Taxpayer identification number now required for all foreign workers

IMPACT – MEDIUM

What is the change?  A new regulation from the Philippine government requires all foreign nationals to obtain a Taxpayer Identification Number (TIN) from the Bureau of Internal Revenue prior to starting work in the Philippines.

• Implementation time frame: Immediate and ongoing.
• Visas/permits affected: Special work permits and all other work permits.
• Who is affected: Foreign nationals working in the Philippines.
• Business impact: The change may impact business schedules, as all foreign employees will need to obtain a TIN number prior to starting work. Generally, it takes one or two days to secure the TIN, but certain factors might cause issuance delays.
• What’s next: Employees should apply for a TIN from the Bureau of Internal Revenue. The number will be secured during the process of obtaining the work visa.

Background: Previously, special work permit applicants on foreign payroll were not required to apply for a TIN. The new regulation requires all foreign nationals to apply for a TIN prior to conducting work in the Philippines and adds an additional step to the work permit application process.

Analysis & Comments: Employers should prepare for the additional processing time, as all new foreign workers will need to apply for a TIN prior to starting work. Special work permit holders and applicants, who submitted their application prior to the new regulation coming into effect, are exempt from the rule and do not require a TIN to conduct work.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.