DON BOSCO TECHNICAL INSTITUTE OF MAKATI

Accountancy, Business and Management Strand

Camaya, Justine

Carlos, Hayden

De Guzman, Gial

Marcaida, Sebastian Drey

Saguid, Gabriel

Vallejos, Daniel

Taxation Changes: Perspectives of SMEs During the COVID-19 Pandemic in the Philippines

Research Teacher:
Mr. Thomas John B. Azuma
Senior High School Faculty

Date of Submission
15/02/21
 CHAPTER 1

INTRODUCTION TO THE STUDY

Background

Experts have noted that Micro, Small and Medium Enterprises (MSMEs) in the

Philippines are crucial to the economy. MSMEs are contributory, especially in terms of

improving assets in Gross Domestic Product (GDP). According to Louie Cepe et al. (2020), such

enterprises have contributed 36% to the GDP and 25% of export revenues. Furthermore,

MSMEs contribute to the local community and local employment; in terms of wages, benefits,

and labour, such as banks, food services, and markets (Cepe et al., 2020).

In spite of the crucial contributions, the COVID-19 pandemic made changes to

the paradigms of businesses; such as many people have been unemployed and started their own

small business to support their financial necessities. MSMEs, according to Laforteza and Lapitan

(2020), “…have been forced to close their premises if not shut down entirely, businesses that are

allowed to operate can only do so with a skeleton workforce, and members of the workforce who

are currently not working are not receiving compensation unless this is freely given by the

employers or if company policy dictates that they do so.”

Observably, the aforementioned businesses also depended on online

selling/delivery, which is considered and imposed to be taxable [sc. online sellers must register to

the Bureau of Internal Revenue (BIR) under RMC No. 60-2020] to market products/services

(Cepe et al., 2020; Manuel, 2020). Stipulating, the second quarter of 2020 (i.e. from April to

June 2020), the Philippine economy shrank a record 16.5% (Venzon, 2020).
 Moreover, the implementation of R.A. 11469, shifted the regular paradigms and

systems of conducting businesses in the Philippines, including MSMEs. In fact, §4 (i) of R.A.

11469 strictly prohibits hoarding, price manipulation, and other fraudulent acts within necessities

of products and services. Additionally, violation of §4 (i) of R.A. 11469; can be penalized up to

two months of imprisonment or a fine ranging from ₱1,000 to ₱1,000,000; per §6 (c) of R.A.

11469 (Bayanihan to Heal As One Act, 2020).

Discerning, §4 (bbbb) of RA 11494 (i.e. “Bayanihan II Act”) and/or RR 25-

2020, businesses or enterprises which induced the net operating loss (i.e. loss of profit) for

taxable years 2020 and 2021 shall be immediately deducted or exempted from tax within the

next five consecutive years (Bayanihan to Recover as One Act, 2020). Moreover, the

constant/same net operating loss for said taxable years may be abated as a deduction even after

R.A. No. 11494 expires within the next five (5) consecutive taxable years. Notwithstanding, §6

(z) of R.A. 11494 prescribes the necessary Small Businesses Corporation (SBCorp) monetary,

loan, and debt adjustments for MSMEs. Cepe et al. (2020), mention that the Department of Trade

and Industry (DTI) has also introduced an online business registration and tax assistance

platform to promote formalization among MSMEs.

Statement of the Problem

Despite the many conducted studies, issues, and points pertaining to the online

selling/delivery, laws, and other impacts and changes of MSMEs in the Philippines within the

COVID-19 pandemic, the researchers observed that there is a lack of sufficient study pertaining

to the changes of taxations of MSMEs in the Philippines within the pandemic, especially on the

internet (cf. EBSCOhost Research Databases). Referring to the commentary of Laforteza &
Lapitan (2020), they mentioned that the Philippines is currently in the process of a tax reform

initiative and all of these packages were being considered long before anyone had heard of

COVID-19, yet have not taken into consideration the financial toll that is an inevitable

consequence of a pandemic. In addition, Laforteza & Lapitan (2020) mentioned that “…It

remains to be seen what measures may be undertaken to stimulate the economy and what tax

measures may be undertaken to fund such stimulus measures.”

