Document and Information Requirements for Philippines

KYB Supporting Document Requirements Guide for Philippines

1. Verification Process

a. User Verification

1. 1. Primary ID
      • Driver’s License
      • SSS ID/ UMID
      • Philippine Passport
      • Philippine National ID (PhilSys)
      • Professional Regulation Commission (PRC) ID
      • ACR (alien certificate registration) and Passport
   2. Secondary ID
      • NBI clearance
      • Tax Identification Number ID
      • Postal ID (Digitized)
      • Voter’s ID 
      • Pag-IBIG/HDMF ID (Digitized)
      • Barangay certification 
      • Police clearance 
      • Philhealth ID 
      • GSIS eCARD 
      • PWD ID 
      • Senior Citizen ID 
      • OWWA e-Card
      • OFW ID Card 
      • Integrated Bar of the Philippines (IBP) ID

*IDs accepted (must be a national of that country - citizen or resident; no foreigner can sign up)

b. Document Verification

• Business registration (issued by SEC, DTI) and company documents. See below Entity types and document requirements for more details
• Proof of business
• Proof of bank account
• Copies of 1 Primary or 2 secondary Government IDs (front and back)
• For account representatives who are not listed on the business profile
  • Provide Authorization Letter Signed by secretary/director of company
  • Provide ID of both the account representative and the signing secretary/director [ID containing signatures - e.g. passport]
• Note: Additional requirements may be requested by Compliance after initial documents are provided (e.g. if business requires licenses / permits; beneficial owner info >25% ownership)

c. Bank account

• Corporations, Partnerships, and Sole proprietors must use company/business bank account for payouts.

      d. BIR Registration

• Corporations, Partnerships, and Sole proprietors must provide company/business registration (form 2303) to BIR.

2. Entity types and document requirements

Corporation -Business is owned by incorporators registered with the Securities and Exchange Commission (SEC)

Partnership- Business owned by partners registered with the Securities and Exchange Commission (SEC)

Sole Proprietorship- Business owned by sole proprietor, registered with the Department of Trade and Industry (DTI)

Note: HitPay no longer accepts individuals with no DTI registration.

Document Requirements	Details	Corporation	Partnership	Sole-Proprietorship
Government IDs (1 Primary or 2 secondary) of authorized person and of the owners/incorporators	Clear copy of ID, not cropped and no information removed. Full name is consistent with authorized person and not expiring in the next 3 months.	✔	✔	✔
SEC Registration Certificate	Document must be active. Legal name consistent with information provided.	✔	✔
Latest General Information Sheet	Full name is consistent with name of merchant. Must have confirmation that document was received by SEC	✔
Articles of Incorporation and By-Laws	Primary purpose consistent with industry information provided. Legal name consistent with information provided.	✔
For Not-for Profit, provide one of the following: (a) Latest Income Tax Return (ITR) (b) Latest Audited Financial Statements (AFS) (c) Philippine Council for NGO Certification (d) SEC Mandatory Disclosure Form		✔Applicable to Non-stock Corporation / Not-for-Profit Organizations
Articles of Partnership	Primary purpose consistent with industry information provided. Legal name consistent with information provided.		✔
DTI registration certificate				✔
Proof of Business	Brand logo and storefront Photo of products, invoice for services; Website	✔	✔	✔
BIR Certificate of Registration (Colored copy of Form 2303) 2 pages	Must be Business TIN for DTI and SEC- registered businesses	✔ Corporate BIR registration	✔ Partnership BIR registration	✔ Business BIR form
Proof of bank account	Proof of bank account that reflects the account you are using in HitPay, containing full account name and account number. Passbook, Online banking screenshot, Bank certificate, Validated deposit slip are acceptable	✔ Corporate bank account	✔ Partnership bank account	✔ Business bank account

3. How to register a business in the Philippines

• Sole proprietorships
  • https://www.dti.gov.ph/negosyo/business-registration-and-permits/
  • Guide: https://bnrs.dti.gov.ph/resources/registration-guide
• Partnerships
  • https://www.sec.gov.ph/company/primary-registration-2/processing-of-applications-for-partnerships/
• Stock Corporation:
  • https://www.sec.gov.ph/company/primary-registration-2/primary-registration-of-stock-corporations/
• Non-stock Corporation:
  • https://www.sec.gov.ph/company/primary-registration-2/primary-registration-of-non-stock-corporations/
• Simplified applications for Corporations and Partnerships: https://esparc.sec.gov.ph/application

4. Regulations on BIR Withholding Tax Collection 

• BIR Registration: https://web-services.bir.gov.ph/newbizreg/
• FAQ on Submission of Documents for Withholding Tax Compliance:
  

  Under BIR Revenue Regulations (RR) No. 16- 2023 - with amendment, and Revenue Memorandum Circular (RMC) No.55-2024, a 1% withholding tax will be imposed on gross remittances made by electronic marketplace operators and digital financial services providers to sellers/merchants. All merchants registered with HitPay will be subject to this withholding tax for accepted payments unless your remittances qualify for an exemption.
  
  Examples of exemptions are (a) entities exempt from income tax like non-stock non-profit corporations, or (b) entities with annual gross remittances through digital financial service providers that do not exceed PHP 500,000.

  During Onboarding, we collect the following documents
  (1) Business BIR Form 2303
  (2) Business Bank Account
        Kindly note that as per the BIR regulations, merchants can only accept payouts to        business bank accounts, and not personal bank accounts.
        For more info, you may refer to this regulation RMC No. 8-2024 
  If you are unable to provide this by 30 September 2024, we will pause your payouts until business bank details are provided.
  
  (3) For us to determine whether you qualify for the exemption
        (a)Sworn Declaration- notarised, and stamped and verified by your BIR RDO. 
             You may refer to this Sworn Declaration Statement Template
        (b) If your business is exempt under BMBE or is qualified as a non-profit tax-exempt entity,                you can also provide the documents alternatively
  As per the BIR regulations, failure to submit the sworn declaration -the 1% withholding tax on ½ of gross sales will be automatically applied to your payouts starting October 12, 2024, regardless of total earnings.
• For merchants who are subject to the withholding tax (Not exempt, Did not provide a Sworn Declaration Statement, Transactions exceeded 500,000 PHP), BIR form 2307 will be provided automatically to the registered email within 15 days after each quarter.