BIR registration can be as daunting and overwhelming at times, nonetheless, extremely necessary. Here’s the BIR registration guide laid out for doctors/physicians to get to know about tax filing and payment.
This registration enables you to get to fully benefit from self-employment. Before we proceed with the registration process, make sure that you have all your documents prepared. Make a check list to secure you have them all with you!
General Registration Requirements
- NSO Birth Certificate or any other government-issued valid ID that shows your name, address, and birth date (Original and Photocopy)
- BIR Form No. 1901 (3 copies)
- BIR Form No. 1906 (3 copies)
- Final & clear sample of Principal Receipts and Invoices
- BIR Form 0605 (4 copies)
- Proof of Payment from BIR Form 0605 (original and photocopy)
- Proof of Address
- PRC license/ID
- Payment of Professional Tax Receipt
- Tax Identification Number (TIN)
Additional Documentary Requirements (Subject to Which Taxpayer You Fall Under)
BIR requires additional documentary requirements subject to which type of income earner you fall under as a physician/doctor.
|Self-Employed Physicians||Mixed-Employed Physicians|
|BIR Form 1906||2 columnar books|
|DTI Certificate of Business Name (original or photocopy)||Certificate of Employment|
|Contract of Lease|
|Mayor’s business Permit|
|Marriage Contract (if married)||Marriage Contract (if married)|
|Photocopy of birth certificate of dependents –for tax deduction (Criteria: 1) minimum of 4 children and 2) all children must be below 21 years old)||Duly-filled BIR Form No. 1905 (3 copies)- in case of transfer of TIN|
|Photocopy of birth certificate of dependents –for tax deduction (Criteria: 1) minimum of 4 children and 2) all children must be below 21 years old)|
Doctors / Physicians may be classified under the following taxpayer types:
Employed individuals are those who derive their income by performing activities or rendering services necessary for the business of their employer. Fundamentally, resident and government doctors are often classified as employed. And for the most part, lucky them, residents and government doctors need not go through the BIR registration process, as their employer (government/hospital) takes charge of doing it on their behalf.
Self-Employed Individuals, as defined by BIR, are:
1) people who own a business and derive income from such business;
2) people who make a living through their art, or;
3) professionals who earn by practicing their profession and are registered with the PRC. That being said, all physicians who started private practice are considered self-employed by BIR, for they fall under the professional category.
Mixed-Income Earners fall under any two of the following: Professionals, Single Proprietors, and Local Employees. They may be privately employed, but they may also have their own business or offer a professional service.
12-step BIR Registration Guide
STEP #1: TIN Registration/TIN Update
a. For doctors/physicians who have no prior experience working/not registered with the BIR
You are required to obtain a Tax Identification Number (TIN). BIR offers an eRegistration system for TIN issuance. Visit the link for BIR eRegistration, fill out all pertinent taxpayer information, and confirm your email. Doing so will automatically register you as self-employed.
NOTE: Your electronic TIN will be sent to your email. Having multiple TIN is against the law. So if you are unsure if you have an existing TIN, just call BIR’s hotline number (02) 981 8888. You can also visit any BIR branch near you.
b. For doctors/physicians who were employed, and want to transition from being employed to self-employed
You must update your TIN and apply for a TIN transfer. To do this, you must submit to your prevailing RDO /RDO of your previous employer 1) 3 copies of duly filled Form 1905 and 2) 3 copies of duly filled BIR Form 1901. Your employer was the one who enrolled you, or got the TIN on your behalf, so your records are on his/her RDO. Submit these forms together with your 3) Professional Tax Receipt, 4) DTI Certificate, 5) Mayor’s business Permit, 6) Contract of Lease, 7) NSO Birth Certificate, and 8) Marriage Contract (if married).
The processing of TIN transfer typically takes 5 working days. And in times like these, follow-up questions are anticipated. So don’t forget to ask for the officer’s contact number before proceeding to your new RDO.
NOTE: As has been noted, you can obtain a copy of the BIR forms at any RDO, but you can also download them online. For downloadable copies, refer to the links above. To reiterate, do not forget to set the forms in legal size.
STEP #2: Submission of Requirements
Go to your designated RDO for the verification of taxpayer information and the submission of the BIR forms and the documentary requirements specified above.
STEP #3: Stamping of BIR Form 0605
After submitting, the officer-in-charge will ask you to pay for the annual registration fee. But before that, you must get your copies of duly-filled BIR Form 0605 stamped by a BIR attendant.