Considering all the packages, the issues (of the changes) within the MSME

taxations lack thorough discussion and insights from the experience of MSMEs. Thus, there is a

necessity to open the answers pertaining to the tax reforms within the COVID-19 pandemic.

Purpose of the Study

The main objective of the study is to understand the lived experiences of MSMEs

in the economic and situational profits, growth, and stability condition/s in terms of MSME taxes

(i.e. considering payments, shortfalls, and burgeons) within the COVID-19 pandemic. The

findings of this research ought to contribute to local business owners for a decent preparation and

knowledge of the inscrutable future of COVID-19; especially in terms of being adept for entering

the online/internet realm to conduct business for feasibility and by addressing the present issues

in taxations in the Philippines, especially in terms of considering the lived experiences of

MSMEs (i.e. to the Ph. gov. or to the BIR) for further taxation improvements, cf. Asian

Development Bank, The COVID-19 Impact on Philippine Business: Key Findings from the

Enterprise Survey (Sawada et al., 2020).

Research Questions
 The study seeks to understand the prevailing tax payment and shortfall issues via the

lived experiences of MSMEs within COVID-19 pandemic in the Philippines.

Specifically, it will attempt to answer the following questions:

1. What are the lived experiences of the MSME owners in the Philippines in terms of the present

tax reforms/taxations within the COVID-19 pandemic?

2. Based on the lived experiences, how do the MSME owners manage and solve problems during

this COVID-19 pandemic in terms of taxes?

3. How beneficial/helpful is the implementation of the present tax reforms within the COVID-19

pandemic to MSMEs?

Significance of the Study

This study deemed to benefit the following:

1. MSMEs/MSME owners. This study would be able to contribute, how

MSMEs/MSME owners will be able to strategize and benefit in managing and leading their

respective MSMEs within the COVID-19, albeit of being pessimistic about the impending taxes

over time. Having this information provided, the phenomenological issues, addressed by the

MSME owners via interview/s (ff. COVID-19 protocols), be promulgated and passed on to

tax/government authorities for tax reforms and rectifications from the current shortfalls within

taxations (based on the perspective of MSME owners).

2. Philippine Government. This study may be remitted to the Philippine

Government (i.e. Republic of the Philippines) in order to ease into effect, tax reforms and

rectifications from the current shortfalls experienced by MSMEs. Notwithstanding, the

Philippine Government may also benefit in implementing, processing, and evaluating tax
reforms and rectifications for an opportune/commodious taxation payment systems, which will

feasibly benefit both parties without hesitance in time and balancing of MSMEs and government

spending and debts. Moreover, as taxes are defined as a mandatory contribution/system by

people from income and business profits to state revenue, imposed and added by the government

or to the cost of some goods, services, and transactions; the possible ‘blood of life’ or resource of

the government may serve as a leeway for development products, services, projects, and

expenditures in solving the COVID-19 pandemic and other synchronous issues.

Scope and Limitations

The main interest of this study is to understand the phenomenological lived

experiences of MSMEs. The study ought to introspect every perspective of every SME owners to

the taxation changes within the COVID-19 pandemic; which, in turn, is the independent variable.

Notwithstanding, the dependent variable is the taxation changes within the COVID-19 pandemic.

Reflected, in parallel to the methodologies conducted by Baghdasarian (2017) for his doctoral

dissertation. Wherein, it was affixed to discover and comprehend the perspectives/lived

experiences (via interview) of practicing CPA (Certified Public Accountants), pertaining of

fundamental ethics, ethical reasoning, mandatory continuing professional education (CPE) in

ethics, and insights of recent accounting scandals in the accounting profession in Los Angeles

County, United States of America.

Considering COVID-19 and other limitations, the researchers decided to

understand the necessary source of data. N.B.: Particularly, due to social and

lockdown/quarantine protocols, the finding of potential samples (i.e. especially on the matters of

geographical factors) using snowball sampling method and purposive homogenous sampling
method may be an inscrutable dilemma. The researchers hopefully precedent to select 8 to 10

potential samples/participants at most, possibly, only within the area of Metropolitan Manila (i.e.

the National Capital Region/NCR) in the Philippines [cf. (Baghdasarian, 2017)].

