I’ve always wondered how Pinoy freelancers could pay taxes. It was one aspect of freelancing that was still vague and lacking of information.
Because of this, I made a mini-mission to register myself as a tax payer and to share with you what the requirements are and what you have to do to successfully register at the BIR.
This is a long post, but every tip and step is important if you want to get through the entire process smoothly. Good luck!
Who Are You?
First off, let’s tackle the terms that best defines us freelancers:
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Whatever may be your field of expertise, you are identified as a professional or self-employed, since you are an individual practicing your profession. The BIR may ask if you have a license, so just inform them that your line of work doesn’t require one to operate.
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Registering as a professional means labeling yourself as an individual with a business of your own. This involves unique requirements that differ from registering as a tax-paying employee of a company.
Now that we got that covered, let’s take a look at the major requirements.
BIR Requirements for Professionals/Freelancers
Before visiting the BIR, you must have these on hand:
- A registered TIN number — link
- P500 TIN registration fee
- (1) xerox copy of your birth certificate
- (1) xerox copy of your marriage certificate (if married) and the birth certificate/s of your dependents, if you have any.
- (2) copies of completed BIR 1901 form — part 1 | part 2
- (1) original and (2) xerox copies of BIR 605 payment form used to pay the P500 registration fee
- (1) xerox copy of proof of address
- (1) xerox copy of ID with name, birthdate, and signature
Once you’ve managed to submit all these, the BIR will require you to buy and/or register the following:
- Books: (1) ledger, (2) columnar books, and (1) linear journal at P140
- (1) Documentary stamp at P15
- Invoices, depending on how much your printer charges
- Your printer’s registration fee, TIN number, and the job order for printing of invoices.
- Application for a TIN card (free)
I bought and registered all of these at the BIR office. Very convenient, I must say.
At this point, you should start looking for a printer who can assist you with the printing of your invoices. You also need to acquire a job order, the printer’s TIN number, and registration fee as these are part of the requirements.
In my case, since I didn’t know any, the BIR officer offered to contact and order a set of invoices from their own printers for me.
The Briefing for New Registrants
After submitting all my requirements, I attended a short seminar/briefing where a BIR representative walked me through the basics of taxes. This was a very good opportunity for me to understand the taxes I’ll be paying, to ask specific questions that are important for freelancers, and to clarify vague information about taxation.
If your revenue district office requires your attendance to this briefing, ask when the next schedule will be and attend it. This is a very good opportunity for you to ask questions, to clarify what isn’t clear about your taxes, and the like. Luckily for me, the representative who was available was very nice to me and explained the basics in a very simple and understandable manner.
These requirements are necessary to acquire two very important documents: your COR (Certificate of Registration) and your TIN card. Without these, your application will not be processed.
The Steps to Registering as a Tax Payer
I must admit that registering at the BIR was no easy trip, so if you want to avoid paying a big amount for transportation fares and waiting in line for hours, follow these steps:
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Register for a TIN number via the eReg page of the BIR website. Use the link above. You will then receive an email containing your TIN number, instructions on how to pay the registration fee, and a completed 1901 form that you can print and submit to the BIR. Print two copies of this form.
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Check which RDO (revenue district office) covers the location of your office. In my case, it’s RDO 33, which covers Ermita-Intramuros-Malate.
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Pay your P500 registration fee using BIR form 605 and through the following options:
- At an accredited agent bank of your RDO,
- G-cash, or
- The BIR’s eFPS or Electronic Filing and Payment System
I didn’t understand the instructions on how to use G-cash or eFPS to pay though, so I suggest paying your P500 at an accredited agent bank. Don’t forget to xerox 2 copies of the 605 payment form for the BIR. -
Visit your RDO. The best time I’d suggest is getting there on or before 09:00 AM to avoid the long lines. I got there at around 08:30 AM and so far the BIR personnel were energetic and attentive.
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Submit all of your documents. Make sure they’re complete and that you have the right number of xerox copies.
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The BIR officer will then instruct you to buy and register the documentary stamp and books. Make sure you have enough money (and spare change) to purchase these. If you don’t have a printer to hire for your invoices, ask the person assisting you if they could refer you to a printer that they know of.
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The BIR officer will stamp your books with labels and ask you to write your name, TIN number, address, and the purpose of the book. The two columnar books are cash receipts and cash disbursement, while the other two are the ledger and the journal.
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Attend the briefing or short seminar. Take down notes, listen carefully to the discussion, and ask all of your questions before leaving the seminar. Oh, and don’t forget to sign the attendance sheet/record book.
