If you are a Freelancer or a Professional whose annual income is less than P3,000,000. You should be aware of this new Tax Law.
One of the highlights in the new Tax Law under the Tax Reform for Acceleration and Inclusion (TRAIN) is the ease of compliance of Self-Employed Individuals and Professionals. Under the old law, you file your monthly income/sales using the BIR Form – 2551M (Monthly Percentage Tax Return). Under the TRAIN. No more filing of BIR Form – 2551M. Instead, you have to file BIR Form – 2551Q (Quarterly Percentage Tax Return).
IMPORTANT.
As a Freelancer and Professional, you have two options:
Option A
File Quartelry:
– BIR Form 2551Q
– BIR Form 1701Q Quarterly (Quarterly Income Tax Return).
OR
Option B
File 1701Q Only – 8% Tax on gross sales or gross receipts and other non-operating income in excess of Two hundred fifty thousand pesos (P250,000).
Take note that your option on the first quarter will be irreversible for the taxable year. You have to make sure that you will choose the option where you save more.
No time for tax compliance? We can help you! We have a special rate for Freelancers and Professionals. Request for proposal.
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