THE Bureau of Internal Revenue (BIR) on Monday said the government can generate about P1 billion in fresh revenues by improving its business registration processes to encourage unregistered firms to leave the informal sector.
The tax agency said this revenue target could be hit following the signing of memorandum of agreement (MOA) between the Department of Trade and Industry (DTI) and the BIR that aims to improve the registration process for sole proprietors and partnerships.
“We are not talking of their income or taxing them. We are only talking of getting them into the string… registration fee is P500. The kind of income that is not being captured…is about P1 billion [and we can achieve that]if we really get them to register,” said Internal Revenue Commissioner Caesar Dulay during the signing of the MOA.
Under the agreement, the BIR will issue a tax identification number (TIN) to a new business through the eReg System linked to the Philippine Business Registry (PBR) under the DTI.
The BIR will process the registration of the new business and issue the corresponding Certificate of Registration (COR) and other permits relative to the secondary registration after completion of the documentary requirements.
The BIR will also provide information materials to the DTI for their clients.
DTI, on the other hand, will issue the TIN to their clients through the PBR linked to the BIR eReg System, and generate and provide BIR a monthly list of DTI-registered businesses with issued TINs.
The DTI will also inform their clients to proceed to the BIR to complete their registration requirements before the issuance of a COR.
The BIR and DTI a greed to establish a linkage to agree on certain policies and procedures for the registration of businesses as a whole.
“The agreement actually is part of our mandate to respond to the business sector and seeing to it that there is ease in doing business. It is in pursuance with the mandate of the President and this administration to be conscious and aware of the needs of the business community, especially the small and medium enterprises,” Dulay said.