BIR registration and taxation for freelancers has been one of the hottest topics that has been asked of me and, I am sure, many other of you freelancers out there.  If you have not been asked the question, maybe you yourself have these questions in your mind but have no one else to ask.

Thankfully, there’s freelance editor, Al Sabado, a previous guest on the show.  She appeared in www.freelanceblend.com/7 (listen to our interview here).  Together, we presented at the Freelance Camp last 2014 and there she talked about how to become a legitimate, tax-paying freelancer.  That’s why invited her back on the show to answer all our questions about taxation, especially now that I am a freelancer.

So in this episode, we dive deep in the steps required on how to register with the Bureau of Internal Revenue of the Philippines and we also made sure to simplify the steps since it will be quite difficult to explain it in a podcast.

What’s more, I created a free guide that you can use to bring with you when registering with the BIR.  Just look for the “Subscribe” button below this post and leave your email address so we can send you the free guide.

Meanwhile, here is an outline of what we discussed in the show:

The 3 Simple Steps on How to Register with the BIR as a Freelancer:

1. Registration

A. Requirements for Registering as a Freelancer

B. The 5 Books of Accounts

C. Issuance of Official Receipts

2. Attend the Briefing for New BIR Registrants

3. Prepare for the Filing and Payment of Taxes

Step 1: Registration

A. Requirements for Registering as a Freelancer

1. BIR Form No. 1901 “Application For Registration”: Page 1 and Page 2 (2 copies)

Item 1: Taxpayer Type:

– Choose “Single Proprietorship” if you have a physical location and accepting both local and foreign clients.

– Choose “Professional” if you don’t have a physical office and accepting mostly foreign clients.  This option is best for Upwork freelancers.

Item 19: Primary/Secondary Industries – List of PSIC and PSOC codes

2. Letter of intent (see sample here)

3. NSO Birth certificate (photocopy)*

4. Business location sketch (your business or home office)

5. Pay the Registration fee of Php500 at any BIR-authorized agent bank along with BIR Form No. 0605 “Payment Form”

6. Come back to get your BIR Certificate of Registration (COR).  BIR will tell you when to come back.

*NOTE : The BIR may have varying lists of requirements.  Please go to bir.gov.ph or check with your local BIR office.

 

B.  Books of Account

– For a new freelancers: Books must be registered (stamped) before their use — upon registration of the business or before the business commences.

– The stamping of books is free of charge.

1.  The 5 Books of Accounts for freelancers – click here for the samples.

A.  Journal

B.