Self-employed/Freelancer: How to register with BIR
As much as we do not want to pay for our taxes since part of our mind think that it will not be used properly by the government and rationalize that our hard-earned money will just be used to fill the pockets of corrupt politicians, but unfortunately, we must do it if you are earning income here and abroad.
As a law-abiding Filipino citizen, we should file our taxes to avoid tax evasion that when audited can be a cause of payment of fines, interest, compromise fee, penalties and even imprisonment for two to four years. Remember when you are getting money from Western Union, Banks, GCash etc., you need to provide an ID and goes to the verification process (this is to avoid money laundering). If you are getting a regular income or remittances there might come the time that the government will look upon those transactions.
Paying your taxes has a lot of advantages too. You need your Annual Income Tax Return report for VISA processing and for House and Car Loan. At saka ang sarap lang ipagmalaki na “legit” ang trabaho mo.
This year, I feel the need to get a receipt already. I have read a lot of blogs and articles on how to register in BIR. But most of these posts overwhelmed me, it looks like a hideous process. Until I read the blog post of my co-mommy blogger Donna. On her post, she made it look so easy. I followed it and finished my registration in just a day (except for the OR that took a week before I received).
Before reading her post, I already considered the thought of hiring someone to do it for me, my husband even told me that it’s okay to spend 10-12K if it will be so hard to do and will take a lot of time from me. BUT, the curious me (and the frugal me), thought that it’s better if I know the process and be able to share my experience with you. BTW, you can also generate invoices online in a snap using Zintego.
Here’s the STEP by STEP Guide in Registering as a Self Employed / Freelancer / Professional in BIR:
➡️Make sure that the city where your business address is located should match the Regional District Office of the BIR that your TIN will be attached to. I was previously employed so the first thing I did was transfer RDO (Regional District Office). My accountant friend did this for me 3 years ago.
You need to use BIR Form No. 1905 here. From Manila, I transferred my RDO to my home/business address here in Cavite. Your registration will not be processed until the transfer has been made.
➡️I prepared the following documents before going to BIR for registration: Barangay Clearance (this is FREE in our area). Before I got this clearance, they asked me to get a Homeowners Certificate from our subdivision because I can’t present an ID with my current address. Next, have a photocopy of your Birth Certificate, Marriage Certificate (if you are married), and a copy of your child/children’s Birth Certificate too. Plus a copy of any valid ID too.
Then go to your municipality to get an OTR (Occupational Tax Receipt).
As per Donna’s post, she also prepared an Income Payee’s Sworn Declaration of Gross Receipt/Sales notarized. I did too, but the BIR in our area said that they don’t need it. To be sure (notarization is just around P100-P150), you can print it and have it notarized (it’s better to have complete requirements rather than going back just for this. Click HERE
Also, print a copy of your website and latest contract from your clients.
➡️Fill up BIR Form No. 1901
➡️Then fill up BIR FORM 0605 (3 forms). You will use this form to pay for the P500 registration and P30 Documentary Stamps. You can pay in any accredited bank, but it’s a good thing that the BIR in our area accept payments. It saves me from going to the bank to pay.
➡️Fill up BIR Form No. 1906 then look for an accredited printer. I found one inside the BIR already. The minimum number of booklets is 10pcs and it cost around P1300-P1500.
➡️ Give them your Accounting books (I just got one -ledger and they accepted it). They will stamp it.
➡️ After submitting all these forms, you can now settle down and wait for the Certificate of Registration. If you are early in the area, they can process it within the day, but if you arrive in the afternoon I think you have to return for it the next day (some areas said it took them a week daw).
➡️ The Authority To Print form should be given to the printing press. I waited for a week for my Official Receipt to finish. The printing press was also the one who asked the BIR to stamp the Authority to Print for me.
That’s it! I am now ready to issue receipts.
Here’s the list of my expenses:
Occupational Tax Receipt (OTR) – P150
Income Declaration Notarization – P150
BIR Registration- P500
Documentary Stamps – P30
Official Receipts – P1,500
Others (food + transpo) – P300
________________________________________________________
TOTAL = P 2,630
I saved a whopping 10K (at least) for doing this process on my own and it only took me a whole day to do it (I wish every RDO is the same).
