Taxes are an essential source of revenue for any economy. Therefore, every person earning some income is expected to contribute to government revenue by remitting taxes. In the Philippines, you will be required to fill the 1901 BIR Form to fulfill this duty, if you are a self-employed, non-resident, or an earner of income from various mixed sources.
Individuals are required to complete or fill this form on or before the start of a new business. It is also a document that trusts and estates, whether Filipinos or foreigners, should fill prior to the payment of any due taxes or before filing a return. So, what is the exact purpose of this form, and what are the requirements for filling it?
What is 1901 BIR Form?
It is a tax document that self-employed Filipinos and those who earn a mixed-income are required to fill to register their business ventures. The same form is used by trusts and estates engaging in business activities for registration purposes.
Similarly, it captures the details of non-residents engaged in trade within Filipino borders. To have a glimpse of a 1901 BIR Form sample, visit the BIR website.
What is the purpose of BIR Form 1901?
The primary 1901 BIR Form purpose is to enable the Philippines’ bureau of internal revenue to capture the details of self-employed, mixed-income, non-resident, and trusts for taxation accounting reasons. The following are other groups of taxpayers who should file this form:
- Employees who are also professionals
- Employees who are also single proprietors
- Professionals practicing their profession
- Home-based service providers to foreign entities
- Cryptocurrency dealers
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The basic requirements for filling out this BIR document as a mixed-income or self-employed individual are:
- Two copies of the accomplished BIR 1901 Form
- A valid identification document that indicates your name, address, and date of birth
- A photocopy of the mayor’s permit or a DTI certificate of business name registration. This applies to single proprietors
- A professional tax receipt or occupational tax receipt obtained from the LGU. This applies to professionals.
- Proof of payment of annual registration fee for individuals with an existing personal TIN and are registering their business
- Two copies of an accomplished BIR Form 0605 if the annual registration fee is unpaid.
- An accomplished BIR Form 1906
- Sample of invoices or clear principle receipts
The basic requirements for filling this BIR Form for trusts and estates are:
- A photocopy of the deceased’s death certificate for an estate
- A photocopy of the trust agreement for a trust
1901 BIR Form payment
The individual taxpayers who must file this document are charged PHP 500 annually alongside PHP 15 for documentary stamp tax and PHP 15 certification fee before January 31 every year. Although these fees are applicable annually, registration is only done once.
An annual registration fee of PHP 500 applies to individuals filing the form for estates and trusts. The payment of this fee is made to a revenue district office authorized agent bank.
How to fill up BIR Form 1901
This document is easy to fill. All you need to do when doing it is to concentrate on the sections applicable to you only. Also, you should fill by marking all the appropriate boxes with an ‘X’.
Once you are done, you should submit it and other requirements to your respective counter of the revenue district office. For example, if you filed the document for a new business, you should submit it to the new business registrant counter.
You will be required to pay the fees applicable to your purpose of filing it. After clearing the fees, you should attend the taxpayer’s briefing for new business registrants. You will then be issued with the BIR Form 2303 as well as other registration papers at this meeting.
Return to the registration officer after the meeting and claim the following documents:
- A receipt notice
- Authority to print
- BIR-printed invoice if applicable
Individuals filing the document for estates or trusts only need to get a TIN by submitting the requirements to the assigned revenue district office and paying the required fee.
Now that you have all the necessary information about the 1901 BIR Form, you can easily fill it out the next time a need arises.
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