Bureau of Internal Revenue (BIR) is the Philippine government agency responsible for the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith.
Core Mandate
Under Section 2 of the National Internal Revenue Code of 1997, the BIR operates under the supervision and control of the Department of Finance (DOF). Its primary duties include:
- Assessing and collecting all national internal revenue taxes, fees, and charges
- Enforcing forfeitures, penalties, and fines related to tax violations
- Executing judgments in cases decided in its favor by the Court of Tax Appeals and ordinary courts
- Administering supervisory and police powers granted by the Tax Code
Key Services
The BIR provides several services relevant to Philippine taxpayers:
- Tax Registration: Issuance of TIN (Tax Identification Number) for individuals and businesses
- Tax Filing: Processing of income tax returns, VAT returns, and withholding tax remittances
- Electronic Services: Operation of the Electronic Filing and Payment System (eFPS) for online tax compliance
- Zonal Valuation: Publication of zonal values for real property taxation purposes
- Tax Clearances: Issuance of certificates and clearances for business transactions
Jurisdiction
The BIR has nationwide jurisdiction over all taxpayers in the Philippines. It operates through:
- National Office in Quezon City
- Regional Offices across the country
- Revenue District Offices (RDOs) at the local level
Relevance to Real Estate Professionals
For real estate service practitioners in the Philippines, the BIR plays a critical role in commission taxation. Key regulations include:
- Revenue Regulations No. 2-98: Establishes withholding tax requirements on professional fees, including the 10% Expanded Withholding Tax (EWT) on broker commissions
- RR No. 11-2018: Updated guidelines on creditable withholding tax rates
You must register with the BIR and secure a TIN before engaging in real estate brokerage activities. Developers are required to withhold taxes from commission payments and remit these to the BIR on behalf of agents and brokers.
When you receive commission income, your developer partner withholds a percentage as creditable withholding tax. This amount appears on BIR Form 2307 (Certificate of Creditable Tax Withheld at Source), which you use to offset your annual income tax liability.
Official Resources
- Official Website: www.bir.gov.ph
- eFPS Portal: efps.bir.gov.ph
- Contact Center: (02) 8538-3200
Related Terms
- Tax Withholding
- Value-Added Tax (VAT)
- Revenue Regulations 2-98
- Electronic Filing and Payment System
- TIN (Tax Identification Number)
References
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