Inclusion of the TIN as Part of the Essential Requirement in all Applications for a Government Permit, License, Clearance, Official Paper or Document

July 12, 1999 BLGF MEMORANDUM CIRCULAR NO. 013-99 TO : All Bureau Officials and Personnel; Regional Directors for Local Government Finance; District Treasurers and Assessors of Metropolitan Manila; Provincial, City and Municipal Treasurers; Provincial, City and Municipal Assessors and Others Concerned SUBJECT : Requiring the Inclusion of the Taxpayer Identification Number (TIN) as Part of the Essential Requirement in all Applications for a Government Permit, License, Clearance, Official Paper or Document For the information and guidance of all concerned, attached is a copy of Executive Order No. 98, dated April 28, 1999, of the President directing all government agencies and instrumentalities to incorporate the Taxpayer Identification Number (TIN) in all forms, permits, licenses, clearances, official papers and documents which they issue to persons transacting business with them, be they natural or juridical. This TIN shall serve as the common secondary reference index in all official transactions. cdlex Strict observance and compliance with the provisions of said Executive Order No. 98 is hereby enjoined, attention being invited to Section 5 thereof within non-compliance with the requirements of said Executive Order shall subject to all appropriate sanctions provided for in the National Internal Revenue Code and other pertinent laws and regulations. The District Treasurers and Assessors of Metropolitan Manila and all Provincial Treasurers and Assessors are hereby instructed to disseminate the contents of this Circular, including the attachment, to all Municipal Treasurers and Assessors within their respective jurisdictions, likewise enjoining them to extend full support, participation and cooperation to help in the realization of the objectives of this project. cdll (SGD.)ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge EXECUTIVE ORDER NO. 98 DIRECTING ALL GOVERNMENT AGENCIES, INSTRUMENTALITIES, LOCAL GOVERNMENT UNITS, AND GOVERNMENT-OWNED AND/OR CONTROLLED CORPORATIONS (GOCCs) TO INCLUDE THE TAXPAYER IDENTIFICATION NUMBER (TIN) AS PART OF THE ESSENTIAL REQUIREMENTS IN ALL APPLICATIONS FOR A GOVERNMENT PERMIT, LICENSE, CLEARANCE, OFFICIAL PAPER OR DOCUMENT WHEREAS, for tax purposes, a Taxpayer Identification Number (TIN) is prescribed under Section 236 (J) of the National Internal Revenue Code for all taxpayers and it is required to be indicated in certain documents; WHEREAS, the TIN is a vital information for tracing a person's taxable transactions under a computerized system of tax administration. WHEREAS, revenue collection needs to be enhanced to finance the country's growing infrastructure requirements, and support the poverty alleviation projects of the government; WHEREAS, tax monitoring, leading to increased compliance with tax laws will be greatly improved if such Taxpayer's Identification Number will be made a mandatory requirement in all applications for any government permit, licensee, clearance, official paper or document by the transacting public. llcd WHEREAS, the uniform observance by all government agencies of this requirement is necessary to effectively carry out the purposes of this Order. NOW, THEREFORE, I JOSEPH EJERCITO ESTRADA, do hereby order that: SECTION 1. All government agencies and instrumentalities, including Government-Owned and Controlled Corporations, and all Local Government Units, are hereby directed to incorporate the Taxpayer Identification Number (TIN) in all forms, permits, licenses, clearances, official papers and documents which they issue to persons transacting business with them, be they natural or juridical. SECTION 2. The said agencies, GOCCs, and LGUs shall develop procedures such that permits, licenses and clearances, whenever possible and where applicable, shall not be issued to persons or entities without a duly issued TIN. Likewise, procedures shall be developed such that persons with TIN or valid TIN cards shall enjoy priority or preferential action in his transactions with government offices. SECTION 3. The Bureau of Internal Revenue shall assign a permanent TIN and within two (2) years from the issuance of this Order, supply permanent TIN cards to all taxpayers. A valid TIN card produced by a person shall be sufficient for identification purposes in all his official dealings with the government. Provided, however, that for purposes of this Order, it shall be sufficient for a person still without TIN or TIN card to present his application for registration thereof (BIR Form 1901/1902/1903) duly stamped by the BIR. SECTION 4. In all official transactions with the public, the TIN shall serve as the common secondary reference index of all government agencies. For computerized agencies, the TIN shall be part of the data to be encoded in their official records, which shall be transmitted electronically to the revenue authorities as may be required by law or regulations. SECTION 5. Any person who fails to comply with the requirements of this Executive Order, including the parties involved in transactions where a TIN is prescribed, and the government functionary involved in monitoring or regulating of these transactions, shall be subject to all appropriate sanctions provided for in the National Internal Revenue Code and other pertinent laws and regulations. SECTION 6. Where a necessary or desirable, the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, shall promulgate rules and regulations for the effective implementation of this Executive Order. Provided, however, that the absence of such regulations shall not exempt any government agency from complying with this Order. SECTION 7. The Secretary of the Department of Budget and Management shall give preferential budgetary support to the Bureau of Internal Revenue to enable it to accomplish its objective of supplying permanent TIN cards to all taxpayers. SECTION 8. This Executive Order shall take effect immediately. Done in the City of Manila, this 28th day of April 1999, in the year of our Lord nineteen hundred and ninety-nine. (SGD.)JOSEPH EJERCITO ESTRADA By the President: (SGD.)RONALDO B. ZAMORA Executive Secretary