BTW, the first quarter of every year is the perfect time to file or register because you need to renew your COR on or before January 31. So if you register on the last quarter of the year (let’s say September), you will renew it again before January 31 (
I is also advised that even though you don’t have an income in a month or quarter, you still need to report it in BIR to avoid penalty (amounting to 1000 per month).
The next thing I need to learn is How to file my Income Tax on my own, what areas I need to fill up in the form etc. As I have mentioned, someone is doing this for me every year, but since I need to do it monthly now
You can download BIR Forms here – https://www.bir.gov.ph/index.php/bir-forms.html
Here’s another site worth reading http://www.freelancing.ph/bir-requirements-every-filipino-freelancer-should-know/
https://mommyginger.com/freelancers-questions-taxation-answered.html
thank you for sharing mommy levy, will take note all of this po for future reference.
Hi Mommy Levy, just got my resibo na, may question lang po ako about how to pay the taxes , Like things I need to know (like the do’s and donts)when I am working self-employed na nag iisue ng resibo. I would be so happy to read it in your blog. Thank you so much.
you need to file your taxes sa date na nakalagay sa COR mo or else may penalty ka. May income o wala you need to file. I have an accountant to do it for me, so I don’t know the process. You can download the eBIR app and watch ka sa YouTube paano i fill up. Congrats and good luck
Hi Mommy Levy , I am so confused right badly need your response. I was about to start my freelancing as a shadow teacher po. I am a fresh graduate college student po and want to pursue self employment. wala po akong ka alam alam sa mga gagawin ask ko lang po kung same lang ba tayo ng process? since I dont have tin number pa. To sum up mga magkano po gagastusin ko to have my own resibo mga estimate nyo po so that I can prepare my money and energy na rin. Maraming salamat po in Advace hulog po kayo ng langit.
First you need to get your TIN number then apply as a professional. Yung asa resibo mo same nung akin, pangalan mo mismo ang lalabas. But if the school will hire you as their teacher then I think sila ang magpa process ng TIN number mo.
Hello, I just came across your blog and saw this very interesting section:
I’ve been paying our Annual Income Tax for 3 years now even though we don’t have a Certificate of Registration from BIR yet.>> Yet, you registered sa 54B with 1901 which means its a new business registration. That means the 3 years you’re talking about, was never registered with BIR. Certificate of registration is issued on the same day n pinasa nyo lhat ng documents for registration. You must know that by now since nilakad nyo mismo yung registration. Did you pay the tax through the bank using the 1701Q/ 1701A or 1701 forms for those 3 years? Or did you give the money kay accountant friend to pay it for you. Because I assure you, there was no such payment. BIR only recognized you as a self employed taxpayer when you went to RDO 54B and filed the 1901. Also, the 2307 you get from companies are tax credits. They withheld 5 percent of your supposed income. Mababawi nyo nman yan as they are intended to reduce your total tax due as you will need to attached them sa quarterly tax return or ITR(those 2307 received on 4th quarter of the year)
Yes I paid the 1701A for 3 years sa bank (hindi sa accountant). I have no idea what to do that time, I just want to file my taxes.
Hi Mommy Levy, Just wanted to ask if nirerenew mo yung OTR mo yearly? Thank you
yung COR opo, P500 yearly renewal
Hi, Mommy Levy, thanks for sharing your experience. Question lang po… aside from the OTR, is there any other payment/process you had to do in your LGU? Did you have to get a separate business or mayor’s permit, or is the OTR it? Do you have to declare your income sa LGU or is the OTR fee the same yearly? Thank you.
since I registered as a professional, they did not ask for a Mayor or Business permit anymore. After getting your COR, you need to file your income base on what’s on your COR.
Hi Ms. Levy! I badly need your response. Buti nakita ko ‘tong blog mo. May existing TIN# na ko as a corporate employee before. Pero ngayon may bago akong work then sabi sa ‘kin ng HR sa DepEd, I need to file sa BIR as freelancer COS JO. Kasi nga contract of service lang me sa kanila. Kailangan ko po bang magregister ng bagong TIN#? Or pwede na yung luma? At yung RDO ko from my past job, lilipat na po ba ko sa RDO ng “address ko” or sa address ng “DepEd?” Gusto ko lang ng confirmation. I tried to reach out sa BIR staff through phone. Jusmiyo marimar pagkasusungit nila, kaya yung mga tanong ko hindi ko na naitanong. Thank you po in advance!
