How To Register As A Freelancer

Are freelancers required to pay taxes? 

YES! Any payment received from services or products that arise from the practice of the profession is taxable income. Paying taxes is considered a civic duty regardless of how the government makes use of the money. 

Here are two ways to register:

1. Register as a Business | Business Owner (DTI, Business Bureau, BIR), or

2. As Self-Employed | Freelancer (BIR only)

The Process AS A BUSINESS | BUSINESS OWNER

Step 1. Go to Department of Trade and Industry (DTI)  and bring the following:

Primary valid ID like SSS, Passport, driver’s license, etc.

      * ( they don’t accept secondary IDs like TIN or PhilHealth)

Prepare for the registration fee (Php 500) and for the documentary stamp (Php 30).

       *They will issue the certificate right away.

Optional: You can apply to Negosyo Center (located inside Magsaysay Park) for a Barangay Micro Business Enterprise (BMBE) for a tax benefit. Bring a photocopy of your DTI Certificate and photocopy of TIN. They will give you a form to fill out and they will just text you if your application for BMBE is approved. 

Step 2. Get the Mayor’s Permit

The next step is to process the Mayor’s/Business Permit at the Business Bureau located at Sanggunian Building. Upon entering the building, there will be attendants/personnel you can ask who will guide you in the process. You will be directed to the Business Bureau Window and once you are there, ask for the application form for a new business, Sole Proprietorship. Steps on the Issuance of a New Business Permit and List of requirements are attached to the form

The CENRO Certificate is also processed here.

*Tip: There might be a lot of people lining up at the Business Bureau so better ask them first if they are lining up to get the application form or to claim their business permit. Usually, most of them are just claiming their business permit. If so, go directly to the one giving out the priority number and ask for the form.

Requirements:

1. Application Form (notarized and completely filled out)

2. Barangay Clearance (latest/original/for new business application with complete business address)

3. Sketch (drawing with complete address and contact number)

4. Cedula (latest)

5. Certified list of Employees OR Certificate of NO employees (notarized, bring original and photocopies)

6. For your business property address

7.  If owned – Bring proof of ownership (Tax Declaration, Land Title, Deed of Sale)

8.  If rented – Bring Contract of Lease with Tax Declaration of Lessor (notarized, 1 photocopy)

9. If without rental – Bring Letter of Consent from the Property Owner (notarized, 1 photocopy &   any proof of ownership)

10. DTI and CENTRO

      *Tip 1 Before going to the Business Bureau, secure your Barangay Clearance & Cedula first so you won’t have to go back and forth from the Bureau to your Barangay.

      *Tip 2: Make sure to prepare Barangay Clearance and NOT Barangay Certificate. Double-check also for any typographical errors especially on the name, business address, and purpose. It should be for a new business application/permit (not the renewal of business permit).

     *Tip 3: Notarization is on the second floor of Sanggunian. There are a lot of people who will guide you to Atty’s. office and there is no need for you to pay the guide 🙂

Prepare business/regulatory fees estimated P3000 to P5000. That includes the payment of Fire Inspection Fee and Notarization. They will issue the claim slip with the date indicating when to pick up your Mayor’s permit and logo.

Purchase also your Books of Accounts:

1. Ledger book

2. Cash receipt book (6 or 8 columnar notebooks)

3. Cash disbursement book (24 columnar notebooks)

4. General journal

Label them with the Registered Name of the company. Kindly ask the attendants where the stamp for the book of accounts is located. This will be done after you have registered with the Business Bureau.

Step 3. Register at the BIR

Bring all your papers such as DTI’s Permit, Mayor’s Permit and BMBE Certificate. Bring all the original copies but also secure photocopies of the following documents. Look for the staff who issues Application forms for the new applicant for the issuance of Certificate of Registration (COR). Inform them if you will avail of a tax exemption for BMBE. After that, you will go to the Revenue District Office (RDO) where you belong.

Note: RDO will depend on the registered address where you are residing.

*Tip: Before filling out the forms, get your priority number first,  because queuing time takes longer. Go to Counter 4 – Assistance Desk so you will be guided with the process.

