Understanding the BIR EFPS Letter of Intent
What is a Letter of Intent for BIR EFPS Application?
A Letter of Intent for BIR EFPS Application is a formal document submitted to the Bureau of Internal Revenue (BIR) to express a taxpayer’s intention to enroll in the Electronic Filing and Payment System (EFPS). This system allows businesses to file tax returns and make payments online, streamlining compliance. The letter serves as an official request for enrollment and must adhere to BIR-prescribed formats, such as BIR Form 1905 or a notarized request letter. It typically includes the taxpayer’s details, TIN, and a commitment to comply with EFPS requirements.
Why is the Letter of Intent Mandatory for EFPS Enrollment?
The Letter of Intent is mandatory because it formalizes the taxpayer’s request and ensures accountability. The BIR uses this document to verify the applicant’s eligibility and readiness to use the EFPS platform. Without it, the application process cannot proceed. The letter also acts as a legal record, confirming the taxpayer’s understanding of their obligations under the EFPS system, such as timely filing and accurate reporting. For businesses with annual gross sales exceeding ₱3 million, this step is non-negotiable, as EFPS enrollment becomes a legal requirement.
Key Components of a Compliant EFPS Application Letter
A compliant EFPS Letter of Intent must include the following elements:
- Taxpayer Information: Full business name, TIN, and registered address.
- Purpose: Clear statement of intent to enroll in EFPS.
- Authorized Representative: Details of the person designated to handle EFPS transactions.
- Supporting Documents: Reference to attached documents like the BIR Certificate of Registration.
- Notarization: A notarized signature for authenticity.
Missing any of these components can lead to delays or rejection of the application.
BIR EFPS Registration Requirements
Mandatory Documents for EFPS Enrollment
To enroll in the BIR EFPS, taxpayers must submit the following documents:
- Duly accomplished BIR Form 1905 (Application for Registration Update).
- Notarized Letter of Intent for EFPS enrollment.
- BIR Certificate of Registration (COR).
- Proof of previous tax filings (e.g., latest income tax return).
- Authorization letter for the designated representative (if applicable).
Applications with incomplete documents are among the top reasons for rejection, so double-checking this list is crucial.
Business Eligibility Criteria for EFPS Registration
Not all businesses are required to enroll in EFPS. The BIR mandates enrollment for:
- Businesses with annual gross sales/receipts exceeding ₱3 million.
- Large taxpayers as classified by the BIR.
- Corporations, partnerships, and self-employed individuals meeting the revenue threshold.
Small businesses below the threshold may still opt for EFPS voluntarily to enjoy its benefits, such as faster processing and reduced errors.
Common Pitfalls in Meeting BIR EFPS Requirements
Many applicants face challenges due to:
- Incomplete Forms: Missing fields in BIR Form 1905 or the Letter of Intent.
- Lack of Notarization: Unnotarized letters are automatically rejected.
- Mismatched Details: Discrepancies between the Letter of Intent and supporting documents.
- Late Submissions: Delayed applications can result in penalties.
Ensuring accuracy and completeness can prevent these issues and expedite approval.
Step-by-Step BIR EFPS Application Process
Preparing Your EFPS Letter of Intent and Supporting Documents
Start by drafting your Letter of Intent using the BIR’s prescribed format or a notarized template. Include all required details, such as your TIN and business information. Gather supporting documents like your BIR COR and latest tax returns. Designate an authorized representative if needed, and ensure their authorization letter is notarized. Double-check for consistency across all documents to avoid rejections.
Where and How to Submit Your EFPS Application
Submit your application to the BIR Revenue District Office (RDO) where your business is registered. Physical submissions are common, but some RDOs accept digital submissions via email or the BIR’s online portal. Include a cover letter listing all enclosed documents. Keep copies of everything for your records. Applications are typically processed within 5-7 working days if complete.
