Image Source: Shaun Quarton in Tips & Tricks
Freelancer, a person who works as a writer, designer, performer, or the like, selling work or services by the hour, day, job, etc., rather than working on a regular salary basis for one employer. source:http://www.dictionary.com/browse/freelance
A person who works online as a: -Admin Support -Customer Service -Sales & Marketing -Design & Creative -Transcription -Proofreading -Email Marketing -Web Development -Consulting -Etc.
Many Filipinos today are in the freelancing industry. As a freelancer, you are not excused in your obligation to pay taxes. In order to be a law-abiding citizen and if you are serious in pursuing a freelancing career, it is a good decision to make the source of your income legal and compliant with the BIR.
Requirements: 1. Duly fill up 2 copies of BIR Form 1901 (see sample) 2. Duly fill up 3 copies of BIR Form 0605 - Registration Fee (see sample) (Note: You will use this form to pay the BIR Registration Fee amounting to Php500.00) 3. Photocopy of PSA Birth Certificate* 4. Photocopy of of 2 valid ID's** Note: Make sure that the address in your valid ID's are the same with the address that you indicate in your BIR Application Form. 5. Professional Tax Receipt, if applicable 6. Occupational Tax Receipt, if applicable 7. Project/Work Contract, if applicable 8. Marriage Contract, if the applicant is a married woman Note: BIR Forms are also available in hard copies in the BIR. * To be sure you may bring the original in case they need but they will only get the photocopy. ** Please bring your ID's in case they need to verify.
BIR registration steps as a freelancer:
A. Primary BIR Registration
Step 1:
I. Go to the BIR Revenue District Office (RDO) assigned in your area. (You may check the BIR website to check which RDO your address belong)
II. For those who do not have a TIN you may obtain online at BIR eRegistration system assigned in your area.
Step 2: Get a number for the counter assigned to BIR Certificate of Registration (COR).
Step 3: Submit all the requirements to the BIR officer.
Step 4: The BIR officer will ask you to pay the BIR Form 0605 – Registration Fee. You should only pay it at the Authorized Agent Banks assigned in your RDO.
Step 5: After payment, photocopy at least 3 copies of BIR Form 0605 and payment receipt.
Step 6: Submit 1 photocopy of the paid BIR Form & payment reference.
Step 7: The BIR officer will request you to purchase 1 documentary stamp tax. (You can buy it within the BIR office and it normally cost Php15.00)
Step 8: The BIR officer will advise you on when you can get the BIR COR. There are few RDO’s who can process your registration within the day, but normally they will give you a date on when you will return to get your BIR COR.
Step 9: You should received the following:
- BIR Certificate of Registration
- BIR Ask for Receipt signage
- BIR Form – 1901 with received stamp
B. Secondary BIR Registration:
After you receive the BIR Certificate of Registration you will need to accomplish within 30 days from the date of your BIR registration:
1. Registration of Books of Account: 2. Application for Authority to Print Receipts & Invoices
After BIR registration, you should file and pay your taxes to avoid the corresponding penalties. Also, you need to update your books of account. Normally a freelancer will need to file: 1. BIR Form 2551Q - Quarterly Percentage Tax Return 2. BIR Form 1701Q - Quarterly Income Tax Return 3. BIR Form 1701 - Annual Income Tax Return 4. BIR Form 0605 - Annual Registration Fee Note: There is an option for self-employed / freelancers / professional to avail the eight (8%) tax on gross income in excess of P250,000. When you choose this option, you will only need to file BIR 1701Q quarterly, no more BIR Form 2551Q. You're all set! Best wishes in your chosen career!
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