Helpful Facts You Must Know About BIR Tax Mapping (2024)

You could be one of the many business owners who have no idea what Tax Mapping is all about. But remember, ignorance of the law is not an excuse nor does it exempt you from the hefty fines and penalties.

What is Tax Mapping? The Bureau of Internal Revenue introduced Tax Mapping in the year 2003. It is also known as TVCD or Tax Compliance Verification Drive program and is commonly known as “Oplan Kandado” because one of the repercussions is potential business closure.

This program will help expand the tax base and improve the tax compliance of businesses here in the Philippines. Through this program, BIR will be allowed to assign authorized examiners to pay a visit to companies and check or verify if they are compliant with the current tax laws. Seeking help from a reliable accounting firm for guidance on BIR problems and solutions will ensure your business stays above board.

Companies will be given several notices issued by the Bureau of Internal Revenue to give time for the companies to prepare the necessary documents essential for tax mapping. After the notice has been sent, BIR representatives will do spot-inspections at random with no prior announcements. This is to ascertain that you remain complaint even when no one is watching.

If you don’t comply with this regulation, your company or business is subject to a penalty that could cost from P1,000 up to P50,000 depending on the nature of your violation. There are also cases that can lead to a permanent closure of the business or the imprisonment of the business owner.

Here are the most common violations you ought to avoid. Seek business registration services to fix these common problems:

1. Registration

• Unregistered with BIR
• Failed to pay the annual registration fee and not displayed in your business
• The poster or sign “Ask for BIR receipts” is placed incorrectly
• Certificate of Registrations and Notice to the Public is not displayed

2. Invoice

• Not issuing receipts or sales invoices
• Issuing unregistered receipts or invoices
• Not issuing official receipts of sales invoices

3. Other Violations

• Failed to remit withheld taxes at the time it was required by law
• Failed to pay or file any interval revenue tax at the time it was required by law
• Failed to preserve records required by law

These are hefty penalties you will pay for each violation your operations commit:

1. Registration

• Failing to Register – P2,000 up to P20,000
• Failing to Renew Registration – P1,000
• Certificate of Registration is not displayed – P1,000
• “Notice to the Public” is not displayed – P1,000

2. Invoice

• Not providing official receipts or invoices
• Duplicate copies of the receipts are blank but the original is detached – P10,000 up to P20,000
• Using unregistered receipts – P10,000 up to P20,000
• Business information is incomplete in the receipts – P1,000 up to P2,000
• Using unregistered cash registered machines (CRM) and or components without a permit – P25,000 up to P50,000
• Failing to register CRM as cash depositor – P25,000 up to P50,000
• Issuing sales receipts using cash depository CRM – P25,000 up to P50,000
• Not attaching the original sticker in the machine authorizing the use of CRM or similar devices – P1,000
• Failing to display permit issued by the RDO – P1,000
• Failing to notify RDO before the transfer of CRM to another device – P1,000
• Using CRM or similar devices in another place other than what the permit specified – P25,000 up to P50,000

3. Bookkeeping

Bookkeeping violations depend on your gross annual sales, earnings, and receipts:

• Failing to register books of accounts
• Failing to keep books of accounts at the business location
• Failing to make daily entries in the registered books of accounts

1. Ascertain your business is not illegal in the eyes of the BIR
2. Registration documents must displayed accordingly
3. Pay the Annual Registration Fee on time
4. Register the CRM or POS
5. Original Authorization Sticker attached to devices in your business
6. Prescribed manuals or invoices issued by the BIR are used properly
7. Issue authorized receipts for every transaction
8. Maintain and record the business transactions in a registered book of accounts for easy audit and checking
9. Regularly pay taxescorrectly and on time

Being compliant with current tax laws is crucial for every business. It helps owners save more money by avoiding penalties. Being informed about what to prepare gives you the confidence to warmly welcome the BIR staff who will examine your establishment during the tax mapping process.

Do note that if these procedures are too taxing, there is always an option to reach out and ask for help and guidance from professionals who can assist you throughout the tax mapping.Apart from accounting and tax services, you can seek advise from our firm for business registration services.