By Rea Cu, January 1 2018; Business Mirror


Image Credit to Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) is minimizing the number of documentary requirements needed when applying or renewing for businesses permits. The reduction, the Department of Finance (DOF) said, followed the passage of the Tax Reform for Acceleration and Inclusion Act (TRAIN) that allows for more tax collection while ostensibly reducing taxpayer resentment.

According to BIR Commissioner Caesar R. Dulay, the bureau is streamlining the registration processes for micro, small and medium  enterprises (MSMEs) when renewing their business permits.

“After the [tax-reform] package, we’ll go into that streamlining process although it’s an ongoing work being done by BIR. We will cut down on the documentary requirements,” Dulay said. The reduction was due to complaints received by Finance Secretary Carlos G. Dominguez III from MSME owners on the tedious process business owners undergo when renewing their BIR certificates of registration (COR) in the regional offices.

“Let’s cut down on the documentary requirements,” Dominguez said.

In renewing a business permit, one must secure a barangay clearance and a mayor’s business permit, including the original copy of the mayor’s permit the previous year, proof of payment for the permit, income statements, contract of lease, among others.

Completing all the requirements takes about a week or two, according to the DOF.

After obtaining the documents, applicants proceed to the BIR to have the COR renewed with the payment of an annual registration fee for every separate or distinct establishment or place of business.

At a recent forum, Dominguez said the government is instituting reforms further improving the ease of doing business in the country.  The initiatives include setting up the online trading platform TradeNet to fully automate licensing, permit-issuing, clearance and certification systems.

The interagency business-process interoperability program aims to simplify and harmonize import and export

Last December the BIR said it was preparing for the implementation of Republic Act (RA) 10963, or the TRAIN.

RA 10963 was signed into law by President Duterte in December but vetoed certain line items in the law.

In anticipation of its implementation, the BIR will issue revenue regulations on income tax, withholding tax, value-added tax and excise tax on petroleum, automobiles, mineral products, tobacco, sugar-sweetened beverages and cosmetic procedures, as well as estate and donor’s tax percentage tax and
documentary stamp tax.

The issuances will also include a revenue memorandum order on the VAT refund system as well as implementing procedures on electronic sales and electronic

According to the BIR, public consultations will be held on January 11 and 12, to help guide the drafters in coming up with the issuances, as well as internal briefings, which will be conducted from January 24 to 26.