Do I need to enroll in the BIR’s eFPS?


BPI_C0057_BPI EOL Infographics-23 Transfer to Enrolled Accounts_BIR eFPS or Electronic Filing and Payment System is a facility provided by the Bureau of Internal Revenue for a fast, convenient and paperless tax filing and payment using web browser and internet connection.

But who are required to enroll in the eFPS facility? Not all are required, only those the are listed below are the mandatory to enroll in the eFPS.

Large Taxpayers (RR#2-2002);

  • Top 10,000 Corporations (RR#5-2004);
  • Top 20,000 Corporations (RR#3-2009);
  • Insurance Companies and Stockbrokers (RMC#71-2004);
  • Corporations with paid-up capital stock of 10 Million and above (RR# 10-2007);
  • Corporations with complete computerized system (RR#10-2007);
  • All Government Bidders pursuant to EO 398 as implemented by (RR# 3-2005);
  • Top 5,000 Individual Taxpayer (RMC# 69-2009);
  • Philippine Economic Zone Authority (PEZA) (RR 1-2010);
  • Licensed Local contractors  (RR 10-2012);
  • National Government Agencies  mandatorily required to use the Electronic Tax Remittance Advice (RR 1-2013);
  • Taxpayer Account Management Program (TAMP) and accredited importers, including prospective importers required to secure the Importer Clearance Certificates (ICCs) and Customs Broker Clearance Certificates (BCCs) (RR 10-2014); and
  • Those required to secure the BIR-ICC and BIR-BCC (RMO 10-2014)

However, if you are not one of those identified but have the intention of using eFPS, you can submit a Letter of Intent addressed to the Revenue District Office (RDO) where you are registered, for proper evaluation and approval.  You can only enroll and eventually log on to the eFPS website upon approval of your application. Please coordinate with the Taxpayer Service Section (TSS) of your RDO.

Here are the requisites for the availment of the eFPS system:

  • Taxpayer Identification Number (TIN) should be registered in our BIR Integrated Tax System;
  • Certification authorizing any of the two (2) officers designated to file the return under Section 52 (A) of the Tax Code (President or other principal officer, and Treasurer or Assistant Treasurer of the Corporation) who shall enroll for the system usage;
  • Enrollment to eFPS;
  • Enrollment to eFPS Authorized Agent Bank (AAB);

Here are the steps in enrolling to EFPS:

Step 1:  Access BIR website at www.bir.gov.ph, using your internet browser.

Step 2: Click on “eFPS” icon to go the the eFPS home page.

Step 3: From the eFPS Login page, click on “Enroll to eFPS” link.

Step 4: The eFPS enrollment form appears. Complete the required fields on the Enrollment Form page. Then, click on the “Submit” button.

Afterwards, the system will inform you that your enrollment has been successfully received. Then you have to wait for an e-mail message from BIR informing you of the status of your enrollment – whether approved or disapproved.  Once your account has been activated, you are ready to e-file and e-pay, and perform all the functions within eFPS.

It is important, however, for you to remember your username and password, as well as the answer to the challenge question.  Keep the answer to yourself.  Do not make it easy to guess, nor write it down.

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HAVE YOU LOST YOUR BIR CERTIFICATE OF REGISTRATION?


lostDid you lose your original BIR form 2303 or the Certificate of Registration (COR)? That you already exerted effort but you can’t find it.   Or your company’s BIR 2303 was caught by fire, flood or natural disaster?  Well, don’t worry, you can always replace the BIR Form 2303 or the BIR Certificate of Registration (COR) by doing the following:

  1. Get a copy of BIR form 1905 (Application for Registration Information Update) and fill out properly.
  2. Prepare a notarized Affidavit (e.g. Affidavit of Loss, if lost).  Much better if you have a photocopy of the BIR Form 2303.  Much much way better if you have the old original certificate for replacement.
  3. Then go to your Revenue District Office (RDO) where your business is registered and submit the accomplished BIR Form 1905 together with the required attachment/s. Please take note that the BIR is already implementing the queuing system.  Thus, get a number and check window / table number for the submission of your application.
  4. The BIR RDO personnel who is assigned for the receiving will advise you to pay the necessary certification fee and documentary stamp tax. This is the time to get and accomplish copy of BIR Form 0605 (Payment Form).
  5. After which, you will be advised to pay the required amount to the any BIR accredited bank/s and the date when the new Certificate of Registration will be released.
  6. Bring the proof of payment or submit before the issuance of the new Certificate of Registration.  But for some RDO, the proof of payment is required prior to accepting the BIR 1905 and Affidavit.  Either way, you should get a receiving copy of your application and the specific date of release of your new BIR Form 2303.

There. Easy.

TAXATION FOR PROFESSIONALS


True Wellness WarriorsTaxation, in general, is not that popular with most small & medium business owners. The same scenario exists for those professionals who wanted to practice their chosen profession such as doctor. Perhaps because most of the time, taxation is synonymous with a reduction to the overall profitability of a certain business. However, Taxation is a MUST particularly if you wanted to start a business.

Last May 30, 2015, I conducted a seminar entitled “Taxation for Professionals” at the Bayview Park Hotel in Manila organized by True Wellness Warriors. True WellnessThe seminar was specifically intended for doctors who wanted to practice profession and of course doctors who wanted to venture into business such as clinic and the like. The topics I prepared are basically about BIR registration, invoicing compliance, bookkeeping requirements, tax computation, penalties, interest & surcharges, and important dates. Yep, it’s practically an ultimate guide for professionals who wanted to become self-employed and yes starting a business too.  Whew! the question and answer portion is the most exciting portion of the seminar.

