As one of my passion projects this 2025, I am starting my own online store. I already have stocks of general merchandise imported from China and clothing bought wholesale in Taytay. I'm also thinking of doing an organic line of skincare and homecare but more on that later.
That's why I moved on to the next step, I applied for BIR COR this 2025.
Choosing between 8% or 3% tax rate
In the Philippines, self-employed individuals and professionals have the option to choose between two income tax schemes: the graduated income tax and the 8% special tax rate. The graduated income tax is a progressive tax, where the tax rate increases as taxable income rises. On the other hand, the 8% special tax, introduced by the TRAIN law, allows eligible taxpayers to pay a flat 8% tax on gross sales or receipts exceeding ₱250,000, instead of the graduated rates and the percentage tax.
To qualify for the 8% tax, an individual’s gross sales or receipts, including non-operating income, must not exceed ₱3,000,000 in a taxable year. If this threshold is surpassed, the taxpayer must switch to the graduated rates for the remaining quarters and the annual tax return. Some individuals, such as general professional partnerships and VAT-registered taxpayers, are excluded from choosing the 8% tax rate.
Choosing between the graduated income tax and the 8% special tax depends on various factors like income, expenses, and business goals. The 8% tax provides simplicity and can be beneficial for those with lower expenses, as it offers a flat rate.
However, for mixed-income earners like myself and those with significant deductible expenses, the graduated tax system may provide greater tax savings by lowering taxable income and we can use the tax withheld by our employers as a tax credit.
How I Applied for a Certificate of Registration (COR) at BIR RDO 28
If you're looking to register with the Bureau of Internal Revenue (BIR), you might be wondering how long the process takes. I recently went through it myself at RDO 28, and surprisingly, it was all done in just four hours—well, mostly. Here’s a step-by-step recount of my experience to help you navigate your own application smoothly.
Arriving at RDO 28
I arrived at the BIR office at around 8:30 AM, ready to process my Certificate of Registration (COR). As with any government transaction, I anticipated a long day ahead, but I was pleasantly surprised by how efficient the process was.
Preparation
Step 1: Buying Other Requirements
Before heading to the processing counter, I went to the small store located on the first floor of the BIR building. There, I purchased everything I needed for the application, including the books for my tax type which are: 14 columns (2 pcs.), Journal, and a Ledger. I paid PHP 220 for the set of books.
I also opted to have my receipt printed by them so I paid PHP 1,300 for the 10 booklets and they provided me with a sample receipt that I attached to my application. This step only took a few minutes.
Step 2: Submitting My Application
With all my documents in hand, I proceeded to submit my application on the second floor. To my surprise, the waiting time was only about an hour. The BIR personnel were accommodating, and the process was smooth.
Step 3: Waiting for My Printed COR
When my number was called, I submitted all of my requirements and the lady at the counter advised to return in 2 to 4 hours to claim my printed Certificate of Registration. Instead of waiting idly, I decided to grab lunch at SM Fairview, which was conveniently nearby.
By 1 PM, I was back at the RDO, and true enough, my COR was ready for pickup.
I then paid for the Documentary Stamp for PHP 30 and attached it to my COR.
Step 4: ORUS Registration Issue
Once I had my COR, I proceeded to log into the Online Registration and Update System (ORUS), BIR’s online platform. However, I encountered an issue—an ORUS email address not found error prevented me from completing my registration. Unfortunately, this meant I had to return to the RDO the following day to resolve it.
Step 5: Fixing the ORUS Issue
The next morning, I went back to RDO 28 to fix the email address issue. Luckily, it was a quick process. I simply filled out a S1905 form, submitted it, and after just 10 minutes of waiting, the problem was resolved.
This can be done online by emailing your RDO but I preferred to do it onsite to have a quicker turnaround.
This is my total expenses for the application:
DTI Fee - PHP 200
Books - PHP 220
Receipt - PHP 1,300
Documentary Stamp - PHP 30
Total: PHP 1,750
Overall, my COR application at BIR RDO 28 was a straightforward and relatively quick process. If you’re planning to apply, here are some tips based on my experience:
Arrive early to avoid long queues.
Bring all necessary requirements
Plan your waiting time wisely—you can run errands or have lunch while waiting for your COR.
Double-check your ORUS details to avoid an extra trip back to the RDO.
I hope this guide helps make your COR application process smoother. If you’ve had a similar experience, feel free to share your tips in the comments!
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