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If you’re a fresh graduate or starting your first job, you’re probably hearing about taxes for the first time. 

The Bureau of Internal Revenue (BIR) is the government agency responsible for collecting taxes in the Philippines, and if you’re earning an income, you’ll need to register and get your Taxpayer Identification Number (TIN). 

This guide will walk you through everything you need to know about getting your TIN, why taxes matter, and how to register in BIR online.

What is the Bureau of Internal Revenue (BIR)?

To put simply, the BIR ensures that individuals and businesses pay their taxes so the government can fund essential services like roads, schools, and hospitals. 

As a first-time taxpayer, your first step is to register and get your TIN, which is your unique ID for tax purposes.

Functions of BIR

The BIR is responsible for:

• Collecting taxes from individuals, businesses, and corporations
• Enforcing tax laws and penalizing tax evaders
• Issuing Taxpayer Identification Numbers (TIN)
• Processing tax returns and payments
• Conducting tax audits

Why Are Taxes Important?

Taxes help fund important services, such as:

• Public education and scholarships – Funds schools, universities, and free education programs
• Healthcare and hospitals – Provides free medical services, vaccinations, and healthcare assistance
• Roads, bridges, and public transportation – Ensures better infrastructure and connectivity
• Government programs and assistance – Funds poverty alleviation, cash assistance, and relief efforts
• National security and public safety – Pays for the salaries of police, military, and firefighters

Without taxes, these services wouldn’t exist. By paying your fair share, you’re contributing to the country’s development.

Understanding the Different Types of Taxes in the Philippines

There are different types of taxes that individuals and businesses in the Philippines must pay. Below are the most common:

Income Tax

This is a tax on an individual’s earnings. The amount depends on your salary bracket. Employers automatically deduct this from employees’ salaries through the Withholding Tax System.

Value-Added Tax (VAT) and Percentage Tax

• VAT (12%) – Applied to the sale of goods and services by businesses earning over ₱3 million annually.
• Percentage Tax (3%) – Paid by small businesses and professionals earning less than ₱3 million annually.

Business Tax

If you are a freelancer, entrepreneur, or self-employed individual, you need to pay business tax to operate legally.

Withholding Tax

This is the tax deducted by employers from employees’ salaries. Freelancers and independent contractors may also be subject to withholding tax, depending on their clients.

Documentary Stamp Tax

This tax applies to legal documents, real estate transactions, and loan agreements.

Also read: How to Verify Your BIR TIN

How Are Taxes Deducted?

For employees, your employer automatically deducts taxes from your salary through the withholding tax system. 

This means a portion of your salary is deducted before you receive your paycheck.

For freelancers and self-employed individuals, you must compute and file your taxes on your own, usually on a quarterly and annual basis.

Steps to Apply for a BIR TIN via Walk-In Application

1. Set an Appointment
   Schedule your visit through the BIR eAppointment system to avoid long wait times.
2. Prepare the Required Documents
   Gather the necessary documents before your visit to ensure a smooth process:
   • BIR Form 1902 – Application for Registration (for employees)
   • Valid government-issued ID (e.g., passport, birth certificate, or school ID with a transcript of records)
   • A copy of your job contract or your employer’s Certificate of Employment (COE)
   • Your employer’s BIR-registered TIN and RDO (Revenue District Office) details
3. Visit the Designated RDO
   Proceed to the Revenue District Office (RDO) assigned to your employer’s location.
4. Submit Your Application
   Present the required documents and follow the process with the assistance of BIR personnel.
5. Receive Your TIN
   Once your application is processed, you’ll be issued your TIN along with either a printed verification slip or a TIN card.

For a more guided way to obtain your TIN, check out here. 

How to File Your Taxes

For Employees

• Your employer deducts tax from your salary and remits it to BIR.
• You receive a BIR Form 2316 at the end of the year as proof of tax payment.

For Freelancers & Self-Employed Individuals

1. Calculate your income and tax dues.
2. File tax returns quarterly and annually using BIR Forms 1701 or 1701Q.
3. Pay through banks, e-payment platforms, or BIR-accredited payment centers.

For this, you might want to check out this guide: How to File for BIR Registration

What Happens If You Don’t Pay Taxes?

If you ignore your tax obligations, here’s what could happen:

• Fines and Penalties – You’ll be charged extra for late payments.
• Legal Issues – Tax evasion can result in lawsuits or even jail time.
• Business Closure – If you own a business and don’t pay taxes, the BIR can shut it down.
• Loss of Benefits – Unpaid taxes may affect your ability to get government services like SSS and PhilHealth.

