What to expect during a BIR Tax Mapping?
Tax mapping is a surprise visit by the Bureau of Internal Revenue (BIR) to check a company’s compliance with tax laws. During the visit, businesses must present certain documents to demonstrate compliance. Below is a simplified guide to the required documents and potential penalties for deficiencies.
Documents to Prepare and Post
- Certificate of Registration (BIR Form 2303)
Must be issued by the Revenue District Office (RDO) and displayed conspicuously.
- Notice to Issue Receipts/Invoices (NIRI)
Replaces the old "Ask for Receipt" notice and must be prominently displayed at the business premises.
- Authority to Print (ATP) Invoices
Shows approval for printed invoices and receipts. ATPs are now perpetually valid unless booklets are fully used (as per Revenue Regulations 6-2022).
- Books of Accounts
Registered Books of Accounts (manual or loose-leaf) must be kept on the premises. Loose-leaf books must be permanently bound and submitted to the BIR with a sworn statement within 15 days after the tax year ends.
- Permit to Use (PTU) CRM/POS Systems or Computerized Books
CRM/POS systems require a PTU via the BIR eACCReg system. However, for Computerized Accounting Systems or Books, registration now requires submission of documents instead of a PTU (per Revenue Memorandum Circular 5-2021).
Changes Effective 2024
Annual Registration Fee (ARF): Starting January 22, 2024, under the Ease of Paying Taxes Act, the ₱500 annual registration fee is no longer required.
Administrative Penalties for Deficiencies
Non-compliance during tax mapping can result in fines:
- • Failure to Register with BIR: ₱5,000–₱20,000
- • Failure to Display Documents:
- • Certificate of Registration (COR): ₱1,000
- • NIRI: ₱1,000
- • Failure to Use Authorized Receipts: ₱10,000–₱50,000
- • Using Unauthorized CRM/POS: ₱25,000–₱50,000 per unit
- • Issuing Unregistered Receipts: ₱20,000–₱50,000
By preparing these documents in advance and ensuring compliance, businesses can minimize risks and avoid penalties during BIR tax mapping.
This article was prepared by Morfe, Ceneta & Co., and CPAs for general information only and should not be used as a replacement for expert advice.