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Don’t forget to apply for your TIN card. Just ask the officer in charge of issuing the TIN cards and he/she will ask you to fill out a slip of paper with necessary details, such as your name, TIN number, address, contact number, etc.
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Get your COR and your TIN card.
An accomplished BIR 605.
If you were able to submit all of your requirements (including your printer’s requirements and the job order), you’ll be able to have your COR printed, signed, and your TIN card issued on the same day.
In my case, I have to wait for the printer’s requirements before I could get the COR and TIN, so all these including my invoices and books will be released together the next time I come back. If you’re going through a similar situation, ask when you can come back and confirm with the BIR officer that your documents and books will be released by then.
Important Last-minute Tips
A very busy BIR office.
And that’s how the registration process works. Before I end this post though, here are a couple of important tips that will hopefully make your trip to the BIR less stressful and frustrating.
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Be early when visiting the BIR. They don’t have a convenient and effective system of managing the people who visit for BIR concerns, so go there at around 08:00 AM or before 09:30 AM to avoid congestion.
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Gather all of your documents ASAP. It’s really a hassle to travel all the way to the BIR only to find out that you’re missing one or two requirements.
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If you do arrive late, bring entertainment with you. I brought a book to keep my occupied while waiting for my turn at the tax assistance unit. If you find entertainment in people watching though, that’s fine too.
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Find a printer you trust and that’s affordable. I was charged a big amount for printing, since the BIR officer was the one who facilitated that particular requirement for me. If you want to save on costs for printing, search for your own printer already.
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Don’t leave your house without spare change. This is especially for those who take public transportation and for the requirements that should be bought at the BIR. Keep a breakdown of P500 in your wallet, just to be sure.
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Bring a bottle of water. You’ll never know when you’ll get thirsty from all the waiting and the accumulated body heat!
I hope this post will help you get through the entire process of registering as a tax payer at the BIR. You can also download this tax guide written and designed for professionals. Just right-click the link and save the link as PDF.
Remember, it is still our duty as Filipinos to follow the law and pay our taxes. Even though there are scumbags and corruption abound in our government system, what’s important is that we did our part as freelancers and as citizens of this country.
Photo credits to the BIR and just4you
About the Author: Stef G.
Founder of The Freelance Pinoy, Stef is a freelance copywriter and blogger who loves writing high quality content for blogs and e-commerce. To receive free special updates and freelancing tips from her, sign up for the TFP newsletter. You can also follow her on Twitter @stefgonzaga. Related Posts
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Hi Stef!
As promised, Thanks for this post! Can you explain more on having your own printer? As a graphic designer, I know a lot of print shops here in qc and in manila, but what will be their purpose?
Thanks,
Jeff
Hi Jeff and you’re very welcome! You’re basically hiring a printer/print shop to print your invoices. You’ll need to fill up a 1906 form as part of the requirements, which is the authorization to print invoices for your business. In that form, your chosen printer will supply a job order (how many invoices will be printed) and his/her TIN in that form.
I’m not quite sure yet, but I think your invoices should be renewed and printed every year. You can refer to the tax guide I uploaded for the correct information.
Hi!
I enjoyed reading your article! Thanks for your valuable information.
My only concern is do I really need to register for a TIN if I have it already when I worked as a call center agent in IBM? Also, I will soon enter my profession as a Registered Nurse so I’m confused if I will claim myself as a professional or self-employed (freelancing)?
As a freelancer just last year, I am also thinking of a way on how I can pay for my taxes. In just less than a year, I earned quarter of a million already and still counting. I think it’s a good investment if I will register myself as a taxpayer so I could benefit from this in the long run. We are thinking the same way and I was lucky I found your site.
Thanks
Hi Arger! Oh, that I’m not sure of. My guess is that you’ll have to update your information with your revenue district office. If you’ve visited it before, they have an Officer of the Day who you can talk to about your TIN or tax-paying issues.
The terms “professional” and “self-employed” are the same actually. But as a registered nurse, are you employed at a particular hospital? Like they pay you salaries and provide benefits? If yes, then you’re still an employee. Professionals run their own businesses and are therefore not under/employed by any particular company.
Thanks again for commenting and hope you can work out a solution with the BIR.
bravo!!
so, how do you start paying, and how do you know how much to pay? haha 
Ahaha thanks Justine! Those details will be covered in a follow-up post, definitely.
Wow, so complicated eh?? It makes me glad I’m employed now hehe
LOL yeah, at least you don’t have to go through the entire process. What’s your job now, if you don’t mind me asking?
