A practical legal article in Philippine context

1) Why this matters: the TIN is the “gateway” to property transactions

In the Philippines, many property-related tax filings and documentary submissions require a Tax Identification Number (TIN) issued by the Bureau of Internal Revenue (BIR). Even when the transaction itself is taxed on a “one-time” basis (for example, a single purchase, a single sale, or a single transfer), the BIR will often require TINs for the parties reflected in the instrument (e.g., Deed of Absolute Sale, Contract to Sell, Deed of Donation, extra-judicial settlement, etc.) and in forms used to pay taxes and secure BIR clearances for property registration.

For foreign nationals buying, owning, selling, inheriting, donating, or otherwise acquiring rights over real property in the Philippines, the most common “first step” is obtaining a TIN through BIR Form 1904, when they are not yet registered as a business taxpayer and need a TIN for a specific transaction or for a government requirement.

Key point: Form 1904 is primarily a TIN application/registration for one-time taxpayers and certain individuals registering under executive issuances, not a full “business registration.”

2) What is BIR Form 1904?

BIR Form 1904 is generally used to apply for a TIN by people who are not engaged in trade or business in the Philippines (and are not otherwise required to use forms like 1901/1902/1903), but need a TIN because:

They are a one-time taxpayer (i.e., they need to pay tax on a single transaction, commonly involving property); and/or
They are registering to secure a TIN for purposes recognized by government policy (commonly referred to in practice as “EO 98” registration), such as when a TIN is required to transact with a government office or for certain regulated transactions.

For foreign property owners, Form 1904 most commonly comes up when they need a TIN to:

Buy property (especially when the BIR/payment forms or deed templates require the buyer’s TIN);
Sell/transfer property (to process property taxes and obtain BIR clearances used for title transfer);
Inherit or otherwise receive property (estate settlement-related filings often require TINs for heirs/estate);
Donate property or receive donated property (donor’s tax processing typically requires TINs).

3) Foreign ownership context: who can own what in the Philippines?

Before diving into Form 1904 mechanics, it helps to frame the ownership rules:

3.1 Land ownership (general rule and common exceptions)

As a general rule, foreign individuals cannot own land in the Philippines.
Common lawful alternatives/structures include:
- Condominium units (foreign ownership allowed up to the statutory foreign ownership ceiling for the condominium corporation/project, commonly referenced as the 40% foreign ownership limit in many contexts);
- Long-term leases (foreigners may lease land subject to statutory conditions);
- Ownership through entities that comply with Philippine nationality requirements (with careful legal structuring).

3.2 Why Form 1904 still applies to foreigners

Even if the property interest is a condominium unit, a building (under certain structures), a leasehold right, or a transfer by inheritance/donation, the BIR’s tax processing may still require the parties’ TINs. So Form 1904 is about tax registration and transaction processing, not about validating whether the underlying acquisition is legally permissible—those are separate legal questions.

4) When should a foreign property owner use Form 1904 (and when not)?

4.1 Typical situations where Form 1904 is the correct form

Use Form 1904 if the foreign national:

Needs a TIN only for a specific property transaction (purchase, sale, donation, estate settlement, etc.); and
Is not registering a business, profession, or regular income activity in the Philippines.

Common examples:

A foreigner buying a condominium unit and needs a TIN to appear on deed/BIR forms.
A foreigner selling a condominium unit and needs a TIN for the BIR tax clearance/eCAR workflow.
A foreign heir receiving a property interest via inheritance and needs a TIN to process the estate settlement documents and BIR requirements.
A foreign donor/donee involved in a donation of property rights, requiring donor’s tax processing.

4.2 Situations where Form 1904 may be the wrong form

Form 1904 is not a substitute for proper registration if the foreign national will have ongoing tax obligations, such as:

Leasing out property as a business (earning regular rental income)
- This typically requires taxpayer registration appropriate to the taxpayer type and activity (often a different BIR form and registration steps), plus periodic filings.
Being employed in the Philippines (employee registration is typically handled under a different registration track).
Operating a Philippine business or practicing a profession.

Practical takeaway: Form 1904 is best for “one-time” needs. If you will earn recurring income from the property (e.g., rentals), you usually need full registration and ongoing compliance, not just a one-time TIN.

