After graduating from the university or reaching an employable age, a graduate’s or first-time employee's next journey is securing government IDs such as Philhealth, HDMF/Pag-ibig, Social Security System and BIR Tax Identification Number (TIN). Hope they will not be overwhelmed. Currently, there are commendable efforts being exerted by barangays and local municipalities to exempt them from paying certification fees, at least. Unfortunately, they must have the patience as there will be application forms to fill out, documents to photocopy and a long queue in some offices.
In this article, we will focus on getting the BIR TIN for fresh graduates.
As per Sec. 236 (i) of the Tax Code, “Any person, whether natural or juridical, required under the authority of the Internal Revenue Code to make, render or file a return, statement or other documents, shall be supplied with or assigned a Taxpayer Identification Number (TIN) to be indicated in the return, statement or document to be filed with the Bureau of Internal Revenue, for his proper identification for tax purposes.”
In brevity, once you start earning whether through employment or business, you must secure a personal identification number from the Bureau of Internal Revenue (BIR) when filing and paying your taxes.
Good news! As per BIR RMO 37-2019, first-time employees who will be earning purely compensation income or through an employee-employer relationship, your employer is responsible to process your TIN applications, otherwise a penalty of P1,000 up to P25,000 will be imposed on them.
Following requirements will be submitted to the employer, in specific to HR:
1. Duly accomplished BIR Form 1902 i.e. Application for Registration For Individuals Earning Purely Compensation Income (Local and Alien Employee)
2. Photocopy of PSA Birth certificate and government-issued ID like passport, postal ID
3. Marriage certificate, for female employees, if applicable
4. Passport for Alien employee and working permit or Alien Employment Permit (AEP) issued by the Department of Labor and employment (DOLE)
As per the same memorandum order, the employer is given ten (10) days to secure the BIR TIN through the web-based application called e-Registration (eREG) system. In some cases, the employer may secure the TIN manually or by visiting the Revenue District Office (RDO). The employee will be registered in the RDO having jurisdiction over the Head or Branch Office of the employer. Once all requirements are reviewed and found complete and no issue on similar records as assessed by the Bureau, you will have your TIN.
In AanyaHR, employees’ respective TINs are stored, among other personal information. Upon BIR Form 2316 generation, employee TIN will be automatically captured. Want to know more about other helpful and awesome features of AanyaHR, please email firstname.lastname@example.org or visit our website www.aanyahr.com and book a demo now!
Take note that your TIN will be a lifetime number. It is unique and special to a taxpayer-employee. Having multiple TINs will be a violation and may subject you to penalties.
Welcome & enjoy the journey to the real-world, first-time employees!