Hey Stef,
Finally, an exact post on freelancers’ taxation! Great job! Now, I guess I just have to figure out how I will register as a professional when I’m registered as an employee before. Probably I can share it to you later, but I guess, I need to set my ground first.
Thank you, thank you, thank you!!!
Hi Jenn and thanks for the comment!
That’s a great idea for a follow-up post to the TFP tax series actually. If you do get to update your tax information from employee to professional, I hope you’ll share the experience/requirements with us! Many of our fellow freelancers will find that very useful.
Thanks as well!
This is an extremely helpful post! Thank you for writing it Stef!
I hope you can update us with how your taxes were computed. I’m trying to do it myself using the BIR forms and guides but it’s a bit overwhelming. I’d like to know if you’ll be using printouts from your oDesk profile as proof of your earnings and if you’ll be using those invoices you had printed out from now on. And what were you able to include as tax deductibles? Your home office? Your laptop? Your internet and utility bills?
Hi Gestie and thanks! I’m happy to hear that you found this post useful.
I actually wrote a follow-up post on the 3 major types of taxes Pinoy freelancers are required to pay. In line with this I also attached the BIR’s taxation guide for professionals, which contains the formulas and methods of computing for your taxable income. Here’s the link: http://thefreelancepinoy.com/freelancing-tips/3-major-types-of-taxes-for-pinoy-freelancers
Personally, I don’t trust my mathematical skills to correctly compute for my taxable income. I would be a very bad guide/adviser if I’d try to write an article on how I compute for my taxes, really. With that said, I suggest hiring a CPA you trust who can compute for your taxes. It will cost you, but I think it’s a great investment if you want to pay the correct taxes to the BIR.
hi stef, i inquired in the BIR office here in the city where i live, but they didn’t seem to know what to do with me. i told them i am a freelancer and a previous employee of a certain company. and i want to pay my taxes as a freelancer, thus changing my status since i’m not employed in any company right now. the lady in BIR, told me to go to city hall for a business permit or a PTR??!! hmmm…
Hi Cath,
I’m sorry to hear that your trip to the BIR didn’t work out. This may sound a bit strange, but I encourage you to not call yourself a “freelancer” when talking to a BIR officer.
These people don’t know what freelancing means. They don’t know that the term for “getting a job through the internet” is called freelancing. Just use the term “professional” as this is a more familiar term for the BIR than “freelancer”. I hope this experience won’t discourage you to try again. Just explain what you do (eg. I write, am a virtual assistant, I do design/artwork, etc.) and let them know you’d like to change your status as self-employed/professional.
Hope this helps!
Hi Cath,
The same thing happened with me. Last year, I went to the BIR office so I can pay for my taxes. When I asked the officers there on how I can register, they weren’t sure how to categorize me. Three BIR officers analyzed and discussed my situation. They told me to register as a business and comply with the DTI and municipality requirements. When they realized it was costly and that it’s a hassle, they said that I don’t need to pay taxes anymore! I had mixed feelings of happiness and frustration. Happy since they we’re the ones who told me that I don’t need to pay (though I know I have to) and frustrated because they weren’t able to help me. I need an ITR so I can apply for a loan.
Anyhow, I’ll visit the BIR office again and give it another try. Hope things will work out fine this time. Good luck to you!
Hi Ivy,
Thanks for sharing your experience with us. I’m sorry to hear that the BIR you went to did not offer any good advice as to how to proceed. I’m equally surprised that they told you that you don’t have to pay taxes anymore. Oh well, we can’t do much about it since taxes for freelancers isn’t a popular thing with the BIR.
If I’m not mistaken, registering at the DTI is only required if you’re going to operate under a business name and not just your own name. That’s what I chose to do, so I didn’t have to go to the DTI.
hi stef,
Good day to you, same thing happened to me they told me to get a DTI permit like I’m gonna run a business.. well mybe our job freelancing is also our business
but what do you think are the advantages and disadvantages of getting a DTI permit? hope to hear from you ^__^
Hello jonah,
I registered my business under my own name, so I wasn’t required to apply for a DTI permit. If I’m not mistaken, this permit is only required if you’re setting up your business under a business name (e.g. Jonah’s Freelancing Business). From what I heard, there are more requirements and taxes to pay if you choose to do this and apply for a DTI permit. But in terms of identification, you are identified as a registered business if you do choose to go this route.
Hope this helps!
Hi Stef,
How do I get a proof of address? More power on your blog!
