BIR Form 1904 serves a distinctive purpose tailored for a specific category of individuals. Designed for the registration process with the Bureau of Internal Revenue (BIR), it plays a pivotal role in the tax obligations of one-time taxpayers, including those engaged in transactions involving donor’s tax, capital gains tax, estate tax, and similar one-time levies.
Moreover, this form also serves as a crucial tool for individuals falling under the purview of Executive Order 98, granting them the opportunity to acquire a Taxpayer Identification Number (TIN) to facilitate their interactions with government agencies. This guide aims to elucidate the purpose and intricacies of BIR Form 1904, offering valuable insights into the filing process. Nevertheless, it’s important to note that this information is of a general nature and should not be construed as a replacement for professional advice.
Why Use BIR Form 1904?
BIR Form 1904, a vital tax document, serves a dual purpose by catering to a specific group of users. It is primarily employed by one-time taxpayers and individuals seeking registration under Executive Order 98.
The primary objective of this form is to facilitate the application process for obtaining a Taxpayer Identification Number (TIN). Importantly, it is used to initiate the TIN application procedure before any tax payment, tax return filing, or TIN receipt is conducted, making it an essential step in ensuring tax compliance for its diverse user base.
Who Needs to Submit BIR Form 1904?
The submission of BIR Form 1904 is a requirement for various categories of applicants, each serving a specific purpose. Here’s a breakdown of the different groups and their respective purposes for filing this form:
EO 98 Applicants:
- Unemployed Filipinos and OFWs: Unemployed Filipinos and Overseas Filipino Workers (OFWs) often require a Taxpayer Identification Number (TIN) to conduct transactions with government offices, and BIR Form 1904 plays a vital role in securing this essential identification number.
Non-Resident Foreigners:
- Applying for Special Temporary Permit (STP) from the PRC: Non-resident foreigners who seek to obtain a Special Temporary Permit (STP) from the Professional Regulation Commission (PRC) are required to file BIR Form 1904 as part of the application process.
- On a temporary work assignment in the Philippines (less than six months): Foreign nationals who come to the Philippines for temporary work assignments lasting less than six months need to apply for a Special Working Permit (SWP) from the Bureau of Immigration. BIR Form 1904 is used as part of the SWP application procedure.
One-Time Taxpayers:
- This category encompasses both Filipinos and foreigners who do not possess a previously issued Taxpayer Identification Number (TIN). One-time taxpayers who are obligated to pay specific taxes, such as donor’s tax, capital gains tax, or estate tax, rely on BIR Form 1904 to obtain a TIN for their one-time tax obligations, ensuring compliance with tax regulations.
These diverse groups of applicants demonstrate the versatile application of BIR Form 1904, which plays a pivotal role in tax compliance and various professional and government transactions in the Philippines.
What Is the Cost of Registration?
Filing BIR Form 1904 is a cost-free endeavor, with no fees attached to the process. The Bureau of Internal Revenue (BIR) ensures that individuals seeking to obtain a Taxpayer Identification Number (TIN) through this form are not burdened with any financial obligations to the government.
This fee waiver underscores the BIR’s commitment to simplifying the registration process for a diverse range of users, including one-time taxpayers and individuals registering under Executive Order 98, making it accessible and equitable for all. This no-fee policy further encourages compliance and ease of access to essential tax services, fostering a more taxpayer-friendly environment in the Philippines.
Where to Complete Your Registration
Navigating the registration process under Executive Order 98 (EO 98) or for various one-time taxpayers in the Philippines requires an understanding of the specific Revenue District Office (RDO) that holds jurisdiction over your circumstances. Here’s a comprehensive breakdown of the RDO responsibilities for different categories of individuals:
For Persons Registering under EO 98:
- The designated RDO for individuals registering under EO 98, which includes unemployed Filipinos and Overseas Filipino Workers (OFWs), is the one that covers the applicant’s residence. This RDO plays a pivotal role in processing their registration and issuing the essential Taxpayer Identification Number (TIN).
For Non-Resident Foreigners with a Short Stay in the Philippines:
- Non-resident foreigners with brief stays in the Philippines, such as those applying for a Special Temporary Permit (STP) from the Professional Regulation Commission, must liaise with RDO 39 situated in South Quezon City, specifically the Office of the Commissioner of Internal Revenue, to complete their registration process.
For Those Paying Donor’s Tax:
- Individuals involved in transactions related to donor’s tax are required to register under the RDO that corresponds to the donor’s residence. This RDO is responsible for overseeing the registration and managing tax matters associated with donor’s tax.
For Those Paying Estate Tax (Without Proprietary Activities):
- Individuals dealing with estate tax, particularly without proprietary activities, are directed to the RDO that has jurisdiction over the deceased person’s residence at the time of their demise. This RDO is entrusted with the responsibility of managing the estate tax registration and related procedures.
For Those Paying Capital Gains Tax on the Sale of Real Property:
- Individuals engaged in the sale of real property are required to register under the jurisdiction of the RDO that corresponds to the location of the real property being sold. This RDO manages the registration process and oversees tax matters concerning capital gains tax on real property.
