Electronic Filing & Payment System [Frequently Asked Questions]

What is eFPS?
eFPS stands for Electronic Filing and Payment System, and it refers to the system developed
and maintained by the Bureau of Internal Revenue (BIR) for electronically filing tax returns,
including attachments, if any, and paying taxes due thereon, specifically through the internet.

What is e-Filing?
e-Filing is the process of electronically filing returns including attachments, if any, specifically
through the internet.

What is e-Payment?
e-Payment is the process of electronically paying a tax liability through the internet banking
facilities of Authorized Agent Banks (AABs).

Why do we need to use eFPS? What are its objectives?

With eFPS, taxpayers can avail of a paperless tax filing experience and can also pay their taxes
online through the convenience of an internet-banking service via debit from their enrolled
bank account. In addition, since eFPS is available on the Internet, taxpayers can file and pay for
their taxes anytime, anywhere as long as he or she is using a computer with an internet
connection.

Is there any additional cost that the taxpayer will incur upon availment of this system?
None whatsoever, enrollment and usage of eFPS is FREE of charge. However, check with your
bank (where you have enrolled for e-payment) if they charge fees and/or if your need to
maintain a minimum ADB (Average Daily Balance).

What are the requirements in availing of the system?

First, you should be registered with BIR-Integrated Tax System; Next you should submit a
Certification from the President of the corporation authorizing two (2) officers to file return and
to enroll for availment of the eFPS, as well as a Letter of Intent to avail of eFPS; Enrollment in
eFPS; and Enrollment with any eFPS-Authorized Agent Bank (eFPS-AAB) for use of their e-
payment system.

How can the BIR check whether the person enrolled in the eFPS are authorized by the
taxpayer/company?
A verification of the Certification of Authorized User/s submitted by the taxpayer will be
conducted by the BIR.

Can I enroll more than once?

No, you can only enroll once per company. However, once the initial user is activated, he/she
may enroll additional users using the Enroll More Users facility on eFPS. Taxpayers may have as
much as three (3) user accounts for a single TIN.
Do I also need to enroll with an eFPS-AAB after enrolling with the eFPS?
Yes, you need to enroll separately to the e-payment facility of an eFPS-AAB of your choice in
accordance with the latter's enrollment procedures.

What are the possible reasons / grounds for the rejection of enrollment?
There may be several reasons / grounds for the rejection of enrollment, these include, but not
limited to, the following:
1. Upon investigation, taxpayer was found to be bogus;
2. Information provided in the enrollment form does not match with the documents
submitted and/or registration data stored in BIR database; and
3. Person enrolled is not authorized by President of the Corporation/Head of Office.

Am I allowed to change my user password on a regular or periodic basis?

Yes, you are encouraged to change your user password regularly for security purposes using the
Change User Info facility.

What if the user is no longer authorized to transact with eFPS in behalf of the company? Can
the username be changed?
No, the username need not be changed. The Taxpayer must submit a Board Resolution or a
similar written request to BIR for the revocation of access of a deactivated user. The same
written request should indicate the name of the newly authorized user. Once the deactivation
request has been processed by BIR, the Taxpayer can now enroll the newly authorized user thru
the 'Enroll More Users' facility of eFPS.

Can I file my return manually in case the eFPS is Unavailable?

Yes, you can file your returns manually if there is a system maintenance and/or technical error
that renders the system unavailable as announced through an official advisory. A formal
notification will also be subsequently issued when system operations normalize/stabilize.

Do I have the option to choose what to file electronically or manually from the applicable
forms covered by the system?
Only tax returns not covered by the system can be filed manually.

What would be my proof of e-filing a tax return?

A system generated filing reference number (FRN) is issued for every successful filing
transaction. You can inquire/print the said return thru the Tax Return Inquiry facility. The
reference number is embedded on the upper right hand corner of the return, which shall serve
as your proof for e-filing.

Will I be penalized for late e-filing if the cause was the unavailability of the eFPS?
No penalty will be charged to you for late e-filing, if during deadlines the eFPS was unavailable
as announced through a Revenue Memorandum Circular/Advisory on Systems Unavailability.
Can I amend my e-filed return?
Yes, for as long as no Letter of Authority has yet been issued for the investigation of the same

Can I still access my previously e-filed tax returns in the same form that they appeared when I
first e-filed them?
Yes, you can still access the electronic copies of the returns in their original format as e-filed via
the eFPS for a period of two (2) months from filing thereof. You have the option to print the
submitted return thru the 'Tax Return Inquiry' facility. After the said retention period,
information in the returns is available in the BIR Integrated Tax System (ITS) in a different
format. Furthermore, you may secure a certification from the office where you are registered
(RDO, LTS/LTDO) containing the information you supplied in the return which you e-filed via the
eFPS.

