HOW I PROCESSED MY TRANSFER OF RDO (A FREELANCER'S HANDS-ON EXPERIENCE)

       

          Most of the internet articles I've read on transfer of Revenue District Office (RDO) are written by employees who had their RDO transferred from their old RDO to their new RDO. Going back to the basics, an employee’s RDO should be the same to that of his employer’s RDO for tax payment and reporting purposes. The first time I processed my transfer of RDO was last November 2009. My RDO was registered in RDO 40 -Cubao. Instead of flying to Manila to have my RDO transferred to RDO 88 -Tacloban, I filled-up BIR Form 1905 and faxed the same form to BIR Cubao. The transfer to Tacloban City took 5 working days.

Now, why am I writing this blog entry?

         As a self-employed professional (otherwise called freelancer), the process I went through in transferring my RDO from RDO 88 to RDO 40 needed to be done personally, especially that there were documents that I needed to surrender. So, the process I went through last January 2015 was a little more tedious than the simple transfer I experienced last 2009. I am writing this blog for the benefit of those who want to continue their business or practice of profession in a place different from their registered address, either within the same RDO or different RDO.

Some of you might even wonder why I had to transfer my RDO considering that I am teaching online, meaning I can teach anywhere. So, why transfer?

          To answer your questions, read on.

          After taking the Philippine Bar Exams during the four Sundays of October 2014, I continued teaching English online, not in Tacloban City but here in Cubao, Quezon City. I also thought of applying at Business Process Outsourcing providers or law firms that offer positions for law graduates. My future employer would require me to transfer RDO anyway, so I followed my mother's advice to have my RDO transferred to avoid hindrance with my future applications. If ever I get employed while keeping my job as a homebased online English trainer, I will be classified as a mixed income earner.

What are the steps I went through in processing the transfer of my RDO? What are the requirements that my old BIR RDO asked me to secure?

          Since I needed to change address from Tacloban City to Cubao, Quezon City, my old RDO required me to process my tax clearance, too. Meaning to say, aside from processing my transfer, I needed to have my business closed in Tacloban City so that I can process new registration in Cubao, Quezon City. I started processing my tax clearance by getting the list of requirements last January 5, 2015.  There were gaps in between because some persons at the BIR who could address my concern were on leave. Moreover, January was the time for business owners to renew their business licenses at Tacloban City Hall that is why it took me two days to wait for my Certificate of Retirement, a requirement for my tax clearance. I was able to complete my requirements in the morning of January 12, 2015. Because of the complete documents and complete BIR personnel, I was able to process my tax clearance at the BIR in one day.

Listed below are the requirements BIR Tacloban asked me to comply:

1. Completely filled BIR 1905

          Here's how I filled up BIR Form 1905. For Part II REASON FOR REGISTRATION INFORMATION UPDATE, I marked the following boxes with  X:  Box C - Cessation of Registration and Box E - Change in Registered Activities. Under 4E Change in Registered Address, I marked Box 1 - Transfer of Home RDO from Old RDO 88 to New RDO 40. I also included my new registered address, the place where I practice my profession now.

2. Letter Request for Cessation of Business

          Yes, I needed to write a letter too. If I could turn back time, I could have addressed it to Mr. Ricardo J. Osorio, the Revenue District Officer. When I was writing this letter, I do not know where to address my letter so I just wrote: To Whom It May Concern. To those applying for Tax Clearance, please do not follow what I did. It would be better to know the name of the recipient. If you do not know his or her name, it's safe to address him or her: Dear Sir or Ma'am. That's what I learned in formal e-mail writing, which applies to formal letter writing.

3. Certificate of Retirement from LGU

          Gone were the days when BIR would not require Certificate of Retirement from our City Hall when processing tax clearance. Before, you can process your tax clearance with the BIR while processing your closure of business with the City Hall. Nowadays, you cannot process your tax clearance with the BIR unless you have this document. In short, the taxpayer needs to process his closure of business with the City Hall first. I got this document by simply writing a communication letter to the Office of the Mayor that I won't renew my occupational permit in Tacloban City anymore because I transferred residence from Tacloban City to Cubao, Quezon City.

4. Existing BIR Certificate of Registration (for Surrender)

I had to surrender this one so that I could get a new one in Cubao.


5. Ask for Receipt Poster (for Surrender)

I had to surrender this too, for the same reason.


6. Inventory of Unused Receipts

          There's actually almost the same document which I saw from the internet: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB8QFjAA&url=http%3A%2F%2Fwww.bir.gov.ph%2Fimages%2Fbir_files%2Fold_files%2Fothers%2F70534List%2520of%2520Unused-Expired%2520ORsSIsCIs_Annex%2520D.docx&ei=euTYVLnbOoiU8QX90YH4AQ&usg=AFQjCNFg3uNIfLxT5cPEEeG055vxTDSPzQ&sig2=0-c-0WGE_6hmfAN2jOcbcA&bvm=bv.85464276,d.dGc

          I actually downloaded and printed it but the BIR Officer told me not to use it. She asked me to make my own inventory of unused receipts. Instead of arguing with her, I just copied from the same document I downloaded and modified it a little. They accepted it anyway.

7. Unused Receipts for cancellation

          BIR destroyed my unused receipts for my protection. Since I applied for Cessation of Business, these had to be destroyed to avoid malicious persons from using them, like who knows? Illegal transactions? I brought them home for disposal, however I kept one destroyed booklet as sample.

          I brought the sample to a BIR-accredited printer here in Cubao so that they can design the lay-out of my receipts. BIR Cubao won't allow printers to use the newsprint type of papers. The printer will use white bond papers for my receipts. Oh well, I can't wait to get my new receipts printed.

8. Other documents which BIR required me to fill-up in 3 copies: 

a. Application for Tax Clearance

b. Indorsement Annex E

c. Verification Slip

d. Transfer Commitment Form Annex F (Notarized)

          I did not include the photos of the mentioned documents anymore because I do not think these would be necessary. Besides, my case is unique and you will only need to fill-up these forms if BIR requires you. If you do not have any open cases, then you would have no problem processing your tax clearance. I actually had an open case. According to the system, I was not able to file my Annual Income Tax Return for the year 2013. I showed them proof of filing and overpayment and they recognized their BIR stamp. They cancelled my open case.

          Oh, and by the way, BIR also issued me Certificate of No Outstanding Tax Liability. I had to pay Php 100 for the certification fee and Php 15 for the documentary stamp. I don't mind paying, as long as I could present proof to my new RDO that I have no open cases in my old RDO.

          I took the flight to Manila the next day, January 13, 2015. Usually, the transfer of RDO takes 5 working days. In my case, it took two weeks probably because of the papal visit. While waiting for my RDO to be transferred, I applied for Occupational Permit at Quezon City Hall. So, wait for my next blog entry.

UP NEXT: Getting an Occupational Permit at Quezon City Hall.

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