The BIR Form 1904, also known as the Application for Registration of One-Time Taxpayer and Persons Registering under E.O. 98 (Securing a TIN to be able to transact with any government office), serves a crucial purpose in the Philippine taxation system. Here are some key points explaining the purpose of this form:
1. Registering new businesses: The primary purpose of Bir Form 1904 is to facilitate the registration process for newly established businesses in the Philippines. It enables individuals, associations, partnerships, corporations, and other types of organizations to obtain a Tax Identification Number (TIN) for taxation purposes.
2. One-time taxpayer registration: The form caters not only to businesses but also to individuals who are classified as "one-time taxpayers." These taxpayers need to secure a TIN in order to engage in any taxable transaction or to transact with government agencies, as required under the provisions of Executive Order 98.
3. Securing a TIN: The TIN serves as a unique identification number assigned to each taxpayer in the Philippines. It is an essential requirement for businesses and individuals to conduct legal transactions, file tax returns, and comply with tax obligations, such as filing tax forms, paying taxes, and maintaining accurate tax records.
4. Compliance with legal obligations: By completing BIR Form 1904 and registering for a TIN, businesses and individuals fulfill their legal obligations imposed by the Bureau of Internal Revenue (BIR) - the government agency responsible for collecting taxes in the Philippines. This form ensures that taxpayers are properly identified and regulated, thereby promoting transparency and accountability in taxation matters.
5. Access to government services and benefits: The TIN obtained through this form enables taxpayers to access various government services and benefits, such as registering for social security, health insurance, and other government-mandated programs. It serves as an identification number across different government agencies, streamlining processes and reducing administrative burdens.
6. Facilitating tax compliance and administration: Bir Form 1904 plays a crucial role in the overall tax compliance and administration system of the Philippines. By having an accurate and updated registry of taxpayers, the government can effectively enforce tax laws, track taxable transactions, and ensure proper collection of taxes, ultimately contributing to the development of the country's revenue system.
In summary, Bir Form 1904 is indispensable for both new businesses and one-time taxpayers in the Philippines. It allows them to obtain a TIN, comply with legal obligations, gain access to government services, facilitate tax compliance, and contribute to the efficient administration of the taxation system.