Prescribing the Issues of Taxpayer Identification Number (TIN) to All Taxpayers and Qualified Applicants and the Mandatory Incorporation of TIN Government Forms, Papers or Documents

1999 REVENUE REGULATIONS NO. 11-99 SUBJECT : Prescribing the Issues of Taxpayer Identification Number (TIN) to All Taxpayers and Qualified Applicants and the Mandatory Incorporation of TIN Government Forms, Papers or Documents TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Scope . Pursuant to the provisions of Section 236 in relation to Section 244 and 245 of the Tax Code of 1997, this Regulations is hereby promulgated to prescribed the requirements for the issuance and use of the T axpayer Identification Number (TIN) as mandated by Executive Order No. 98, to define violations thereof and to provide penalties for non-compliance therewith. SECTION 2 . Policies . This Regulations is intended to improve revenue generation by enhancing compliance with the laws of the land pertaining to the imposition and collection of taxes through the efficient monitoring, via the TIN system, of transactions which pass through any government office. Toward this end, the following policies are hereby adopted: A. The mandatory incorporation of TIN in all government forms for permits, license, clearance and other official papers or documents. B. The BIR shall, within two (2) years from the promulgation of this Regulations, issue a permanent TIN card to all taxpayers or qualified applicants therefor unless they opt for the free cardboard TIN card. C. Consistent with the idea that taxpayers are entitled to the best of service from the government, each government unit/office concerned shall, under rules or policies promulgated by the office concerned, accord priority or preferential action to any person presenting a duly issued TIN, e.g., express lane. D. To ensure compliance with this Regulations, violations of the provisions thereof shall be subject to fines and penalties. E. The BIR shall make use of any information obtained via the TIN system to, among others, monitor if correct taxes have been paid on taxable transactions, build up third party information, update its data base of taxpayers, and detect non-filers or stop-filers. 3 . TIN Application . All taxpayers required to make, render or file a return, statement or other document with the BIR shall apply for the issuance of the TIN. These include new, taxpayers and persons required to present TIN Cards to government agencies by virtue of E.O. 98 and this Regulations. The application for the issuance of TIN shall be filed with the Revenue District Office having jurisdiction over the residence, place of office or place of business of the applicant. 4 . Required Documents . Applicants shall submit their TIN application form together with photocopies of the following documents: 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. 5 . Description of the TIN Card . The permanent TIN Card shall contain a computer digitized image (taxpayer picture or company logo), TIN number, name of taxpayer or company, registered address, birth date or date of incorporation, date of issue and signature of taxpayer or signature of duly authorized representative, in case of juridical persons. The cardboard TIN Card shall contain the same information as the permanent TIN Card except for the computer digitized image. The TIN number shall comprise a 9 to 12 digit numeric code wherein the first nine digits is the TIN proper and the last three digits is the branch code (in case of business entities). Except for the form in which it is issued, a TIN Card, whether permanent or cardboard, carries the same significance for the purpose of this Regulations. 6 . Voluntary Payment of Processing Fee for the Permanent TIN Card . The cost of processing the TIN Card shall be charged and collected from the taxpayer/applicant concerned and which shall be paid upon the filing of the application therefor. Provided, however, that those who have previously filed their application prior to the issuance of this Regulations and who wish to be issued the permanent TIN Card shall pay the fee upon the issuance thereof. Provided, finally, that a taxpayer/applicant who, for any reason, is unable or does not want to pay for the cost of the permanent TIN Card, shall be issued the cardboard TIN Card at no cost. LLphil 7 . TIN to be Indicated in Government Forms . Government agencies and instrumentalities, GOCCs, and Local Government Units (LGUs) shall provide a space for the TIN in all registration and transaction forms or documents and shall require all applicants for government permit, license and official papers to indicate their duly issued TIN thereon. As proof of possession of a valid TIN, the government agency may require the presentation of the TIN Card. Provided, however, that it shall be sufficient for those who do not yet have TIN Cards to present his/its application for TIN duly stamped by the BIR (Form 1901, 1902, 1903 & 1904). After the lapse of six (6) months from the date of the effectivity of this Regulations, no permit, license, clearance or official documents shall be released to an applicant