Can I change the company information such as its address, telephone number or contact
person in the eFPS Change User Information menu?
No, registration update is not covered by eFPS. Changes should be done through BIR Form 1905
and the same should be filed with the Large Taxpayers Assistance Division (LTAD) / Large
Taxpayers District Office (LTDO) or at the Revenue District Office (RDO) where you are
registered.

Will my payment be subjected to penalties if I e-file earlier than the deadline and e-pay at a
later date but within the due date?
Your payment will not be subjected to penalties if you e-file earlier and pay at a later date as
long as it is done within the due date.

Will there be incentives if I avail of eFPS?

Your payment will not be subjected to penalties if you e-file earlier and pay at a later date as
long as it is done within the due date.

e-PAYMENT

Can I enroll and open an account in any of the eFPS-AABs?

You can enroll and open an account (or use your existing accounts) with any eFPS-AAB who are
capable to accept payments through the Internet banking facilities.

Do I need to have an existing account with an eFPS-AAB for e-payment purposes?

Yes, you have to have an existing account with an eFPS-AAB for e-payment purposes. Please
check with your chosen eFPS-AAB for fees and/or minimum Average Daily Balance (ADB)
requirements.

Until what time do the eFPS-AABs accept e-payment?

Each eFPS-Accredited Agent Bank (eFPS-AAB) has its own cut-off time for accepting e-payment.
Please inquire from your bank on their cut-off times.
If I am enrolled in multiple eFPS-AABs, can I pay in two banks for a single return?
Yes, you can e-pay using multiple banks for a single return.

Can I pay my tax liabilities by check?

No, eFPS does not accept check payments.

Can we pay our income tax and excise tax using the Tax Debit Memo?
Yes, you can pay your tax liability reflected on your returns using the TDM by encoding the
salient information written on the TDM on the system's payment form except for withholding
taxes.

What are the Modes of Payment that I can use for e-Payment?
There are three possible modes of payment that you may use for e-Payment:
1. Fund Transfer - for cash payment thru online banking system;
2. Tax Debit Memo (TDM); and
3. Tax Remittance Advice (TRA) - for National Government Agencies (NGAs).

When can I get the bank confirmation number for my e-payment transaction?
The confirmation number is issued by the eFPS-AAB after your account has been successfully
debited electronically after paying your tax liability. This is usually displayed on screen on the
eFPS-AABs e-payment facility, and again displayed on the payment confirmation screen on
eFPS. Otherwise, kindly confirm with your bank if the payment was received or you may inquire
the payment details on eFPS the following day.

When is the return deemed filed and the tax due thereon deemed paid?
The return is deemed filed on the date appearing in, and after a Filing Reference Number is
generated and issued to the taxpayer via the eFPS-AAB. The tax due thereon is deemed paid
after a Confirmation Number is issued to the taxpayer and to the BIR by the AAB. In addition, an
Acknowledgement Number shall be issued by the BIR to the taxpayer to confirm that the tax
payment has been credited to the account of the government.

Can I view the return and the payment that I made?

Yes, this information is available online under the 'Tax Return Inquiry' facility. However, these
returns will only be available for a period of up to two (2) months.

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How to Secure A BIR Certificate Authorizing Registration (CAR) and Tax Clearance for the Sale
of Real Property Classified As a Capital Asset

Last updated on October 1, 2017 by Cherry Vi Saldua Castillo

One of the most important documents that you need in order to transfer a title of a property
from the seller to the buyer is the Certificate Authorizing Registration (CAR) and Tax Clearance
(TCL) from the Bureau of Internal Revenue (BIR). In this post, I’ll share a step-by-step on how to
secure them.

The CAR and TCL is your proof that the proper taxes on the transaction have been paid. The
Register of Deeds requires the presentation of these documents as a pre-requisite for title
transfer.

What is the process?

The first step is to have a notarized document evidencing the sale of the real property classified
as a capital asset, usually a Deed of Absolute Sale.

