Professionals such as (1) “persons who derive their income practicing their profession” like lawyers, and those registered with the Professional Regulation Commission (PRC) such as doctors, dentists, certified public accountants, and others and (2) those “who pursue an art and make their living therefrom,” including writers, athletes, and others.
Persons engaged in business and derive their personal income from such business.
In the Philippines, freelancers fall under what the government calls self-employed individuals. Being the most rapidly growing business market in the world, it is no wonder that many people jump the fence to carve their own career paths. Registering your freelancing business with the BIR solves these and other potential headaches later on.įreelancers get paid either per hour, per project, per contract, or depending on the agreement between the employer and freelancer. If you are not registered, you will not have an ITR to produce.
One of the requirements for these things is always an income tax return (ITR) for at least the previous year.
Updated tax records-while you may not think about it now, but you may need a bank loan or get a travel visa in the future.
Without it, they cannot legally use it in their business, that’s why they are looking for this.
Ability to issue receipts-most companies here or abroad require official receipts as proof of their expense.
Online business tools 2021 registration#
Show credibility-when you register your business, you will have a document called the Certificate of Registration (also known as BIR Form 2303) that serves as proof that you are a legitimate business.
Here’s an overview of what you’ll learn in this guide:Īside from the legal consequences, there are a lot of benefits of registering your freelancing business: That’s why it’s essential you register your freelancing business early on in order to avoid unnecessary headaches later. That includes income coming from freelancing projects. Under the eyes of the Philippine government, any income you earn is taxable. So if you’re looking for an updated guide on how you can register your freelance business, this guide is for you. And with the pandemic forcing a lot of people out of their jobs, most people turn to freelancing as their main source of income.īut because freelancing isn’t widely accepted (yet), there exist few resources about it. The gig economy is a growing alternative a lot of Filipinos are taking advantage of right now.