Hello and good day to all practicing professionals and would-be professionals. If you are in this category then this article is for you. To help you in registering your profession with the BIR so you would be able to dispense a BIR Registered Official Receipt. Hopefully to help you through the seemingly complicated process of applying for registration on your profession or professional service and thereby getting that registered ORs that your client needs.
The professionals being referred here are those professions regulated by the PRC and those individuals who earn in a particular profession or field which is not regulated by the PRC.
These refers to individuals who decided not to be under any EMPLOYER thus they are SELF EMPLOYED. If you do not fall under this or you are EMPLOYED by an EMPLOYER for that matter and does not really INTEND to practice his profession OUTSIDE of an EMPLOYMENT then you should not go through with the registration. As there are taxes required for you to file as SELF EMPLOYED on a monthly basis depending on the assessment or evaluation of a BIR revenue official based on your profession or field of expertise.
First the BIR Form you will need is BIR Form 1901 (click this link so you can get a good look of this form). In the Part 1 portion of this form. Check the box on “PROFESSIONAL”. As you can see this form is also used for “SINGLE PROPRIETORSHIP” ; “ESTATE” & “TRUST”. We will not go into those yet but focus on the ”PROFESSIONAL” category.
Now the documentary requirements for this application or the needed attachments are as follows:
1) Photocopy of your PRC ID or IBP ID (for lawyers);
2) Photocopy of Payment of Professional Tax Receipts (PTR) from your local Municipality or Occupational Tax Receipt (OTR) for profession not yet regulated by the PRC (e.i. Consultants, Agents, Artists, Underwriters & the like);
3) Simplified books of Accounts for Professional (You can get this in the National Bookstore. One each, a 14 Column Columnar Book, Ledger, & Journal Book)
4) Photocopy of your Birth Certificate if single or Marriage Contract if married; include Birth Certificate of qualified dependent child.
Once you have these documents you can now go to the BIR RDO where your TIN is currently registered. If you are not sure where this is please contact 981-7000 locals 7250- / 7251 / 7252 / 7561 or the BIR Contact center at 981-8888 or email email@example.com, just make sure you provide your full name, and birthdate. Asked where your TIN is registered or what Revenue District Office and the address.
I made a couple of locational maps for some BIR offices. Its not complete yet but it may help you if you are in these locations click this link BIR Locational Maps .
Now once you got your attachments and the location of your RDO. Print the BIR Form 1901 and fill this out. You will also need the BIR Form 0605 ”Payment Form“. Pay the Annual Registration Fee of P500.00.
After settling this, ask the BIR personnel who accepted your application on when you can get your Certificate of Registration (COR). Get also that persons number so you can follow it up.
Please take note upon getting your COR you have 30 days to apply for an authorization to print your receipts. To avoid being penalized.
When you return to your RDO for that COR. Photocopy your COR for this is the required attachment so you can now apply for an Authority to print receipts using BIR Form 1906 “Application for Authority to Print Receipts and Invoices” (Click the blue link to get a copy of form in advance). Do apply on the day you get your COR.
The complete required attachment for BIR Form 1906 are:
1) Job Order - you can get this thru the BIR Accredited Printer of your choice once you have contracted them to the do the job. To get the list and addresses of the Accredited Printers of your RDO please call your RDO for this info go to the BIR RDO Directory ;
2) Final and clear Sample of Receipts & Invoices - again this will be given by the BIR Accredited Printer of your choice. So ask for a machine printed sample copy of the receipt;
3) BIR Certificate of Registration (COR) - this is the BIR Form 2303 which will be given to you after you filed your BIR Form 1901 and paid for the Annual Registration Fee of P500.00
4) Proof of Payment of Registration Fee - This refers to your payment of the Annual Registration Fee of P500.00 thru BIR Form 0605. So you need to photocopy this also for this is one of the required attachment for your application of authorization to print receipts.
Note: The other requirement stated in the BIR Form 1906, Application for Registration this is your BIR Form 1901 copy is no longer required once you attached your COR indicating you are already registered with the BIR. Same thing with the Photocopy of the Taxpayer Identification Number Card is no longer required for you to attach this.
Once you passed this 1906 application, if you are asked to return to get this authorization. Remember to ask that BIR personnel when you can get it or get his/her number for follow up. On the other hand some RDOs can release it on the same day, this is mainly due to workload of a particular office. Another thing, ask who and where are the accredited printers of your RDO.
This is where you will go. With that authorization so you can have your ORs printed. Now if you can’t wait because you already have clients who needs to be issued an OR. You can buy the BIRs BTR receipts for your temporary use. I think its 50 pesos per booklet (50 receipts per booklet).
Another advice for professionals who may not know how to handle their books, please do hire a bookkeeper. Its practical especially if you are not familiar with that process. I believe there are software’s for this also. Will update this article when I get the info.
Or you can ask your RDO to be oriented with the eFPS system (electronic Filing & Payment System) of the BIR. You will need to request your RDO to be able to access this facility. Registration for this can be done online after you made your request to enroll or upload your TIN in that facility.
Through this system you can actually file and pay online. You can do this even if your in Tagaytay drinking your favorite brew in Starbucks. Or while basking in the sunny beach of Boracay. How’s that for convenience? Anyway, I will be doing an article on this soon.
Another point for professional who are on RETAINER or being paid not as an employee but only for particular project for a certain time or paid for consultancy work. Or a doctor who is not an employee of a clinic or hospital but is paid for services rendered.
That PROFESSIONAL should submit an affidavit of sworn declaration of income to the contracting party/company or the one who will pay for the services he/she may render. This will determine how much that company will withheld from your actual pay as required by the BIR.
If that professional states in his affidavit that his/her annual income is below 720K then the company will withheld 10% if above then 15% on amount to be paid for the service. The company will likewise issue BIR Form 2307 indicating that tax was withheld from your pay or retainer for your services. This can be credited to your annual income tax return or for more information on this you can call the Withholding Tax Division of the BIR National Office 926-9347 / 926-9351 to help you out or clarify certain issues you regarding this matter.
Hope this article has helped you regarding this matter. For added information you might want to print a copy of TAX GUIDE FOR PROFESSIONALS (Just click the link).