A joint venture is an association of persons or companies jointly undertaking some commercial enterprise; generally, all contribute assets and share risks which requires a community of interest in the performance of the subject matter, a right to direct and govern the policy in connection therewith, and a duty, which may be altered by agreement to share both in profit and losses. [Kilosbayan v. Guingona, 232 SCRA 110 (1994)]
Are unincorporated joint ventures required to be registered with the BIR?
Yes. Pursuant to Section 236(A) of the Tax Code, every person subject to any internal revenue tax shall register with the BIR and secure its own Tax Identification Number (TIN).
Although unincorporated, the joint venture shall also be considered as a government withholding agent Sec 2.57 of RR No. 2-98 as amended. Thus, it shall withhold the appropriate taxes on its income payments to suppliers and employees.