Conceptual [Theoretical] Framework

The researchers have constructed the following paradigm to represent the relationship

among the variables used in the study.

Figure 1. The interconnection of tax amendments/systems, stipulating other affecting

factors (which adversely shifts tax systems) to the lived experiences of MSMEs

Other factors set

shifting taxes
Tax Amendments
and Systems
(Independent)

Set to motion by the Ph. gov. based on

evaluation/implementation/relevance

Figure 1 shows the relationship of present tax systems with amendments, other

factors potentially shifting the paradigm to the taxation changes, and the probable perspectives

the MSMEs (evaluated by lived experiences. The possible independent variable is the taxation

changes being placed into effect; other political factors may be stipulated. Whereas, the possible
dependent variable (effect) is the dependence of MSMEs on the paradigms on taxation changes

(Laforteza & Lapitan, 2020). The process on tax amendments is evolving and cycling, in

metaphor to gears due to the fact that the system for taxation changes are contributory and

circulating to society, income, stability, and economy over time infectiously. Tax amendments

are rudimentarily subjected to incessant changes, updates, and interdictions. The study aims to

further determine the relationship between these variables.

Based on the model created by Baghdasarian (2017), which focused on lived

experiences of accountants in terms of accounting ethics in the profession, the study will employ

viz. phenomenological methodologies, due to the fact that the researchers would like to delineate

and recount the lived experiences via perspectives, opinions, and insights of MSMEs, in the

COVID-19 pandemic. The study was affixed to discover and comprehend the perspectives of

practicing CPA (Certified Public Accountants), pertaining of fundamental ethics, ethical

reasoning, mandatory continuing professional education (CPE) in ethics, and insights of recent

accounting scandals in the accounting profession in Los Angeles County, United States of

America. Information and data were gathered and evaluated based on applied theoretical

concepts, involved one-on-one interviews with data gathering instrument/s and qualitative

research questions. 10 (6 male and 4 female) volunteered participants were predetermined from

the 20 selected, which, was done by snowball sampling method by gaining referrals of CPAs to

other suitable CPAs. Furthermore, the selection and volunteering of CPA interviewees were also

conducted by purposive homogenous sampling method, which gauges qualified participants, yet

with heterogeneous viewpoints. Data was gathered and rearranged using qualitative data analysis

on Microsoft Excel (Baghdasarian, 2017).

 Definition of Terms

The aforementioned terminologies are crucial to this study and are used repetitively

throughout the study. In this section, they are defined either conceptually or operationally.

MSMEs. Alternatively, SMEs, stand for Micro, Small and Medium Enterprises.

Qualifications for a business to be considered as an MSME/SME shall have an asset size

maximum of $2,000,000.00, equal to about ₱100,000,000.00, and a maximum of 199 employees

(also as per § 3 et seq. of R.A. 9501). N.B.: The term ‘MSME’ will be used in conducting the

research for disambiguation (Cepe et al., 2020, p.19; Magna Carta for MSMEs, 2008).

MSME/SME owners. Stands for (Micro,) Small and Medium Enterprises Owners,

who are the owners of MSME/SMEs (Cepe et al., 2020).

Tax (pl. taxes)/ Taxation(s). A mandatory contribution/system by

people/citizens/workers from income and business profits to state revenue imposed and added by

the government or to the cost of some goods, services, and transactions; and the blood of life or

source of income/profit of a national government for the use of government products, services,

projects, and expenditures (Bureau of Internal Revenue, Tax Code 2017; Laforteza & Lapitan,

2020).

Online Selling/Delivery. Any kind of business or commercial transaction that

involves the use of the internet (Cepe et al., 2020; Laforteza & Lapitan, 2020).

COVID-19. A transmittable/infectious virus caused by the SARS-CoV-2 virus

and can lead to symptoms such as cough, cold, fever, and/or lack of taste (World Health

Organization, Coronavirus)
 Ph. gov. (abbreviation). The Philippine Government (i.e. the official government

of the Republic of the Philippines) (Magna Carta for MSMEs, 2008).

