Policies and Procedures in the Issuance of Taxpayer Identification Number

September 28, 1999 REVENUE MEMORANDUM ORDER NO. 82-99 SUBJECT : Policies and Procedures in the Issuance of Taxpayer Identification Number TO : All Internal Revenue Officials and Employees and Others Concerned I. OBJECTIVES: This Order is issued to: a. Prescribe policies and procedures in the issuance of Taxpayer Identification Number(TIN); and b. Ensure that the needs of taxpayers applying for TIN are properly addressed. II. POLICIES AND GUIDELINES a. For purposes of determining if the taxpayer/applicant is under the jurisdiction of a particular Revenue District Office (RDO), the following shall be considered: Category / Transaction Place of Registration 1. Employees Place of Office / Place of Residence 2. Taxpayer engaged in business Place of business / Office 3. Estate a. Decedent with legal residence Domicile of the decedent at the in the Philippines at the time of death time of death b. Non-resident decedent: b.1 with Administrator in the Philippines Place where the administrator is registered or in the absence of registration, in the place of residence of the administrator b.2 without Administrator Revenue District No. 39, South in the Philippines Quezon City or Revenue District No. 51, Pasay 4. Donor a. Resident of the Philippines Domicile of the donor at the time of donation b. Non-resident of the Philippines Revenue District No. 39, South Quezon City or Revenue District No. 51, Pasay 5. Capital Gains Tax a. Involving real property Location of the property b. Involving shares of stock Where transferor is registered 6. Expanded withholding tax on real property Location of the property 7. Others b. The Certificate of Registration shall be issued to the taxpayer engaged in trade or business or exercise of profession who has registered for a business name only after the submission of the Department of Trade and Industry (DTI) Certificate of Registration of Business Name / Mayor's Permit to the Taxpayer Service Section (TSS) of the RDO having jurisdiction over said taxpayer. llcd c. The taxpayer shall be issued a permanent TIN card after the payment of the cost of the card unless he opts for the free cardboard TIN card. d. The Revenue District Officer shall conduct a Taxpayer's Briefing for new registrants like private corporations, government-owned and controlled corporations, partnerships, government agencies and instrumentalities, local government units, self-employed and professional individuals, estates and trusts and other juridical entities. The briefing shall include a discussion on the Rights and Obligations of the Taxpayer, proper accomplishment of forms, the salient features of the National Internal Revenue Code and current major programs and projects of the BIR e. The policies and procedures prescribed herein herein shall apply to all taxpayers under the jurisdiction of a particular Revenue District Office. III. PROCEDURES A. The taxpayer Service Section (TSS) of a non-computerized RDO shall: 1. Check the completeness, correctness and validity of presented application for registration forms and the relevant attachments. a. Self-employed individuals / Professionals / Single proprietor birth certificate of any document showing name, address and birth date; b. Employee Valid company ID or Certificate of Employment and birth certificate or any document showing the name, address, and birth date; c. Corporation / Partnership Certificate of Incorporation; d. Trust Trust Agreement; e. Payor of capital gains tax (stock, real estate) Deed of Sale and Birth Certificate or any document showing name, address and birth date; f. Payor of transfer tax (donor, estate) Deed of Donation and Birth Certificate or any document showing name, address and birth date or Notice of Death, where applicable; g. Winnings Certification from Awarding Company / Person; h. Vehicle Registrant Cash Invoice or Official Receipt or Deed of Sale and Birth Certificate or any document showing name, address and birth date; i. Immigrant Passport and Visa; and j. Other Applicants Birth Certificate or any document showing name, address, and birth date. 2. Receive the taxpayer's duly accomplished application forms (BIR Form 1925 or TIN capture form and the applicable Registration BIR Forms 1901, 1902, 1903, or 1904) and relevant attachments; 3. Determine if taxpayer has an existing TIN by verifying from the Data Entry Program maintained for registered taxpayers as a first level of search. If not found, verify with the System Operations Division (SOD) of ISOS, e.g. by phone, fax, mail, or e-mail; cdlex 4. Issue pre-generated TIN if determined to be a new taxpayer; 5. If determined to be a new taxpayer or a new branch, perform any of the following: a. engaged in business encode all the registration data in the Data Entry Program in accordance with existing procedures; b. an employee forward registration forms received to ISOS for encoding; c. a one-time taxpayer forward registration forms to ISOS for encoding; and d. a new branch of an existing taxpayer forward registration forms to ISOS for assignment of branch code and encoding of registration data; 6. Record issued pre-generated TIN in the TIN Control Sheet and the Logbook of Pre-generated TIN Issued (Refer to Annex A) 7. Inquire if taxpayer opts to be issued a permanent TIN card; 8. If taxpayer opts to be issued a permanent TIN card: a. Refer to the concerned Revenue Officer for the issuance of an Official Receipt (BIR Form 51) for the payment of the cost of the permanent TIN card; b. Indicate Official Receipt (O.R.) number on the TIN capture form (BIR Form 1925); c. Inform taxpayer that said O.R. shall serve as the claim slip for the permanent TIN card; d. Forward TIN capture forms to ISOS for processing within one week from receipt thereof; e. Check received permanent TIN cards against transmittal list; and prcd f. Issue permanent TIN card to taxpayer upon the presentation of the relevant O.R. 9. If taxpayer does not opt for the permanent TIN card, issue the free cardboard TIN card after registration is completed; 10. Store unclaimed TIN cards for future retrieval; 11. Transmit to ISOS the TIN Control Sheet of issued pre-generated TINs not later than the 25th day following the close of the month. This shall be submitted whether or not a replenishment of pre-generated TIN is in order; 12. Maintain a minimum inventory of 