WarriorsAnyhow, since I already caught your attention and you are now browsing through and reading this article, I would like to share you the requirements first before we go to the step-by-step procedures, okay?

Okay, if you are a professional, a doctor, lawyer or an accountant, here are the requirements that you need to accomplish.

1. A registered TIN number
2. One original and two photocopies of BIR Form 0605
3. Photocopy of your birth certificate (NSO)
4. Photocopy of your marriage certificate (if married) and the birth certificate/s of your dependents, if you have any
5. Two copies of completed BIR 1901 form
6. Photocopy of proof of address
7. Payment of Professional Tax Receipt (PTR)
8. PRC License
9. Affidavit indicating the rates, manner of billings, and the factors considered in determining service fees (as specified in BIR Revenue Regulation 4-2014). You can download a sample affidavit here.

After securing all those requirements mentioned, here is what you need to do next.

Step 1 – is to know you Revenue District Office (RDO)

Step 2 – go to the RDO and register by filling up BIR Form 0605 (payment form) and pay Php500.00

Step 3 -Fill up BIR FORM 1901 (application for registration) and submit the needed requirements

Step 4 – Apply for Invoices/Receipts using BIR FORM no. 1906 – Authority to Print (ATP). Release of ATP is usually 3-5 working days.

Step 5 – Register books of accounts and have them stamped by RDO where you are registered. These are:(1) Journal (2) Ledger (3) Subsidiary Professional Income Books (4) Subsidiary Purchases (5) Expenses Books

There. Simple, yes?  Congratulations, you can now start becoming a self-employed professional.  Good luck!

BIR related, How is a particular taxpayer selected for audit?


Officers of the BIR, like for example the Revenue District Officers, the Chief of Large Taxpayer Assessment Division, or the Chief of Excise Taxpayer Operations Division, or even the Chief of Policy Cases and Tax Fraud Division, are responsible for the conduct of audit and/or investigation.  The same offices are the one responsible for the preparation of a list of all taxpayer who fall, again, again, who fall within the selection criteria prescribed in a Revenue Memorandum Order issued by CIR to establish guidelines for the audit program of a particular year.

The list of taxpayers shall then be submitted to their respective Assistant Commissioner for pre-approval and to the Commissioner of Internal Revenue for final approval. The list submitted by RDO shall be pre-approved by the Regional Director and finally approved by Assistant Commissioner, Assessment Service.

The following statements were lifted from RMO 19-2000 for your reference

Selection of said returns for audit shall be based on the following order of priority:

(1) tax cases for audit based on policy direction of the Commissioner;

(2) taxpayers with third party information which resulted to substantial reduction in tax payments; and

(3) taxpayers with low tax compliance.

Taxpayers under the jurisdiction of the Large Taxpayers Service and Excise Taxpayers Service are not covered by the Order. Only the Revenue District Offices are authorized to conduct a short-term audit. In no case shall the Assessment Division and Special Investigation Division in the Regional Offices be allowed to perform a short-term audit of tax returns. All Letters of Authority (Las)/Audit Notices (ANs) shall be issued and approved by the Regional Director. However, no Las/ANs shall be issued by the Regional Director without prior written approval of the ACIR, Assessment Service. Only Revenue Officers-Assessment Group shall be authorized to conduct audit and investigation of tax cases, whether in a principal or assisting capacity. The same Revenue Officer and/or Group Supervisor shall not be assigned to audit/investigate the same taxpayer during the year except when this is not possible due to limited number of Group Supervisor/Revenue Officer in the RDO.

HOWEVER, pleaser refer RMOs 64-99, 67-99, 18-2000 for further information.

RR 15 of 2010


Last January 21st, I posted a topic about Revenue Regualtions number 15 of 2010 (BIR RR 15-2010). Now, I would like to share a copy of the regulation for your reference.

RR-15 of 2010 is all about an additional procedure and/or documentary requirements in submitting financial statements to the BIR.  For example, in addition to disclosure mandated by the PFRS, the notes to financial statements shall now include information on taxes, duties and license fees paid or accrued during the taxable year.

So, therefore, aside from the tax returns that we are normally doing, per this regulation, the notes to FS should include the amount of VAT output tax declared and input tax claimed during the year.  The landed cost of imports and the amount of custom duties, including tariff fees paid or accrued. The amount of excise taxes paid locally or otherwise if its applicable to your organization. Documentary Stamp Tax (DST) on loan instruments and/or other transactions subject to DST.  And all other taxes, including real estate tax, withholding tax, final withholding tax, deficiency tax assessments, protested or not and tax cases plus the amount involved under preliminary investigation, litigation and all those in courts already.

Wow!  If you analyze it, this is really a good move for the BIR.  Why, because it’s all in there already, a food on the table, no more worries. If you are an examiner all have to do is eat, este, I mean read and analyse the financial statements’.  Well, perhaps this move is also a patch for the minimal number of examiners.  Truly, the ratio of BIR manpower to the number of companies be it corporation or otherwise is quite a stretch.  I hope the SEC will come up with a regulation too?  Anyhow, this is an additional work for all practicing CPAs but think of it as an assistance na lang to the BIR.  Okay?

You can read the regulations here (RR 15-2010). Save it!