Corporate regulators have stepped up efforts in making sure foreign company officials are paying proper taxes for their income here in the Philippines. In a Memorandum Circular No. 1, Series of 2013, the Securities and Exchange Commission (SEC) require the tax identification number (TIN) on foreign investors in all forms, papers and documents filed with the SEC.

No application for incorporation of a corporation, or registration of a partnership shall be accepted unless the TIN or passport number of all its foreign investors are indicated in its registration documents (i.e. Articles of Incorporation);

For applications for amendments, the same shall not be accepted unless the TIN of all the foreign investors, natural or juridical, resident or non-resident, are indicated therein.

All documents to be filed with the SEC by corporations and partnerships after their incorporation (i.e. General Information Sheets) shall not be accepted unless the TIN of all its foreign investors, natural or juridical, resident or non-resident, are indicated therein.

The new ruling stemmed from last year’s Revenue Regulation 7-2012 or the “Amended Consolidated Revenue Regulations on Primary Registration, Updates and Cancellation” which provides – Non-resident Aliens Not engaged in Trade or Business (NRANETB) or Non-Resident Foreign Corporation (NRFC) shall be issued TIN’s for purposes of withholding Taxes on their income from sources within the Philippines. The withholding Agent shall apply for the TIN in behalf of the NRANETB or NRFC prior to or at the time of the filing of their monthly withholding tax return.

This SEC memorandum is in line with Executive Order 98 that requires all persons dealing with all government agencies to incorporate their TIN in all forms, permits, licenses, clearances, official papers and documents which they secure from these government agencies including government owned and controlled corporations and local government unit.