Passed the board exams? BIR wants you to get a TIN

by Alvin Elchico, ABS-CBN News

Posted at Jul 24 2013 04:46 PM | Updated as of Jul 25 2013 12:46 AM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) is asking the Professional Regulation Commission (PRC) to require those who passed the board exams to immediately get a tax identification number (TIN).

The BIR is also asking the PRC to require professionals renewing their license to submit an income tax return.

BIR Commissioner Kim Henares said there are around 1.8 million professionals all over the country, but only less than 30% or around 500,000 file their income tax returns.

Henares noted that if all 1.8 million professionals pay an average of P200,000 in income tax, the government would have earned an additional P30 billion to P36 billion.

The BIR, she said, is not singling out professionals since the campaign to raise more taxes is targeting all income earners.

Henares also noted the BIR will now implement a new system in withholding tax where it will compel businessmen to pay tax withheld. If the tax withheld is not remitted to the BIR, it will not be allowed as a deductible from the income tax payment.

Starting August 31, the BIR will also implement the use of new receipts which has the watermarks of its printer. Henares acceded to the deferment of the implementation of the new receipt after businessmen complained.

According to Henares, non compliance to the regulation will mean a penalty of P1,000 to P50,000 and imprisonment of 2 to 4 years.

Under the new rule, receipts issued before January 18, 2013 will no longer be valid. Issuing old receipts will be the same as not issuing official receipts at all.

The order includes supplemental invoices like delivery and acknowledgment receipts.