BIR Registration and Tax Compliance for Online Businesses

Learn how to register your online business with the BIR in the Philippines.

Registering your online business with the Bureau of Internal Revenue (BIR) isn’t solely about regulatory compliance. It’s also about boosting customer confidence and enhancing your credibility. 

In this article, we’ll walk you through the steps for registering your online business, touching on the different requirements and points of note to ensure the process is as efficient and seamless as possible. 

Prepare the Requirements

Below are the documentary requirements for registering your online business with the BIR:

  • Accomplished BIR Form 1901 (Two copies)

  • Any government-issued ID (Driver’s License, Passport, National ID, SSS ID, etc.)

  • Department of Trade and Industry (DTI) Certificate of Registration (If with business name)

  • Annual Registration Fee (PHP500)

  • Documentary Stamp Tax (PHP30)

If you haven’t registered with the DTI yet, you can do so on their online registration page. Meanwhile, the requirements above are for sole proprietors. For partnerships and corporations, you can check the Revenue Memorandum Circular No. 60-2020.

Steps for BIR Registration

There are two ways you can go about this. We recommend doing so via the more convenient BIR NewBizReg Portal. 

Online Registration

  1. Scan all the documentary requirements and save them as PDF files. Be mindful that the file attachments should not exceed 4MB. In addition to the documents mentioned above, you’ll also need to submit invoices and receipts or sample invoices and receipts. 

  2. Download and complete the tax type questionnaire. This will determine your applicable tax liabilities. 

  3. If you have an existing TIN (Tax Identification Number), pay the PHP500 Registration Fee and PHP30 Documentary Stamp Tax through any of the BIR’s ePayment Channels. If you don’t have a TIN, wait for email instructions on when to pay. You can also settle the fees at the New Business Registrant Counter when you pick up your Certificate of Registration.  

  4. Fill out the fields under the online portal’s “Where to Submit” section. This will give you the email address of the concerned RDO. Attach all the documentary requirements and send them to the email address provided.

You should receive an email acknowledgment from the concerned RDO. Applications are usually processed within three working days from the date of the email acknowledgment. After that period, you will receive another email with the pick-up schedule of your Certificate of Registration. 

Walk-in Application

You need to go to the RDO with jurisdiction over the place of business (if it has a physical establishment) or your place of residence. Check the FAQ section of this article for a comprehensive guide to RDO codes. 

  1. Present your requirements to the BIR Client Support Officer (CSO) for review. 

  2. Once verified, proceed to the New Business Registrant Counter to pay the Registration Fee and Documentary Stamp Tax.  

  3. After payment, you will receive the following documents:

  • Certificate of Registration (BIR Form 2303)

  • BIR-stamped Form 1901 (If you don’t have a TIN, you will also be issued one)

  • Notice to Issue Receipt/Invoice

  • (If applicable) BIR Printed Invoices/BIR Printed Receipts or the Authority to Print 

  • Annual Registration Fee and Documentary Stamp Tax proof of payment

We recommend scheduling your visit in the middle of the week as these days typically have less crowds than Mondays and Fridays. 

Tax Compliance Guide

All online businesses are required to register with the BIR. However, not all online businesses have to pay income tax. For instance, you don’t need to pay income tax if your annual gross sales are less than PHP250,000 (PHP20,833.33 per month).

In addition, online businesses with annual gross sales less than PHP100,000 (PHP8,333.33 per month) are considered marginal income earners. Registering with the BIR as such entitles you to the following tax implications:

  • 12% VAT exemption

  • Expanded Withholding Tax on Sales exemption

  • Exempted from issuing receipts and creating books of accounts

  • Excluded from audited financial statements

If your online business is worth less than PHP3 million, you can opt to register as a Barangay Micro Enterprise. Doing so entitles you to the following benefits:

  • Income Tax exemption

  • 12% VAT liability

  • Excluded from audited financial statements

  • Access to government financial assistance and training programs

On top of these, if your business has annual gross sales of more than PHP250,000 but less than PHP3 million, you can opt for graduated tax or a self-employed tax rate of 8%. 

FAQs

Why do I need to register my online business?

Operating an unregistered business runs the risk of facing legal ramifications and fines. Additionally, registering your business opens you up to the following benefits:

  • Enhanced market credibility: Customers, suppliers, and potential partners are more likely to trust registered businesses. 

  • Qualify for business loans: Similarly, financial institutions are more likely to approve business loans for online entrepreneurs with registered businesses. 

  • Eligibility for government assistance: Registered businesses may be eligible to apply for government assistance programs, such as cash aids and micro-loans for small and medium enterprises. 

After registration, what else do I need to do?

If your business earns more than PHP250,000 per year, you need to file your Annual Income Tax Return before April 15. You’ll also need to file your Quarterly Income Tax Return on or before the following dates:

  • 1st quarter: On or before May 15

  • 2nd quarter: On or before August 15

  • 3rd quarter: On or before November 15

You can find the types of taxes you’re required to pay on your BIR Certificate of Registration. 

Which RDO should I visit?