2,000 pre-generated TINs for individuals and 500 for non-individuals; 13. Request from ISOS for replenishment of pre-generated TINs only when eighty percent (80%) of the total pre-generated TINs above the minimum inventory maintained by the RDO have been liquidated; 14. Require taxpayers like private corporations, government-owned and controlled corporations, partnerships, government agencies and instrumentalities, local government units, self-employed and professional individuals, estates and trusts and other juridical entities to attend the "Taxpayers' Briefing" before the release of their Certificates of Registration; 15. Conduct "Taxpayers' Briefing" at least every Friday; 16. Maintain a logbook of attendees for the "Taxpayers' Briefing"; and 17. Release certificates of registration to taxpayers after confirmation of their attendance at the "Taxpayers Briefing". LexLib B. The Taxpayer Service Section (TSS) of a computerized RDO shall: 1. Check the completeness, correctness and validity of presented application for registration forms and the relevant attachments; a. Self-employed individuals / Professionals / Single proprietor Birth Certificate or any document showing name, address and birth date; b. Employee Valid company ID or Certificate of Employment and Birth Certificate or any document showing name, address and birth date; c. Corporation/Partnership Certificate of Incorporation; d. Trust Trust Agreement; e. Payor of capital gains tax (stock, real estate) Deed of sale and Birth Certificate or any document showing name, address and birth date; f. Payor of transfer tax (donor, estate) Deed of Donation and Birth Certificate or any document showing name, address and birth date or Notice of Death, where applicable; g. Winnings Certification from Awarding Company/person; h. Vehicle Registrant Cash Invoice or Official Receipt or Deed of Sale and Birth Certificate or any document showing name, address and birth date; i. Immigrant Passport with Visa; and j. Other Applicants Birth Certificate or any document showing name, address and birth date. 2. Receive the taxpayer's duly accomplished application forms (BIR Form 1925 or TIN capture form and the applicable Registration BIR Forms 1901, 1902, 1903, or 1904) and relevant attachments; 3. Check for the existing TIN of the taxpayer: a. If Integrated Tax System (ITS) is available: 1. Against the Revenue Data Center (RDC) and National Office (NO) ITS databases by using as search parameters, Taxpayer Status "A" and "B"; and 2. If not found, verify further against ISOS TIN database; b. If ITS is not available: 1. Against the initial Masterlist of Registrants and subsequent monthly List of New Registrants as provided by the RDC; 4. Inquire if the taxpayer opts to be issued a permanent TIN card; 5. Issue system generated TIN, if taxpayer is determined to be a new taxpayer and opts to be issued a permanent TIN card; 6. Encode all registration data using the registration module of the ITS (Refer to Annex B for Job Aid); 7. Issue a pre-generated TIN which will be recorded in a logbook (Refer to Annex A), if determined to be a new taxpayer and ITS is not available or when the taxpayer opts to be issued the free cardboard TIN card; LexLib 8. Encode immediately issued pre-generated TIN through the registration module once the ITS becomes available. 9. If the taxpayer opts to be issued a permanent TIN card: a. Refer to the concerned Revenue Officer for the issuance of an Official Receipt (BIR Form 51) for the payment of the cost of the permanent TIN card; b. Indicate the Official Receipt (O.R.) number on the TIN capture form (BIR Form 1925); c. Inform taxpayer that said O.R. shall serve as the claim slip for the permanent TIN card; d. Forward TIN capture form ISOS for processing within three (3) days following the close of the week from receipt thereof; e. Check received permanent TIN cards against transmittal list; and f. Issue permanent TIN card to taxpayer upon the presentation of the relevant O.R.; 10. If the taxpayer does not opt for the permanent TIN card issue the free cardboard TIN card after registration is completed; prcd 11. Store unclaimed TIN cards for future retrieval; 12. Transmit to ISOS the TIN Control Sheet of issued pre-generated TINs not later than the 25th day following the close of the month. This shall be submitted whether or not a replenishment of pre-generated TIN is in order; 13. Maintain a minimum inventory of 2,000 pre-generated TINs for individuals and 500 for non-individuals; 14. Request from ISOS for replenishment of pre-generated TINs only when eighty percent (80%) of the total pre-generated TINs above the minimum inventory maintained by the RDO have been liquidated; 15. Require taxpayers like private corporations, government-owned and controlled corporations, partnerships, government agencies and instrumentalities, local government units, self-employed and professional individuals, estates and trusts and other juridical entities to attend the "Taxpayers' Briefing" before the release of their Certificates of Registration; 16. Conduct "Taxpayers' Briefing" at least every Friday; 17. Maintain a logbook of attendees for the "Taxpayers' Briefing"; and, 18. Release Certificates of Registration to taxpayers after confirmation of their attendance at the "Taxpayers' Briefing". C. Information Systems Operations Service (ISOS) shall: 1. Check for the non-computerized RDOs the existence of a taxpayer's TIN in the ISOS database; 2. Issue branch code to the new branch (which is located at a non-computerized RDO) of an existing taxpayer; 3. Encode registration data of employees, one-time taxpayers and new branches (from the non-computerized RDOs) of an existing taxpayer through the registration module of the ITS (Refer to Annex B for Job Aid); 4. Upload encoded registration data into the ITS database through the Data Entry Program received from the non-computerized RDOs in diskettes; 5. Supply and replenish RDOs with pre-generated TINs and cardboard TIN cards based on the procedures prescribed herein; 6. Supply RDOs with permanent TIN cards based on the procedures prescribed herein; and 7. Receive TIN Control Sheet from computerized and non-computerized RDOs. IV. REPEALING CLAUSE This order supersedes all revenue issuances and/or portions thereof inconsistent herewith. V. EFFECTIVITY This Order shall take effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue