The Philippine Tax Whiz discusses the guidelines for online registration of businesses through the CBP
What are the guidelines for online registration of All Types of Corporation, Partnerships and Sole Proprietors?
Under Revenue Memorandum Circular (RMC) No. 61-2022, in relation to RMC No. 15-2021, the Central Business Portal (CBP) will be expanded to cover services offered by the Department of Trade and Industry (DTI) as well as other Local Government Units (LGUs). Specifically, corporations, partnerships, and sole proprietors will now be able to process their BIR registration online.
According to the RMC, the following guidelines are to be observed:
- Business taxpayers who are registering through CBP may opt to pay their Annual Registration Fee (ARF) amounting to P500.00 and loose Documentary Stamp Tax (DST) of P30.00 either electronically or manually.
- Business taxpayers who pay online through various electronic payment (e-Payment) channels may immediately have their electronic Certificate of Registration (COR) with Quick Response (QR) Code be printed in A4 size bond paper thru CBP.
- The electronic COR issued by the CBP shall have the same purpose of the signed hard copy issued by the Bureau and shall be posted together with the duly validated proof of payment of ARF in the principal place of business in a place that is clearly and easily visible to the public.
- Business taxpayers who opt to pay manually shall complete its business registration at the respective Revenue District Office (RDO) by presenting the printed copy of the following CBP generated documents, together with the “Checklist of Documentary Requirements” (Annex “A”):
- CBP Unified Form (Annex “Bl” for Corporations/Partnerships or “82” for Sole Proprietors);
- Accomplished Tax Type Questionnaire (Annex C); and
- Pre-filled BIR Form No. 0605 (Payment Form) (Annex D).
- AII business taxpayers who registered in CBP shall proceed immediately to the RDO indicated in the electronic COR in order to complete its registration and buy a BIR Printed Receipts/lnvoices (BPR/BPI) or secure an Authority to Print (ATP) rece:ipts/invoices before they can have their own receipts/invoices printed by BIR Accredited Printers.
- Register books of accounts on or before the deadline for filing of the initial quarterly income tax return or the annual income tax return whichever comes earlier.
- Any correction on the required tax returns or tax types on the electronically issued COR from CBP shall require updates by the taxpayer with the concerned RDO. The latter shall then review the registered tax and form types of the concerned business taxpayer in the Internal Revenue Integrated System – Taxpayer Registration System (lRllS-TRS), make necessary update, if any and replace the COR, if necessary, upon the issuance of BPR/BPI or ATP, whichever is applicable.
The CBP as Business One Stop Shop (BOSS)
The CBP, being a business one stop shop, is a portal designated by the Business Permit and Licensing System (BPLS) of an LGU to receive and process applications, receive payments, and issue approved licenses, clearances, permits, or authorizations. Its main goal is the digitalization of government processes, the elimination of bureaucratic red tape (i.e., corruption), and the streamlining of business registration processes in the country.
Under Section 7 of RA 11032, a no contract policy is also mandated. No government officer or employee shall have any contact, in any manner, unless strictly necessary, with any applicant or requesting party concerning an application or request.
By implementing the CBP, the government expects that this will attract and benefit the foreign investors which, in turn, will have a positive impact on the economy.
The CBP is only one of the ways that the government is updating how to register and do business in the Philippines. In the realm of paying taxes, the government is also instituting changes that make paying taxes easier and simpler. Just this year, we have published the second book of IWAS BUWISit in order to simplify and present these tax regulations in a way that laymen, and those not well-versed in laws and taxes, can easily understand them. You may grab a copy through this link: https://tinyurl.com/CSRPHShopee. All proceeds of the book sale will help fund the advocacy programs of Center for Strategic Reforms of the Philippine – the advocacy arm of ACG.
Originally Published in Rappler.