Hi Louis,
It would depend if you’re renting your office space or not. If you’re using your home office, any proof that you own your residence is good enough to submit to the BIR. In my case, I just submitted a certificate of occupation drafted by the administration of the condo where I live.
If you rent office space, you may be required to submit an accurate sketch of your physical address. You can ask your assigned RDO for more info. Hope this helps!
how can i transfer my tin number record from batangas to makati city because i’m working here at makati ,i get my tin in batangas…because my employer said that i need to transfer my tin record to makati…
tanx carl…
Hello, Carl. Unfortunately, only your RDO will be able to answer questions regarding your TIN number. You can visit their office or use the official BIR website to locate their number, if you wish to call them from home. Hope this helps!
maybe it would be easier for freelancers here in the philippines if they would come together and form sort of a company or foundation wherein freelancers can bring in their projects. The foundation can simply charge a small percentage, around 1-5%, in turn they would handle the taxes, etc. My idea is that every time a freelancer brings in a project, the freelancer is sort of hired by the foundation on a contractual basis. I think this would eliminate the need for individual registration and the foundation can hire accountants, administrative staff that would be able to handle taxes and other issues. just thinking…
That’s an interesting idea, lein. I’m not quite sure what you mean by “bringing in projects” and being hired by the foundation, but I do see an organization or company that can handle the financial and administrative aspects of a freelancer’s business. It would definitely set some ground for freelancing to blossom in the Philippines.
This post of yours, was really heaven sent.. for me that is.. Thanks so much.
I do have one question though.. As a freelance i want to present myself to my client as a company not just by my own name.. Should i register at DTI for this or can i just Use a name i came up with.. Thanks again.
Hello, crosse! If I’m not mistaken, you’ll have to visit the DTI to register a business name. But if you’d like to transact under your name alone, a visit to the BIR is enough.
A follow up question .. i was just curious what will the receipt look having your own name on it… will it look like this on the header of the receipt that we’ll be issuing;
JUAN DELA CRUZ
address: no. XX XXXX st., Calamba Laguna
Tel: 888-8888 Email: juandelacruz@gmail.com
….
The receipt will have the following:
Your registered business name
Address where your office is located
Your TIN Number.
wow thanks for the quick response… i’m planning on opening a small business.. but im still deciding on whether to use my own name or register my own business name.. anyway, so if i use my own name instead of registering for a business name. I’ll have my receipts printed showing my own name on top?
Hi stef, Am I the one who will pay for the printer’s registration fee?, and the job order for printing of invoices, Who will provide this?
Thanks
Hello Diane! If I’m not mistaken, the printer of your choice should already be registered before printing your invoices. And as for the job order, you’ll be paying for that. Hope this helps!
@Stef First, thanks for this guide. My concern is I used to be employed and I am wondering if the same process would apply to me.
@Crosse I want to present myself to my clients as a company too. I think it’s more professional as I am planning to keep my freelance status for a long time. I’d be the only one doing all the works though. But what if registering yourself as a business would mean more taxes imposed? It’s not gonna be worth it especially if I am on my own. Hope you’d let us know, through here, how your application goes. Thanks.
No wonder very few freelancers from Odesk, Elance, etc. pay taxes. They make it extremely complicated and a pain in the butt. Are they retarded? Are they trying to discourage people from paying taxes?
What is the tax rate for online freelancers anyway?
It’s just as well. I’m sure the money is used much more wisely by freelancers than it would be by the Philippine government. At least half of tax revenue gets siphoned off by corrupt politicians. A quarter goes to supporting idiotic bureaucracies like the BIR which serve only to give people a hard time and occupy otherwise productive individuals. I’d be shocked if even 25% of tax revenue gets spent productively.
Hi Stef,
Need to clarify some things, Yesterday I just went to RDO Pasig near SSS to file 1905. I’m now on preparation for 1901 as self-employed professionals.
“The BIR may ask if you have a license, so just inform them that your line of work doesn’t require one to operate.”
If this is the case (quote above) neither will I need to ask for a certification from off shore client or an odesk printout just a proof I’m doing professional service?
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Should I also required to buy and/or register the following:
Books: (1) ledger, (2) columnar books, and (1) linear journal at P140
Invoices, depending on how much your printer charges
Your printer’s registration fee?
thanks
1. In my case, I told the BIR officer that my work does not require a license from me. They didn’t ask any more questions after that. The term “professional” in BIR language has always referred to engineers, doctors, lawyers, etc. who are given licenses before they can work.