Revenue Region: 1 – Calasiao

RDO Code – District Office                                                                   

001 – Laoag, Ilocos Norte

002 – Vigan, Ilocos Sur

003 – San Fernando City, La Union

004 – Calasiao, Central Pangasinan

005 – Alaminos City, West Pangasinan

006 – Urdaneta City, East Pangasinan

 

Revenue Region: 2 – Cordillera Administrative Region

RDO Code – District Office

007 – Bangued, Abra                                              

008 – Baguio City

009 – La Trinidad, Benguet

010 – Bontoc, Mt. Province

011 – Tabuk City, Kalinga

012 – Lagawe, Ifugao

 

Revenue Region: 3 – Tuguegarao City

RDO Code – District Office

013 – Tuguegarao City, Cagayan

014 – Bayombong, Nueva Vizcaya

015 – Naguilan, Isabela

016 – Cabarroguis, Quirino

 

Revenue Region: 4 – City of San Fernando, Pampanga

RDO Code – District Office

17A – Tarlac City, Tarlac

17B – Paniqui, Tarlac

018 – Olongapo City, Zambales

019 – Subic Bay Freeport Zone

020 – Balanga City, Bataan

21A – Angeles City, North Pampanga

21B – City of San Fernando, South Pampanga

21C – Clark Freeport Zone

022 – Baler, Aurora

23A – Talavera, North Nueva Ecija

23B – Cabanatuan City, South Nueva Ecija

 

Revenue Region: 5 – Caloocan City

RDO Code – District Office

024 – Valenzuela City

25A – West Bulacan

25B – East Bulacan

026 – Malabon City-Navotas

027 – Caloocan City

 

Revenue Region: 6 – City of Manila

RDO Code – District Office

029 – Tondo-San Nicolas

030 – Binondo

031 – Sta. Cruz

032 – Quiapo-Sampaloc-Sta. Mesa-San Miguel

033 – Intramuros-Ermita-Malate

034 – Paco-Pandacan-Sta. Ana-San Andres

036 – Puerto Princesa City, Palawan

 

Revenue Region: 7A – Quezon City

RDO Code – District Office

028 – Novaliches

038 – North Quezon City

039 – South Quezon City

040 – Cubao

 

Revenue Region: 7B – East NCR

RDO Code – District Office

041 – Mandaluyong City

042 – San Juan

043 – Pasig

045 – Marikina

046 – Cainta/Taytay

 

Revenue Region: 8A – Makati City

RDO Code – District Office

047 – East Makati

048 – West Makati

049 – North Makati

050 – South Makati

 

Revenue Region: 8B – South NCR

RDO Code – District Office

044 – Taguig City-Pateros

051 – Pasay City

052 – Paranaque City

53A – Las Pinas City

53B – Muntinlupa City

 

Revenue Region: 9A – CABAMIRO (Cavite-Batangas-Mindoro-Romblon)

RDO Code – District Office

035 – Odiongan, Romblon

037 – San Jose, Occidental Mindoro

54A – Trece Martirez City, East Cavite

54B – Kawit, West Cavite

058 – Batangas City, West Batangas

059 – Lipa City, East Batangas

063 – Calapan, Oriental Mindoro

 

Revenue Region: 9B – LAQUEMAR (Laguna-Quezon-Marinduque)

RDO Code – District Office

055 – San Pablo City, East Laguna

056 – Calamba City, Central Laguna

057 – Binan City, West Laguna

060 – Lucena City, North Quezon

061 – Gumaca, South Quezon

062 – Boac, Marinduque

 

Revenue Region: 10 – Legazpi City

RDO Code – District Office

064 – Talisay, Camarines Norte

065 – Naga City, Camarines Sur

066 – Iriga City, Camarines Sur

067 – Legazpi City, Albay

068 – Sorsogon City, Sorsogon

069 – Virac, Catanduanes

070 – Masbate City, Masbate

 

Revenue Region: 11 – Iloilo City

RDO Code – District Office

071 – Kalibo, Aklan

072 – Roxas City, Capiz

073 – San Jose, Antique

074 – Iloilo City, Iloilo

075 – Zarraga, Iloilo

 

Revenue Region: 12 – Bacolod City

RDO Code – District Office

076 – Victorias City, Negros Occidental

077 – Bacolod City, Negros Occidental

078 – Binalbagan, Negros Occidental

079 – Dumaguete City, Negros Oriental

 

Revenue Region: 13 – Cebu City

RDO Code – District Office

080 – Mandaue City, Cebu

081 – Cebu City North

082 – Cebu City South

083 – Talisay City, Cebu

084 – Tagbilaran City, Bohol

 

Revenue Region: 14 – Eastern Visayas Region

RDO Code – District Office

085 – Catarman, Northern Samar

086 – Borongan City, Eastern Samar

087 – Calbayog City, Samar

088 – Tacloban City, Leyte

089 – Ormoc City, Leyte

090 – Maasin City, Southern Leyte

 

Revenue Region: 15 – Zamboanga City

RDO Code – District Office

091 – Dipolog City, Zamboanga del Norte

092 – Pagadian City, Zamboanga del Sur

93A – Zamboanga City, Zamboanga del Sur

93B – Ipil, Zamboanga Sibugay

094 – Isabela City, Basilan

095 – Jolo, Sulu

096 – Bongao, Tawi-Tawi

 

Revenue Region: 16 – Cagayan de Oro City

RDO Code – District Office

097 – Gingoog City, Misamis Oriental

098 – Cagayan de Oro City, Misamis Oriental

099 – Malaybalay City, Bukidnon

100 – Ozamis City, Misamis Occidental

101 – Iligan City, Lanao del Norte

102 – Marawi City, Lanao del Sur

 

Revenue Region: 17 – Butuan City

RDO Code – District Office

103 – Butuan City, Agusan del Norte

104 – Bayugan City, Agusan del Sur

105 – Surigao City, Surigao del Norte

106 – Tandag City, Surigao del Sur

 

Revenue Region: 18 – Koronadal City

RDO Code – District Office

107 – Cotabato City, Maguindanao

108 – Kidapawan, North Cotabato

109 – Tacurong, Sultan Kudarat

110 – General Santos City, South Cotabato

111 – Koronadal City, South Cotabato

 

Revenue Region: 19 – Davao City

RDO Code – District Office

112 – Tagum City, Davao del Norte

113A – West Davao City

113B – East Davao City

114 – Mati City, Davao Oriental

115 – Digos City, Davao del Sur