As Featured on Philstar: TIN registration at your fingertips

 

Our government agencies are trying to keep pace with rapid technology advancements through the digitalization of some of their operations to streamline administrative processes, improve compliance and provide better services.

The Bureau of Internal Revenue (BIR), as the primary revenue generating agency, initiated the BIR Digital Transformation (DX) Roadmap for CY2020-2030 back in 2019 to adapt to and take advantage of the fast-evolving digital economy. This initiative aims to further improve efficiency in revenue collection and make compliance easier, in alignment with Republic Act (RA) No. 11032, An Act of Promoting Ease of Doing Business and Efficient Delivery of Government Services.

DX shall be implemented in two phases: Phase 1 is focused on building the DX culture within the BIR and streamlining current taxpayer services, implemented from 2020 to 2023. Whereas Phase 2 is focused on strengthening the DX within the BIR organization and will be implemented from 2024 to 2030.

With Phase 1 already implemented, the BIR continuously improves the programs and projects included in its 10-year digital transformation roadmap. In Revenue Memorandum Circular (RMC) No. 120-2023, the BIR announced the availability of the Digital Taxpayer Identification Number (TIN) starting November 21, 2023. This will be made available in the BIR Online Registration and Update System (ORUS) which is one of the 49 projects of DX Phase 1.

The digital TIN ID is an electronic version of the physical TIN card issued by the BIR, containing the taxpayer’s personal information. The digital TIN ID shall be honored and accepted as a valid government-issued identification document. It also includes a Quick Response (QR) Code which can be scanned using the mobile device camera to verify its authenticity through the ORUS.

In order for an individual taxpayer to apply for a digital TIN, they must first enroll an account by registering in ORUS using their permanent email address. Only one email address per taxpayer can be enrolled in ORUS. For an individual taxpayer without existing TIN, the registration will be easy and straightforward as they will only need to fill out the online form and upload the supporting documents required in ORUS.

However, the issue now arises for individual taxpayers with existing TIN and record with the BIR. Before they can obtain a Digital TIN, they must first update their email address at the Revenue District Office (RDO) where they are registered by accomplishing and submitting BIR Form S1905 – Registration Update Sheet along with the supporting documentary requirements via email to the concerned RDO.

To look back on the BIR’s previous process, manual TIN registration involves physical paperwork, such as tax registration forms and documents, which are to be submitted in person to the concerned RDO. This process typically takes longer due to manual processing and is also more prone to errors, both in the completion of tax registration forms and during manual data entry by the Revenue Officer. The process requires physical presence, which can be challenging for individuals living in areas far from their registered RDO and/or physically impaired individuals.

The digitalization of TIN registration is a significant improvement when it comes to ease and practicability in comparison with the previous manual registration process. With the availability of digital TIN, all individual taxpayers can now secure a BIR TIN ID at their fingertips anytime, anywhere.

As the BIR’s digital transformation advances to improve the revenue collection system and provide better taxpayer experience, we are hopeful to see more improvements on the BIR’s ongoing programs and projects. 

Reyna Mae P. Dela Cerna
Assistant Manager
KPMG in the Philippines

Reyna Mae P. Dela Cerna is an Assistant Manager from the Global Mobility Services (GMS) under the Tax Group of KPMG in the Philippines (R.G. Manabat & Co.), a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The firm has been recognized as a Tier 1 in Transfer Pricing Practice and in General Corporate Tax Practice by the International Tax Review. For more information, you may reach out to Reyna Mae P. Dela Cerna or Karen Jane S. Vergara-Manese through ph-kpmgmla@kpmg.com, social media or visit www.home.kpmg/ph.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or KPMG in the Philippines.