2. All the books are required. If your choice of printer hasn’t yet registered with the BIR for printing of invoices, he/she should do so immediately for you to process all of your requirements. If he/she has already registered, you only need to present the receipt to the BIR.
I hope this helps!
Hi,
Very frustrating day, I went to RDO 044 to file 1901. First, they had me on registration section then the staff asked someone about my queries I told them that my services doesn’t require any license and I end up to the officer of the day. They require me to have PTR (Professional Tax Receipt) from LGU. Later this day I found out from LGU that they will not issue PTR unless I have a PRC license. sigh!
I am eager to file my BIR as professional services. Any advice what should I do? May I know what Revenue District Office those who succeeds in filing their BIR without any hassle?
Hi rbien,
Oh wow, I wonder why registering as a tax-payer is difficult in other RDOs. Mine’s RDO 33 and I never had a problem with them in terms of my identification and where I fall under as a tax-payer. Could you describe how you went through the process? How did you explain to the BIR about your profession?
I simply explain to them I’m doing professional services over the internet such as internet marketing, virtual assistant and some web design. These services does not require any license to perform this function. I talked with three different people.First on the counter at registration then she advised me to talk to a lady inside the booth in which I explained all in details.Then after that, they had me to the officer of the day. The person on the ONETT, fill up some data on my 1901 form.
She did input market research PSIC code 7413, check tax types.When I clarify what requirements then she asked again the person inside and instructed to have PTR (Professional Tax receipit).
I should have known what PTR is, if then I will insist that this is not applicable to me as this only entails those who have PRC license.
Well, I will call them early today and discuss this matter also, I will cite that I have known some RDO who did not require any PTC or mayor’s permit to accept filing of registration.
Anyway, wish me luck!
Still struggling. They asked me to have Occupational Tax Receipt (OTR), but my LGU did not give me because of nature of job. They advice me to call tomorrow.
I hope they would not require me to have business permit.
If you plan on operating under an official business name, most likely they will require you to get a business permit from the DTI. As for the OTR, I was never asked to acquire that type of document when I registered. It’s not required at all. If you get to speak with another BIR officer of the day, you can use my case as an example if that can help simplify the process.
Hi Stef,
I have a question, do you still fill up your invoices/receipts everytime you bill a client/a client pays you, even if it’s done in $?
Hi Justine! The invoices/receipts are for clients based in the Philippines and who pay you in pesos. For clients who pay in dollars, you don’t have to issue them invoices.
Hi Stef, so if you don’t issue receipts for clients who pay in dollars then you cannot log it in the ledger and declare it as income right?
Hi danny,
You still have to log it as income, of course. The only exemption dollar earners have is from the VAT. As for percentage tax I still have to clarify with my accountant about that, but what’s sure is that whether you are a dollar or peso earning freelancer, all income must be declared.
Hi Stef, this is very informative because I need a TIN number for my online writing job. The thing is I went to the link for online TIN application and filled the basic taxpayer information section. The email that is supposed to be sent to me containing my TIN hasn’t arrived yet. Does it really take a long time for the email to arrive? Also, because the email is taking too long, I filled the section again and this time with a different email add. And I am worried about it. I called the trunk line and they had me call five different people and I went no where with my inquiry.
Hello Vida, thanks for visiting TFP! I’m not really sure about that because my accountant was the one in charge of securing my TIN number for me. Have you tried visiting your RDO to apply for the TIN personally?
Not yet because I really don’t have time to go there. I think I will just have to wait for the email. Thank you again for this helpful site.
Hi Stef, i would like to ask you, what are the common pattern shown on the Columnar book. as a repair shop services only. in Daily.
Thank you.:P
Hi Stef! Do you have to do the same procedure every year for the same business or annual registration fee na lang? Thanks!
Hi Stef,
Thanks for this post.
My concern is that I am currently employed in a company and at the same time doing blogging. I am currently earning 6 figures from my blogs and I wanted to pay my taxes.
Do I have to register myself as a “professional” with BIR?
Hi Fred,
Are you currently employed in a Philippine-based company, or a company situated abroad? If it’s the former, I’m guessing you’d have to declare yourself as an employee. If it’s the latter, you can register yourself as a “self-employed professional” since you are servicing clients abroad.
Hello Stef,
Thank you for this post, I have been searching the net for infos on how to get these documents from BIR. However, I have one question. I already have a TIN because I have been employed before and now I do freelance work. Should I still fill out and apply for these forms? Any advice? I just want to pay the taxes that are due to me that’s all.