BIR Registration/Update

Local and foreign investors and entrepreneurs that intend to establish companies in the Philippines are required to register their businesses with various government agencies before they are allowed to commence business operations. Registration with the Securities and Exchange Commission (SEC) is the first step in the registration process wherein a Certificate of Registration is issued and the legal existence of the corporation is approved, specified, and recognized.

After registering with the SEC, corporations are required to secure a Mayor’s Permit from the Local Government Unit (LGU) where the business is to be located. The next step to this is the accomplishment of a Certificate of Registration from the Bureau of Internal Revenue (BIR).

The BIR is the national government regulatory agency that regulates finance, taxation, and monetary policy in the Philippines. It collects internal revenue taxes, fees and charges, and enforces all forfeitures, penalties, and fines connected with tax matters for the Philippine government.

The Certificate of Registration issued by BIR (BIR Form 2303) contains an enumeration of the types of taxes that are required to be paid to the government, which includes the following:

• Corporate income tax
• Value-added tax
• Withholding taxes (on compensation, fringe benefits, etc.)

Registering your business with the BIR gives you the authority to print your official receipts and invoices, formally register the Tax Identification Number (TIN) provided for your company in the Certificate of Registration issued by SEC, and register the books of accounts you are required to annually register with BIR to serve as official record of your business transactions for the fiscal year.