RR No. 7-2012: Amends the consolidated Revenue Regulations on primary registration, updates and cancellation

Summary

RR No. 7-2012 amends the consolidated Revenue Regulations on primary registration, updates and cancellation. It covers procedures, venue, forms, documents, the Annual Registration Fee, the Certification Fee and penalties.

Key points

1. One TIN per taxpayer. Each taxpayer gets one TIN, and it cannot be transferred. Banks with both a Regular Banking Unit and a Foreign Currency Deposit Unit are the exception, with a different TIN for each unit.
2. Documents and Mayor’s Permit. TIN applications with incomplete documentary requirements are not processed. A Mayor’s Permit is mandatory, but a stamped Received application for it suffices temporarily if the approved permit is submitted within 30 calendar days from registration.
3. When to register. Self-employed individuals, estates, trusts, and corporations and their branches register on or before the start of business. Employees registering for the first time because of employment do so within 10 days from date of employment.
4. Annual Registration Fee. The ARF is P 500.00 for every head office and branch, paid on registration and every year after on or before January 31. Exempt groups include registered cooperatives, individual residents earning purely compensation income, OCWs/OFWs, marginal income earners and persons registered under EO 98, series of 1998.
5. Updates and cancellation. Cancelling an individual’s business registration does not automatically cancel the TIN. Registered taxpayers who fail to file any tax return for 2 consecutive years or more are tagged as Inactive and an investigation is started.
6. Fees and penalties. A first TIN Card is free, and a replacement for loss or damage costs P100.00. Penalties include P 1,000.00 for late registration, 25% surcharge and 20% interest per annum plus P 200.00 for late ARF payment, and P 1,000.00 for each TIN acquired in excess of one.

Who is affected

• Individuals engaged in business or practice of profession
• Juridical entities
• Employees and persons applying for TIN under EO 98, series of 1998

Deadlines and effectivity

• ARF due on registration and every January 31
• Approved Mayor’s Permit: within 30 calendar days from registration
• Employees: within 10 days from date of employment

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