Keeping Track of Your Taxes

Once you have your TIN, you should:

• Make sure your employer is deducting the right amount
• File your taxes on time (especially if self-employed)
• Keep receipts and records of your income and expenses

Also Read: BIR eAppointment Process – How to Schedule Online

What is a TIN and Why Do You Need One for Your Application for Registration BIR?

A Taxpayer Identification Number (TIN) is a unique number assigned to every taxpayer. If you’re employed, your company will usually help you get one. 

If you’re self-employed or freelancing, you need to apply for it yourself.

Having a TIN is required for:

• Employment (your employer will need it for tax deductions)
• Opening a bank account
• Government transactions (SSS, PhilHealth, Pag-IBIG)
• Business registration

How to Register in BIR Online and Get Your TIN (For First-Timers) 

If you are wondering how to register online, here’s what you need to do:

For Employees (BIR Form 1902)

1. Prepare the Requirements: Bring a valid ID, birth certificate, and your employer’s details.
2. Fill Out BIR Form 1902: This is the form for employees registering for a TIN for the first time.
3. Submit the Form to Your Employer: Your HR department will process it and submit it to the BIR.
4. Receive Your TIN: Your employer will provide you with your TIN after registration.

For Freelancers & Self-Employed Individuals (BIR Form 1901)

1. Prepare the Requirements: Bring a valid ID, proof of business (if applicable), and a birth certificate.
2. Fill Out BIR Form 1901: This is the form for self-employed individuals and freelancers.
3. Submit the application form to BIR: Go to your nearest BIR office and submit your documents.
4. Pay the Registration Fee: P500 annual registration fee (plus additional fees for books of accounts if required).
5. Attend the Taxpayer Briefing: Some BIR offices require new taxpayers to attend an orientation.
6. Receive Your TIN & Certificate of Registration: This proves you’re registered with the BIR.

If you’re looking to start a business, you might want to check this how: BIR Registration for New Businesses: Requirements & Steps

BIR’s Online Platforms

BIR’s Online Platforms make tax transactions easier, the BIR has introduced several online platforms to assist in the application for registration in BIR:

• BIR eServices Portal – Provides online tax filing and payment options for individual taxpayers and businesses.
• eBIRForms – A system that allows taxpayers to file tax returns electronically instead of using printed forms. Access it here.
• Electronic Filing and Payment System (eFPS) – A web-based platform for businesses and large taxpayers to file and pay taxes online.
• Online TIN Verification – Allows individuals to verify their TIN details online. If you’re having trouble navigating the site, our guide on how to verify your TIN ID can help.
• BIR eAppointment System – Lets taxpayers schedule appointments with their Revenue District Office (RDO) online. If you’re planning to visit any of their district offices, learn how to book an appointment first.

These online platforms help taxpayers save time by reducing the need for in-person visits to BIR offices.

How to Get Your ORUS BIR Digital TIN ID: A Step-by-Step Guide

With the digitization efforts of the BIR, taxpayers can now obtain an ORUS digital TIN ID online. Here’s how:

1. Log in to ORUS – Access the BIR Online Registration (ORUS) portal.
2. Submit the BIR Application Form – Complete the online form and upload the necessary documents.
3. Wait for Verification – The BIR will verify your identity before processing your request.
4. Receive Your digital TIN ID – Once approved, you can download your ORUS digital TIN ID for official transactions.

For a more detailed guide, here’s a step-by-step tutorial on how to get your digital TIN ID.

Benefits of the Digital TIN ID

• Convenience – No need to visit the BIR office in person.
• Faster Processing – Get your TIN ID quicker than traditional methods.

Why a TIN Matters for Your Career

Getting your TIN and understanding taxes might seem complicated at first, but it’s an essential step in starting your career. 

Completing the application for your BIR TIN registration ensures that you can legally work and comply with tax regulations.

With the BIR’s online registration platform, ORUS, you can conveniently apply for and receive your digital TIN ID, making the process smoother and more efficient. 

Registering online also helps ensure that your tax information is properly recorded, reducing the risk of future complications.

Take the time to learn about your tax responsibilities now—it’ll save you from bigger problems in the future! 

If you’re unsure, don’t hesitate to ask your HR department or visit your nearest BIR office for guidance.

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