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Starting your own business? Don’t forget to register it with the BIR Form 2303 so you can pay taxes and have your own business TIN. This article will show you how.
Table of Contents
- What is the purpose of BIR Form 2303?
- Why should you get a COR?
- How can I get BIR Form 2303/Certificate of Registration?
- How do I renew my BIR Form 2303?
What is the purpose of BIR Form 2303?
The BIR Form 2303, also called Certificate of Registration (COR), is an official document that gives the holder the legal rights to operate a business in the Philippines. It is proof that a business is registered as a taxpayer with the Bureau of Internal Revenue (BIR).
The BIR Certificate of Registration provides a corporation, partnership, or cooperative with a business TIN (Taxpayer Identification Number). However, self-employed and mixed-income individuals such as freelancers, professionals, and single proprietors are not issued a separate business TIN. Instead, their existing personal TIN is the one printed on their COR and used in transactions with the BIR, other government agencies, and private institutions like banks.
The COR also serves as a reference for the types of taxes that a taxpayer is required to pay (e.g., income tax, percentage tax, value-added tax, withholding tax, etc.), including their due dates.
Why should you get a COR?
You should register your business not only because it’s required but also advantageous to your enterprise or career. Here are the reasons to register with the BIR:
1. BIR registration is mandatory for businesses.
As soon as you start a business or self-employment, you must secure a BIR Form 2303 to comply with the law. It’s a requirement for a business to legally operate in the Philippines.
The BIR imposes penalties to unregistered businesses, with a fine of Php 5,000 to Php 20,000 and a jail term of six months to two years.
2. A COR is required for various financial transactions.
To expand and raise funds for your business, you’ll need to open a bank account, get loans and/or credit cards, acquire a lease, apply as a product distributor/dealer, bid as an accredited contractor/supplier with a company or government office, or perform any other financial transactions.
In such dealings, the BIR Certificate of Registration is one of the business documents required from self-employed individuals, entrepreneurs, and corporations.
There’s no accepted substitute for the COR. So if you can’t submit this document, don’t expect to get approval for whatever you’re applying for. This will only raise doubts about the legitimacy of your business, and nobody wants to deal with an illegal business.
3. Your business will be seen as legitimate and trustworthy.
A registration certificate from the BIR gives you peace of mind knowing that your business is legitimate in the eyes of not just the government but also your customers, suppliers, investors, and other stakeholders.
With your COR prominently displayed in your place of business, customers get the impression that your business is worthy of their trust and patronage. It makes them feel safe doing business with you because your operation is licensed and authorized by law.
4. It helps in your marketing efforts.
Having your business registered with the BIR gives you the confidence to promote it online and offline. It’s also a great idea to indicate in your business profile that you’re registered with the BIR and DTI or SEC. If your brand reaches more people, the more customers you attract and retain.
How can I get BIR Form 2303/Certificate of Registration?
File your application for registration with the BIR using the BIR Form 1901 at the Revenue District Office (RDO) having jurisdiction over your business address or home address.
Aside from submitting supporting documents for filing the BIR Form 1901, you’ll be required to pay an annual registration fee of Php 500, certification fee of Php 15, and documentary stamp tax of Php 15.
Once you’ve completed the registration process, you’ll be issued a BIR Form 2303 along with other registration documents.
How do I renew my BIR Form 2303?
The annual registration fee (ARF) is the one that must be renewed every year, not the BIR Form 2303. BIR registration is done only once (when you start your business or self-employment), and the COR issued to you is for permanent use until you decide to replace it.
This means you don’t get a new COR every year. Rather, you renew the ARF every year by filing the BIR Form 0605 (Payment Form) through the eBIRForms facility and paying Php 500 via any BIR-accredited payment channel.
Go back to the main article: An Ultimate Guide to Philippine Tax: Types, Computations, and Filing Procedures