Annual BIR registration fees cease under the Ease of Paying Taxes Act. We explain the specifics that taxpayers and companies in the Philippines should know.
The Bureau of Internal Revenue (BIR) will cease collecting annual registration fees from businesses per Republic Act No. 11976, known as the Ease of Paying Taxes Act. This new law waives the requirement for enterprises to pay an annual fee to renew their BIR registration.
What does Republic Act No. 11976 do?
Republic Act No. 11976 was passed in the Philippines to simplify tax compliance processes for taxpayers. A key provision of RA 11976 relates to removing the annual fee paid to the BIR to maintain business registrations.
Previously, companies had to pay an annual renewal fee of P500.00 size to keep their tax registrations active. However, under RA 11976, this mandatory annual payment is discontinued.
This legislative change benefits micro, small, and medium enterprises that were previously subject to the annual registration fee. Larger corporations still need to secure an annual confirmation receipt but do not pay fees.
When is it effective?
The BIR issued Revenue Memorandum Circular No. 03-2024 to confirm that annual registration fees are no longer required effective January 1, 2024. This applies to new registrants and all existing businesses that have already registered with the BIR.
The ease in registration renewal provided by RA 11976 significantly reduces the financial and administrative burden for Filipino businesses each year. However, enterprises still must comply with all other tax reporting and payment obligations.
Make sure you are aware of this updated registration renewal procedure from the BIR. You can consult the official RMC or contact BIR directly if you have any questions about the changes.
I’ve never understood the fees that the government charges when taxes must be sent. The USA and states do this and sending online makes it so much easier.
I am all about not paying extra for fees. I hate when that happens. I’m offended when I purchase something online and they tack a fee for doing so.
Thank you for this info!
Oh Wow. This is really interesting.
This is awesome. Money seems to be tight for so many people and this may help some.
This is amazing actually. Any fee that small businesses can save is a win. Thank you so much for the information, I had no idea.
I have a DBA for my business name but they only charged a very small amount to do so. It’s good for ten years then I have to do it again or spend money on a llc. Llc is more money.
Hi Christy. I think if your business is an Llc, creditors cannot go after your personal assets. thus, more safer. while of course you need to shell out extra funds to be able to convert your business to Llc.
This sounds increadible and love that they ahve waived these fees as everyone needs every penny they can save these days,. This is pretty cool mand great news for many!
What great tips! This is such a great money saving strategy. Thanks for sharing your insight on this! So helpful to save money where you can.
This is indeed good news. This will be very helpful for small businesses.
This update will definitely ease the financial burden for many businesses, especially for micro, small, and medium enterprises
I don’t understand why the government charges an extra fee when taxes are due. I also don’t understand when you purchase something online or on eBay or amazon as they continue to add a fee to it. Thanks for sharing this important information with us.
Hi Laura. Those fees you pay for online purchases should be deducted to your income before computing your tax due the government
Very helpful article! Thanks for explaining the how the new law in the Philippines now waives the annual fee requirement for businesses to renew their BIR registration.
That sounds like it would come in helpful for the smaller businesses especially. This will cut one of the numerous costs that businesses have to pay each year which I’m sure will be a great help and this money can be used elsewhere.
It is great that they have stopped this fees – sure to be a relief. Always great when we do not have to pay any additional fees (most of which are simply unnecessary)
If I may say, sometime taxes we pay do not go to the right public projects.
This is such a great post! I too never understood the fees that the government charges, I think it’s all greed. No way should we have to pay extra fees when we purchase stuff online…they are forever tacking on a fee for something. .
I dread doing taxes this year. I know I’m going to owe because it’s my first year not claiming a child for years!! Not looking forward to it.
you should always maximize claiming deductions to lessen your tax due.
Great news! It is always great when your business has one less fee to pay. Thank you for sharing it!
Very informative and useful information for everyone. You explained everything very clear and easy to remember. Thank you!
I don’t live in the USA so I had no idea about this fees. This was such a bad idea. Great to know that the Bureau of Internal Revenue (BIR) will cease collecting annual registration fees from businesses per Republic Act No. 11976. Thanks for sharing the info!