RMO No. 26-2009 — Prescribes the policies and procedures in the implementation of the eRegistration System (Enhanced eTIN) Digest | Full Text | Annex A | Annex B

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF I TER AL REVE UE Quezon City July 10, 2009 REVE UE MEMORA DUM ORDER O. _26-2009_ SUBJECT : Prescribing Policies and Procedures in the Implementation of the ` ` eRegistration System (Enhanced eTIN) TO : All Internal Revenue Officers and Others Concerned I. BACKGROU D: The existing eTIN System is enhanced to cater to the growing demands of the public for an on-line facility for TIN issuance, and hereby renamed to eRegistration System. The improvements on the systems include: a) Security features that properly identify the following category of users: i. Self-employed individuals such as Single Proprietors and Professionals, and Mixed Income Earners (e.g. employee and single proprietor and/or professional at the same time); ii. Employers applying TINs in behalf of their employees; iii. Authorized Government Agencies and Instrumentalities (GAIs) for Executive Order (EO) No. 98 applicants. b) Additional registration services such as on-line payment facility for payment of the Annual Registration Fee (ARF) and Generation of the Certificate of Registration (COR). c) A more user-friendly and effective eRegistration System. II. OBJECTIVES: This Order is issued to: 1. Prescribe policies and procedures on the use of the eRegistration System; 2. Provide guidelines and requirements for third party users of the system namely BIR-Registered employers and authorized GAIs.

III. POLICIES: 1. For purposes of this Order, the following shall be identified as users of the eRegistration System: i. Self-employed Individuals: 1. Single Proprietor � a natural person engaged in trade or business 2. Professional � a natural person engaged in the performance of service for others for a fee 3. Mixed Income Earner � employee deriving income from compensation who is also a single proprietor and/or practicing his/her profession at the same time. ii. Third Party users: 1. Employers applying for TINs in behalf of their employees. 2. Authorized GAIs applying TINs in behalf of taxpayers transacting with their office pursuant to EO No. 98, which requires that a TIN be issued to parties transacting with government agencies. The GAI is identified as an entity responsible for processing permits, licenses, clearance, official paper or documents. 3. Other Authorized Users who are granted access to the System by the BIR. iii. Revenue District Office (RDO) users: 1. Taxpayer Service Section (TSS) Personnel of: a. Non-computerized Revenue District Offices (RDOs) to generate TIN, encode pre-generated TINs and generate reports from eRegistration System. b. Computerized RDOs to generate reports from eRegistration System. 2. Personnel detailed in job fairs in coordination with the Local Government Units (LGUs) and other parties. 2. Issuance of TIN from eRegistration System shall be free of charge. 3. The eTIN module in the eRegistration System shall only be available for purposes of securing TIN for individual taxpayers without TINs. 4. Applicants of TINs via the internet must access the official web site of the BIR at http://www.bir.gov.ph. and click the eReg icon.

5. The eRegistration System shall automatically determine the RDO Code based on the registered address indicated by the registrant in their on-line application. 6. On-line applicants may verify the newly issued TIN from the RDO on the following day after its generation. 7. Enrolled Employers and authorized GAIs shall be responsible for safeguarding their respective usernames and passwords. 8. The procedures under Section 3(D) of RR No. 11-2008 on Issuance of TIN Cards shall be observed. 9. Persons who use the eRegistration System for any purpose other than as intended will be subject to investigation and shall be dealt with accordingly. 10. The eRegistration System shall automatically classify the taxpayer type of the taxpayer with more than one taxpayer type according to the hierarchy as follows: 1) Single Proprietorship 2) Professionals 3) Local Employee 4) Executive Order No. 98 11. Taxpayer Assistance Service (TAS) thru Taxpayer Service Programs & Monitoring Division (TSPMD) shall evaluate the application for access request from GAIs with recommending approval of the concerned RDO. 12. Security Management Division (SMD) shall process access request of authorized GAIs endorsed by TSPMD for E.O. 98 applicants. 13. For Self-employed individuals the following polices shall apply: i. They must have their own valid email account to which the TIN and other instructions to complete the registration shall be sent. The BIR confirmation link sent through email will expire after three (3) days it is sent or after it has been clicked. ii. After issuance of TIN, self-employed individuals are required to pay the ARF. The ARF may either be paid on-line thru the link sent by email, or thru Authorized Agent Banks (AABs) located within the RDO indicated on the email notification, or through text using G-cash, or to the Revenue Collection Officer or duly authorized Treasurer of the City or Municipality or any other mode of payments authorized by the Bureau.

