Section 34Sec./Art. 34

Section 236 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Section 236. Registration, Requirements. -

(A) Requirements. - Every person subject to any internal revenue tax shall register once, either electronically or manually, with the appropriate Revenue District Office:

(1) Within ten (10) days from date of employment, or

(2) On or before the commencement of business, or

(3) Before payment of any tax due, or

(4) upon filing of a return, statement or declaration as required in this Code.

The registration shall contain the taxpayer's name, place of residences, business, and such other information as may be required by the Commissioner in the form prescribed therefor: Provided, That the Commissioner shall ensure the availability of registration facilities to all taxpayers including those who are not residing in the country: Provided, further, That the Commissioner shall simplify the business registration and tax compliance requirements of self-employed individuals and/or professionals.

x x x

(B) Registration of Each Type of Internal Revenue Tax. - Every person who is required to register with the Bureau of Internal Revenue under Subsection (A) hereof shall register each type of internal revenue tax for which he is obliged, shall file a return, either electronically or manually, and shall pay, either electronically or manually, such taxes, and shall update such registration of any changes in accordance with Subsection (D) hereof.

(C) Transfer of Registration. - In case a registered person decides to transfer the place of business or head office or branches, it shall be the person's duty to update the registration status by merely filing, either electronically or manually, an application for registration information update in the form prescribed therefor: Provided, however, That if the transferring registered person is subject of an audit investigation, the Revenue District Office which initiated the audit investigation shall continue the same.

(D) Other Updates. - x x x

(E) Cancellation of Registration. -

(1) General Rule. - The registration of any person shall be cancelled upon mere filing, either electronically or manually, with the Revenue District Office where he is registered, an application for registration information update in a form prescribed therefor. However, this shall not preclude the Commissioner of the Internal Revenue or his authorized representative from conducting an audit in order to determine any tax liability;

(2) Cancellation of Value-Added Tax Registration. - A VAT-registered person may cancel the registration for VAT if:

(a) The person makes a written or an electronic application and can demonstrate to the Commissioner's satisfaction that the gross sales for the following twelve (12) months, other than those that are exempt under Section 109(A) to (CC), will not exceed the threshold as provided in Section 109(CC); or

(b) The person has ceased to carry on the trade or business, and does not expect to recommence any trade or business within the next twelve (12) months.

The cancellation of registration will be effective from the first day of the following month.

(F) Persons Required to Register for Value-Added Tax. -

(1) Any person who, in the course of trade or business, sells, barters or exchanges goods for properties, or engages in the sale or exchange of services, shall be liable to register, either electronically or manually, for value-added tax if:

(a) The person's gross sales for the past twelve (12) months other than those that are exempt under Section 109(A) to (CC), have exceeded the threshold as provided in Section 109(CC); or

(b) There are reasonable grounds to believe that the gross sales for the next twelve (12) months, other than those that are exempt under Section 109(A) to (CC), will exceed the threshold as provided in Section 109(CC).; or

(c) There are reasonable grounds to believe that the gross sales for the next twelve (12) months, other than those that are exempt under Section 109(A) to (CC), will exceed the threshold as provided in Section 109(CC).

(2) Every person who becomes liable to be registered under paragraph (1) of this Subsection shall register, either electronically or manually, with the appropriate Revenue District Office, as determined by the Commissioner. If he fails to register, he shall be liable to pay the tax under Title IV as if he were a VAT-registered person, but without the benefit of input tax credits for the period in which he was not properly registered.

(G) Optional Registration for Value-Added Tax of Exempt Person. -

(1) Any person who is not required to register for value-added tax Subsection (F) hereof may elect to register, either electronically or manually, for value-added tax with the Revenue District Office that has jurisdiction over the head office of that person.

(2) Any person who elects to register under this Subsection shall not be entitled to cancel his registration under Subsection (E)(2) for the next three (3) years.

For purpose of Title IV of this Code, any person who has registered value-added tax as a tax type in accordance with the provisions of Subsection (B) hereof shall be referred to as a "VAT-registered person" who shall be assigned only one Taxpayer Identification Number.

(H) Supplying of Taxpayer Identification Number. -

Any person required under the authority of this Code to make, render or file a return, statement or other document shall be supplied with or assigned a Tax Identification Number which the person shall indicate in such return, statement or document filed, either electronically or manually, with the Bureau of Internal Revenue for proper identification for tax purposes, and which the person shall indicate in certain documents, such as, but not limited to, the following:

x x x

In cases where a registered taxpayer dies, the administrator or executor shall register, either electronically or manually, the estate of the decedent in accordance with Subsection (A) hereof and a new Taxpayer Identification Number shall be supplied in accordance with the provisions of this Section.

In the case of a nonresident decedent, the executor or administrator of the estate shall register, either electronically or manually, the estate with the Revenue District Office where the executor or administrator is registered: Provided, however, That in case such executor or administrator is not registered, registration of the estate shall be made with the Taxpayer Identification Number supplied by the Revenue District Office having jurisdiction over the executor or administrator's legal residence.

x x x."