The digital world is increasingly surging, and almost all businesses immerse themselves in technology as it is the key pathway to growth and efficient operation. In response to this shift, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 15-2024 (RR 15-2024), in line with the Internet Transactions Act of 2023 (RA 11967).
This regulation establishes clear tax, registration, and invoicing standards for all types of business — whether online, brick-and-mortar, or hybrid. In this article, we will discuss the BIR mandatory registration requirements, along with the policies and guidelines to follow. It also outlines administrative penalties and criminal liabilities should businesses fail to comply.
Let us guide you through how this Revenue Regulation can ensure compliance while providing peace of mind and a competitive edge, and how it is integrated with the ITA.
What is RR 15-2024 & How Is It Relevant?
Took effect last August 15, 2024, RR 15-2024 mandates that all persons engaged in business, whether physical or digital, must register with the BIR, file returns, and pay the relevant revenue taxes. The goal is to level the playing field between traditional as well as online businesses. This ensures enhanced tax transparency and protects the welfare of customers.
This new regulation aims to equalize compliance for both online businesses and physical retailers. It is emphasized by BIR Commissioner Lumagui Jr. that “online and offline must be taxed uniformly”. To make that happen, tax compliance is also now being enforced on online marketplace platforms.
To Whom This Mandate is Applied?
Revenue Regulations No. 15-2024 apply to the following:
- Purely Online Businesses – this includes websites, social media storefronts, apps, et.al.
- Brick-and-mortar Establishments – including their branches and online extensions
- Digital platforms – e-marketplace, streaming, freelancing, travel, content creation, travel, delivery, fintech services, among others
- Other forms of businesses, other than those mentioned, which are conducted online
In other words, if you are leveraging the internet to profit your business in the Philippines, you need to register and adhere to the rules of the BIR according to this regulation.
Registration: What You Need to Know
According to Section 236 (A) of the Tax Code, businesses that are subject to any internal revenue tax shall register with the BIR once. Electronic or manual registration is required:
- Within ten (10) days from the date of employment; or
- On or before the commencement of business; or
- Before payment of any tax due; or
- Upon filing of a return, statement, or declaration as required
For brick-and-mortar businesses, they must register with the RDO where their branch is located. For digital-only sellers, register in the RDO corresponding to your residence (for individuals) or principal place of business (for companies).
Additionally, brick-and-mortar businesses that also sell online shall register their digital store name as an additional business name under their head office or branch and shall not be treated as a separate entity. To summarize:
- Physical businesses: must register at the appropriate Revenue District Office (RDO)
- Physical with online presence: must register the store name as an additional business name that is tied to the head office
- Pure-play online entities:
- Every individual must use the residence-based RDO
- Corporations must align with principal business addresses under SEC registration
Certificate of Registration (CoR) and Electronic Certificate of Registration (e-CoR)
Physical and Digital Display
- For physical stores, they must display the original CoR at their branches and establishments
- For non-fixed businesses (ex. freelancers), they must keep their CoR and ensure that they can present it when needed
- For online sellers, they must display the e-CoR noticeably on their websites, social media pages, or any platforms that are being used for business
**Note: To avoid violation of tax mapping or the BIR tax compliance verification drive, you should display the CoR or e-CoR where it is publicly visible. Otherwise, you may be penalized by a P1,000 fine per violation. This is an often-overlooked compliance.
Registration: Penalties
The regulation shall be strictly complied with. Should you fail to meet the registration rules, it may result in such penalties:
a. Late or Missing Registration
- For late registration, you are faced with a P1,000 penalty
- Failure to register store or business name, you are imposed with a P1,000 penalty per business/store name
- For non-registered or missing registration, the penalty may vary from P20,000-P50,000, based on the enterprise size (micro, small, medium, or large)
b. Closure or Take-Down Orders – refusal to comply shall be penalized with P20,000 fine.
- Closure: For physical stores
- Take-Down: For online stores
Note that the orders last for at least five (5) days and shall only be lifted once the registration and compliance are verified.
c. Aiding and Abetting Violations
- For lessors of establishments and e-marketplace operators, they must ensure that all of their sellers are registered with the BIR with a Tax Identification Number (TIN) and proper invoicing;
- If they fail to do so, it will result in aiding tax evasion, attracting fines of P20,000 per seller or establishment.
Non-registration in bad faith or aiding non-compliance can therefore lead to criminal charges under BIR’s Run After Tax Evaders (RATE) Program.
