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Issuance of TIN and transfer of registration

Issuance of TIN and transfer of registration by: Maria Noelli V. Francisco

The Bureau of Internal Revenue (BIR) recently issued Revenue Regulations No. (RR) 05-2010 which amends Sections 3(D) and 12 of RR 11-2008 which pertains to the provisions on the issuance of taxpayer identification number (TIN) card and the transfer of registration. 

RR 05-2010 provides additional information on the details that should be indicated in the TIN cards and clarifies the rules and/or procedure regarding the transfer of registration of taxpayers with the BIR. 

Accordingly, after the approval of application for TIN, the corresponding TIN card shall be issued to the taxpayer the same day the complete documentary requirements have been submitted to the concerned Revenue District Office (RDO). 

The TIN card shall contain the: serial number; applicant’s registered name, TIN, address, birth date or date of incorporation; date of issue; signature of the Commissioner; and signature of the TIN owner or  duly authorized representative (in case of juridical persons). 

The TIN cards of individuals provide spaces for their photos.  The regulation also indicates the proper address to be indicated depending on the type of taxpayer.

In amending Sec. 12 of RR 11-2008, the new regulation presents explicit scenarios in the transfer of registration with the BIR involving different types of taxpayers and the procedures to be undertaken therein.  This eliminates the confusion of taxpayers, especially individual-employee taxpayers, who are required to process their own transfer of registration by their current or would-be employers.  In sum, the rules are as follows:

          A.  For non-business individuals or taxpayers initially issued TINs for one-time transactions (ONETT) and individuals issued TINs for transacting with government agencies (pursuant to Executive Order No. 98) who subsequently apply for business registration or become employed, shall submit the proper application form to the RDO where the applicant intends to establish his/her business or his emlpoyer’s RDO or at the RDO which has jurisdiction over his place of residence, whichever is applicable. The transfer of the TIN records/registration shall be initiated by the RDO which received the application.

           B.  For individuals earning purely compensation income (i.e., local employees) where there is a change of employer, the new employer shall be responsible in notifying its RDO by submitting the duly accomplished Application for Registration Information Update of the employee.  The RDO receiving the application shall initiate the transfer of registration.

In case the individual is registered as an employee in one RDO and later on applies for registration as a business taxpayer/professional, the application form shall be submitted to the RDO having jurisdiction over his new business address.  The transfer shall be initiated by the RDO where the application was submitted.

For employees whose employer changed its business address, the registration of employees shall be simultaneously transferred to the employer’s new RDO once the transfer of registration of the employer is completed.  Employees, who are purely compensation income earners, shall be required by the employer to accomplish the proper BIR form which shall then be submitted to the new RDO of the transferring employer.  The transferring employer shall likewise submit a list of employees together with the Application for Registration of Information Update to the new RDO excluding employees who were separated prior to the transfer.  The applications for TINs of new hires of the employer in its new location shall be submitted to the new RDO.

          C.  Transfer of registration of branch/facility, with no registered tax types other than RF, shall be completed by the old RDO within five (5) days from r eceipt of request for transfer.

In case of transfer of registration of head office, the taxpayer shall file the Application for Registration of Information Update Form to the old RDO, together with the required attachments.  A copy of the duly received Update Form submitted to the old RDO shall be furnished the new RDO.  The transfer of the head office of taxpayers engaged in business/practice of profession shall be effective upon approval of the RDO which shall not exceed ten (10) days from the complete submission of the required documents. If the transfer is not effected within the ten (10)-day period, the Data Center having jurisdiction over the old RDO shall effect the transfer. 

Upon receipt of the Update form, the new RDO shall conduct an ocular inspection of the transferring taxpayer’s actual business location.  If the business location is non-existent/inaccurate/unoccupied/occupied

by persons other than the transferring taxpayer, the old RDO shall be notified thereof and no transfer of registration shall be allowed.  The results of the ocular inspection shall form part of the registrations docket of the taxpayer.

After the transfer of registration, the new RDO shall issue the Certificate of Registration (COR) immediately.  The COR, Sales Invoice/Official Receipt in the old business location can still be used prior to the release of the new COR and Authority to Print (ATP) provided that: a) the taxpayer can show a copy of the duly received Update form filed with the old RDO; and b) the taxpayer shall stamp the new address in the sales invoice/official receipt when these are issued in the newly transferred business site. 

The filing of tax returns and payment of taxes to the new RDO shall commence only after the issuance of the new COR.

With these new rules, taxpayers are advised to be guided accordingly for the efficient and effective issuance of TIN and transfer of registration of taxpayers with the concerned offices of the BIR.

This article is not intended to be a substitute for professional advice.  For comments and inquiries, you may e-mail the author at Noeli.Francisco@ph.gt.com.  For other tax concerns, please check out our other tax services.