BIR Reminds Online Businesses to Ensure Registration Compliance Under the Tax Code
The Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular (RMC) No. 60-2020 emphasizing the required compliance of businesses transacting through digital means. The circular highlights the obligations of online businesses, under the provisions of Section 236 of the Tax Code, to secure registration and tax compliance with BIR.
SCOPE
This notice covers all individuals doing business and obtaining revenue in the Philippines such as, but not limited to the following:
- Partner Sellers/Merchants
- Payment Gateways
- Delivery Channels
- Internet Service Providers
- Other facilitators
ON PENALTY EXEMPTION
Penalties for late registration shall not be imposed on businesses who will apply for registration and/or status updates provided that the compliance shall not be later than July 31, 2020.
Businesses who will voluntarily declare their past transactions and settle the taxes due thereon prior to the said date shall likewise be exempted from penalties.
APPLICATION OF PENALTIES
Pertinent penalties under the law, as well as existing revenue rules and regulations, shall be imposed on businesses who will qualify for the following:
- Ongoing business activities without registration and/or updates in requirements
- Failure to declare history of unpaid taxes
OTHER COMPLIANCE
Newly-registered businesses and existing registrants shall comply with the following Tax Code provisions, as amended, and other appropriate tax revenue issuances:
- Issuance of registered Sales Invoice (SI) or Official Receipt (OR) for every sold goods/service to clients/customers/buyers
- Documentation of registered Books of Accounts and other accounting records of business transactions
- Withholding of taxes, as applicable
- Filing of tax returns
- Payment of due taxes prior to the declared deadline
