{"id":13308,"date":"2016-01-28T15:09:35","date_gmt":"2016-01-28T15:09:35","guid":{"rendered":"https:\/\/keblog.demoapp.xyz\/?p=13308"},"modified":"2022-11-14T15:57:26","modified_gmt":"2022-11-14T08:57:26","slug":"the-freelancers-guide-to-bir-registration","status":"publish","type":"post","link":"https:\/\/neo-blog.kalibrr.com\/blog\/the-freelancers-guide-to-bir-registration","title":{"rendered":"The Freelancer&#8217;s Guide to BIR Registration"},"content":{"rendered":"<p>When you think about taxes, it kind of gives you an uncomfortable\u00a0feeling. Not even the thought of our hard-earned money being used for\u00a0&#8220;good&#8221; can ease up the pain we feel inside when we see those deductions on our payslip. Unfortunately, we can&#8217;t avoid this predicament because, as citizens of this country, it is mandatory to pay taxes. Filing your income tax won&#8217;t be a problem if you work in a company, human resource will be the one who&#8217;ll take care of them for you. But it&#8217;s a different case for freelancers, or self-employed individuals because they will have to do the filing\u00a0work themselves.<\/p>\n<p><img loading=\"lazy\" class=\"irc_mi iHY_2wjpIDEc-pQOPx8XEepE\" src=\"https:\/\/d225fqn1pkg6mt.cloudfront.net\/wp-content\/uploads\/2016\/05\/UK-freelancer-confidence-soars-despite-predicted-economic-downturn.jpg\" width=\"587\" height=\"358\" data-caption=\" Source: startups.co.uk\" \/><\/p>\n<p>Wait. Freelancers need to pay taxes? But, of course. Freelancers, like any other business, must be registered with the <strong><a href=\"https:\/\/www.kalibrr.com\/c\/bureau-of-internal-revenue\/jobs?utm_source=b2c-blog&amp;utm_medium=in-text&amp;utm_campaign=job-board&amp;utm_content=bir-jobs-081116&amp;ref=b2c-blog_paid_job-board_bir-jobs-081116\" target=\"_blank\" rel=\"noopener\">Bureau of Internal Revenue<\/a><\/strong> (BIR). It is stated in Section 74 in the\u00a0<strong><a href=\"http:\/\/www.bir.gov.ph\/index.php\/tax-code.html#tIIcIII\" target=\"_blank\" rel=\"noopener\">Philippine Tax Code<\/a><\/strong>\u00a0that if an\u00a0individual is\u00a0receiving income from sources within or outside the Philippines, they are required to pay taxes. Freelancers often don&#8217;t know that they need to register their freelance gig with the BIR, others, however, do\u00a0but chose to intentionally evade the obligation. Regardless of\u00a0whether you\u2019re a part-time or a full-time freelancer, if you have income,\u00a0you will be taxed! <strong>BIR defines the self-employed as:<\/strong><\/p>\n<ul>\n<li>Persons engaged in business and who derive their personal income from such business;<\/li>\n<li>Professionals such as (1) &#8220;persons who derive their income practicing their profession&#8221; like lawyers, and those registered with the Professional Regulation Commission (PRC) such as doctors, dentists, certified public accountants, and others; and (2) those &#8220;who pursue an art and make their living therefrom,&#8221; including writers, athletes, and others. Freelancers and home-based service providers also fall under professionals<\/li>\n<\/ul>\n<p>So, if all of the above applies to you, and you haven&#8217;t registered your services to BIR yet, then it&#8217;s probably time that you do (and avoid being hunt down by Ms. Kim Henares). Here&#8217;s a guideline to help you\u00a0with processing your BIR registration.<\/p>\n<h2><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_26 counter-hierarchy\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">TOPICS<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/the-freelancers-guide-to-bir-registration\/#1_What_do_I_need_to_prepare\" title=\"1. What\u00a0do I need to prepare?\">1. What\u00a0do I need to prepare?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/the-freelancers-guide-to-bir-registration\/#2_How_do_I_register_my_servicesbusiness\" title=\"2. How do I register my services\/business?\">2. How do I register my services\/business?