BIR, or Bureau of Internal Revenue, is an agency that cooperates with the finance department. It has the task of correctly assessing and collecting internal revenue, fees, records, and charges and looks after enforcing penalties, fines, and forfeitures. It also includes the execution of any judgment, which must be decided in favor of the court of tax appeals and the ordinary court. There are plenty of reasons to register with BIR. But there is a difference in return for the experts and the startups in the market.
Some states mandate business registration with BIR as it helps get a stable tax identification or TIN and can have it only through registration. The bureau gives the nine-digit identification number for any individual or a corporate taxpayer in the country of its business operations. It helps keep track of registrants and keep the records updated.
To ensure tax compliance and to be able to start a business in the first place, the business should be registered with BIR. It is something that investors and entrepreneurs cannot overlook and neglect. Whether a sole proprietor or starting a business in partnership, the business should have registration with BIR if you wish to run the business legally.
Business registration with BIR can help with the following:
1. Skip fines and jail time – If you want to get the advantage of any financial service, your business should be registered with BIR. Opening a corporate bank account cannot be done with an identification number and registration details
2. Easy access to financial services – The registration is essential if you want to take any business financial service
3. Enjoy the reputation of customers and investors -A registered business help customers trust the business. A business registered with BIR helps gain trust quickly and would be easy for customers to go for huge transactions relating to the business
4. Better growth opportunities – A BIR registered business indicates a legitimate enterprise that maintains its official documents correctly. It further gives better opportunities to explore the market and bring in business growth
5. Get confidence in promoting a business – The registration clears that the business won’t hide from government charges and can market its service confidently.
When considering Bir in real estate, it is about capital gain tax imposed on gains. It is presumably the seller gain from the capital assets sale, exchange, or disposition. It may also include pacto de retro sales and conditional sales. BIR clarifies tax-related matters based on real estate properties exchange, sale, and disposition. As per the tax code, the gross selling price or the current market value of a property in case of exchange, sale, or disposition should be calculated on 6% of total capital gains of tax.
