Revenue Memorandum Circular No. 113-2024

Announcing the Availability of Update of Taxpayer Classification, and Resumption of Business Registration and Other Registration-Related Transactions in the Online Registration and Update System (ORUS)

Relative to the implementation of Revenue Regulations No. 8-2024 and Section 21(B) of the National Internal Revenue Code (NIRC) on the classification of taxpayers, this Circular is hereby issued to announce the availability of the Application for Update of Taxpayer Classification thru the “Update Information” functionality and the resumption of business registration and other registration-related transactions in the BIR Online Registration and Update System (ORUS) starting October 1, 2024 and October 10, 2024, respectively.

• Application for Update of Taxpayer Classification in ORUS
  
  Per Republic Act No. 11976 (Ease of Paying Taxes [EOPT] Act), taxpayers shall be classified into Micro, Small Medium and Large Taxpayers based on their annual gross sales from their business, to wit:
  • Micro Taxpayer – a taxpayer whose gross sales for taxable year is less than Three Million Pesos (Php 3,000,000.00)
  • Small Taxpayer- a taxpayer whose sales for taxable year is Three Million Pesos (Php 3,000,000.00) to less than Twenty Million Pesos (Php 20,000,000.00)
  • Medium Taxpayer – whose gross sales for taxable year is Twenty Million Pesos (Php 20,000,000.00) to less than One Billion Pesos (Php 1,000,000,000.00)
  • Large Taxpayer – a taxpayer whose gross sales for taxable year is One Billion Pesos (Php 1,000,000,000.00) or more.
    
    Taxpayers who want to update their Taxpayer Classification shall access ORUS thru https://orus.bir.gov.ph/home and follow the procedures below.
    • Log in to ORUS account. If no ORUS account yet, taxpayer should enroll or create an ORUS account.
    • Go to “Update Information”.
    • Select “Correction/Change/Update of Registration” then click “Update Information” button.
    • Select “Head Office” then click the “Validate” button.
    • Click “Information to Update” then select “Change/Update of Taxpayer Classification”.
    • The existing Taxpayer Classification shall be displayed and a field to indicate the requested new Taxpayer Classification shall be opened. The taxpayer shall select the desired Taxpayer Classification, then click the “Continue” button.
    • Click the ” Add Attachment” button to attach the documentary requirements needed to support the request for change in Taxpayer Classification.
      If the update of Taxpayer Classification is a downgrade (e.g. from Large to Medium), taxpayer needs to attach Income Tax Return or Income Statement showing gross sales for the last two (2) years. Said requirement is mandatory only for downgrade, except for downgrade of Taxpayer Classification from Small to Micro.
    • Review the details on the summary page to avoid discrepancy on the documentations. Once confirmed, check all the boxes and click “Submit Application” button. A pop-up message shall be displayed reflecting the Application Reference Number (ARN) and the RDO where the application shall be processed.
    • Click “Proceed” button. Taxpayer shall receive an email upon successful submission of application for change in Taxpayer Classification.
      Upgrade of Taxpayer Classification (e.g. Small to Medium) and downgrade from Small to Micro shall be automatically approved. Downgrading of Taxpayer Classification (e.g. Large to Medium) shall be subject to the manual approval of the Revenue District Office (RDO) within seven (7) working days form the date of submission of application. The taxpayer shall be notified by the concerned RDO of the approval/disapproval of application for change in Taxpayer Classification thru email, registered mail or any other possible means.
• Resumption of Business Registration and Other Registration-Related Transaction Functionalities/Features in ORUS
  
  The following existing business registration and other registration-related transaction functionalities are now available in ORUS:
  • Registration of Business and Issuance of Electronic Certificate of Registration (eCOR) and Authority to Print (ATP) with Electronic Payment (e-Payment) of Loose Documentary Stamp Tax (DST)
  • Registration of New Branch
  • Application for Authority to Print (Subsequent)
    
    Taxpayers who already have an existing ORUS account may access and avail the said online registration enhancement and update transactions, functions and features by logging-in to the system. Taxpayers who do not have an ORUS account yet and opted to use the said online registration facility of the BIR are required to enroll or create an account in ORUS following the guidelines prescribed under Revenue Memorandum Circular No. 122-2022.