Registering as a Freelancer in the Philippines 2 years ago

Freelance arrangements in the Philippines have become a popular form of work, whether as a main source of income or as a sideline. It offers a lot of flexibility to the freelancer in terms of schedule, work, and pay. 

But as more and more people turn to freelancing, many questions arise as to how to go about it properly. 

A question that is often asked – is registration required for freelancers? The answer is yes, and registration is actually the logical first step.

What exactly is registration?

Registration, in this case, pertains to registration with the Bureau of Internal Revenue (BIR). 

Registering with the BIR is helpful to avoid long-term troubles. It’s a constant reminder that you need to pay tax, even if you work as a freelancer. As a registered freelancer as well, you benefit from a higher form of legitimacy and will have proof that you pay taxes in case future employers, clients, or agencies ask for it.

How do you register as a freelancer?

1. Update or apply for a Tax Identification Number (TIN)

You must first fill out BIR Form 1901. Under the Taxpayer type, select Professional and Single Proprietor. 

The BIR categorizes freelancers as self-employed persons. Such individuals can either be sole proprietors (which includes freelancers) or professionals (those licensed under the Professional Regulation Commission). 

You can also select any of the Mixed Income Earner options, if freelancing is not your only source of income. 

The address of your freelancing work would be your residential address. 

Submit two copies of this online through the BIR website or to your nearest BIR office.

2. Fill out the Payment Form

BIR Form 0605 is the Payment of the Annual Registration Fee for self-employed persons. This is a yearly tax filing requirement.

Fill out the form and submit it to your BIR office, together with the Php 500 fee. 

You must also pay the certification fee and documentary stamp tax, for Php 15 each.

All-in-all, you need to prepare at Php 530 for registration as a freelancer.

3. Attend the Taxpayer’s Seminar

Your local BIR office should then inform you of the schedule of the required seminar. This seminar is necessary for new registrants so that you know your rights and responsibilities as a taxpayer.

You should also take this opportunity to raise any questions you have about freelancing and taxation work.

4. Receive your Certificate of Registration

Go back to your local BIR office where you submitted your BIR forms and claim your Certificate of Registration or BIR Form 2303. This certificate will officially declare you as a legally registered business.

5. Apply for Authority to Print Receipts and Invoices

Fill out BIR Form 1906, which is the Application for Authority to Print Receipts and Invoices. As an income-earning freelancer, you are required to issue receipts or invoices to your clients. The BIR will print these for you and will let you know when they are ready for pick up.

After following these steps – congratulations! You are officially a registered freelancer in the Philippines. 

If you need more assistance with registration as a freelancer, or other business concerns, check us out at digest.ph.

References:

[1] https://philippinebusinesstools.com/register/freelancer-bir/

[2] https://www.reportr.world/news/freelancer-bir-requirements-registration-how-to-a4373-20220819-lfrm

[3] https://www.philippinetaxationguro.com/how-to-register-in-bir-as-a-freelancer-guide-2021/