Impact on Customers and Business Credibility
In making a purchase, especially online payments in the Philippines, credibility is a crucial part of a customer’s trust and decision-making. In order to avoid fraudulent transactions, consumers often do their due diligence by ensuring that they only buy from legitimate and credible businesses. By mandating the CoR/e-CoR display, the regulation equips consumers to:
- Verify seller’s legitimacy
- Report on non-compliant platforms
- Make informed decisions and smart purchases
This display is not only for the eyes of many, but most importantly, protects customers while also benefiting businesses. When they comply, they will be trusted by buyers, especially when it’s a small or startup business that’s in the process of building its brand name.
Additional Tax Rules concerning RR 15-2024
a. Withholding Taxes (RR-16 2023 & RMC 8-2024)
- The e-marketplaces and digital financial service providers (DFSPs) shall collect CoR/e-CoR and withhold taxes (ex. 1% creditable withholding) on gross remittances should the seller exceed P500,000 annual turnover
b. VAT on Digital Services (RA 12023 & RR 3-2025)
- Republic Act No. 12023 – Effective June 2, 2025, it imposes 12% VAT on digital services by non-resident digital service providers (DSPs);
- Revenue Regulation No. 3-2025 – Effective January 17, 2025, it covers the VAT registration and compliance regulation for non-resident DSPs.
Foreign DSPs that service Filipino customers must now register, issue invoices, and remit VAT to the BIR. Non-compliance of foreign DSPs will result in service blocking or closure.
Related article here: https://manilabookkeepers.com/blog/vat-on-digital-services-in-the-philippines/
Integration of RR 15-2024 with the ITA 2023
The Internet Transactions Act of 2023 (ITA 2023) and Revenue Regulations No. 15-2024 (RR 15-2024) work hand-in-hand to ensure that there is regulated security in terms of online transactions in the Philippines.
For a summary of integration, refer to the table below:
| Key Area | Internet Transactions Act of 2023(RA 11967) | Revenue Regulations No. 15-2024 |
| Registration | Online sellers need to register | Provides the exact BIR registration process |
| Platform Duties | It avoids illegal sellers by holding them accountable | Imposes fines if a seller has unregistered activities |
| Transparency | Gives the consumers the power to check legitimacy of the seller | Requires display of CoR/e-CoR |
| Enforcement | Allows penalties or take-downs | Implements closure orders and fines |
| Government Collaboration | Establishes E-Commerce Bureau & DTI-BIR coordination | Enables future integration with the Online Business Registry |
Example Scenarios:
Scenario 1: A TikTok Seller
- Must be BIR registered and shall have a TIN (RR 15-2024)
- TikTok (as the e-commerce platform) shall verify and report the seller’s information (ITA 2023)
- If the seller exceeds P500,000 in sales, TikTok shall withhold 1% tax
Scenario 2: A Foreign SaaS Company
- It is considered a DSP operating in the Philippines (ITA 2023)
- For VAT rules aligned with the ITA under the VAT on Digital Services Act, it must be:
- Registered for VAT in the Philippines
- Issue e-invoices to Filipino customers
- Remit 12% VAT
These new tax rules work in synergy. This is designed to address online business challenges, their grey areas, and help mitigate them. Along with the BIR’s new registration requirements, it represents the Philippine government’s collaborative effort in regulating tax for the fast-paced digital economy.
Related article here: https://manilabookkeepers.com/blog/navigating-internet-transactions-act/
Online Game-Changer
In this digital era, RR 15-2024 is considered a game-changer in an internet-based business. It upholds the integrity of the seller and provides security for the consumer. If you are a small type of business owner who is a DSP, a freelancer, content creator (and the likes), and want to grow your business exponentially, this new regulation would help you not only in complying with government taxes but also serve as your firewall in avoiding fraudulent transactions. By complying with registration, your visibility on the internet will give you transparency, trustworthiness, and credibility, and you will be certified in your online presence.
Stay Compliant, Stay Prepared with Manila Bookkeepers
Taxes are not a pain if done correctly. As a trusted Finance and Accounting Firm, Manila Bookkeepers is here to guide you through the process – from understanding the requirements to preparing and submitting the necessary specifics accurately and on time.
Keep mistakes and penalties at arm’s length and secure your company’s online compliance moving forward. To know more about these regulations, take advantage of our free consultation with the Manila Bookkeepers Team at [email protected]
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