5) What taxes and BIR outputs are commonly tied to property transfers

Even though this article focuses on Form 1904, foreign property owners usually encounter it alongside these tax concepts:

5.1 Sale/transfer of real property (common tax touchpoints)

Depending on the nature of the transaction and parties, the BIR process commonly involves:

Capital Gains Tax (CGT) or, in some cases, income tax treatment depending on classification and circumstances (often the seller’s obligation in many standard real estate sales of real property treated as capital assets);
Documentary Stamp Tax (DST) (often part of the transfer tax package; practice varies on who shoulders it by contract);
Additional documentary requirements to secure BIR clearance needed for title transfer.

5.2 BIR clearance used for transfer at the Register of Deeds

For title transfers, parties typically secure a BIR clearance/document that the Register of Deeds/Land Registration Authority process recognizes as part of the transfer documentation (commonly processed through the RDO handling the property). In practice, the TIN is frequently required to process these outputs efficiently.

6) Where to file Form 1904 (which RDO has jurisdiction?)

For property-related one-time transactions, filing is commonly handled by the Revenue District Office (RDO) that has jurisdiction over the location of the property. This is especially true when the TIN is being secured as part of a property transfer tax and clearance workflow handled by that RDO.

However, implementation can vary depending on:

The RDO’s internal procedures,
Whether the application is treated as “one-time transaction” vs “EO 98” registration,
Whether a representative is filing, and
The documentary completeness and how the deed/transaction is presented.

Best practice in real transactions: coordinate with the RDO handling the property transfer/tax clearance process for that property, because that is where the downstream filings are typically processed.

7) Documentary requirements: what a foreign national usually needs

Exact requirements can vary by RDO and transaction type, but foreign applicants should be prepared with:

7.1 Core identification documents

Valid passport (bio page and signature page, if separate)
If available/required in context: Philippine-issued IDs (e.g., ACR I-Card for resident foreigners), but many one-time cases rely mainly on the passport

7.2 Proof of address / local details

A declared Philippine address is often requested for registration records (this can be a local residence address, condominium address, or address for service, depending on circumstances)
If the foreigner is not residing in the Philippines, a Philippine address for correspondence may be used, often tied to an authorized representative

7.3 Transaction-supporting documents (depending on purpose)

For a purchase/sale/transfer, typical supporting documents include:

Deed of Absolute Sale, Contract to Sell, Deed of Donation, Deed of Assignment, or other instrument
Tax Declaration and/or title/condominium certificate details (as applicable)
If part of an estate settlement: settlement documents and proof of death/relationship (as applicable)
If filing through a representative: Special Power of Attorney (SPA) or authorization letter, usually notarized (and consularized/apostilled if executed abroad, depending on where signed)

7.4 Name and identity consistency

Foreign applicants should ensure consistent spelling across:

Passport
Deed/instrument
Notarial acknowledgment
Any condominium corporation records (if a condo is involved)

Even minor differences (middle name formats, suffixes, diacritics) can delay processing.

8) Step-by-step: how Form 1904 registration typically works in property cases

Step 1: Determine the correct registration category under 1904

You’ll usually fall under:

One-time taxpayer (property transaction-driven), or
“TIN for transaction/government requirement” category (commonly handled as EO 98-type registration).

Your supporting documents and the RDO’s expectations may differ slightly depending on which route is used.

Step 2: Prepare Form 1904 and supporting documents

Complete the form carefully:

Full name as in passport
Birth date, nationality
Address (Philippine address if required)
Purpose of TIN application (be specific: purchase of condominium unit, sale of property, estate settlement, etc.)

Step 3: File with the proper RDO

File in the RDO commonly associated with the property transaction (often the property location RDO). Submit:

Form 1904
Passport copy/ID copies
Supporting transaction documents
SPA/authorization (if representative)

Step 4: Receive your TIN and confirmation/printout (as issued)

Once approved, the BIR issues a TIN. Keep:

The TIN number
Any confirmation printout/reference the RDO provides

Step 5: Use the TIN consistently for the downstream property tax filings and registration steps

Your TIN will then be used on:

Deeds and attachments (if they are being revised/acknowledged),
Tax payment forms/receipts (as applicable),
Applications for BIR clearances tied to property transfer.