Summary

MSMEs are crucial to the GDP/Economy. But recently, MSMEs were affected by

the COVID-19 pandemic, leading to the shortfalls, limitations, and regulations of conducting

business of the MSMEs. Despite online selling/delivery, laws, and other impacts and changes of

MSMEs in the Philippines within the COVID-19 pandemic conferred and introspected, the

researchers conclude the inadequacy of study pertaining to the changes of taxations of MSMEs

in the Philippines within the pandemic. As aforementioned, the issues (of the changes) within the

MSME taxations lack thorough discussion and insights from the experience of MSMEs, ergo,

needing for open answers pertaining to the tax reforms within the COVID-19 pandemic

(Laforteza & Lapitan, 2020). Imploring phenomenological methodology, the study seeks to

understand the prevailing tax payment and shortfall issues via the lived experiences (i.e.

viewpoint) of MSMEs within COVID-19 pandemic in the Philippines.

CHAPTER 2

REVIEW OF RELATED LITERATURE

Introduction

Forbearing the COVID-19 dilemma, there have been axioms regarding to the

aspect of online selling/delivery, laws, regulations, and other impacts and changes of MSMEs in

the Philippines scrutinized, conferred and introspected, the researchers concluded and
introspected the inadequacy of study pertaining to the current taxation changes of MSMEs,

especially based on the commentary introspected by Laforteza and Lapitan (2020). Issues within

the MSME taxation changes lack (i.e. presently necessitate) thorough discussion and insights

from the experience of MSMEs.

The impetus (i.e. purpose) of the study is to prevail, understand, and address the

lived experiences of MSMEs in the economic and situational profits, growth, and stability

condition/s in terms of MSME taxation changes (i.e. considering payments, shortfalls, and

burgeons) within the COVID-19 pandemic; which would benefit MSMEs, the Ph. gov., and

national stability. As aforementioned, the study ought to conduct a phenomenological

methodology, congruent to the process made by Baghdasarian (2017).

The contents and subjects in this chapter introspect the related literature;

evaluated, and cited by the researchers. Such literature provide interrelated axioms pertaining to

the current taxation changes within the COVID-19 pandemic.

Businesses and the Economy

The factors pertaining to the connected harmony of businesses (which includes

MSMEs) and the economy are thoroughly discussed, relevant to the present and concurrent

dilemmas of the COVID-19 pandemic. Additionally, the insights provided are the shift of

paradigm applied to businesses towards the present economy. In this study, the axioms entailed

places emphasis on the matter of the current economic situations of MSMEs, which leads to the

shift in paradigm of taxations, contributory to the economy (GDP) and MSME stability, will be

scrutinized.

Downfall of the Economy

 Cliff Venzon of Nikkei Asia (2020), mentions the de-escalation of the Philippine

economy to 16.5% during April-June 2020 (Q2); exceeding the predetermined diminution of 9%

by a Reuters® poll within the COVID-19 pandemic. He further prodded that:

The economy contracted 0.7% in the quarter ended March, the first
negative growth in two decades, putting the first-half contraction at
9% and pulling the plug on what was one of Southeast Asia's
fastest-growing economies before the pandemic (Venzon, 2020).

Moreover, Venzon (2020) stipulated that the government predetermined that the

economy fell 5.5% last 2020. Adversely, he mentioned that Socioeconomic Planning Acting

Secretary Karl Chua prodded that the current downfall overturned to be appalling and inane as

compared to the past. Despite that, he prodded that Chua noted that the country (Philippines)

bears a stronger resistance to counterpart the crisis.

Opening Businesses and Employment

Venzon (2020) prodded that businesses and employment, which were drivers of

the economy, were shuttered by a fall of 10.7%. The unemployment rate increased by 17.7%,

equivalent to 7.3 million people in April 2020. Additionally, he noted that Nicolas Antonio Mapa

told that the loss of employment will lead to the decline of consumer consumption and investor

sentiment.

