What is Tax Mapping Meaning?

What is tax mapping? Or what exactly is the meaning of this tax mapping? Well, it is a surprise visit of the
BIR staff to the establishment. The objective of this tax mapping in the Philippines is to inspect compliance of
business registration and other rules and regulations of the Bureau of Internal Revenue. It is also commonly
known as BIR tax compliance or “Oplan Kandado”.

This tax mapping BIR will help them to monitor and to identify those owners who are evading from paying
taxes.  Do you know what will happen if you will be caught that your business is not legally complying with
the requirements? Let’s know the tax mapping system.

Tax Mapping System Philippines

Any BIR representative does this tax mapping at random dates and places. Non-compliance with the BIR
regulations is subject to the penalty from one thousand pesos (1, 000) up to fifty thousand pesos (50,
000) depending on the nature of violations.

Some non-compliance to the regulation will lead to a permanent closure of the business establishments
and imprisonment of the owner.

BIR Tax Mapping Violations

During the tax mapping, the BIR staff follow tax mapping checklists. If the BIR conducts tax mapping in
your area make sure you’re fully aware of these BIR tax mapping violations.

BIR Registration Requirements:

1. Not Register with BIR

2. Failure to pay the annual fee registration fee  (BIR Form 0605) and not visible in your
business facilities.
3. The sign or poster “Ask for BIR receipts” is not properly placed in your business are.
4. No Certificate of Registration and Notice to the Public displayed

BIR Invoicing Requirements

1. Refusal to issue receipts or sales invoices

2. Issuing unregistered receipts or invoices to the clients. If you were value-added tax registered
can you still issue your vat registered receipt? Yes, you can still issue this vat registered
receipts even you’re no longer qualify as a vat registered. To learn more read this VAT
Invoices Update under Train Law 2018.
3. Not issuing official receipts or sales invoice.
Other BIR Tax Mapping Violations

1. Failure to withhold or remit withheld taxes at the time or times required by law or regulations
2. Failure to file and or pay any internal revenue tax at the time or times required by law or
regulations
3. Failure to keep or preserve records required by law or regulations
4. Tax Mapping Penalties in the Philippines

Subject to Compromise Penalties

1. Failure to pay the annual registration fee or to display in the business is subject to 1,000 per
year or during the tax mapping.
2. Failed to secure a certificate of registration and notice to the public display, failure to display
the sign “Ask for BIR Receipts” are subject to 1,000 during tax mapping
3. Failure to register the business with BIR is subject to according to the location. 20, 000 for
cities; 10, 000 for 1st class municipalities; 5, 000 for 2nd class municipalities, and lastly is 2,
000 for 3rd class municipalities.
4. Refusal to issue receipts or sales invoices and issuance of unregistered receipts are subject to
25, 00 for the first offense and 50, 000 for the second offense.
5. Failure to issue receipts or other invoices is subject to 10, 000 for the first time and 20, 000
for the second time.

Subject Criminal and Compromise Penalties

Failure to make/file/ submit any return or supply correct information at the time or times required by law or

regulations. This violation is subject to a fine not less than 10, 000 and imprisonment of not less than one (1)

year but nor more than ten (10) years. For the amount, compromise is determined based on the gross sales,

earnings or receipts, or gross estate or gift. Here is the tax table for compromise penalties.

Failure to make/file/submit any return or supply correct information at the time or times required by law or

regulation. It is subject to a fine of not less than P10,000 and imprisonment of not less than one (1) year but not

more than ten (10) years.

Failure to File Certain Information Returns. If certain information was intentionally or willfully neglected is

subject to 1,000 fines for each failure but should not exceed 25, 000 within a calendar year. For more BIR

violations, visit the BIR website.

9 Facts to Avoid Penalties During Tax Mapping?

To avoid penalties during the tax mapping, you need to review these checklists.

Fact No. 1: Make sure your business is not illegal in the BIR

Fact No. 2 Make your registration documents visible these are BIR Certificate of Registration (BIR Form

2303), Notice to the Public “Ask for Receipts” signage and lastly, the Annual Registration Fee (BIR Form

0605)

Fact No. 3: Always pay the annual registration fee on or before January 31st of each year.

Fact No. 4: Register your Cash Registered Machine (CRM) or Point of Sales Machine (POS) to the Bureau of

Internal Revenue (BIR).

Fact No. 5: Attach the original authorization sticker to any device in your business.

Fact No. 6: Use prescribed manuals or invoices by the BIR.

Fact No. 7: Make sure to issue receipts or invoices for every transaction.

Fact No. 8: Maintain a registered book of accounts and record the business transactions

Fact No. 9: Pay regularly the taxes monthly, quarterly, and annually, including those withholding taxes from

the employees and others withhold taxes.

Therefore, in just a few minutes, you were able to avoid paying less than fifty thousand pesos for BIR

penalties. Compliance with the BIR regulations will help us to save a more significant amount of money that

was having tax evasion. You might wonder, is your business needs to register in the BIR? Read this on how

to legally reduce tax 2020.