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BIR 2024 registration fees, removal of ARF, eligibility and impact!

Written by The Anand Market

Updated on:

Effective January 22, 2024, the Bureau of Internal Revenue (BIR) has waived the Annual Registration Fee (ARF) for corporate taxpayers in the Philippines. This decision was made pursuant to Republic Act No. 11976, also known as the “Ease of Payment of Taxes Act.”

BIR 2024 registration fees

The Annual Registration Fee (ARF) for business taxpayers in the Philippines has been waived effective January 22, 2024. This election was made pursuant to Republic Act No. 11976, commonly known as the “Ease of Payment Act taxes “.

Business taxpayers are no longer required to pay the P500 annual registration fee, and existing BIR Certificates of Registration (COR) that include the registration fee will remain valid.

Taxpayers may choose to update their CORs by December 31, 2024 at their revenue district office to reflect the exemption. It will make it easier for business taxpayers to comply with tax regulations and contribute to the growth of the Philippine economy.

  • Registration of national police authorizations

BIR Annual Registration Fee 2024

The ARF for business taxpayers in the Philippines has been eliminated effective January 22, 2024.

  • The ARF was lifted pursuant to Republic Act No. 11976, also known as the “Ease of Payment of Taxes Act.”
  • Business taxpayers are no longer required to pay the P500 annual registration fee.
  • Existing BIR Certificates of Registration (COR) that include the registration fee will remain valid.
  • Taxpayers have the flexibility to update or replace their COR at their convenience.
  • The move aims to provide financial relief to business taxpayers and encourage more Filipinos to formalize their businesses.
  • Waiving the ARF is expected to boost tax compliance and spur economic growth.
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bir 2024 registration fees

Free BIR Registration Eligibility 2024

The removal of the annual BIR registration fee in 2024 brings a wave of benefits to businesses of all sizes and sectors.

  • Universal relief: The good news is that every registered business taxpayer in the Philippines is eligible for the exemption, regardless of:
  • Size: Micro businesses, small and medium businesses, and even large corporations all benefit.
  • Type of business: The exemption applies to all sectors, from retailers and service providers to manufacturers and agricultural businesses.
  • Date of registration: Newly registered and established businesses benefit from the exemption.

How does business registration work without the annual fee?

The steps to register without application fees are as follows:

  • Access the BIR Portal: Your primary gateway to the process is the BIR online portal, accessible at https://www.bir.gov.ph/.
    1. Access registration forms and instructions.
    2. Generate tax identification numbers (TIN).
    3. File tax returns electronically
  • Choose your business type: Select the appropriate business category based on your operations.
  • Complete the online form: Carefully fill in the required fields according to the instructions provided.
  • Submit your application: Once completed, submit your application electronically through the portal.

No fees, no formalities:

  • Forget Form 0605: You no longer need to file BIR Form No. 0605 or worry about the P500 annual registration fee.
  • Focus on basic information: The registration process now focuses only on gathering essential business details, without any financial barriers.
  • Faster processing: Removing fees simplifies the process, which could result in faster processing times for business registrations.

BIR 2024 registration fees mitigate impact on businesses

The removal of annual registration fees has received positive reactions from the business community. It is planned to:

  • Simplify tax compliance: Removing fees streamlines the registration process, making it easier for businesses to comply with tax requirements.
  • Financial Relief: The ARF waiver provides financial relief to business taxpayers by eliminating the P500 annual registration fee, potentially increasing their working capital.
  • Encouragement of formalization: The waiver aims to encourage more Filipinos to formalize their businesses, which could lead to greater tax compliance and increased economic growth.
  • Operational Flexibility: Businesses have the flexibility to update or replace their BIR Certificates of Registration (COR) at their convenience, which could potentially streamline administrative processes.
  • Investment in the business: The ARF exemption can free up funds that can be reinvested in the business, potentially supporting growth and development initiatives.
  • Economic impact: The ARF waiver can contribute to the overall economic recovery by reducing the financial burden on businesses and promoting their sustainability.
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