RMC No. 60-2020: Notifies persons conducting business through any forms of electronic media regarding their tax obligations and the registration of their business with the BIR

Summary

RMC No. 60-2020 notifies persons doing business through electronic media of their tax obligations and business registration with the BIR, under Section 236 of the Tax Code, as amended.

Key points

1. Coverage. The Circular covers partner sellers and merchants and also other stakeholders, such as payment gateways, delivery channels, internet service providers and other facilitators.
2. Registration of online businesses. Persons with no TIN register the business under existing policies for securing a TIN. Registration is generally with the RDO over the Head Office location or, for individuals, their place of residence.
3. Persons who already have a TIN. Individuals with a TIN whose business is unregistered use BIR Form 1901 with the RDO over their place of business, or place of residence if there is no physical establishment. Non-individuals update their registration using BIR Form 1905. In both cases the business activity of online selling is added.
4. Documents received. A Certificate of Registration (COR) is issued upon compliance with Annex A of the Circular. The taxpayer also gets a copy of the BIR-received Form 1901 or 1903, a Notice to Issue Receipt/Invoice (NIRI), a BPR/BPI or Authority to Print (ATP) at the taxpayer’s choice, and proof of payment of the registration fee.
5. No penalty window. Those who register or update on or before July 31, 2020 are not penalized for late registration. Past transactions declared and taxes paid by that date also carry no penalty. Those found later without compliance, or who did not declare past unpaid taxes, face the penalties under the law and revenue rules.
6. Ongoing obligations. Businesses must issue registered Sales Invoices or Official Receipts for every sale and keep registered Books of Accounts. They must also withhold taxes where applicable, file the required returns, and pay the correct taxes on time.

Who is affected

• Persons doing business through electronic media
• Partner sellers and merchants
• Payment gateways, delivery channels, internet service providers and other facilitators

Deadlines and effectivity

• No late-registration penalty if registered or updated not later than July 31, 2020
• Past transactions declared and paid on or before July 31, 2020 carry no penalty

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.