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/the-freelancers-guide-to-bir-registration\/#3_How_do_I_know_if_I_am_subject_to_12_VAT\" title=\"3.\u00a0How do I know if\u00a0I am subject to 12% VAT?\">3.\u00a0How do I know if\u00a0I am subject to 12% VAT?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/the-freelancers-guide-to-bir-registration\/#Its_time_to_find_some_freelance_gigs_Sign_up_on_Kalibrr_today_and_find_the_right_job_for_you\" title=\"It&#8217;s time to find some freelance gigs.\u00a0Sign up on Kalibrr today and find the right job for you.\">It&#8217;s time to find some freelance gigs.\u00a0Sign up on Kalibrr today and find the right job for you.<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/neo-blog.kalibrr.com\/blog\/the-freelancers-guide-to-bir-registration\/#Kalibrr_is_now_on_Android_Click_here_to_download_our_app_on_the_Play_Store\" title=\"Kalibrr is now on Android! Click here to download our app on the Play Store.\">Kalibrr is now on Android! Click here to download our app on the Play Store.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_What_do_I_need_to_prepare\"><\/span><strong>1. What\u00a0do I need to prepare?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>NSO birth certificate<\/li>\n<li>Photocopy of mayor\u2019s business permit , if applicable<\/li>\n<li>DTI certificate of business name, if applicable<\/li>\n<li>PRC ID, if applicable<\/li>\n<li>Occupational Tax Receipt (OTR) or Professional Tax Receipt (PTR), if applicable<\/li>\n<li>Marriage contract, if applicable<\/li>\n<li>Contract\/company certification, if applicable<\/li>\n<li>Affidavit indicating the rates, manner of billings, and the factors considered in determining service fees (as specified in BIR Revenue Regulation 4-2014)<\/li>\n<li><strong><a href=\"http:\/\/www.gov.ph\/services\/taxpayer-identification-number-tin\/for-self-employed-and-mixed-income-individuals\/\" target=\"_blank\" rel=\"noopener\">Other necessary\u00a0requirements<\/a><\/strong><\/li>\n<\/ul>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"2_How_do_I_register_my_servicesbusiness\"><\/span><strong>2. How do I register my services\/business?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It&#8217;ll be easier to obtain an application for registration if you already have a Tax Identification Number or TIN. You can easily secure one via\u00a0<strong><a title=\"BIR website\" href=\"http:\/\/www.bir.gov.ph\/\" target=\"_blank\" rel=\"noopener\">BIR website<\/a> <\/strong>or the <strong><a title=\"BIR portal\" href=\"http:\/\/www.my.bir.gov.ph\/\" target=\"_blank\" rel=\"noopener\">BIR portal<\/a><\/strong>\u00a0free of charge.<\/p>\n<ol>\n<li>\u00a0Accomplish <strong><a href=\"http:\/\/www.gov.ph\/downloads\/2014\/07jul\/BIR-Form-1901.pdf\" target=\"_blank\" rel=\"noopener\">BIR Form 1901<\/a><\/strong>\u00a0and submit together with the documentary requirements to the<strong><a href=\"http:\/\/www.bir.gov.ph\/index.php\/contact-us\/directory\/revenue-district-offices.html\" target=\"_blank\" rel=\"noopener\">revenue district offices<\/a><\/strong> (RDO) having jurisdiction over the place\u00a0of business.<\/li>\n<li>Pay the annual registration fee\u00a0(P500.00) at BIR or any authorized agent banks (AABs) of the concerned RDO.<\/li>\n<li>Submit all of your documents. Make sure they\u2019re complete and that you have the right number of photocopies.<\/li>\n<li>Pay the P15 certification fee and the P15 documentary stamp tax. A form will be given, which the taxpayer will be attaching to the registration certificate later on.<\/li>\n<li>Attend the taxpayer\u2019s initial briefing to be conducted by the RDO for new registrants in order to advise them of their rights and duties\/responsibilities.<\/li>\n<li>The RDO shall then issue the Certificate of Registration (Form 2303) together with the \u201cAsk for Receipt\u201d notice, Authority to Print (ATP) and Books of Accounts.