RR No. 15-2024: Prescribing policies and guidelines in the mandatory registration of persons engaged in business and administrative sanctions and criminal liabilities for non-registration

Key points

1. Registration duty. Under Section 236(A) of the Tax Code, every person subject to internal revenue tax registers once, electronically or manually, within ten (10) days from employment, on or before the start of business, before payment of any tax due, or upon filing a required return. Unregistered trade or business is subject to fines, penalties and criminal liability, and those who aid or abet are liable as principals under Section 253(b). In corporations and partnerships the responsible officers and employees bear the penalty.
2. Covered businesses. The Regulations cover brick-and-mortar stores, e-commerce and online businesses, digital platform operators including e-marketplaces, sales through digital platforms, income-generating content creation and streaming, e-retailing, online freelance and digital services, and other online businesses.
3. Where and how to register. Brick-and-mortar head offices register at the BIR district office over the business address, and branches or facilities over their own location. An online store of a brick-and-mortar business is registered as an additional business name, not as a branch. Online-only sellers register where the individual resides or where the juridical entity’s SEC principal place of business is.
4. Posting of the COR. The COR or eCOR is posted at the place of business and each branch or facility, or kept by peddlers without a fixed place. Online businesses display the electronic copy conspicuously on their website, page, account or platform.
5. Closure/Take Down Order. The Commissioner or his authorized representative may issue a Closure/Take Down Order on businesses found unregistered. It lasts not less than five (5) days and is lifted only after the BIR validates that the violation is rectified and requirements are met. Charges may still be filed under the RATE Program.
6. Lessors, platforms and penalties. Lessors, sub-lessors and digital platform operators must ensure lessees and online sellers are registered and invoice-compliant. Failing to enforce this is aiding or abetting. Compromise penalties include ₱1,000.00 for late voluntary registration, ₱20,000.00 for allowing unregistered lessees or sellers, ₱20,000.00 for disobeying a Closure/Take Down Order, and for failure to register a head office or branch ₱20,000.00 (Medium and Large), ₱15,000.00 (Small), ₱5,000.00 (Micro) and ₱50,000.00 (businesses subject to Excise Tax).

Who is affected

• Persons engaged in business in the Philippines, including online sellers and content creators
• Lessors and sub-lessors of commercial space
• Digital platform and e-marketplace operators

Deadlines and effectivity

• Register within ten (10) days from employment, on or before start of business, before payment of tax due, or upon filing a return
• Closure/Take Down Order lasts not less than five (5) days