Next, the taxes need to be paid—Capital Gains Tax (CGT) and Documentary Stamps Tax (DST).

After you have paid the taxes, you need to request for the issuance of a CAR and TCL from the
Revenue District Office where the real property is located. You need to submit the documents
supporting the transaction, as well as proof that the correct taxes (both the type of tax and
amount of tax), have been paid.

Please take note that the CAR for the transfer of real property shall be released by the Revenue
District Office (RDO) where the real property is located. Thus, it is important for you to
determine the correct RDO since you will be paying the taxes in the Authorized Agent banks
(AAB’s) of such RDO.

It is possible that you may think a property falls under the jurisdiction of one RDO when in fact
it is under another RDO. If you have already paid the taxes in an AAB of another RDO, you may
have to undergo certain processes to transfer your payments to the correct RDO. So, my advice
is to look at the map of the coverage of each RDO (there should be a big map at the RDO) to
check if indeed the property falls within the jurisdiction of the said RDO.
Mandatory Requirements
For a sale of real property considered as a capital asset subject to capital gains tax (CGT), the
mandatory requirements are as follows:

 Tax Identification Number (TIN) of buyer and seller [If one of them does not have a TIN, get
a TIN by filling out and submitting BIR Form No. 1904]

 Notarized Deed of Absolute Sale/Document of Transfer. Bring the original and at least two
photocopies. The photocopies will be compared against the original and the BIR will retain
only the photocopies.
 Notarization fee is usually 1% of the selling price.
 Prepare at least five copies of the Deed of Absolute Sale (one for the notary, one for
the buyer, one for the seller, one for the BIR, and one for the Registry of Deeds).
 Owner’s copy of the Transfer Certificate of Title (TCT), Condominium Certificate of
Title (CCT), or Original Certificate of Title (OCT). Bring the original and at least two
photocopies. The photocopies will be compared against the original and the BIR will
retain only the photocopies.
 You may also get a Certified True Copy (CTC) of the TCT, CCT, or OCT from the
Registry of Deeds.

 Get a Certified True Copy of the latest Tax Declaration from the City/Municipal Assessor’s
Office.

 Official Receipt/Deposit slip evidencing receipt by the owner of the payment of the
purchase price

 Duly validated tax return as proof of payment of taxes

Additional requirements (if applicable):

1. Notarized Special Power of Attorney (SPA), if the person who signed the document is
not the owner which appears on the Title.
2. Certification of the Philippine Consulate, if the document is executed abroad. The SPA
will be either consularized or authenticated. The document will usually have a red
ribbon in front.
3. Location plan/Vicinity map if the zonal value cannot be readily determined based on the
documents submitted (using Google Maps will suffice).

If all documents are complete, the CAR and TCL should be ready after around two (2) weeks.
Just call the contact person at the number on the Claim Slip or “CS” and they will give you to
inquire if the CAR is ready. When you call, be sure to have the claim slip with you so you are
ready with the CS No., date filed, and the name of the transferor and transferee.

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How to Register Your Business with the BIR Philippines

FEBRUARY 6, 2011 BY VICTORINO ABRUGAR

After securing a Certificate of Registration from the Department of Trade Industry (DTI) for
single proprietorship, Securities and Exchange Commission (SEC) for partnership and
corporation, and after obtaining a Mayor’s Business permit with the Local Government Unit
(LGU), your next step to operate as a duly registered business is to secure a certificate of
registration from the BIR.

Registering your business with the BIR will give you the authority to print your official receipts
and other invoices, provide you or your corporation a Tax Identification Number (TIN) and
register the books you will use to record your business transactions. Furthermore, your BIR
certificate of registration will state the types of taxes you will pay, such as business taxes,
withholding taxes and income tax.

The following are the requirements and steps to register your business with the BIR:

For single proprietorship

1. Accomplish BIR Form 1901 and submit the same, together with the required
attachments, to the Revenue District Office having jurisdiction over the registered
address of the business establishment. The following are the forms and requirements to
be attached with your application:
a. BIR Form 1901 – Application for Registration
b. Birth certificate or any valid identification showing name, address and birth date
c. Mayor’s permit or application for Mayor’s Permit
d. DTI Certificate of Registration of Business Name (to be submitted prior to the
issuance of the BIR Certificate of Registration or COR)

2. Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO.