Paradigms of MSMEs

Consider the fact that the axioms pertained are in connection to the scope and

variables of the current operations, adjustments, and injunctions, which shifted the movement of

MSMEs within the present COVID-19 pandemic. Conversely, the report conducted by Cepe et

al. (2020) lacked sufficient information or data regarding on the matter of the lived experiences
of MSMEs in terms of taxation changes. Likewise (inf.), in this study, the axioms (i.e. changes

made by the COVID-19 pandemic to the run of MSMEs) entailed places emphasis on the matter

of the current business situations of MSMEs, which leads to the shift in paradigm of taxations,

contributory to the economy and MSME stability, will be scrutinized.

Opening of MSMEs

According to Louie Cepe et al. (2020), researchers/reporters of MicroSave

Consulting Firm, the running of businesses during the COVID-19 pandemic was limited by the

Ph. gov., which lead to the prioritization of ‘essential needs’ (i.e. food, clothing, and other

pragmatic/physiological necessities); and conversely closed other ‘non-essential’ businesses (i.e.

entertainment, salons, and other accessory items).

Moreover, the Cepe et al. (2020) provided that during the months between April-

May 2020, 74% of businesses were continuing their respective operations, while the remaining

26% shut. Additionally, they reported that 28% of enterprises limited their working hours,

leading to low customer demand and 58% decrease of supplies.

MSME issues

Likewise, Cepe et al. (2020) prodded the inadequacy and necessity of

improvement of subsidies, financial sustainment, and/or relief goods/benefits (i.e. by the Ph.

gov.), were said to be prevalent amongst MSMEs. Henceforth, they placed emphasis for better

action and motion by the Ph. gov. and other institutions from the aforementioned inadequacies.

MSME alternatives and adjustments

Given the shift in paradigm by the present situation of the COVID-19 pandemic,

Cepe et al. (2020) emphasized that such situation gave rise and dependence to the use of social
media and online software/applications to promote products and services, and to gain

income/finances increased; in lieu of traditional marketing, commerce, and transaction processes.

Discussion on MSME Taxation Changes

Note, that the fact and scope of the axioms pertained are in coherence to the

leniency of tax and financial amendments, based on the current façade of the COVID-19

pandemic. On one hand, the part of the articles provides no the effect or output in terms of the

lived experiences to online sellers; due to the fact that it only suffices legal/tax details.

Conversely, they provide an argument in terms of the obstacles, necessity and significance of

taxes towards Filipino businessmen, viz. MSMEs who use online selling as means of income. In

this study, the literature provided will serve as a foreground in responding to the inquiry of the

sufficiency, beneficiality, and praticability of the created tax and financial amendments to

MSMEs for further examination and data analysis. Furthermore, it will discern and point the

several tax amendments, shortfalls, and adjustments by the Ph. gov. during the COVID-19

pandemic.

Tax Adjustments for Taxpayers – Extensions, Exemptions, and Benefits

According to Ben O. de Vera (2020), R.A. 11494 (i.e. the Bayanihan II Act or the

Bayanihan to Recover as One Act) made benefits/exemptions to taxpayers, in particular, salvage

injunctions for businesses.

Additionally, de Vera (2020) added to his news article that Finance Secretary

Carlos G. Dominguez III and Internal Revenue Commissioner Caesar R. Dulay signed the

extension of payment of business taxes from three (cf. Tax Code of the Philippines) to five years

by the Bureau of Internal Revenue (BIR). Also, the BIR said that the loss of income/net
operating loss carry-over (Nolco) by businesses must be separated in a specific note of financial

statements from the deductions for taxable years 2020 and 2021; otherwise, failure of complying

will admonish the claim.

Moreover, de Vera (2020) prodded that Dominguez and Dulay signed RR 24-

2020 for the exemption of extended loans and restructured credits from payment of documentary

stamp tax (DST) until Dec. 31, similar to the exemption extended under R.A. 11469 (i.e. the

Bayanihan I Act or the Bayanihan to Heal as One Act).