9) Special scenarios foreign property owners often encounter

9.1 If the foreigner is abroad and cannot appear personally

A representative can often file using a Special Power of Attorney. Practical considerations:

If the SPA is executed abroad, ensure it meets Philippine acceptance standards (often via notarization abroad and apostille/consular formalities, depending on the country and current rules).
The representative should bring their own valid ID and copies.

9.2 Joint buyers / married couples / multiple parties

If multiple buyers are listed in the deed, each party may need a TIN for clean processing. For mixed-nationality couples:

The Filipino spouse will use their existing TIN (if any) or register as applicable.
The foreign spouse may need Form 1904 for the deed/tax paperwork.

9.3 Estate settlement involving foreign heirs

Foreign heirs often need TINs for:

BIR estate processing steps,
Distribution documentation,
Transfer of title to heirs’ names or subsequent sale.

9.4 Condominium purchase by a foreign national

Condo purchases commonly involve:

Developer documentation,
Condominium corporation/HOA records,
BIR/tax documentation where buyer TIN is requested. Form 1904 is frequently used when the foreign buyer has no prior Philippine TIN.

9.5 Avoiding multiple TINs (serious compliance issue)

A person should generally have only one TIN. If a foreign national previously obtained a TIN (perhaps years earlier for a different transaction), they should verify existing records rather than apply again. Duplicate TIN situations can create significant downstream problems.

10) Common pitfalls and how to avoid delays

Pitfall 1: Applying under 1904 when you actually need full registration

If you plan to lease the property regularly or engage in ongoing income activities, a one-time registration may be insufficient. Misclassification can cause problems later (billing/receipts, periodic filings, audits).

Avoid it: decide early whether this is a one-time need or an ongoing taxpayer profile.

Pitfall 2: Inconsistent names across passport, deed, and forms

Even small inconsistencies can cause the RDO to require corrections.

Avoid it: align the deed’s name format exactly to passport; standardize middle name usage and spelling.

Pitfall 3: RDO jurisdiction confusion

Some applicants bounce between RDOs due to differing interpretations of where the TIN application should be lodged.

Avoid it: anchor the filing where the property transaction’s tax/clearance processing is being handled.

Pitfall 4: Representative documents not acceptable

SPAs lacking required formalities can stall filings.

Avoid it: ensure proper notarization and, when executed abroad, appropriate authentication formalities.

11) After you get the TIN: what changes (and what doesn’t)

11.1 What a 1904 TIN enables

You can be properly identified in BIR transaction records.
You can complete property transfer tax workflows more smoothly.
You can be listed on deeds and BIR forms that require TIN fields.

11.2 What it does not automatically do

It does not automatically register you as a business taxpayer.
It does not automatically authorize you to issue invoices/official receipts.
It does not replace compliance steps if you begin earning ongoing taxable income (e.g., rentals).

12) Practical checklist for foreign property buyers/sellers (TIN/1904-focused)

Before going to the RDO:

Passport copies (clear, legible)
Philippine address for registration records (if required)
Draft/final deed or contract showing the transaction
Property details (title/condo certificate details, tax declaration info if available)
SPA + representative IDs (if filing through an agent)
A note describing the exact purpose: “TIN application for one-time transaction: purchase/sale of [property details]”

During filing:

Use consistent name format (passport-based)
Ensure the transaction document reflects the same name and identifying details
Confirm the RDO handling the property’s tax/clearance steps also receives/recognizes the TIN application

After issuance:

Keep the TIN confirmation and use the same TIN across all future related filings
If you later change your taxpayer situation (employment, business, rentals), update registration appropriately rather than “reapplying” for a new TIN

13) A careful note on legal and tax outcomes

Form 1904 registration is an administrative step, but foreign property ownership and taxation can involve overlapping rules (constitutional/property ownership limits, condominium foreign ownership ceilings, contract structuring, treaty considerations, residency classifications, and the specific tax treatment of the transaction). The best results come from aligning three things from the start:

Correct ownership structure (what you are legally allowed to hold),
Correct tax characterization (one-time vs ongoing activity), and
Correct BIR registration path (1904 vs full registration).

If you tell me your specific scenario (buying vs selling, condo vs land/leasehold, signing in the Philippines vs abroad, and whether you’ll lease the property out), I can map it into a clean, step-by-step 1904 checklist tailored to that fact pattern—still in Philippine legal context and still focused on compliance workflow rather than guesswork.