Tracking Your BIR EFPS Application Status
After submission, follow up with your RDO via phone or email to track progress. Provide your TIN and application date for reference. If approved, you’ll receive an EFPS enrollment confirmation and login credentials. For rejected applications, request a detailed explanation to address the issues and resubmit promptly.
Practical Sample: Letter of Intent for BIR EFPS Application
Dear BIR Officer-in-Charge,
I am writing to formally express my intent to apply for enrollment in the Bureau of Internal Revenue’s (BIR) Electronic Filing and Payment System (EFPS). As the [Your Position, e.g., Chief Financial Officer] of [Your Company Name], I recognize the importance of complying with tax regulations and streamlining our tax filing and payment processes through this efficient digital platform.
Our company, [Your Company Name], with Tax Identification Number (TIN) [Your TIN], is committed to adhering to all BIR requirements and leveraging technology to ensure timely and accurate tax submissions. We believe that enrolling in the EFPS will enhance our compliance efforts, reduce processing times, and minimize errors associated with manual filing.
In support of this application, we have completed all necessary preparations, including securing our company’s digital credentials and ensuring our accounting systems are compatible with the EFPS platform. We have also designated [Authorized Representative’s Name], [Their Position], as our official representative for all EFPS-related transactions. Attached herewith are the required documents, including our BIR Certificate of Registration, proof of previous tax filings, and a notarized authorization letter for our representative.
We kindly request your approval for our EFPS enrollment at the earliest convenience. Should you require additional information or documentation, please do not hesitate to contact me directly at [Your Phone Number] or [Your Email Address]. We appreciate your assistance and look forward to your favorable response.
Sincerely,
[Your Full Name]
[Your Position]
[Your Company Name]
[Your Contact Information]
BIR EFPS Approval Process After Submission
Typical Processing Timeline for EFPS Applications
Most applications are processed within 5-7 working days if all requirements are met. Delays may occur due to incomplete documents or high application volumes. Follow up proactively to ensure timely approval. Once approved, you’ll receive an email with your EFPS login details and a confirmation letter.
How to Handle Application Rejections or Requests for Resubmission
If your application is rejected, review the BIR’s feedback carefully. Common issues include missing notarization or incorrect TINs. Correct the errors, resubmit the documents, and include a cover letter explaining the revisions. Persistent follow-ups can help expedite reprocessing.
Next Steps After Receiving EFPS Approval
Upon approval, log in to the EFPS portal using the provided credentials. Familiarize yourself with the system’s features, such as tax filing and payment modules. Train your team on EFPS usage to ensure smooth compliance. Keep your enrollment confirmation safe for future reference.
EFPS Letter of Intent Formatting Guidelines
Official BIR Formatting Standards
The BIR requires Letters of Intent to be typed on company letterhead, with a clear subject line (e.g., “Request for EFPS Enrollment”). Use a professional tone and avoid handwritten submissions. Include all mandatory fields, such as TIN and authorized representative details, in the prescribed order.
Notarization Requirements for EFPS Letters
Notarization is mandatory for Letters of Intent to verify the authenticity of the signatory. Visit a notary public with a valid ID and the complete letter. The notary will affix a seal and signature, which the BIR requires for processing.
Digital vs. Physical Submission Specifications
While physical submissions are standard, some RDOs accept scanned, notarized letters via email. Confirm with your local RDO beforehand. Digital submissions must be in PDF format with clear, legible scans of all documents.
Frequently Asked Questions About EFPS Letters of Intent
Can I Use a Non-Standard Format for My EFPS Letter?
No. The BIR requires strict adherence to either BIR Form 1905 or a notarized letter with all prescribed details. Deviations may lead to rejection.
How Long is the Letter of Intent Valid For?
The Letter of Intent is valid only for the specific application it accompanies. If rejected, a new letter must be submitted with the corrected application.
Updating Your EFPS Registration After Initial Approval
For updates (e.g., change of representative), submit a new Letter of Intent and supporting documents to your RDO. Processing times are similar to initial applications.
