Introduction

In the Philippines, notaries public play a pivotal role in the legal system by authenticating documents, administering oaths, and ensuring the integrity of transactions. Governed primarily by the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC), as amended, notaries must comply with various regulatory requirements, including registration with the Bureau of Internal Revenue (BIR). BIR registration is essential for tax compliance, as notarial services are considered professional services subject to income tax, value-added tax (VAT), and other fiscal obligations under the National Internal Revenue Code (NIRC) of 1997 (Republic Act No. 8424), as amended by subsequent laws like the Tax Reform for Acceleration and Inclusion (TRAIN) Law (RA 10963) and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act (RA 11534). This article provides an exhaustive examination of the BIR registration requirements for notaries public, including eligibility, procedures, documentary requisites, fees, ongoing compliance, penalties for non-compliance, and related legal implications, all within the Philippine context.

Legal Framework Governing Notaries Public and BIR Registration

The authority to practice as a notary public stems from the Supreme Court, which issues commissions under the Notarial Rules. However, fiscal accountability falls under the BIR's jurisdiction. Key laws include:

Notarial Rules (2004, as amended): Require notaries to maintain a notarial register and report transactions, with BIR registration as a prerequisite for lawful practice.
NIRC (RA 8424, as amended): Classifies notaries as professionals under Section 22(Y), subjecting them to income tax (Sections 24-27), VAT if gross receipts exceed PHP 3 million annually (Section 109), percentage tax otherwise (Section 116), and withholding taxes.
Revenue Regulations (RR) No. 7-2012: Specific guidelines on tax compliance for professionals, including notaries.
Revenue Memorandum Circular (RMC) No. 22-2010: Clarifies registration for self-employed professionals.
Supreme Court En Banc Resolutions: Such as A.M. No. 02-8-13-SC, mandating BIR compliance as part of notarial accountability.
Anti-Money Laundering Act (RA 9160, as amended): Notaries as covered persons must register with BIR for tax purposes, aiding in monitoring suspicious transactions.

BIR registration ensures notaries are tracked for tax purposes, preventing evasion and aligning with the government's revenue goals. Failure to register can lead to revocation of notarial commission by the Supreme Court.

Eligibility for BIR Registration as a Notary Public

To register with the BIR, a notary public must first secure a notarial commission from the Supreme Court through the Office of the Court Administrator (OCA) or the Regional Trial Court Executive Judge. Eligibility criteria include:

Being a Filipino citizen and a member in good standing of the Philippine Bar (Integrated Bar of the Philippines, IBP).
At least 21 years old, of good moral character, and without convictions for crimes involving moral turpitude.
Residency in the commissioning jurisdiction.
Completion of mandatory seminars on notarial practice.

Once commissioned, the notary must register with the BIR within 30 days of commencing practice, as per RR 11-2008. Notaries practicing in multiple locations (e.g., law firms with branches) may need separate registrations per site.

Step-by-Step Procedure for BIR Registration

The registration process is handled at the Revenue District Office (RDO) where the notary's principal place of business is located. It involves:

Application Filing: Submit BIR Form 1901 (Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts) for new registrants or Form 1905 (Application for Registration Information Update) for updates.
Document Submission: Attach required documents (detailed below).
Payment of Fees: Pay the annual registration fee and secure Certificate of Registration (COR).
Issuance of COR: BIR issues Form 2303 (COR), which must be displayed conspicuously at the place of business.
Books of Accounts Registration: Register books (e.g., notarial register, cash receipts journal) using BIR Form 1905.
Authority to Print (ATP) Receipts/Invoices: Obtain ATP for official receipts via BIR Form 1906.
Tax Clearance: If applicable, secure prior tax clearance for renewals.

For electronic filing, notaries can use the BIR's Online Registration and Update System (ORUS) or eRegistration portal, especially post-COVID enhancements under RMC 28-2020.