<\/li>\n<li>Submit requirements for ATP and registration of books of accounts (journal\/ledger\/subsidiary professional income book and subsidiary purchases\/expenses book) and have them stamped by the same RDO.<\/li>\n<\/ol>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"3_How_do_I_know_if_I_am_subject_to_12_VAT\"><\/span>3.\u00a0How do I know if\u00a0<strong id=\"ext-gen5605\">I am subject to 12% VAT?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With your business or freelance gig,\u00a0BIR will require you to pay business taxes regardless if you\u2019re earning or not. Remember: Your tax deductions are based from the gross receipts or sales and not on your net income.<\/p>\n<ul>\n<li>Businesses with gross receipts and sales that exceed Php1,919,500 are liable for 12% value added tax (VAT) while 3% percentage tax is required from your gross receipts if it doesn\u2019t exceed that amount.<\/li>\n<li>For these taxes,\u00a0you must file BIR Form 2550M (VAT) and BIR Form 2551M (percentage tax) on the 20<sup>th<\/sup> and 25<sup>th<\/sup> month following the applicable month respectively.<\/li>\n<\/ul>\n<p>For a more detailed take on this subject, download this <a href=\"http:\/\/www.bir.gov.ph\/images\/bir_files\/public_information_and_education\/taxguide1.pdf\" target=\"_blank\" rel=\"noopener\"><strong>tax guide<\/strong><\/a> from BIR written and designed for self-employed professionals.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Its_time_to_find_some_freelance_gigs_Sign_up_on_Kalibrr_today_and_find_the_right_job_for_you\"><\/span><em>It&#8217;s time to find some freelance gigs.\u00a0<a href=\"https:\/\/www.kalibrr.com\/?utm_source=b2c-blog&amp;utm_medium=in-text&amp;utm_campaign=blog-cta&amp;utm_content=bir-freelancers-signin-081116&amp;ref=b2c-blog_free_blog-cta_bir-freelancers-signin-081116\" target=\"_blank\" rel=\"noopener\">Sign up on Kalibrr <\/a>today and find the right job for you.<\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 class=\"p1\"><span class=\"ez-toc-section\" id=\"Kalibrr_is_now_on_Android_Click_here_to_download_our_app_on_the_Play_Store\"><\/span><strong><i>Kalibrr is now on Android! <a href=\"https:\/\/bit.ly\/kalibrr-download-b\" target=\"_blank\" rel=\"noopener\">Click here to download<\/a> our app on the Play Store.<\/i><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><em>Sources: <a href=\"http:\/\/www.bir.gov.ph\/index.php\/tax-code.html#tIIcIII\" target=\"_blank\" rel=\"noopener\">BIR<\/a>, <a href=\"http:\/\/www.rappler.com\/business\/features\/64126-askthetaxwhiz-online-freelancer-register-bir\" target=\"_blank\" rel=\"noopener\">Rappler<\/a>,\u00a0<a href=\"http:\/\/thefreelancepinoy.com\/taxes-for-pinoy-freelancers-bir-requirements-and-registration\/\" target=\"_blank\" rel=\"noopener\">The Freelance Pinoy<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you think about taxes, it kind of gives you an uncomfortable\u00a0feeling. Not even the thought of our hard-earned money being used for\u00a0&#8220;good&#8221; can ease up the pain we feel inside when we see those deductions on our payslip. Unfortunately, we can&#8217;t avoid this predicament because, as citizens of this country, it is mandatory to [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":13309,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[89],"_links":{"self":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/posts\/13308"}],"collection":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/comments?post=13308"}],"version-history":[{"count":0,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/posts\/13308\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/media\/13309"}],"wp:attachment":[{"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/media?parent=13308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/categories?post=13308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neo-blog.kalibrr.com\/blog\/wp-json\/wp\/v2\/tags?post=13308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}