iii. The on-line Payment facility shall also be available to existing registered business taxpayers (individual and non-individual). Payments of ARF made after the deadline (on or before January 31 of every year) shall be settled with the RDOs where the TIN is registered subject to penalties under existing revenue issuances. iv. The print-out of the eReg Confirmation Page and/or BIR Form 1901 and proof of payment of the ARF (BIR Form 0605) shall be submitted to the RDO for preparation of COR. v. The COR shall be issued to the taxpayer after the taxpayer has attended the briefing or orientation conducted by the RDO for new business registrants. vi. Failure of new registrants classified as Single Proprietors and Professionals to pay the Registration Fee and /or complete the Registration process shall be subject to verification thru the Tax Compliance Verification Drive (TCVD) activities of the RDO. 14. For employers registered as eREG users: i. The eRegistration System shall be available for Registered Employers securing TIN in behalf of their employees. ii. Employers shall accomplish on-line form for registration as Employer User. iii. Only one user shall be enrolled in eRegistration System per Employer. iv. Employers under the Large Taxpayers (LT), Taxpayer Account Management Program (TAMP) corporations and other Electronic Filing and Payment System (eFPS) registered employers are required to use the eRegistration System. v. Other Employers may also avail of the use of eRegistration System provided the employer status in the ITS is active as Withholding Agents for Compensation Earners. vi. In case of multiple concurrent employers, the employee shall apply for his TIN thru his main employer. vii. It shall be the duty of the Employer to verify whether their employees have existing TINs and all declarations of the employee in their application forms are duly supported particularly their complete names, birth dates and exemptions claimed before they apply TIN in behalf of their employees.

viii. Individuals earning purely compensation income cannot apply for their own TIN on-line. Such employees shall secure their TIN through their respective employers. ix. In case of unavailability of enrolled user, the account can be transferred to a new user by modifying information of enrolled user on-line. Email notification shall be sent to employer with information that user details have been updated. 15. For authorized users from GAIs: i. This system is made available to GAIs in the implementation of EO No. 98 which requires that a TIN be issued to parties transacting with government agencies. The GAI is identified as an entity responsible for processing permits, licenses, clearance, official paper or documents. ii. GAI shall accomplish BIR Form 0044 and submit the same together with the Letter of Intent (LOI) indicating its purpose for access on the eRegistration System signed by the Head of Office, identifying the details of Authorized User for the GAI to the RDO where it is registered. The LOI shall include the following details: 1. TIN of GAI 2. Last Name / First Name / Middle Name of Authorized User 3. Job Designation of Authorized User 4. Purpose of Request 5. Valid email account of Authorized user 6. IP Address of the PC dedicated to access the eRegistration System iii. GAI should verify whether their applicants have existing TINs before they apply for the TIN on behalf of such applicants. All declarations of the applicant in their application forms must be confirmed by the GAI and duly supported particularly their complete names and birth dates. iv. Only one user shall be authorized in accessing the eRegistration System per GAI. Authorized users from GAI shall be responsible for maintaining the confidentiality of their username and password and for all the activities that occur under their account. v. In case enrolled user has been separated from employment or changed work assignments, GAI shall request for cancellation / revocation of the account and enroll new user.

vi. To request for change of user account, GAI shall submit BIR Form 0044 to its concerned RDO. Email notification shall be sent to GAI with information that user details have been updated. 16. For Authorized RDO Users: i. Existing policies on grant of access to BIR systems shall be observed. ii. The TSS personnel of non-computerized RDOs shall only use the eRegistration System for: a. Encoding taxpayers' details issued with Pre-generated TINs; b. Processing new TIN applications for self employed individuals such as single proprietor and professional, mixed income earner, employers applying TIN for their employees, and EO No. 98 applicants; c. Updating / modifying details of TP in their on-line application; d. Printing or saving the Confirmation Page and copy of encoded BIR Forms 1901, 1902 or 1904T with the taxpayer's data to a local PC; and e. Generate COR upon receipt of the ARF together with all supporting documents for the registration of business. iii. Taxpayer information in the ITS shall be modified or corrected by the RDO (TSS), if any, based on the print-out of the on-line application form submitted by the taxpayer. iv. The RDO shall generate the reports on-line from the eRegistration System every end of the month and/or whenever the need arises to determine and identify taxpayers who obtained their TIN on-line. IV. PROCEDURES: A. SELF-EMPLOYED I DIVIDUALS: 1. Access the BIR official website (http://www.bir.gov.ph) and click on eReg icon.

