are vital to many homeowners’ budgets. Understanding the tax code and how it applies to your housing situation allows you to save thousands of pesos, which can be used to pay down the mortgage or fund home repairs and renovations.

Home repairs are not tax deductible and home improvements are. Repairs include fixing appliances, HVAC work and repairing damage to roofs or walls. A vast array of home improvement items qualify for a tax deduction, including the following:

  • Additions
  • Swimming pools
  • New roofs
  • New central air-conditioning systems
  • Extra water heaters
  • New storm windows
  • Intercoms
  • Home security systems

6. Non-Resident Citizens and Overseas Contract Workers (OCWS)

These are the citizens of the Philippines who are originally from abroad who reside in the country for work. It also includes seamen and those who work under the name of Philippine agency or ships from foreign sources for their income.

Lastly, one-time payment for taxes and individuals must have their own TIN number and must secure their very own TIN card under EO 98. Remember that a TIN has always been needed for you to transact with government offices under the country’s flagship.

The Role of TIN in your Payroll and How to Manage It

The payroll tax was not always part of the payroll. Withholding taxes from wages is a fairly recent government strategy of the Philippines through BIR. In the past, taxes were withheld from income only when the government felt the need to increase revenue. Generally, this occurred during wartime or whenever a government shortfall loomed that had severe economic ramifications. The amount of payroll taxes withheld depends on changes to the BIR compliance regulations.

Employers need to take payroll deductions from individual employees’ wages for every pay period. This money will then be put on deposit until payroll tax deductions are due for submission to the BIR on a semi-weekly or monthly basis. These impounds are the responsibility of the employer. Those who are considered self-employed file their own payroll taxes and must also abide by the BIR submittal time.

The basis for today’s payroll taxation is to provide sufficient funding as needed for the operation of the government, national disasters and for national security and defense. These funds generally come from the taxes, which in turn come from employee wages. To understand the importance of payroll tax requires a full study of how payroll taxes are levied and the proportionate amounts of these tax levies. For employers with new hires, the processing of payroll includes knowing the point at which new hires must continue to have their payroll taxes withheld.

Most businesses rely on payroll processing consultants to keep track of their specific payroll needs. These professionals are experts in taxation that relate to the employee/employer taxes of various types of businesses. However, business owners should still understand the effect of all business and employer/employee taxes in order to make adjustments to business operations.

TIN Application Required BIR Forms

1. BIR Form 1901

These are the forms utilized by the single proprietors, self-employed individuals, and professionals as an application for the registry for Mixed-Income Individuals, Trusts, and Estates. [PDF]

2. BIR Form 1902

This form is used for those who are earning from the compensation of pure income and employees. An individual or an individual may use this form to file for their application for individual registration who earns from purely income compensation. These are also being used by Non-Resident Citizens, Seamen, or OCWS employees. [PDF]

3. BIR Form 1903

Corporations and/or Partnerships used this form for their application for taxable income and revenue which also includes LGUs and GAIs. [PDF]

4. BIR Form 1904

One Time Taxpayer Registration and Personal Application for EO 98 (PDF 2018 ENCS) | (PDF 2000 ENCS)

TIN Pertinent Documentary Requirements

A. Self-employed individuals and Mixed-income Taxpayers

(For professionals and/or sole proprietors).

  1. Original and Photocopy of Birth Certificate Issued by Philippine Statistic Authority (PSA)

2. Professional Tax Receipt (PTR) Payment – secured from the local government office once applicable

3. Certificate of Business Name issued legally by DTI – necessary for business trade name

4. Professional Regulation Commission (PRC) ID

5. Mayor’s Permit (once found applicable)

B. Purely Compensation Income Earning Individuals

  1. Original and Photocopy of Birth Certificate Issued by Philippine Statistic Authority (PSA)

2. Original and Photocopy of Valid Company ID

3. Certificate of Employment (if available)

C. Corporations and Partnerships

1. SEC-issued Certificate of Registration (Photocopy and Original)

  • Certificate of Incorporation
  • Certificate of Co-Partnership
  • License To Do Business in the Philippines (just for resident foreign corporations)

2. Mayor’s Permit (Photocopy and Original)

  • Application for Mayor’s Permit
  • Must be submitted prior to BIR Certificate of Registration issuance

Capital gains are calculated according to the cost basis for the property. This means that homeowners can reduce their capital gains for tax purposes. Reductions include closing costs and home improvements. Standard home repairs are ineligible.