Only one TIN per person. Against the law ang 2 TINs, pwede ka makulong. Kung hahanapan ka nila ng resibo as a freelancer, yung address ng RDO mo ay dapat kung saan ka nakatira or nag-ooffice. I suggest bahay mo na lang na address para kung gusto mo mag freelance din sa iba, di ka na ulit magbabago ng RDO.
Hello..1 year and a half pa lang working as an esl tutor and unfortunately didnt know that COR had to be paid annually and sworn declaration has to be updated annually, too. Now the company I offer services to won’t accept my sworn declaration, lampas na Jan.15,2021 cut-off and has started witholding 10% per cut-off..pwde bang mgfile ng income tax refund or something?or anyone there who can answer my query?i would greatly appreciate it..thank you
Hello po Mommy Levy, pwede po kaya ako magapply neto under my name pero ang gumagawa is yung Father ko, Installer po sya ng mga alluminum works sliding doors and windows?
Hello, nirerenew po ba yung OTR once a year?
yes
Hello mommy, may I ask? After registration, may new number bang ibibigay saiyo as a freelancer or self-employed number? Thank you.
no wala na po. If you have an existing TIN number ayun ang gagamitin mo.
This is really helpful !!! Super thanks =)
Hi Mommy Levy, ask ko lang po sana paano po kayo magbill kung dollars ang narereceive niyo? Paano niyo po siya sinusulat sa receipt?
kini convert ko muna sa peso
May question po pala ako. Talaga po bang 2 columnar books lang ang need? 2 lang po kasi yung pinabili sakin ni BIR.
isa nga lang po sakin
Hi Mommy Levy, Ako po ulet. Kumuha po ako ng OTR ngayon pero ang binigay po saken is yung PTR 330 pesos po ang binayaran ko. Ang mahal po dito samen.
ano ang PTR?
Professional Tax Receipt po ang inissue nila sakin dahil hindi nila alam yung Occupational Tax Receipt.
Hello. Same issue here Mommy. They only have Occupational Permit which is I think it’s different from the Occupational Tax Receipt. They can’t issue PTR (Professional Taz Receipt) since I don’t have the license yet.
Hi Mommy Levy, Ask ko lang po if ilang copies ang need isubmit? Saka okay lang po ba yung business address e yung present address na din? Last year ko pa po gustong magregister kaso buntis po kasi ako nun mahirap po magayos ng mga papel. Nagpunta na din ako sa BIR namin PTR naman ang pinapakuha saken. Nung nagtanong naman ako sa City Hall sa BIR daw kinukuha. Pinagpapasa pasahan ako kaya hindi ko na po naasikaso. Nung nanganak naman po dapat ngayong 2020 ko aayusin e napagabutan naman po ako ng lockdown.
Saving this mommy! But I’m still confused. I’m planning to register as self-employed/freelancer but I’m also doing online selling. Do you have any idead if I need to register both my work and online business? Or okey na sa DTI yung online selling, and BIR yung work? I am really confused.
I think that is considered as mixed income. Please inquire na lang sa BIR anong iregister mo at paano. Thanks!
Hello, I’m about to make my side gig legit by registering as self-employed.
My question is, are freelancers also tax mapped? Tax mapping is when officers inspect a business if they’re displaying the Ask For Receipt sign among others and fine the taxpayer if they violate this rule.
Have you ever been tax mapped? Do they enter private residences? Thanks!
no I haven’t been tax mapped
Hello Mommy Levy, need your help, I’m working as an ESL tutor, I started last June2019. I only found out now that I need to file an ITR every qtr (nabasa ko lang here sa blog mo). Matagal kasi akong naging employee before so nakasanayan ko na na ang filing is every April. Madami pala akong hindi nagawa. I only work part time usually 4-5hrs a day. Kasi I’m a full time mom. How would I start this? Ma penalize kaya ako for the quarterly ITRs na di ko na file? The esl company is already deducting the taxes every month. Grateful for your advise. Thank you!
do you have your COR po? nakalagay po don ano ang mga ipa file nyo and the schedule. Unfortunately yes may penalty po kapag di kayo nakapag file. I suggest to consult an accountant to help you. Thanks!