3. Pay P 15.00 for the Certification Fee and P15.00 for the Documentary Stamp Tax (in
loose form to be attached to Form 2303).

4. The RDO shall issue the Certificate of Registration (Form 2303).

For partnerships and corporations

1. Accomplish BIR Form 1903 and submit the same together with the required
attachments to the Revenue District Office having jurisdiction over the registered
address of the business establishment. The following are the forms and documentary
requirements to be attached with your application:
a. BIR Form 1903 – Application for Registration for Corporations/Partnerships
(Taxable/Non Taxable)
b. SEC “Certificate of Registration (Certificate of Incorporation/Certificate of Co-
Partnership) or “License To Do Business in the Philippines” in case of resident
foreign corporation
c. Mayor’s Permit or application for Mayor’s Permit – to be submitted prior to the
issuance of the BIR Certificate of Registration

2. Pay the Annual Registration Fee (P 500.00) at the Authorized Agent Banks of the RDO.

3. Pay P 15.00 for the Certification Fee and P 15.00 for the Documentary Stamp Tax (in
loose form to be attached to Form 2303).

4. The RDO shall issue the Certificate of Registration (Form 2303).

5. Taxpayer must pay the Documentary Stamp Tax on the Articles of Incorporation as
prescribed under Section 175 of the NIRC, on the 5th of the month following the date of
issuance of said article (per RR 4-2000).

Further steps following the registration (for both sole proprietorships and corporate taxpayes)

1. Apply for Invoices/Receipts using BIR Form No. 1906 – Authority to Print. The BIR will
give you an “Ask for a Receipt” Notice (ARN) together with the COR BIR form 2303, and
it must be posted conspicuously in your business establishment.

2. Register books of accounts (Journal / Ledger / Subsidiary Income Book and Subsidiary
Purchases/Expenses Book) and have them stamped by the RDO where the business is
registered. The BIR examiner will usually advise you the types of books and taxes
applicable to your business upon briefing.

3. Update registration information, if needed, using BIR Form No. 1905 (change of
registered address, personal exemptions, additional tax types, etc.) Submit this at the
RDO having jurisdiction over the place of business

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How to Get a Tax Clearance from the BIR

By Carlo | Jan 11, 2017 | Mostaco Marketing

The Tax Clearance is one of the requirements for the PhilGEPS Platinum membership.

The PhilGEPS or the Philippine Government Electronic Procurement System is the single and
centralized electronic portal for all procurement opportunities. All procurement for goods and
services, civil works or infrastructure projects and consulting services must go through the
system. In other words, a PhilGEPS membership is necessary in order for a taxpayer to enter
into any transaction with the government.

A valid tax clearance is issued by BIR’s head office in Quezon City. Below are the steps we took
to get a tax clearance:

Prerequisites for getting a tax clearance

 You need to be registered in BIR’s eFPS to get a tax clearance. If you are not registered,
you need to go to your RDO to register your business for eFPS. A written request is
needed so they can give you access
 You need to be current with all your BIR payments. You need to be current in paying
business taxes, Income Tax and the annual registration fee. BIR checks these via eFPS. If
you are not registered yet, you need to present the corresponding tax and payment
forms.

Steps on how we got our tax clearance

1. We went to our RDO to apply for our tax clearance. You need to have a written request
for tax clearance.
2. Your RDO will check any delinquencies you might have. We missed paying our 2016
annual registration fee, and we paid it the same day with penalties.
3. Our RDO asked us to come back the next day to get our Certificate of No Tax Liability.
4. Once you have your Certificate of Tax Liability from your RDO, you need to go to your
Regional Revenue Office. Download the application form for Tax Clearance from the
BIR’s website and have it notarized.
5. Go to your Regional Revenue Office and present your RDO’s Certificate of No Tax
Liability and application form.
6. The Regional Revenue Office will issue another Certificate of No Tax Liability. This is the
one you need to present to BIR’s head office.
7. Pay the Tax Clearance certificate fee of 100 pesos through eFPS.
8. With the Regional Revenue Office’s Certificate of No Tax Liability, proof of eFPS payment
and the application form, go to BIR’s head office.

Once they receive it, they will ask you to come back to get your tax clearance. The tax clearance
is valid for one year. I guess we would need to repeat the steps again to renew our tax
clearance. The whole application process took 2 weeks.