STEP #4: Payment of Registration fee
After this, present your stamped copies of BIR Form 0605 (4 copies) to a BIR-authorized agent bank. Professionals and mixed-income earners are required to pay a P500 registration fee, so prepare to pay for this fee to the bank. Refer to this for BIR’s list of authorized agent banks. (hyperlink to: https://www.bir.gov.ph/index.php/list-of-authorized-agent-banks.html)
NOTE: Do not misplace your official receipt as it would serve as your proof of payment. Obtain 2 photocopies of the receipt as well. Moreover, you need to secure 2 photocopies of the stamped BIR form 0605 given back to you by the bank. You will need these two later.
STEP 5: Presenting your Proof of Payment
Go back to the RDO to present your proof of payment. Submit your photocopies of the official receipt and the BIR Form 0605 given back to you by the bank.
STEP #6: Getting your ATP (Authority to Print) Receipts/Invoices
Fill up your 3 copies of BIR form 1906 for the application for Authority to Print Invoices/Receipts. Submit to the attending officer.
STEP #7: Additional Step for Mixed Income Earners
If it is the case that you are a mixed income earner, you will have to secure 2 columnar books and have them stamped by the guard at the RDO entrance. Do this before proceeding to write all necessary information.
STEP 8: Getting Your Books of Account
Afterwards, secure and fill up 4 book of accounts (journal, ledger, cash receipts, and cash disbursement), which you can purchase for P200 at the RDO.
STEP 9: Finding an Authorized Company to Print Receipts
Next, you will be asked to proceed to an authorized printing press outside BIR to print out the receipt booklets. The printing press typically charges 1,000-P1,500 for the receipt booklets. After securing your booklets of receipt and ledger, go back to the RDO and have it stamped by an attendant.
NOTE: As for the processing of receipts by the printing press, it normally takes 1-2 weeks. It may take you longer or shorter depending on the volume of the applicants. For the meantime, ask the printing press to give you a sample receipt under your name.
STEP #10: Latest Additional Step: The Taxpayer’s Initial Briefing
Meanwhile, your designated RDO will schedule a taxpayer’s briefing for you to know your rights and obligations. The seminar often takes place once a week. Make sure that you show up. Your attendance is required before they release your Certificate of Registration (COR) or BIR Form 2303.
NOTE: Do not fall prey. Take whatever freebie they give you (e.g. calendar). Apparently, later on, it would serve as their proof that you truly attended the seminar.
STEP #11: Obtaining your Certificate of Registration (COR) or BIR Form 2303
Go back to the printing press to get your printed receipts, and proceed to the RDO to submit them together with your books of accounts. Upon checking your proof of attendance, you can obtain your BIR Form 2303, or your Certificate of Registration (COR). Fundamentally, this COR will reflect all the returns that you must file and the taxes you are obliged to pay. Your “Ask for a Receipt” Notice (ARN) will be released together with your COR.
STEP #12: Stamping of the COR
The attending officer will ask you to pay for the mandatory registration requirements, which include the P15 Certification fee and the P15 Documentary Stamp. Ask the guard where they sell the Documentary Stamp and proceed there to have your COR stamped. After accomplishing this, the officer will give you a form, which you will attach to the registration certificate later on.
The stamping of the COR marks the end of the daunting BIR registration process, which requires a great deal of patience and time considering that the entire registration journey may take you about 5-8 working days. So, you must consider securing all needed documents and strategically scheduling your visit.
- Know your BIR Revenue District Office (RDO)
A mistake often committed by self-employed and mixed income earner physicians is failing to check if their TIN is in the correct BIR Revenue District Office (RDO). The correct RDO, as it happens, is the place where you conducted/will conduct your business/professional service. So it really is not the place where you used to work or where you obtained your TIN ID. If it is not in the right place, you have to apply for a transfer of TIN.
To illustrate this better, say for instance you work in Quezon City. So your TIN number would be in RDO-038. However, you are conducting/will be conducting your business/professional service in Taguig City (RDO-044). Such an instance calls for a TIN transfer, in this case, from RDO-38 to RDO-044.
- Obtain Your Professional Tax Receipt
One general requirement for doctors applying for a registration with BIR is a Professional Tax Receipt (PTR). Fundamentally, PTRs are available from the Treasury Department of the City Hall where you live. To get a PTR, simply present your PRC license and pay for the corresponding fee, which ranges from P300-P500. Fees may vary depending on the location of the Local Government Unit (LGU) where you are going to obtain your PTR.
- Secure BIR Forms
One way to get secure a BIR form is, certainly, to go to a BIR RDO. But to help you save time, you can secure downloadable forms online. The links to which you can access below. Refer to these as you proceed with the 12-step registration process.