Documentary Requirements

Comprehensive documentation is mandatory to verify identity, profession, and compliance. Essential documents include:

Completed BIR Form 1901 or 1905.
Photocopy of Notarial Commission: Issued by the Supreme Court or Executive Judge, including the commission number and validity period (typically three years).
IBP Membership Certificate: Proof of good standing, with IBP ID and lifetime membership number.
Professional Tax Receipt (PTR): Issued by the local government unit (LGU), as notaries must pay annual PTR (around PHP 300-500, varying by locality).
Government-Issued ID: Such as passport, driver's license, or voter's ID.
Proof of Address: Barangay clearance, lease contract, or utility bill for the business address.
Marriage Contract (if applicable): For name changes.
SEC Registration (if under a firm): If practicing through a partnership or corporation.
Books of Accounts: For initial stamping.
Sample Official Receipts/Invoices: For ATP approval.

For VAT registration (if gross receipts exceed PHP 3 million), additional BIR Form 2550 series filings are required. Notaries under the 8% flat tax option (per TRAIN Law) must indicate this in the application.

Fees and Costs Associated with Registration

Costs are minimal but essential for compliance:

Annual Registration Fee (ARF): PHP 500, paid via BIR Form 0605.
Documentary Stamp Tax (DST): PHP 30 per document for affidavits or certifications.
Certification Fee: PHP 100-200 for COR issuance.
Books Registration: PHP 100-300 per book.
ATP Fee: PHP 500-1,000, depending on printer.
PTR: PHP 300-500 annually from LGU.

No VAT on registration fees themselves, per BIR rulings. Total initial cost: Approximately PHP 1,000-2,500.

Ongoing Compliance Obligations

Post-registration, notaries must adhere to continuous requirements:

Tax Filings: Quarterly VAT (Form 2550Q) or percentage tax (Form 2551Q), annual income tax (Form 1701), and withholding tax on payments (e.g., 5-10% on professional fees under RR 2-98).
Issuance of Receipts: Every notarial act requires an official receipt, with fees reported (standard notarial fees: PHP 100-500 per act, per Supreme Court schedules).
Annual Renewal: Update COR annually by January 31, paying ARF.
Record-Keeping: Maintain notarial registers for 10 years, auditable by BIR.
Audits and Reporting: Submit Annual Information Return (BIR Form 1701) and comply with eFPS (Electronic Filing and Payment System) if gross sales exceed PHP 500,000.
Threshold Monitoring: Shift to VAT if receipts hit PHP 3 million; optional 8% tax for those below.
Notarial Reports: Submit monthly summaries to the Executive Judge, with copies potentially reviewed by BIR for tax verification.

Penalties for Non-Compliance

Violations attract severe sanctions:

BIR Penalties: Under NIRC Section 248-252, fines from PHP 1,000-50,000 for late registration, plus 25% surcharge and 12% interest on unpaid taxes. Criminal liability for tax evasion (Section 254) up to PHP 10 million fine and 10 years imprisonment.
Supreme Court Sanctions: Administrative complaints for notarial misconduct, leading to suspension or revocation of commission (e.g., A.C. No. 02-8-13-SC cases).
Civil Liabilities: Invalidated notarial acts, potential damages in tort claims.
Criminal Charges: Falsification or perjury if documents are falsified during registration.

Amnesty programs, like under RA 11213 (Tax Amnesty Act), may offer relief for past non-compliance.

Special Considerations and Related Issues

Notaries in Government Service: Exempt from BIR registration if notarial acts are incidental to official duties (e.g., judges), but must register if in private practice.
Foreign Notaries: Not applicable, as only Filipino lawyers can be notaries.
Digital Notarization: Under the Rules on Remote Notarization (A.M. No. 20-07-04-SC, 2020), e-notaries must still comply with BIR for electronic receipts.
Tax Incentives: None specific, but CREATE Act reduces corporate tax rates if notary is under a firm.
Integration with Other Agencies: BIR data shared with AMLC for monitoring; coordination with IBP for dues compliance.
COVID-19 Adjustments: Extended deadlines and online options per RMC 46-2020.

Conclusion

BIR registration is a cornerstone of ethical and legal notarial practice in the Philippines, ensuring fiscal transparency and professional accountability. By fulfilling these requirements, notaries uphold the rule of law while contributing to national revenue. Aspiring or practicing notaries should consult BIR RDOs or legal experts for personalized guidance, as regulations may evolve through new revenue issuances. Compliance not only avoids penalties but also enhances credibility in a profession vital to justice and commerce.