1. As freelancers, do we pay income tax? www.alsabado.com

2. As freelancers, yes, we pay income tax… www.alsabado.com

3. and withholding tax, when we hire/pay people in exchange for their services. www.alsabado.com

4. By virtue of... www.alsabado.com

5. NIRC National Internal Revenue Code of the Philippines www.alsabado.com

6. BIR Memorandum Circircular 55-2013 Reiterating taxpayers’ obligations in relation to online business transactions www.alsabado.com

7. Is freelance taxation new? www.alsabado.com

8. NO. The entire principle of taxation is part of world history, which has been Biblically accounted. www.alsabado.com

9. And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed. (Luke 2:1) www.alsabado.com

10. And he said unto them, Render therefore unto Caesar the things which be Caesar's, and unto God the things which be God's. (Luke 20:25) www.alsabado.com

11. Submit yourselves to every ordinance of man for the Lord's sake… (1 Peter 2:13) www.alsabado.com

12. So, how do we comply? We register our freelance business with the Philippine Bureau of Internal Revenue. www.alsabado.com

13. What are the requirements for registering our freelance business? www.alsabado.com

14. 1. BIR Form 1901 (2 copies) Application for Registration www.alsabado.com

15. 2. Letter of intent What services do we offer? (Free template available at www.alsabado.com) www.alsabado.com

16. 3. Business location sketch www.alsabado.com

17. 4. BIR Form 0605 (3 copies) Payment Form www.alsabado.com

18. 5. Registration fee of Php500 With BIR (Payment) Form 0605 www.alsabado.com

19. Requirements may vary due to other factors civil status, nature of work, licensure, etc. www.alsabado.com

20. Do we need mayor’s permit, DTI, etc.? Answer to that depends on the nature of our work. www.alsabado.com

21. Upon registration approval… we will receive a certificate with paid BIR documentary stamp. www.alsabado.com

22. BIR Form 2303 COR Certificate of Registration www.alsabado.com

23. Apply for authority to print (ATP) receipts and invoices www.alsabado.com

24. Within 30 days from date of registration ATP of receipts and invoices www.alsabado.com

25. Request BIR- accredited printer to process ATP and produce OR booklets with carbonized paper. www.alsabado.com

26. Accounting books …may vary depending on the nature of our work as freelancers and self- employed income earners www.alsabado.com

27. Accounting books journal www.alsabado.com

28. Accounting books cash disb’ts. www.alsabado.com

29. Accounting books cash receipts www.alsabado.com

30. Accounting books ledger www.alsabado.com

31. Accounting books official appt. bk. These books are valid for three years, from date of registering them at the BIR. www.alsabado.com

32. Can we do our own bookkeeping? YES. www.alsabado.com

33. We may hire a CPA later to do our financial statement, that is, if our annual income reaches and exceeds Php550,000. www.alsabado.com

34. Otherwise, we don’t have to submit an FS … just the ITR (BIR Form 1701). Again, that is, if our annual income is below Php550,000. www.alsabado.com

35. What types of income tax do we pay? 1 - Annual registration fee (Php500) Renewable on or before January 31 BIR Form 0605 www.alsabado.com

36. What types of income tax do we pay? 2 - Percentage tax, 3% of monthly gross Filed or paid on or before the 20th of the month, following the applicable month BIR Form 2551M www.alsabado.com

37. What types of income tax do we pay? 3 - Quarterly tax, based on percentage tax Filed or paid on or before the 15th of April, August, and November BIR Form 1701Q www.alsabado.com

38. What types of income tax do we pay? 4 - Annual tax, based on percentage and quarterly tax Filed or paid on or before April 15 BIR Form 1701 www.alsabado.com

39. Also, community tax (cedula) Paid at the municipal’s office or barangay district office Computed at 0.1% of our gross income Required prior to filing ITR (BIR Form 1701) www.alsabado.com

40. Where do we pay income tax? any BIR-authorized agent bank (AAB) www.alsabado.com

41. If we have no income for the month… do we pay income tax? www.alsabado.com

42. No, we don’t pay income tax for… non-income months. www.alsabado.com

43. We file directly with the BIR- RDO or the regional district office of the BIR (where we have registered), using the BIR forms, depending on tax period (i.e., 2551M, 1701Q, 1701) www.alsabado.com

44. For details, do ask the BIR personnel, call your BIR-RDO for inquiries, or better yet, visit the BIR website: www.bir.gov.ph www.alsabado.com

45. You may also visit… www.alsabado.com

46. The Filipino freelancers’ guide to paying taxes and securing social benefits www.alsabado.com

47. Salamat po. Salamat po. www.alsabado.com