MANILA, Philippines – Every taxpayer needs to have a Taxpayer Identification Number (TIN). The taxpayer maybe an individual or a juridical entity like a corporation. If the individual taxpayer engages in business, he need not apply for a separate TIN for his business.

The National Internal Revenue Code (NIRC) of 1997 states that:

“Section 236 (I) Supplying of Taxpayer Identification Number (TIN). - Any person required under the authority of this Code to make, render or file a return, statement or other document shall be supplied with or assigned a Taxpayer Identification Number (TIN) which he shall indicate in such return, statement or document filed with the Bureau of Internal Revenue for his proper identification for tax purposes, and which he shall indicate in certain documents x x x

x x x

“Only one Taxpayer Identification Number (TIN) shall be assigned to a taxpayer. Any person who shall secure more than one Taxpayer Identification Number shall be criminally liable under the provisions of Section 275 on Violation of Other Provisions of this Code or Regulations in General.”

While it is BIR that issues the TIN, there are exceptions. For one, the provisions of Revenue Regulations No. 11-2008 say that the TIN may be assigned to a partnership or a corporation by the Securities and Exchange Commission (SEC) upon registration.

Under the provisions of Executive Order No. 98 dated April 28, 1999, the TIN is required to be incorporated by all government agencies and instrumentalities in all forms, permits, licenses, clearances, official papers and documents.

Not many know that individuals/juridical entities that transfer businesses from one place to another place have to transfer too their registration (TIN records).

Under the old BIR practice, the place of business of the taxpayer should be the place where the Certificate of Registration should be taken. Meaning, that if the entrepreneur’s place of business is in Makati, then the Certificate of Registration should be taken from the Revenue District Office (RDO) in Makati. The pertinent BIR rule in this matter is Revenue Memorandum Order No. 82-99. This being the BIR rule, an entrepreneur who filed a Certificate of Registration in another province, say Davao, for a proposed business of say manufacturing handicrafts . . . but years later transferred residence to Pasig and decided to put up a trading company in Pasig to engage in the trading of merchandise goods – cannot go directly to the Pasig BIR RDO office and apply for a BIR Certificate of Registration for his business. He has to go first to Davao to apply for the transfer of his Certificate of Registration. Simply because of BIR Revenue Memorandum Order No. 82-99.

Not anymore. The new procedure is embodied in Revenue Regulation No. 5-2010 dated May 25, 2010 – which states that:

“1) In case a registered person decides to transfer his registered address, or business address of his head office or branches, it shall be his duty to inform the RDO where he is registered by filing the prescribed BIR Form specifying therein the complete address where he intends to transfer.

“2) Individuals earning purely compensation income – In case of transfer due to change of employer, it shall be the responsibility of the new employer to notify its RDO by submitting the duly accomplished Application for Registration Information Update of the employee. The transfer of registration (TIN records) of such employee shall be initiated by the RDO which received the application.

“3) Registered employee who intends to engage in business or practice of profession – An individual who is registered as an employee in one RDO but subsequently applies for registration as a business taxpayer/professional using an address under a different RDO, shall submit the proper Application Form to the RDO having jurisdiction over his new business address. The transfer shall then be performed by the RDO where the Application Form was submitted.”

Have a joyful day!