Article How to Register as a Freelancer in the Philippines

FVA_oman

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Hey VAs from the Philippines!

I hope you are doing well!

Sharing with you a blog post from Filipino Virtual Assistance. You might find it useful! :)

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Are freelancers required to pay taxes?

YES! Any payment received from services or products that arise from the practice of the profession is taxable income. Paying taxes is considered a civic duty regardless of how the government makes use of the money.

Here are two ways to register:
  1. Register as a Business | Business Owner (DTI, Business Bureau, BIR), or
  2. As Self-Employed | Freelancer (BIR only)
The Process AS A BUSINESS | BUSINESS OWNER
Read more in the blog here

AS SELF-EMPLOYED | FREELANCER
Step 1. Ask for the Application Form


Go to the Bureau of Internal Revenue (BIR) and ask for the Application Form for the new applicants. Then, go to the Revenue District Office (RDO) where you belong. They will give you Form1901 and Form 0605 to fill out and the list of requirements to comply is attached to the form.

Note: RDO will depend on the registered address that you provide. RDO132 for the Agdao area, RDO 113 for Toril and Calinan area. If you don’t know your RDO yet, just inform the attendants of your address and they will guide you where to go.

Requirements:
  • BIR Form No. 1901
  • Any identification issued by an authorized government body that shows the name, address, and birthdate for the applicant (Birth Certificate, Passport, Driver’s License, Cedula – bring photocopies.)
  • If applicable – bring Marriage Certificate (just in case)
  • Barangay Certificate (originally not included on the list) – bring photocopies
*Tip: Before filling out the forms, get your priority number first, because queuing time takes longer. Go to Counter 4, Assistance Desk so you will be guided with the process. Get another priority number for Counter 3 at the same time.

Step 2. Fill out the Form


At Counter 4, bring the fill-outed Form 1901 and Form 0605 and explain the nature of your work so you will be guided in the process. Documents are also scanned at this counter ready for processing at Counter 3. Ask if there are additional requirements such as Barangay Certificate.

Step 3. Pay the Certificate of Registration
At Counter 3, bring the fill-outed Form 1901 and Form 0605 and explain the nature of your work (that you are registering as a Freelance | Home Based | Virtual Assistant). Submit the additional requirements such as Photocopy of birth certificate, photocopy for Barangay Certificate and then pay P500 for the Certificate of Registration (COR).

*Tip: After doing one step, ALWAYS ask what’s the next thing you have to do. Based on my experience, they don’t give instructions on what to do next. You can Ask for the claim stub (when to get the COR) and ask about the seminar for new applicants.

Step 4. Join the Seminar
Join the SEMINAR. This is the perfect time that you can ASK everything you would like to know about how to compute your taxes and your responsibilities as a taxpayer. The book of accounts is also mentioned during the seminar. If not, ask what kind of book is required for your line of work. Purchase also your Books of Accounts

Step 5. Get your Certificate of Registration


Get your COR, fill out the Form 1905 and have your books of accounts stamped at Counter 5, you will be asked to buy a doc stamp for PhP 30 available inside BIR, and then they will attach it to your COR. They also gave you aboard with an “Ask for Receipt” notice (I read stories from other freelancers that they were able to get their COR after several days).

Step 6. Print Your Official Receipt
At the forms counter, ask for the list of the accredited printing press. Prepare a photocopy of the following: Form 1901, Form 0605, Receipt of Payment for Certificate of Registration (COR) and the COR itself. Go to your selected printing press and submit the photocopies. Printing of Receipt Fee would range from P1200 to P1500.

*Tip: There are times that some agents from different printing press companies will wait outside, ready to accommodate you. You can ask the person in charge at the Forms counter

I hope this article helps you, HAPPY Freelancing!
 
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