For Those Paying Capital Gains Tax on the Sale of Shares of Stocks:
- a. For shares not traded in the Stock Exchange: The RDO responsible is determined based on the seller’s address. b. For shares of companies listed in the Stock Exchange: The applicable RDO is the one having jurisdiction over the location of the local stock exchange.
For Other Types of One-Time Taxpayers:
- Irrespective of the specific category, all other types of one-time taxpayers are required to register under the RDO that holds jurisdiction over the applicant’s residence. This RDO serves as the central hub for overseeing the registration process for these individuals.
Understanding the pertinent RDO for your registration is pivotal in ensuring a seamless and efficient process while applying for a Taxpayer Identification Number (TIN) and fulfilling your tax obligations, irrespective of your specific circumstances.
Documentation Requirements for Non-Resident Foreigners Filing BIR Form 1904
To successfully file BIR Form 1904, you will need to prepare the following list of essential requirements:
- Two Copies of Accomplished BIR Form 1904: Ensure that you have completed two copies of BIR Form 1904 accurately, providing all the necessary information in the required fields.
- Photocopy of the Passport’s Bio-Data Page: Include a photocopy of the bio-data page from your passport. This page contains vital personal information, including your name, date of birth, and other identifying details, which is crucial for the registration process.
Documentation Requirements for Filing BIR Form 1904 for EO 98 Registration and One-Time Taxpayers
When preparing to file BIR Form 1904, it’s important to ensure you have all the necessary documentation at hand. Here’s a comprehensive list of the required documents:
- Two Copies of Accomplished BIR Form 1904: Complete two copies of BIR Form 1904 with accurate and detailed information.
- Proof of Identity: You’ll need to provide proof of your identity, which can include any of the following:
- Birth certificate, community tax certificate, or any valid ID (e.g., passport, driver’s license) that displays your name, birth date, and address.
- Students and recent graduates may present a school ID, alumni ID, or an NBI clearance.
- For Married Women: If you are a married woman, you should include your marriage certificate as part of your identity documentation.
- For Those Opening a Bank Account with TIN: If you intend to use your TIN for opening a bank account, be prepared to possibly provide a request letter from the bank as an additional document.
- For OFWs Applying in Person: If you are an Overseas Filipino Worker (OFW) applying for BIR Form 1904 in person, you may need to present an original Barangay Certification as part of your application.
- Additional Documents for an Authorized Representative of an OFW: In cases where an authorized representative is filing on behalf of an OFW, the following documents are required:
- An authorization letter signed by the OFW.
- Valid ID of the authorized representative.
Having these documents readily available ensures a smooth and efficient process when filing BIR Form 1904, whether you are registering under Executive Order 98 or as a one-time taxpayer.
Supplementary Documentation for One-Time Taxpayer Applicants
Depending on your specific tax category and requirements, it’s important to be aware of the additional documentation needed to facilitate the filing of BIR Form 1904. Here is a concise list of these supplementary documents:
For Donor’s Taxpayer:
- A Deed of Donation is required to validate the donor’s tax transaction.
For Estate Taxpayer:
- A photocopy of the deceased person’s death certificate is essential for estate tax filings.
- An Extrajudicial Settlement of the Estate or an Affidavit of Self-Adjudication is necessary to address estate matters.
For Capital Gains Taxpayer:
- A Deed of Sale serves as the key document for capital gains tax on property sales.
For Taxpayer of Final Tax on Winnings:
- A certification from the awarding company or person is vital to confirm the nature and source of the winnings.
For Drivers Registering Their Vehicle at the LTO:
- For brand-new cars, an official receipt or cash invoice is required for registration.
- For second-hand vehicles, having a Deed of Sale or a Certificate of Registration from the Land Transportation Office (LTO) is a prerequisite for the registration process.
Understanding the specific documents needed for your tax category or registration purpose ensures a streamlined and successful application process when filing BIR Form 1904.
Filing BIR Form 1904: Process for EO 98 Applicants and One-Time Taxpayers
Step 1: Visit Your Designated RDO
The initial step to obtain your Taxpayer Identification Number (TIN) through BIR Form 1904 is to visit the Revenue District Office (RDO) assigned to your specific registration circumstances. This can include RDOs covering your residence or jurisdiction based on your tax category. Ensuring you visit the correct RDO is crucial, as it streamlines the process and guarantees efficient assistance during your application.
Step 2: Submit All Required Documents
Upon arrival at your designated RDO, provide all the necessary documentation for your TIN application. These documents can include completed copies of BIR Form 1904 and any supplementary materials such as proof of identity, deeds, certificates, or authorizations, depending on your specific category as an applicant. Completing this step accurately and comprehensively helps ensure a smooth and successful application process.
Step 3: Document Verification and TIN Generation
Once you’ve submitted your documents, a registration officer will assess their completeness and verify whether you have been issued a TIN previously. After this initial review, your details will be encoded into the Bureau of Internal Revenue (BIR) database.
Following this encoding, the TIN generation process will commence, ensuring that you receive a unique and personalized identification number. When the TIN is generated, it will be provided to you, typically on the top portion of your receiving copy of BIR Form 1904, along with a copy of the form for your records. This critical step marks the successful conclusion of your TIN application process, granting you access to your newly acquired Taxpayer Identification Number.