RMC No. 60-2020 — Notifies persons conducting business through any forms of electronic media regarding their tax obligations and the registration of their business with the BIR

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE NTTTY

BUREAU OF INTERNAL REVENUE Quezon City JUN 1 0 2023 0M

June 1, 2020 RECORDS MGT. DIVISION

REVENUE MEMORANDUM CIRCULAR NO._(0- 20 20

SUBJECT Obligations of Persons Conducting Business Transactions Through Any Forms

of Electronic Media, and Notice to Unregistered Businesses

TO All Revenue Officers, Employees and Others Concerned

This Circular is issued to give due notice to all persons doing business and earning income in

electronic platforms and media, and other digital means, to ensure that their businesses are any manner or form, specifically those who are into digital transactions through the use of any

registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are

involved such as the payment gateways, delivery channels, internet service providers, and other tax compliant. These shall include not only partner sellers/merchants, but also other stakeholders

facilitators.

In the registration of the business/es, please refer to the attached Annex A of this Circular for the basic guidelines. All those who will register their business activity and/or update their registration

they are encouraged to voluntarily declare their past transactions subject to pertinent taxes and pay the taxes due thereon, without corresponding penalty, when declared and paid on or before the said status not later than July 31, 2020 shail not be imposed with penalty for late registration. Likewise, date. All those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/unpaid taxes shall be imposed with the applicabte penalties under the law, and existing revenue rules and regulations.

Further, the newly-registered business entities, including the existing registrants, are advised to comply with the provisions of the Tax Code, as amended, and other applicable tax revenue issuances, particularly on the following:

1. Issuance of registered Sales invoice or Official Receipt for every sale of goods or

services to clients/customers/buyers; 2. Keeping of registered Books of Accounts and other accounting records of business

3. Withholding of taxes, as applicable; 4. Filing of required tax returns; and transactions;

5. Payment of correct taxes due on time.

All internal revenue officers are enjoined to give this Circular a wide publicity as possible

taeal

CAESAR R. DULAY Commissioner of Internal Revenue

0 35362

(RMC YD~3920) Annex A

having jurisdiction over the place where the Head Office is located or over the place of residence of the individual taxpayer. BASIC REGISTRATION GUIDELINES In generai, the registration and its updates are done in the Revenue District Office (RDO)

1. Persons doing business ontine with no TIN yet -- Register business following existing 2 Persons doing business online who already have TiNs but the business is not yet policies in securing TIN and registration of business.

a. Individuai-- whether the TIN was issued due to ONETT or employment, register the b. Non-individual -- Update business registration, using BiR Form 1905, details to registered - business, using BIR Form 1901, with the RDO having jurisdiction over place of jurisdiction over the place of residence. The concerned RDO shall effect the update of taxpayer classification (e.g., employee to sole proprietor, ONETT to sole business, if with physical establishment.Otherwise, with the RDO having proprietor); and include the business activity of online selling. inctude additional business activity (online seiling).

compliance with the requirements as follows: The Certificate of Registration (COR) shalt be issued to those engaged in business upon

2. Present any government- 4. Payments to 1. Fill up Registration Form 3. Other documents required issued iD that is readable Business Registrant Officer and untampered Requirements the New e.g. Passport, Driver's License, (2 originals) etc. DTt business name) Registration Fee (P500.00) BIR Form No. 1901 and Certificate toose Birth Individuals Documentary Certificate, (if with Registration Fee (P500.00) and Articles of Incorporation; or As applicable: SEc Certificate loose Documentary Stamp Tax BIR Form No. 1903 Philippines (2 originals) of Incorporation; or SEc Certificate of Recording; or License to Do Business in the Articles of Partnership Non-individuals

(NBRO) posted in the New Business Registrant E Stamp Tax for affixture to COR (P30.00) for affixture to COR (P30.00)

5. Secure BIR Printed Receipts (BPI) or the Authority To Print (ATP) Counter (NBRC) (BPR)/ BiR Printed Invoices BPR/BPI - depending on the printers printing cost per RDO or ATP -- own choice of printer from the list of accredited BPR/BPI - depending on the from the list of accredited printers ATP -- own choice of printer printing cost per RDO or

the BIR-received Registration Form (1901 or 1903), Notice to Issue Receipt/Invoice (NIRI) BPR/BPI or ATP (per taxpayer's choice), and the proof of payment of registra Upon completion of the above, the taxpayer shall receive, aside from the COR, a copy of BUREAU OF INTERNAL REVENUE

NnnTYm

JUN 1 0 2026 :20.0M M RECORDS MGT.DIVISION