Under the Tax Code of the Philippines and the guidelines of the Bureau of Internal Revenue, PRC licensed practicing professionals such as lawyers, certified public accountants, and doctors not employed by an organization fall under the self-employed category of taxpayers. Hence, they are required to secure a BIR registration and pay appropriate taxes if they are engaged in the practice of their professions.
This article provides a simplified albeit comprehensive guide to BIR registration for self-employed PRC licensed professionals, along with the list and description of requirements.
The General Requirements for BIR Registration for PRC Licensed Professionals
Make sure you have the following general documentary and identification requirements before heading to BIR to register as a self-employed PRC licensed professional:
• PRC ID: Valid Professional ID card issued by the Professional Regulation Commission. This is needed for all government and non-government transactions.
• Tax Identification Number or TIN: If you were previously employed, you are more likely to have a TIN already. In case you still have one, you can go to your BIR Revenue District Office or RDO to secure one.
• Professional Tax Receipt or PTR: A PTR is similar to an occupational tax receipt and community tax certificate. You can get this at the Treasurer’s Office of your Municipal Hall or City Hall. Cost is PhP 300.00. Prepare a photocopy of the PTR.
• Notarized Affidavit: There is a need to write an affidavit or sworn statement explaining the nature of your profession and an overview of your rates. The affidavit also needs to be notarized. A notary public can help you write the affidavit. Cost varies from PhP 150.00 to PhP 250.00.
The Steps in BIR Registration for PRC Licensed Professionals
Note that the following are applicable for those who DO or DO NOT have a Tax Identification Number:
• Step 1: Get a PTR at your Municipal Hall or City Hall. You will need to present your PRC ID for identification. Once secured, have the PTR photocopied.
• Step 2A: Secure your TIN by going to the BIR RDO of your present residence, accomplishing the BIR Form 1901, and submitting the form together with your PTR and affidavit to the officer in charge.
• Step 2B: If you already have a TIN from previous employment, you need to go to the BIR RDO of your previous employer to have a transfer of TIN to the BIR RDO of your present address of residence.
• Step 3: Once you have already secured a TIN, you need to get a Certificate of Registration or COR. This involves accomplishing BIR Form 0605. Note that this is a payment form. You need to accomplish this and pay an amount of PhP 500.00 to any Authorized Agent Banks. Once done, have the form and receipt photocopied in triplicate each.
• Step 4: Go back to your BIR RDO and present BIR Form 0605 to a relevant officer. From hereon, they will have your COR printed and stamped. Once you secured a COR, you have 30 days to register official receipts or invoices, and books of accounts. Take note of Step 5 for this.
• Step 5: You will also need to secure an Authority to Print or ATP by accomplishing BIR Form 1906 and register your books of accounts by accomplishing BIR Form 1905. Once accomplished, present these forms together with the paid BIR Form 0605 or COR, photocopied PTR, and affidavit. Note that securing an ATP means registering, ordering, and applying for official receipt or invoice. This process also involves buying journal books or books of accounts and having them registered.
A Note on the Registration Process for PRC Licensed Professional
The entire process can be overwhelming because they are relatively not straightforward. You would have to go back and forth to your BIR RDO, especially if you forgot all the documentary requirements. Furthermore, depending on your BIR RDO, it could take you one to three days to finish your BIR registration. Note that the entire process is also almost similar for freelancers or non-licensed professionals.
As a reminder, the following are the documentary requirements:
• Pre-BIR Registration: Valid PRC ID, Tax Identification Number or TIN, Professional Tax Receipt or PTR, and notarized affidavit.
• During BIR Registration: BIR Form 1901 (Application for Registration), BIR Form 0605 (Payment form for Certificate of Registration), BIR Form 1906 (Authority to Print Receipt/Invoices), and BIR Form 1905 (Application for Registration Information Update/Correction/Cancellation).