Tag: FREELANCER

Freelancers and Professionals Tax Planning

George Mikhail Aurelio

 

 

 

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.

 

 

Disclaimer: All data and information provided on this site is for informational purposes only. The writer makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.

Filipino Freelancer: Application for Authority to Print Receipts and Invoices

George Mikhail Aurelio

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Normally, a freelancer only needs an Official Receipt. But you may also have a sales/billing invoice if you needed it.

You should not burden yourself on the confusing procedure on application for Authority to Print Receipts & Invoices.

Almost all BIR Revenue District Offices have an Accredited Printers near them. 
You may ask the BIR officers, they're happy to suggest you one.

You should hire an accredited printer that will do all the procedure required in 
printing your receipts. 

You only need to provide:
     1. Photocopy of BIR Certificate of Registration
     2. Photocopy of BIR Form 0605 - Annual Registration Fee

The average cost for 10 booklet is Php1,500.00 - Php2,500.00. 
Each booklet consist of 50pcs receipts in duplicate or triplicate
copy depending on your choice. You may only deposit a down payment 
(Usually Php500.00 for 10 booklets) and pay the balance when the
receipts are printed. The accredited printer will take one to two
weeks to finish the receipts.
You should receive the following:

1. 10 Official Receipt Booklets
2. BIR Form 1921 Authority to Print with BIR Stamp (You will need
   this ATP when you will print another receipts afterward)
3. BIR Form 1906 with BIR received stamp
4. Printer Certificate of Delivery of Receipts and/or Invoice

You may now issue an Official Receipts to your customers!

Disclaimer: All data and information provided on this site is for informational purposes only. The writer makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.

Filipino Freelancers Tax Compliance

George Mikhail Aurelio

photo         Image Source: Shaun Quarton in Tips & Tricks

Freelancer, a person who works as a writer, designer, performer, or the like, selling work or services by the hour, day, job, etc., rather than working on a regular salary basis for one employer. source:http://www.dictionary.com/browse/freelance

A person who works online as a:

-Admin Support
-Customer Service
-Sales & Marketing
-Design & Creative
-Transcription
-Proofreading
-Email Marketing
-Web Development
-Consulting
-Etc.

Many Filipinos today are in the freelancing industry. As a freelancer, you are not excused in your obligation to pay taxes. In order to be a law-abiding citizen and if you are serious in pursuing a freelancing career, it is a good decision to make the source of your income legal and compliant with the BIR.

Requirements:
1. Duly fill up 2 copies of BIR Form 1901 (see sample)
2. Duly fill up 3 copies of BIR Form 0605 - Registration Fee
   (see sample) (Note: You will use this form to pay the BIR
   Registration Fee amounting to Php500.00)  
3. Photocopy of PSA Birth Certificate*
4. Photocopy of of 2 valid ID's**
   Note: Make sure that the address in your valid ID's
   are the same with the address that you indicate in
   your BIR Application Form.
5. Professional Tax Receipt, if applicable
6. Occupational Tax Receipt, if applicable
7. Project/Work Contract, if applicable
8. Marriage Contract, if the applicant is a married woman

Note: BIR Forms are also available in hard copies in the BIR.
      * To be sure you may bring the original in case they need
        but they will only get the photocopy.
      ** Please bring your ID's in case they need to verify.

BIR registration steps as a freelancer:

A. Primary BIR Registration

Step 1:

I. Go to the BIR Revenue District Office (RDO) assigned in your area. (You may check the BIR website to check which RDO your address belong)

II. For those who do not have a TIN you may obtain online at BIR eRegistration system  assigned in your area.

Step 2: Get a number for the counter assigned to BIR Certificate of Registration (COR).

Step 3: Submit all the requirements to the BIR officer.

Step 4: The BIR officer will ask you to pay the BIR Form 0605 – Registration Fee. You should only pay it at the Authorized Agent Banks assigned in your RDO.

Step 5: After payment, photocopy at least 3 copies of BIR Form 0605 and payment receipt.

Step 6: Submit 1 photocopy of the paid BIR Form & payment reference.

Step 7: The BIR officer will request you to purchase 1 documentary stamp tax. (You can buy it within the BIR office and it normally cost Php15.00)

Step 8: The BIR officer will advise you on when you can get the BIR COR. There are few RDO’s who can process your registration within the day, but normally they will give you a date on when you will return to get your BIR COR.

Step 9: You should received the following:

  1. BIR Certificate of Registration
  2. BIR Ask for Receipt signage
  3. BIR Form – 1901 with received stamp

B. Secondary BIR Registration:

After you receive the BIR Certificate of Registration you will need to accomplish within 30 days from the date of your BIR registration:

1. Registration of Books of Account:
2. Application for Authority to Print Receipts & Invoices
After BIR registration, you should file and pay your taxes to
avoid the corresponding penalties.
Also, you need to update your books of account.

Normally a freelancer will need to file:
1. BIR Form 2551Q - Quarterly Percentage Tax Return
2. BIR Form 1701Q - Quarterly Income Tax Return
3. BIR Form 1701 - Annual Income Tax Return
4. BIR Form 0605 - Annual Registration Fee

Note: There is an option for self-employed / freelancers / professional to avail the eight (8%) tax on gross income in excess of P250,000.
When you choose this option, you will only need to file BIR 1701Q quarterly, no more BIR Form 2551Q.

You're all set! Best wishes in your chosen career!

No time for tax compliance? We can help you! We have a special rate for Freelancers and Professionals. Request for proposal.

Disclaimer: All data and information provided on this site is for informational purposes only. The writer makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.