Thursday, September 18, 2014

7-Step BIR Registration: How to Register As Self-Employed Professional / Single Proprietor / Freelancer

How can a Filipino freelancer/single proprietor/self-employed professional register with BIR? 


Did you think that you didn't need to pay taxes at BIR because:
- you earn money online;
- you have a home-based/small business; or, 
- you work at home as a freelance writer/virtual assistant/graphic artist? 


Think again. If you're a self-employed worker who considers yourself as your own boss, you still need to register with BIR for tax filing and tax payment. 


7-Step BIR Registration: How to Register As Self-Employed Professional / Single Proprietor / Freelancer
Image Source - knowyourtaxes.ph
What kind of tax-payer are you? 
This guide is for self-employed workers. You're a self-employed if you: 
- get income from your personal business (single proprietor); 
- practice your profession such as lawyer, accountant, dentist (professional); or, 
- "pursue art and make a living from it" such as freelance writer, logo maker, singer, athletes and others. 

Who knew that pursuing art obligates you to file taxes, no? Now you know. :) 

Okay? Let's move on. 

Now, don't just go to your nearest RDO yet! Assemble these requirements first - doing so will save you the effort and the headache of going back and forth. 

BIR Requirements for Registration as Self-Employed 



Registration Requirements
Fee
         - Your own registered TIN issued to you
Issuance of TIN is free
    - Registration Fee with (3) copies of Form 0605
P500
    - Valid NSO Birth Certificate (original & photocopy)
P350
(if ordered online & delivered to you)
          - (3) copies of filled out BIR Form 1901 - page 1; page 2
Free
          - Proof of address
Free
    - Valid ID with picture, date of birth and signature
Free
* If Applicable:
- Valid Marriage Certificate
- Valid NSO Birth Certificate of your dependents
- Mayor’s Permit
- DTI Certificate of Business Name
- PRC ID
- Professional Tax Receipt payment proof


7-Step BIR Requirements for Self-Employed, Freelancers & Single Proprietors 

1. If you don't have your own TIN yet, register thru the BIR eRegistration System. Thru your email, you'll get your own TIN, guide on how to pay the Registration Fee and you also get the BIR Form 1901 that you need to print and submit to your Revenue District Office. 

Which RDO are you supposed to go to? Check here.

2. Pay your registration fee of P500. The best way is to go straight to an accredited agent bank of your RDO. Go there with your 3 copies of Form 0605 and P500.

3. With your requirements, visit your RDO. Personally, I went to RDO 050 at around 10 am and the place wasn't that crowded. At your RDO, submit all your requirements and don't forget to smile and be polite! 

This is also the perfect time to apply for your FREE TIN Card. Just ask your BIR officer how to get it and she'll give you a short form you need to fill out. 

4. Your BIR officer will receive your requirements. She'll ask you to pay for the following: 


Additional Registration Expenses
Fee
         - Documentary Stamp
P15
         - Certification Fee
P15
         - Book of Accounts 
        1 ledger
        1 linear journal 
        1 Subsidiary Professional 
            Income Book (cash receipts) 
     1 Subsidiary Purchases/Expenses Book (cash disbursement) 

                                   
                                     P40
                                     P40
                                     P40
                                   
                                     P40

The BIR officer will label your books and stamp them. 

5. You also need to print your own invoices/receipts. Usually, the BIR officer has someone they know who they can refer to you. In my case, in the past, the BIR officer assisting me had his own receipt printing business, so I got one from him. 

But then on that same year, they completely changed the system and told you to only get BIR's list of accredited printers, so I had to pay another printing fee! 

Here's the updated list of BIR accredited printers.


Requirements for Invoice/Receipts Printing 
Fee
         - (3) copies of BIR Form 1906
Free
        - 10 booklets of invoice/receipts  
P120 per booklet = P1,200

6. Attend the required taxpayer's briefing, or else your Certificate of Registration (Form 2303) won't be issued to you. Ask a lot of questions! Now's the time. 

7. Usually you won't get everything in one day, so ask your BIR officer when you can come back to your RDO to get your invoice/official receipts, your COR, your book of accounts and TIN Card. 

Any questions? Let's go! 



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Want to: 
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Let me help you. Simply fill out this form. 

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Want to get started managing your money/budgeting/investing? Contact me, your trusted financial advisor, through the following: 

Email: liannemarthamlaroya@gmail.com
Twitter: @MsLianneLaroya
Mobile: 0916 737 8741

We can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works. No obligation to do anything - except share what you learned with your friends! :)

If you find this post helpful, please SHARE it to your friends. Who knows, you might help them by educating them. :) Thank you, wonderful people!

Live wisely,








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