RMC 57-2020: Revised BIR Registration Documentary Requirements

By: TaxAcctgCenter Ph

Bureau of Internal Revenue issued Revenue Memorandum Circular No. 57-2020 (RMC No. 57-2020) dated march 12, 2020 entitled “Streamlining of Business Registration Requirements and Revised Checklist of Documentary Requirements”.

Under RMC No. 57-2020 in Philippines, Mayor’s Permit is no longer required as one of the mandatory requirements for BIR registration of taxpayers in Philippines the way it was when the BIR Citizen’s Charter 2019 was published on BIR website. BIR likewise provide for revised checklist of documentary requirements for business registration and other types of applications in the attached Annex “A1-A11” of RMC No. 57-2020 such as on the following applications for registrations:

• Self-employed individuals, estates and trusts:
• Corporations and Partnerships;
• Cooperatives, Associations, GAIs, LGUs, etc.;
• Branch/ Facility;
• Employees – local and foreign;
• One-time T.I.N. under E.O. 398 – local and foreign (individuals and corporations);
• Under One Time Transactions (ONETT);
• Books of Accounts;
• Permit to Use Manual Loose Leaf;
• TIN Card Issuance/ Registration Information Update;
• Registration Information Updates;
• Transfer of Registration;
• Cancellation of TIN/ Registration or Closure of Business

Comments:

RMC No. 57-2020 in Philippines on removing business permit is a much welcomed revision of BIR registration rules in the Philippines as in most cases, securing business permit has been a bottleneck of BIR registrations resulting to taxpayers suffering for paying penalties for late registrations. BIR offices has been honoring duly filed or stamped Mayor’s Permit applications in the past instead of the Mayor’s Permit itself but still, delays are encountered as it is sometimes taking time before applicants are able to have their papers stamped.

At any rate, RMC No. 57-2020 in Philippines should not be taken to mean that securing mayor’s permit in Philippines is dispensed with. Notably, a business without mayor’s permit is considered illegal by such fact alone of operating without business permit, even if its nature of operations – goods or services it is dealing with are legitimate.

For your BIR applications, we suggest that you go over the list of documentary requirements of Annex “A1-A11” of RMC No. 57-2020 for easy reference.

Disclaimer: This is for purposes of academic discussions only as personally summarized by the author, not of Tax and Accounting Center, Inc. and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances. For comments, you may also please send mail at info(@)taxacctgcenter.ph, or you may post a question at Tax and Accounting Center Forum and participate therein.