News and Updates

 

BIR EXTENDED DEADLINE OF ONLINE BUSINESS REGISTRATIONS

 
Revenue Memorandum Circular (RMC) No. 75-2020: Extending the Deadline for Business Registration of those into Digital Transactions under Revenue Memorandum Circular (RMC) 60-2020
 
Who are the covered?
Businesses that are selling goods and services through digital transactions (online business) to register and/or update their registration information with the Bureau of Internal Revenue (BIR) without imposition of penalties. This applies to both partner sellers/merchants and stakeholders involved in the digital transactions – (e.g. payment gateways, delivery channels, internet service providers, and other facilitators).
 
Until when is the extension?
Extended deadline for the registration and/or update of registration of the said businesses are until August 31, 2020.
 
Who will be imposed on penalty?
  • Businesses who will be found transacting without complying the registration/update requirements of the BIR; and
  • Businesses who failed to declare past due taxes/unpaid taxes
 
Where to register?
Registration of a taxpayer/business and its updates can be done in the Revenue District Office (RDO) on these jurisdictions:
  • Over the place where the Head Office of the business is located
  • Over the place of residence of the individual taxpayer
 
With NO Taxpayer Identification Number (TIN)
Individuals doing business online must register their business following the existing policies in securing TIN and registration of the business.
 
With Taxpayer Identification Number (TIN)
Individuals with TIN but the businesses are not registered must register their business using BIR Form 1901.
Individuals with TIN and already registered business must update their business registration using BIR Form 1905 and include the additional business activity of online selling.
 
After compliance:
Online business owners will receive from the RDO the following:
  • Certificate of Registration
  • Notice to Issue Receipt/Invoice
  • BIR Printed Receipt/Invoice or Authority to Print (per taxpayer’s choice)
  • Proof of Payment of Registration Fee
 
Tax Obligations of Registered Online Businesses
  • Issuance of registered Sales Invoice or Official Receipt for every sale of goods or services to clients/customers/buyers
  • Keeping of registered Books of Accounts and other accounting records of business transactions
  • Withholding of taxes, as applicable
  • Filing of required tax returns
  • Payment of correct taxes due on time
 
Sources:
  • BIR Revenue Memorandum Circular No. 75-2020
  • BIR Updates
 
Compiled by: Abapo J. et al. 
PFA Secretariat