D. Final tax winnings Payor

1. Legal certification issued from awarding company/person

E. Earning Individuals Earning Purely Foreign-Sourced Income (OCW Employees and Seamen)

  1. Original and Photocopy of Birth Certificate Issued by Philippine Statistic Authority (PSA)

2. Employment contract (Original and Photocopy)

F. Vehicle Registration

  1. Deed of Sale for Vehicle
  2. Official Receipt and/ or Cash Invoice
  3. Two government-issued ID with Proof of Residency
  4. Original and Photocopy of Birth Certificate Issued by Philippine Statistic Authority (PSA)

G. Foreign Citizens

  1. Passport and Visa of the Individual Applicant

H. One-time Taxpayers

(No issued TIN prior to the payment date)

  1. Original and Photocopy of Birth Certificate Issued by Philippine Statistic Authority (PSA)
  2. Sale and transfer Deed of Sale
  3. Donation Transaction Proof or Deed Document

What are the Steps in Applying for a TIN Manually?

Here are the easy steps on how to register for a Tax Identification Number (TIN) to the Bureau of Internal Revenue (BIR). Make sure you were able to prepare the documents as stated in the previous section of this article to avoid any further inconveniences in filing for one. Your application will also depend on your employment status with the company. We will discuss the basic guide for employees who are earning purely income from compensation.

A. Employed and Mixed Income Individuals

1. Make to secure a duly filled out BIR Form 1901. Have this one submitted together with the required documents to the respective Revenue District Office (RDO). You can check and browse on their website as to what RDO your company belongs as well as its exact location.

2. Make a payment amounting to Php 500.00 as part of the Annual Registration Fee on the partner banks of your respective RDO. You can make a payment on the RDO but it will take a longer time.

3. Settle the payment amounting to P15.00 as the fee for Certification with the additional P15.00 for the Documentary Stamp Tax.

4. Fill out the duly signed up Form 2303

5. The RDO will now issue the Certificate of Registration. Please take note the application must be made prior to the commencement of the respective business operations. All types of businesses or trades are covered.

B. Individuals Earning Purely Compensation Income

1. Make sure to fill out the BIR Form 1902 that can be downloaded from the website. Have this form submitted to your employer with the expected attachments. For most of the companies, your Human Resource department can provide this document.

2. The employer of the HR offices will continue filling out the remaining parts of the BIR Form 1902.

3. You can go ahead and have the BIR Form 1902 submitted to either of the two RDOs:

  • RDO where the employer’s business address is under
  • RDO where the applicant resides

4. The applicant upon registration can ask for the TSS of the RDO so you can now get your TIN number. You can also fall in line to get your very own TIN card.

Please take note that all new employees must accomplish the TIN application 10 days maximum for the start of their employment.

C. Taxable and Non-taxable for Corporations and Partnerships

  1. Make to secure a duly filled out BIR Form 1903. Have this one submitted together with the required documents to the respective Revenue District Office (RDO). You can check and browse on their website as to what RDO your company belongs as well as its exact location.
  2. Make a payment amounting to Php 500.00 as part of the Annual Registration Fee on the partner banks of your respective RDO. You can make a payment on the RDO but it will take a longer time.
  3. Settle the payment amounting to P15.00 as the fee for Certification with the additional P15.00 for the Documentary Stamp Tax.
  4. Fill out the duly signed up Form 2303 and wait for the Certification to be issued by the RDO officer.
  5. The taxpayer or the entity must settle the payment for Documentary Stamp Tax on the Articles of Incorporation. This has been prescribed by NIRC under Section 175. This must be settled on the 5th of the month following the appointment of the release of the said item (RR 4-2000).

Application for TIN Online as Self-Employed

Please take note that the online TIN Application for employees is only made and processed the employer or through the HR Department. They have the sole responsibility in generating one for you.

In order for you to get your TIN number, you will have to visit the BIR eReg website www.bir.gov.ph/index.php/eservices.html. You can choose this option to register if you have not done this before or if you don’t have your TIN yet. It is very illegal to register for more than one TIN for every individual. You need to have a valid and accessible email address as this is where your TIN number will be confirmed.

Visit the eReg BIR website

Open the eReg BIR website on your personal mobile device or your laptop computer. Make sure that you are connected to a secure internet connection.

Fill up the Online Form

Enter your basic taxpayer’s information and personal details on the form on the website.

  • Last name
  • First name
  • Middle Name
  • Extension Name (if there is any)
  • Birthdate
  • Email
  • Civil Status
  • Gender

Make sure that your details have been double-checked before submitting.

Wait for the Email Confirmation from BIR

Check your inbox or your spam folder for the confirmation email from the BIR after waiting for a few minutes or hours.

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