Hi! What if you started as freelancer year 2019 but you only plan to register this year (2020), would there be any penalty or you don’t actually need to declare when you started? Please help.
no wala naman they will not ask for it.
Nice! Very helpful ito sa mga gustong mag register.
Wow! Mabuti konti lang tao sa Cavite West. Sa amin sa Cavite East, grabe dami ng tao. Sabi sa akin ng guard dun, kelangan daw 5am andun nako para pumila. Grabe lang! Hahaha!!! Eh napakalayo ng BIR Cavite East, nasa Trece pa. Hehehe! 🙂
Thank you. Actually, I am thinking to get OTR so I can start registering with BIR this month but I have read somewhere that it is better to get it at the start of the year to save money. I mean if I get the documents now and process my BIR registration, I will have to do it again in January. Is it correct? What’s your advice? Thank you. 🙂
yes that’s correct. You need to renew your contract every January even though you just get one, let say November.
In that case, I will just process everything next year to save money. Thanks so much for the info. 🙂
Hi! Ask ko lang ano requirements for getting an OTR? Thank you.
In our area, nothing. Just go to your municipality and ask one, just tell them that it is for BIR application.
Thank you so much for this Ate! This is very helpful. I started an online blog/website with friends but since I’m actively working on commissiond events here in Bacolod under our group’s name, I decided to register na rin as a freelance marketer/event organizer. Hinahanapan na rin kasi ako ng receipts ng potential clients. 😂 Thank you po talaga! Mukhang keri lang to lahat in less than one week. 💕
My friend will soon process the same thing next week as she will begin her journey as a freelancer. I will share this to her and to all my friends who are planning to be a freelancer. This is so helpful, useful, and very informative. Thank you for sharing this, looking forward to your upcoming posts! 🙂
Hi mommy ask ko lang kung para saan yung ledger???ano sinusulat mo dun???saka can i consider my hubby as professional???nangongontrata po kasi siya installer po siya ng mga aircon ang income di naman po monthly ang contrata po niya ranging from 50k-700k di niya po nakukuha ng buo yan more on progress billing siya…can you help me answer my question mommy???or give me ideas where to ask…maraming salamat po…very helpful po ng blog mo 😊
mas maganda kung may resibo si husband mo para mas professional ang dating. Baka mas madami pa sya makuhang client kung malalaman na legit service nya. As per the ledger, doon dapat isusulat mga transactions, pero pwede naman daw wag gamitin. Okay lang kahit progressive billing, kung kelan sya may matanggap na pera doon nya iissue ang resibo. Pero once na may resibo na sya take note that you need to report to BIR may income o wala to avoid penalty. Do more research muna mommy.
Hi mommy clarification lang po. You need not renew your Certificate of Registration (COR) every year. What you pay every year (deadline jan 31) is the Annual Registration Fee worth Php500.00 po 🙂
thanks for the clarification
This will be so useful to many freelancers and bloggers Mommy Levy! Minsan talaga, we just think na mahirap, pero pag nag-invest ka ng time, matatapos din 🙂
Wow, laki din ng nasave mo. I’m thinking if I need this one since blogging is just my hobby. Monthly pala bayad kay Taxumo, mahal din kung wala kita for that month and you need to report sa BIR.
yes mahal ang taxumo, I heard 250 lang sila last year, but now P500 na. Kaya I need to know how to do it on my own if I want to save. Di din naman hassle kung alam mo ang schedule. You can submit the form to BIR online too.
Wow! Maraming salamat for writing this. I need to do this and I had no idea how to begin. I was so intimidated, and so stressed by the thought of dealing with government employees who are not very friendly, nor helpful. This is on my goals list this year!
very helpful ang post ni Donna sa’kin, plus nagkataon may nakasabay akong nag file din na Online Tutor. Nauna sya so tinuruan nya ako ano isusulat sa mga forms. That’s the reason kung bakit pinicturan ka na yung mismong may fill up na form kasi yung kay Donna wala. Nangapa ako ano sasagutan 🙂
You are just right in time, I’m looking for a step-by-step procedure on how to start filing and paying my taxes gusto ko sana before matapos ang January nalakad ko na lahat. You made it all too simple. Thanks for this! 🙂
Happy to help Joy 🙂
Salamuchie Mommy Levy for the inputs 😉 happy to serve na din aketch soon 😂
yey! proud of you 🙂