Prepare the Annual Registration Fee (PhP500) payment for COR which costs (PhP500), and Documentary Stamp for (PhP50). Bring extra money in case of any additional charges. Bring your TIN as well since they will update your status from employee to freelancer.

You will also be required to attend the BIR Seminar. Ask for the schedule and bring the claim slip (date is indicated when to claim your COR and Ask For Receipt Notice sticker). This should be signed by the person conducting the seminar.

*Tip1: Ask them about the schedule of the seminar. (In my case, they forgot to tell me about it.)

*Tip2: Make sure to attend the seminar. Aside from it being required, this is the time that you can ASK everything you would like to know like on how to compute your taxes and your responsibilities as a taxpayer.

*Tip3: You can bring a flash drive. The one conducting the seminar might give you a soft copy of the PowerPoint presentation.

As early as now, you can design your Official Receipt to be processed by your printing press or you may opt to follow the regular format with the Authority to Print (ATP) issued by BIR.

Bring the set of Books of Accounts stamped by the Business Bureau when you receive the Certificate of Registration (COR) for another stamp to be received by the BIR.

AS SELF-EMPLOYED | FREELANCER

Step 1. Ask for the Application Form

Go to the Bureau of Internal Revenue (BIR) and ask for the Application Form for the new applicants. Then, go to the Revenue District Office (RDO) where you belong. They will give you Form1901 and Form 0605 to fill out and the list of requirements to comply is attached to the form.

Note: RDO will depend on the registered address that you provide. RDO132 for the Agdao area, RDO 113 for Toril and Calinan area. If you don’t know your RDO yet, just inform the attendants of your address and they will guide you where to go.

Requirements:

1. BIR Form No. 1901

2. Any identification issued by an authorized government body that shows the name, address, and birthdate for the applicant (Birth Certificate, Passport, Driver’s License, Cedula – bring photocopies.)

3. If applicable – bring Marriage Certificate (just in case)

4. Barangay Certificate (originally not included on the list) – bring photocopies

*Tip: Before filling out the forms, get your priority number first,  because queuing time takes longer.  Go to Counter 4, Assistance Desk so you will be guided with the process. Get another priority number for Counter 3 at the same time.

 Step 2. Fill out the Form

At Counter 4, bring the fill-outed Form 1901 and Form 0605 and explain the nature of your work so you will be guided in the process. Documents are also scanned at this counter ready for processing at Counter 3.  Ask if there are additional requirements such as Barangay Certificate. 

Step 3. Pay the Certificate of Registration

At Counter 3, bring the fill-outed Form 1901 and Form 0605 and explain the nature of your work (that you are registering as a Freelance | Home Based | Virtual Assistant). Submit the additional requirements such as Photocopy of birth certificate,  photocopy for Barangay Certificate and then pay P500 for the Certificate of Registration (COR).

*Tip: After doing one step, ALWAYS ask what’s the next thing you have to do. Based on my experience, they don’t give instructions on what to do next. You can Ask for the claim stub (when to get the COR) and ask about the seminar for new applicants. 

Step 4. Join the Seminar

Join the SEMINAR. This is the perfect time that you can ASK everything you would like to know about how to compute your taxes and your responsibilities as a taxpayer. The book of accounts is also mentioned during the seminar. If not, ask what kind of book is required for your line of work. Purchase also your Books of Accounts

Step 5. Get your Certificate of Registration

Get your COR, fill out the Form 1905 and have your books of accounts stamped at Counter 5, you will be asked to buy a doc stamp for PhP 30 available inside BIR, and then they will attach it to your COR. They also gave you aboard with an “Ask for Receipt” notice (I read stories from other freelancers that they were able to get their COR after several days). 

Step 6. Print Your Official Receipt

At the forms counter, ask for the list of the accredited printing press. Prepare a photocopy of the following: Form 1901, Form 0605, Receipt of Payment for Certificate of Registration (COR) and the COR itself. Go to your selected printing press and submit the photocopies. Printing of Receipt Fee would range from P1200 to P1500.

*Tip: There are times that some agents from different printing press companies will wait outside, ready to accommodate you. You can ask the person in charge at the Forms counter

I hope this article helps you, HAPPY Freelancing!