2. Complete the Basic Taxpayer Information on the eReg homepage and submit on-line. The system shall verify the supplied details from the BIR database. 3. In case the taxpayer has an existing TIN, the system shall automatically prompt the applicant that he/she has already an existing TIN. For TIN Verification, they may call the BIR Contact Center at 981-8888 or visit the RDO displayed on the message prompt. 4. If no existing record is found in the BIR database, the applicant shall answer set of questions to determine its taxpayer type then, the system will automatically prompt the applicant to check his/her registered email address for the BIR confirmation link to continue the TIN application process. 5. Click the BIR Link sent via e-mail and accomplish the online registration form. 6. Once the appropriate BIR Form is accomplished, the system shall generate the taxpayer's TIN including the RDO Code based on the registered address indicated in their on-line application. The TIN will be sent to the applicant thru his / her registered email address with the accomplished BIR Form 1901 as attachment. 7. Print / Save the eReg Confirmation Page and/or BIR Form 1901 for submission to RDO indicated on the email notification for preparation of the COR. 8. After the issuance of TIN, the taxpayers will be directed to the payment module of registration fee thru an email link. The applicant may accomplish the BIR Form 0605 online. Print/Save the Payment Form, for presentation to RDO where the taxpayer is registered. 9. If no payment was made on-line, applicants may opt to pay the ARF through any of the AABs located within the RDO indicated on the email notification, or through text using G-cash, or to the Revenue Collection Officer, or duly authorized Treasurer of the City or Municipality or thru other mode of payments authorized by the Bureau. 10. Proceed to RDO indicated on the email notification and submit eReg Confirmation Page and/or BIR Form 1901 as well as the proof of payment for preparation of COR. 11. Attend briefing or orientation conducted by the RDO to be informed of the basic taxpayers rights and obligations and get the COR accordingly.

B. THIRD PARTY USERS: 1. EMPLOYERS a. Access the BIR official website (http://www.bir.gov.ph) and click on eREG icon. b. Click on the "Create Employer User Account" and submit for enrollment to access the eRegistration System. c. Only one user shall be enrolled in eRegistration System per Employer. d. For those employers which application is disapproved/rejected, the system will prompt a message instructing them to proceed to the RDO where they are registered for manual verification of their application. e. Employers who successfully enrolled and are authorized to access the eRegistration System shall enter its valid username, password and accomplish Basic Taxpayer Information from the eREG homepage. f. The eReg system shall verify the supplied information in the BIR database. In case the employee has an existing TIN, the system shall automatically prompt stating that the employee has already an existing TIN. For TIN Verification, they may call the BIR Contact Center at 981-8888 or visit the RDO displayed on the message prompt. g. Enrolled employers shall accomplish the online registration form in behalf of their employees. h. Once the appropriate BIR Form is accomplished, the system shall generate and display on screen the employee's TIN and the RDO Code based on the employer's business address. i. Print/Save the eReg Confirmation Page and BIR Form 1902 for submission to employer's RDO together with the required attachments. j. Submit request for issuance of TIN Cards of employees in batches of twenty (20) employees to their RDO using BIR Form 1905, attaching thereto the list of names of their employees requested for TIN card issuance.

2. AUTHORIZED GOVERNMENT AGENCIES AND INSTRUMENTALITIES (GAIs) a. GAI shall submit BIR Form 0044 (Annex "A") together with LOI indicating its purpose for access on the eRegistration System to RDO where it is registered. The LOI shall include the following details: 1. TIN of GAI 2. Last Name / First Name / Middle Name of Authorized User 3. Job Designation of Authorized User 4. Purpose of Request 5. Valid email account of Authorized user 6. IP Address of the PC dedicated to access the eRegistration System b. GAIs that is duly approved and are authorized to access the eRegistration System shall be given its valid username and password via email notification. c. Authorized GAIs shall access the BIR official website (http://www.bir.gov.ph), click on eREG icon, and click on Authorized User Login found on the left portion of eRegistration Homepage. d. After successful login, apply for TINs for EO 98 applicants, user shall enter the Basic Taxpayer Information of the applicant. The eReg system shall verify the supplied information in the BIR database. In case the applicant has an existing TIN, the system shall automatically prompt stating that the taxpayer has already an existing TIN. For TIN Verification, they may call the BIR Contact Center at 981-8888 or visit the RDO displayed on the message prompt. e. Authorized GAIs shall accomplish the online registration form. f. Once the appropriate BIR Form is accomplished, the system shall generate and display the TIN including the RDO Code based on the registered address indicated in the on-line application. g. GAI will have the option to save and/or print copy of BIR Form 1904T for each applicant after successful TIN issuance. However, this feature will no longer be available once they process another TIN application or after ending the session. h. Advice the E.O. 98 applicants to proceed to the RDO indicated in the on-line application for issuance of TIN Card.

