Pursuant to Executive Order (EO) No. 98, series of 1998, persons whether natural or juridical, dealing with all government agencies and instrumentalities, including Government-Owned and/or Controlled Corporations (GOCCs), and all Local Government Units (LGUs), are thereby required to incorporate their Tax Identification Number (TIN) in all forms, permits, licenses, clearances, official papers and documents which they secure from these government agencies, instrumentalities, including GOCCs and LGUs.
What is a TIN?
A TIN pertains to the system-generated reference index number comprised of a nine (9) to thirteen (13) digit numeric code issued and assigned by the Bureau of Internal Revenue (BIR) to each particular taxpayer registered in its database. Only one TIN is assigned to a taxpayer regardless of variety of transactions (e.g., employee who is at the same time engaged in business). Once a taxpayer is assigned with a TIN, he/she is precluded from applying for another TIN. Thus, the TIN is a vital information for tracing a person’s taxable transactions under a computerized system of tax administration since there’s no instance that two or more several taxpayers are holders of the same TIN.
What is the objective of EO No. 98?
The mandatory requirement of the said EO to incorporate TIN in all applications for any government permit, license, clearance, official paper or document by the transacting public helps to enhance the BIR’s tax collection by establishing an improved tax compliance monitoring using the TIN of taxpayers. In this way, there are funds available to support the growing infrastructure and poverty alleviation projects of the government.
Are there any exceptions from the requirement of EO No. 98?
Pursuant to Executive Order No. 31, diplomatic missions and international organizations, as identified by the Department of Foreign Affairs (DFA), together with their accredited foreign personnel are exempted from the requirements of the TIN when they apply for any government permit, license, clearance, official paper or document. It shall be sufficient that their request for these documentations is accompanied by the corresponding endorsement of the DFA, which shall include the official identity card issued by the Office of Protocol of the Department, for the purpose of establishing the bona fide status of such entities and individuals.
https://www.officialgazette.gov.ph/1999/04/28/executive-order-no-98-s-1999/
Disclaimer: This article is for discussion purposes only as summarized by the author and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for specific details applicable to your circumstances.