Given the delays, issues, and shortfalls, Laforteza & Lapitan (2020) prodded the

exemptions and extensions in paying taxations issued by the Ph. gov. (cf. RR 7-2020, & RR 10

to 12-2020). Likewise, similar to the note made by de Vera (2020) (inf.), they noted the

leniencies made by the BIR, SOF, and the Ph. gov. (with other privileges under R.A. 11494 and

R.A. 11469) for DST, most especially to MSMEs as provided by the injunctions of RMC No. 35-

2020 and RMC No. 36-2020.

Besides, Laforteza & Lapitan (2020) stipulated that Ph. gov. also made some

subsidy programs, such as the Small Business Wage Subsidy (i.e. between ₱5, 000 and ₱8, 000

per month per eligible employee to qualified small businesses for two months) and the I-Rescue

Lending Program by the state-run Land Bank of the Philippines for SMEs, microfinance

institutions and co-operatives.

Status Quo of Taxes

 In spite of that, de Vera (2020) stated in his news article that (businesses being

included,) DST is still applied to interbank borrowings (i.e. bank loan to another bank), bank

borrowings, quasi-banks, financing companies, lending firms, Pag-IBIG Funds, Government

Service Insurance System (GSIS) and Social Security System (SSS), and other financial

institutions under § 179, 195, and 198 of the Tax Code.

Tax Processes

According to Atty. Carina Laforteza, CPA and Hiyasmin A. Lapitan (2020),

paying and arranging taxes are usually settled every April in the Philippines. However, the use of

electronic schematics for processing taxes, especially during this COVID-19 (with quarantine

protocols), are still an inconvenience due to the fact that taxes still require filing hard copies of

documents and the physical presence of taxpayers at the offices of the tax authority, the BIR and

at the authorized agent banks (AAB) of the BIR.

MSMEs as Taxpayers

Additionally, Laforteza & Lapitan (2020) mentioned that some large taxpayers

and MSMEs have been coerced to shut down or limit their business operations/transactions. Due

to the fact that most businesses who provide essential needs, many industries have been affected.

This particularly includes the stock market and the tourism industry.

Moreover, despite the fact that oil is especially crucial for transportation,

Laforteza & Lapitan (2020) prodded that the oil industry had been affected, considering the

notions of places implementing tight measurements of lockdowns and quarantine.

Further and Pending Tax Inspection

Even prior to the pandemic, Laforteza & Lapitan (2020) noted that the current

situation of the country is still going through tax initiatives, concurrent within the COVID-19

dilemma. This is said to be particularly prevalent among the 4 TRAIN law packages, which have

received negative responses from lawmakers. Package 1 in scope of individual income taxes,

DST, and transfer taxes. Whereas, package 2 is the controversial decrease for Corporate Tax

(supposed to be intended for companies to provide more benefits to their employees under

CITIRA Bill). While, package 3 is pertaining to expanding of basis for real property tax (RPT)

for other taxes be not raised. And package 4 being the simplification of tax rates for attraction of

business and capital.

Notwithstanding, Laforteza & Lapitan (2020) further noted about news regarding

the response of the SOF in increasing the taxes for one to two years; in order to sustain the

shortfalls of the COVID-19 pandemic, which is (sic.) under discussion of the Congress.

Finally, given all the concurrent situations, Laforteza & Lapitan (2020)

emphasized that there is a necessity for what particular measures are relevant to be undertaken

and what ‘stimulus’ tax measures are crucial to counterpart for the needs of the economy and

national stability of the country.

The Online Provisions

According to Atty. Kenneth L. Manuel, CPA (2020), the BIR issued RMC No.

60-2020, which provides that online sellers who conduct online selling/delivery to register their

businesses to the BIR. This is due to the reason that any business transaction and flow of income
is considered to be taxable. Furthermore, he mentions that if small monthly salaries are subject to

withholding tax, then it also considers the income of those who are engaged in business.

How Online Sellers are to be Taxed

Manuel (2020) mentioned that there are ways for the imposition of taxes to online

sellers. He first mentioned that taxes can be contributed by the graduated income tax rate, which

rates from 20% to 35%, with sales less cost of sales less business expenses. Adversely, he

prodded that online sellers with less than or equal to ₱250, 000 taxable year income shall be

exempted.