C. RDO USERS: a. Receive system generated eReg Confirmation Page and/or accomplished BIR Form together with the required attachments as prescribed under existing regulations. b. Validate the supplied information, effect changes, if any, on the information submitted on line and complete the taxpayer's registration such as ATC, Tax types, etc. i. For computerized RDOs, updates/changes shall be made in ITS once eREG data has been uploaded. ii. For non-computerized RDOs, updates/changes shall be done in eREG System c. For self-employed individuals e.g. Professional and Single Proprietor who did not proceed to online payment of registration fee, require the taxpayer to pay his/her registration fee at any AABs using BIR Form 0605 (Payment Form), or through text using G-cash, or to the Revenue Collection Officer, or duly authorized Treasurer of the City or Municipality. d. Prepare COR upon verification of the uploaded data of the registrant in ITS and upon submission of proof of payment together with the required attachments as prescribed under existing regulations. For Non-ITS RDOs, COR shall be generated from eRegistration System. e. Issue COR after the taxpayer has attended the briefing or orientation for new business registrants. f. Process TIN cards following the procedures under Section 3(D) of Revenue Regulation (RR) No. 11-2008. g. For processing of applications for GAI Authorized Users, the following procedures shall be observed: i. RDO shall receive accomplished BIR Form 0044 with LOI from GAI applicants and prepare weekly list of GAIs applicants for eTIN facility using Annex "B" and submit to the Taxpayer Assistance Service (TAS), ATTN: Taxpayer Service Programs and Monitoring Division (TSPMD) for processing and evaluation. ii. TSPMD shall endorse the prepared list to Security Management Division (SMD) for activation of the

account. SMD shall submit report on the action taken thereon to TSPMD. iii. SMD shall notify authorized GAIs via email of the status of access requests, copy furnished the RDO where the GAI is registered. h. Generate on-line the following reports every end of the month and/or whenever the need arises from the eRegistration System: 1.1 Report of eReg Business Registrants who got TIN but did not proceed to RDO 1.2 List of TINs generated from eREG System: 1.2.a List of Employees who were issued TINs thru their Employers 1.2.b. Report of eREG Registrants per RDO 1.2.c. Report of eREG Registrants per taxpayer type 1.3 Report of ePayment Transactions thru eRegistration System 1.4 List of Registered Authorized Users and Employers per RDO V. PE ALTY PROVISIO S: 1. A penalty of P1,000.00 for every instance but not to exceed P25,000.00 shall be imposed on eRegistration System users who supplied erroneous / invalid information. 2. Penalty provided under Section 236 and Section 275 of the Tax Code are likewise reiterated in this Order; to wit: "SEC. 236. Registration Requirements. - Only one Taxpayer identification Number (TIN) shall be assigned to a taxpayer. Any person who shall secure more than one Taxpayer Identification Number shall be criminally liable under the provision of Section 275 on 'Violation of Other Provisions of this Code or Regulations in General'. SEC. 275. Violation of Other Provisions of this Code or Rules and Regulations in General. � Any person who violates any provision of this Code or any rule or regulation promulgated by the Department of Finance, for which no specific penalty is provided by law, shall, upon conviction for

each act or omission, be punished 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." VI. REPEALI G CLAUSE: All revenue issuances or portions thereof inconsistent herewith are hereby repealed or amended accordingly. VII. EFFECTIVITY: This Order shall take effect immediately. (Original Signed) SIXTO S. ESQUIVIAS IV Commissioner of Internal Revenue H-2 PDV _________ NMA _________ EBQ _________ LCG _________ AAP _________ CACR _________ ARC _________ ASS _________ MLDR _________ TGC _________ ESM _________ ABS _________ RAA _________