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PHILIPPINES – New Tax Registration Rules Issued

, 05/06/2019

Effective immediately, all foreign nationals applying for an Alien Employment Permit (AEP), a Provisional Work Permit (PWP), a Special Work Permit (SWP) or any work visa are required to obtain a Tax Identification Number (TIN).

Previously, TIN was not required for AEP or SWP applications if the assignee remained on home-country payroll.

New rules related to TIN have been issued by two government authorities, in line with the recently issued Joint Guidelines of the Department of Labor and Employment, Department of Justice and the Bureau of Immigration.

The Bureau of Internal Revenue (BIR)

The BIR has set out the application requirements for assignees’ TIN applications. BIR form No. 1904 must be presented at the relevant Revenue District Office (RDO), depending on the purpose of the TIN, supported by a copy of the assignee’s passport.

For a PWP or AEP, the employer or withholding agent must also submit the employment contract or equivalent document of employment, indicating the duration of employment, compensation and other benefits, and the scope of the assignee’s duties.

Employers must update the registration of the foreign nationals with the BIR in the following cases:

When the PWP holder has been issued an AEP or 9(g) Visa;
When the SWP holder has been issued a 9(g) Visa (this may also involve a transfer of RDO).

Foreign nationals must also update their registration with the BIR in case of termination of employment.

The Department of Labor and Employment – National Capital Region (DOLE-NCR)

DOLE-NCR requires all applicants for AEP to secure a TIN within ten days of the start of their employment, and will implement a “no TIN, no printing of AEP Card” policy.

Currently, applications without a TIN are accepted, but the TIN must be submitted before the AEP can be released.

Action Items

Employers who may be affected are encouraged to contact a Newland Chase immigration specialist for case-specific advice.