He then mentioned that there is a special tax of 8%, which may be availed by the

online seller and can be solved based on gross sales or receipts, less the ₱250,000 sales (i.e.

exempt from income tax), assuming the payer is not likewise an employee.

Furthermore, he mentioned of paying online selling/small business taxes--which

is based on the percentage tax, imposed at 3% of a person’s gross sales/receipts. Conversely, he

pointed out that a person is exempted from tax if classified as a marginal income earner (i.e. a

person whose sales/receipts do not exceed ₱100, 000). Also, he noted that if an online seller

prefers to avail the tax at 8% income tax, the online seller is no longer subject to the 3%

percentage tax.

Changes and Other Online Exemptions

Manuel (2020) pointed that RMC No. 60-2020 extended the requirement of online

sellers in registering their respective businesses to the BIR from 31 January to 31 July 2020

(N.B.: it is implied of the injunction of at least within 30 days from the date of first sale if it is a

new business). He further expanded that late registration of the business shall be indemnified
with a fine of ₱1, 000 and failure to register shall be posted with an indemnity of ₱5, 000 to ₱20,

000 and imprisonment from 6 months to 2 years.

Beyond the details, Manuel (2020) prodded that:

If it is an individual online seller, to register, the individual:

1. Must fill up BIR Form No. 1901 – Application for Registration.

This is downloadable in the BIR website.
2. Present any government-issued ID Provide a DTI Certificate, if
with business name
3. Pay the registration fee of P500, and pay documentary stamp of
P30 for the Certificate of Registration.
4. Secure BIR invoices/official receipts or apply for Authority to
Print.

Other Crucial Insights

Manuel (2020) implied the fact of the vexatious process taxpayers shall invoke

through; from the rigorous papers, requirements et seq. imposed by the BIR. Entailing, he

scrutinized the negligence and lenience towards physical sari-sari stores for being tolerated by

BIR registration.

Most rudimentarily, he implied an aghast that it is prudently crucial for online

sellers and businesspeople (being Filipino citizens) to comply with the obligations in actively

processing registrations and paying taxes.

Synthesis

Combining all arguments, we can partially synthesize how the COVID-19

pandemic affected the economy of the Philippines, which primarily places shifts on taxation

changes. Small businesses (MSMEs) that started to grow in order to make a living were affected

by the virus. Many businesses, including MSMEs, were barred and limited to continue their

respective operations. This affects not only the economy of the Philippines but the livelihood of
people. MSMEs are enduring financial hardship much more pronounced among those who've

lost jobs or wages. Paying taxes by the taxpayers (which include MSMES) is also an

inconvenience due to the fact that taxes still require filing hard copies of documents. Several

industries had also been affected because of places implementing tight measurements of

lockdowns and quarantine, where non-essential goods are at most affected.

In summary, the key arguments, insights, dictums et seq. serve as a scope and path

towards (require) understanding the present lived experiences of MSMEs regarding taxations

changes during the COVID-19 pandemic; synonymous and coherent with economic, financial,

legal and other factors. In application, the researchers can conclude that there are several

coherent factors which rudimentarily affect taxation changes towards MSMEs. Such factors (i.e.

economic, financial, health etc.) could either result to positive or negative benefits/shortfalls,

depending on to the lived experiences of MSMEs and its respective MSME owners. Ergo, it is to

be synthesized that the topic still necessitates specification (i.e. narrowing) and conciseness (in

brevity) via looking at the lived experiences of MSMEs.

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https://pepperdine.contentdm.oclc.org/digital/collection/p15093coll2/id/803/
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Philippines. https://www.officialgazette.gov.ph/downloads/2020/03mar/20200324-RA11469-

RRD.pdf

Bayanihan to Recover as One Act of 2020 [RA 11494]. (2020, September 11). Congress of the

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RRD.pdf

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small, and medium enterprises (MSMEs)—The Philippines Report.

https://www.microsave.net/wp-content/uploads/2020/08/Impact-of-COVID-19-on-Micro-Small-

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