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Thursday, June 11, 2015

HOW TO CANCEL YOUR TIN OR CLOSE YOUR BUSINESS REGISTRATION WITH THE BIR.

I had an encounter with individuals having problems with their TIN. One of which is the case of the daughter of my husband's friend. After she graduated from college, she was able to pass as an insurance agent of one  insurance company. Her income will be more of a commission basis. Since there was no employer-employee relationship between her and the company,  she applied for TIN as a self-employed individual. But, for some reason, she did not continue with her plan to be an insurance agent. She, then, took  further studies without informing the BIR of her change of plan.

To cut the story short, she had problems with the BIR when she finally was employed by another company. Her TIN needed to be transferred to another Revenue District Office (RDO) where her employer was registered but it was verified that the TIN had open cases. It was also learned that she did not filed the applicable tax returns or paid the tax liabilities as self employed. 

Please be informed, that,  if ever you will register as self-employed, you have the obligation to file certain tax returns with or without tax due or payable and renew and pay your annual registration fee. (see Business Registration)

Moreover, even if the business becomes insolvent, you are, still, required to file annually, monthly and quarterly your corresponding tax returns. You need to indicate in the return that it is non-operational until such time that you have formally declared it close or have cancelled your TIN registration as a self-employed.

To discontinue or terminate your registration, I found out from the BIR website the following documentary requirements and procedures:

BIR Form 1905 (Application for Registration Information Update) together with the following:

1) Letter of request stating reason for termination of business
2) Original Certificate of Registration
3) Books of Accounts
4) Inventory List of Unused Receipts and Invoices
5) Unused Receipts and Invoices for cancellation
6) Board Resolution / Notice of Dissolution (if Corporation / Partnership)

Procedures:
1) Taxpayer applicant files BIR Form 1905, together with the attachments at the RDO where they are registered within ten (10) days from retirement of business/cancellation of TIN.
2) Taxpayer files short period return for income tax purposes.
3) RDO verifies if taxpayer has open cases reflected in the Integrated Tax System (ITS). If YES, ask taxpayer to submit required returns and pay the corresponding tax due/s and penalties if any.
4) RDO verifies if taxpayer has delinquent cases at the Assessment, Collection, and Legal Divisions of the Region;
5) RDO verifies if taxpayer has delinquent cases at the Collection Enforcement Division, BIR National Office
6) RDO requests for Letter of Authority to investigate internal revenue taxes for all un-audited taxable years prior to cancellation of business.
7) Assigned Case officer conducts investigations for period/s covered in the issued Letter of Authority.
8) Taxpayer complies with requirements of audit and pays corresponding deficiency taxes resulting from audit using Form 0605.
9) RDO issues tax clearance for closure of business.
10) RDO updates ITS and cancels TIN of taxpayer (for non-individual taxpayer).

(see also Application for Closure of Business/Cancellation of TIN).

For other concern, we suggest that you coordinate with the Officer of the Day (OD) of the RDO where you are registered regarding the correct procedure to finally close your registration. 


20 comments:

  1. Hi, i hope your account is still active as this post is very relevant to me. The same thing has happened to me. I applied for a TIN number when i graduated and was registered as self-employed. I did training procedures for a year and decided not to pursue the job. Now that i wish to apply for regular employment, i've discovered an accumulation of open cases.

    How was this case resolved? They are charging me penalties for running a sole-proprietorship business that never even took place.

    ReplyDelete
  2. Hi, I do hope this is still active too. My situation is sort-of similar. The difference is, I had a the business running, but because I was young, I entrusted the management to somebody and had myself corporate-employed (using the same TIN). Long story short, the business failed and now I'm having issues about the ton of forms being requested to be filled out and the amount of money/penalties I was told that I needed to pay (2009 to 2017). How do I go about this? I don't have that amount (not even 10% of that). I am really at a loss. Help please!

    ReplyDelete
    Replies
    1. How much po did you pay the penalty? Same problem din po kasi ako thanks po. Hoping for your reply

      Delete
  3. Hi I have a kind of similar case. My issue is the part time job I was planning to pursue did not push through s I need to cancel the registration. However I still do not have the created any invoices or receipts...

    ReplyDelete
  4. What to do the new employer is asking for rdo transfer document but have learned that the tin is deactivated and was advised to have 1902.which should be file by my new emoloyee however my new employee refuse to file for it..

    ReplyDelete
  5. hi im worried how much to pay for the penalty of the booklets that was not have from the beginning.

    ReplyDelete
  6. Hello, do you have a sample letter of request?

    ReplyDelete
  7. my problem is i have a tin when im single and eventually lost the id.. when i got married i apply for online verification of my tin, then i found out that the tin i have when im single and married is not the same.. what should i do?

    ReplyDelete
  8. my problem is i have a tin when im single and eventually lost the id.. when i got married i apply for online verification of my tin, then i found out that the tin i have when im single and married is not the same.. what should i do?

    ReplyDelete
    Replies
    1. same with me. Did you ask for cancellation? i want to know what i need to do

      Delete
  9. Mr, Lee  recently helped us with a loan which we used to expand our business. The process was amazing! He was in touch with us frequently to check in and to update us on what was happening throughout our loan repayment. He was friendly and approachable and always able to clear up questions that we had. We had such a great experience working with Ben!!  
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    ReplyDelete
  10. Pag dalawa po ang tin number ko,need ko daw po ipa cancel sa makati ang isa, pero may bayad po ng 1k?

    ReplyDelete
  11. Paano ko po mabubura o i cancel ang isa ko pang Tin sa pagka dalaga ko na na pa change status.. Then may tin pala ako na binigay ng emplyoyer ko.. Nanakitanko lang ng pag verify ko sa philhealth

    ReplyDelete
  12. In my case po dalawa ang naging tin number ko. One is assist through online and the other one is applied by my employer. At kailangan isa lang ang dapat ang tin so kailangan ko ipa close ang tin assisted online which is registered in cavite. Any recommendation for this issue please.

    ReplyDelete
  13. Hi how to cancel my late husband tin no. He is gone now and im in complaying for our estate tax return will anyone had this situation thanks

    ReplyDelete
    Replies
    1. Your deceased husband's TIN (while he was alive) will be cancelled when you file for a TIN FOR THE ESTATE OF YOUR DECEASED HUSBAND.

      Delete
  14. Sa case ko po yUng unang employer ko i napply nila ako ng Tin.Nung nag resign ako sa previous kong work.Umuwi ako sa probinsya tapos nag apply ko ng trabaho dun.i napply din nila ako ng Tin.Tapos yun na ang ginagamit ko kasi binigyan nila ako ng Id ng tin hangang ngayon yon yung ginamit ko.Lately ko lang nalaman na may existing pa akong tin number sa unang employer.Pede ko ba ecancel yung latest o i cancel ko dapat yung previous.

    ReplyDelete
  15. Pano po ba e cancel yong po isa number??
    Tanong ko po kung mybayad po ba ang pagpa cancel?

    ReplyDelete