without a duly-issued TIN or without proof of application therefor. In particular, TIN shall be indicated in, but not limited to, the following documents: a) Sugar quedans, refined sugar release order or similar instruments to reflect the TIN of the owner or seller of the sugar, b) Domestic bills of lading to reflect the TINs of the ships and consignees of commercial value shipment; c) Documents to be registered with the Registry of Deeds to reflect the TINs of persons who are parties to the real property transactions; d) Registration certificates to reflect the TINs of owners of transportation equipment by land, sea or air; e) Building construction permits to reflect the TINs of owners and contractors of buildings and civil works; f) Other documents such as the following: i) Official receipts, invoices, vouchers required, to be issued by persons engaged in business d non-governmental organizations, including non-stock, non-profit organizations or foundations; ii) Documents of transfer of untitled properties for issuance of new tax declarations by the concerned Assessor's office; iii) Documents to be filed or registered with the Securities and Exchange Commission; iv) Application to open bank account and application for loan with banks, financial institutions and other financial intermediaries; v) Application for business license with the Department of Trade and industry (DTI) or franchise from the Land Transportation Office (LTO), Land Franchising Regulatory Board, Maritime Industry Authority and other government regulatory authorities; vi) Application for accreditation with the Department of Education, Culture and Sports and other agencies; vii) Application for tax exemption and registration as donee institution; viii) Application for tax clearance from internal revenue tax liabilities; ix) Application for business or travel passport with the Department of Foreign Affairs of persons who are gainfully employed; x) Application for Community Tax Certificate with a local government unit of persons who are gainfully employed; xi) Bid forms for government contracts; xii) Such other documents similar to any of the above or as may hereafter be required. 8 . Violations and Penalties . Unauthorized production of TIN Cards or the use of spurious TIN by any person shall be subject to criminal prosecution under Articles 171 and 172 of the Revised Penal Code. Only one TIN shall be assigned to a taxpayer. Any person who secures and/or uses more than one TIN shall be criminally liable and shall be punishable by a fine of not more than One thousand pesos (P1,000.00) or suffer imprisonment of not more than six (6) months, or both pursuant to Section 275 of the Tax Code of 1997. Any government employee or official who shall, knowingly or by omission or negligence, violate or permit the violation of the provision of this Regulations shall be subject to the same penalty, aside from the administrative or disciplinary sanctions that may be imposed by the government office concerned. casia In particular, the following acts or omissions are covered by the penalties herein imposed: a) Neglect to file TIN applications on or before the prescribed period by taxpayers required under existing regulations or future issuances; or b) Falsity, misdeclaration or untruthful narration of material facts in the TIN application; or c) Non-use of TIN in any transaction with the BIR or other government offices; or d) Failure to notify the BIR in case of loss of TIN Card. e) Use of TIN other than that assigned to the taxpayer or use of spurious TIN in any transaction with the BIR or other government office; or f) Unauthorized printing of TIN Cards or possession of spurious TIN Cards; or g) Use of double or multiple TINs by the same taxpayer or somebody authorized by him. 9 . Attempt to evade or defeat tax . Whenever the abovementioned violations are done with a willful attempt to commit fraud or to defeat any tax imposed by the NIRC, the offender or taxpayer concerned shall upon conviction, be liable to the penalties prescribed under Section 254 of Title X of the Tax Code of 1997. 10 . General Provisions . In the case of corporations, partnerships or associations, the penalty shall be imposed on the president, partner, general manager, branch manager, treasurer, officer-in-charge and/or employees responsible for the violation. SECTION 11 . Transitory Provisions . Government offices are hereby given a period of six months counted From the date of the effectivity of these Regulation within which to put in place the system requirement for TIN, after the expiration of which the penal liabilities cited in the preceding section shall be mandatorily imposed. SECTION 12 . Repealing Clause . All rules and regulations and other revenue issuances or parts thereof inconsistent with the provisions of these regulations are hereby amended accordingly. cdtech SECTION 13 . Effectivity . These Regulations shall take effect after fifteen (15) days from publication in any newspaper of general circulation. (SGD.) EDGARDO B. ESPIRITU Secretary of Finance Recommending Approval: (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue