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Housing Benefits for Filipino Freelancers

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

What do you mean when you say voucher?  There is no such thing as voucher when one establishes herself as a business individual.  Official receipts/invoices are necessary.  When you get to have a Certified Public Accountant audit your tax documents you need to present everything that is stated in your COR.  I do not understand why Pag-IBIG would insist to have UW SVP's identification card.

 

Actually, the whole house-and-lot affair is not a dramatic quest.  It simply is a rent-to-own scheme that I can do even when I do not use UW as my platform for instance.  Having a roof over my head is as basic a human need as being able to see my biological father in person.

 

Right after I replied to your post, I received a text message stating that there are "properties in McKinley Hill near Venice Grand Canal Mall and that cash discount is up to 12% and each housing unit starts at Php 7.5M".  I think that whoever was texting me failed to see my point.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

@Ella Joy V wrote:

Yes, I explained to Pagibig staff that I am a freelancer and the certificate clearly stated that Upwork is not the employer. I've read other articles of Upworkers who got their Pagibig loan approved, and I've submitted everything that they submitted too --- 12 months vouchers, certifications, bank statements, etc. I am wondering why this staff wants the ID, and its impossible to get it. What else can I do? Smiley Frustrated


I finally found the need for vouchers.  My most recent experience as regards petty cash vouchers has to deal with my need for some form of evidence that I paid a certain amount for my internet consumption and PC rent at internet cafes.  Some of these business establishments do not release official receipts.  I just do not know why they are allowed to operate their business.  But anyway, these business managers will have to deal with their own tax problems later on.  I have these vouchers filed and attached to my Cash Disbursement Ledger.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

My son and I went for a biking expedition inside the subdivision a while ago and we found out that it might take long before the move-in event can actually take place (if ever it will be possible at all).  Some roads and drainage systems are still under construction.  Most houses are barely finished although the exteriors have been painted already.  The unit does not have bathroom fixtures yet.  The ceiling at the second floor is thoroughly absent as the skeleton of electrical wire structures coated in what seems to be corrugated orange plastics are bluntly exposed.  What I understand is that unless the unit is 100% constructed, Pag-IBIG will not begin to process the project (even if documents have already been filed and full equity payments have been made).  Consequently, there will be no turning-over ceremony to happen.

 

reservation_agreement.jpg

 

From the looks of it, it seems that freelancers, although considered as dollar-earners, need to collaborate with overseas Filipino workers in order to establish a significant pull as regards the approval of the project.  Furthermore, freelancers who are home-based, while considered as credible business individuals owing to the fact that they are tax payers, are not X Factor celebrities. One who pays taxes need to be clear about expectations as regards benefits that may be derived from doing what a citizen of the country rightly needs to do.

 

It is business.  It is not about recognizing what freelancers do to the country economically.  I personally think that it is about daring to dream and asking questions.  It just surprised me that this simple endeavor can actually unmask almost all human relationships I have.  For everything that I experienced while having this project in mind, it is still this platform that I choose. 

Frequent Visitor
Manilyn K Member Since: Apr 27, 2016

Hi Ella, we do have the same problem. They are asking a photocopy of the ID who signed my Certificate of Earnings which I can't provide to them. May I ask how did you resolve it?

Active Member
Jan Evan Dominic L Member Since: Oct 28, 2010

Yeah, I would like to know this too about the certificate of earnings.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

@Jan Evan Dominic L wrote:

Yeah, I would like to know this too about the certificate of earnings.


The Certificate of Earnings Report merely states that there is no need for Upwork's VP to show up in any event leading or associated with loan applications in the Philippines because we are independent contractors who transact business with clients via the platform.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

Last August 12, 2017 I received a text message stating that we are for the advanced signing of Pag-IBIG Housing Loan documents.  It heralded and confirmed the information we have personally seen ourselves – the unit has been 100% constructed already.

 

My first response was to verify whether the information was accurate so I called my broker who confirmed that the person whom we need to meet up with is her colleague.

 

In preparation for the meeting with the Marketing Documentation Officer, I prepared the necessary documents.  I started to panic when I realized that the previously audited Financial Statement of Business does not include entries for July, 2015 (when I started my freelancing business) up until July, 2017.

 

I had to dig my old files again and fortunately everything was intact.  All invoices related to my business have been rescued from the dusty bag.

 

Today, I brought the following documents:

 

  • matrix containing my net earnings (Gross Income Less Upwork service fees and direct-to-local bank transactions and reflecting my total net income from July, 2015 up to July, 2017;
  • bank statement (which needs to be updated as it covers entries from September, 2015 (when I started to really earn from the platform) until March, 2017;
  • current Income Statement;
  • current Balance Sheet;
  • matrix showing a summary of my Operating Expenses;
  • original and photocopies of the Annual ITR for 2015 and 2016;
  • tax receipts and certification receipts;
  • NSO copies of my birth certificate and related documents;
  • proof of billing reflecting my current location;
  • government-issued IDs (SSS, TIN, & PRC);
  • invoice booklets for years 2016 and 2017;
  • emailed notifications (stating that payments sent to my bank account has been processed by the platform);
  • Certificate of Earnings Report (stating that Upwork is not my employer and that I have been actively earning from my transactions with clients through this site since the last day of July, 2015 when I first registered as a user);
  • compilation of receipts with information reflected in my Cash Disbursement ledger;
  • Books of Accounts and other pertinent tax documents showing my current status as a BIR-registered self-employed Upwork freelance contractor.

When we got to the building where document signing will be taking place, we were ushered into a space with a metallic table and three orange chairs.  The Marketing Documentation Officer introduced himself to us.  He clarified everything that seemed unclear in the documents which I previously submitted to the office of the land developer processing my Pag-IBIG housing loan.  I presented documents which looked satisfactory during the interview.  His questions were direct to the point and he seemed both sharp and pleasant at the same time.  

 

The document signing was relatively of a brief duration.  We were instructed where to specifically affix our signatures.  The part of the document with a check mark was for the Principal Buyer.  Documents which were signed included the application for a housing loan through Pag-IBIG, contract to sell, paper asking for about a dozen specimen signatures, and legal documents asking for the signature of a Notary Public lawyer among all others.

 

After the document signing we were instructed of the next stage of the loan process.  It looks like the preliminary appraisal of the house and lot unit will be done in order see if the loanable amount may be maximized.  The results of the appraisal are likely to be released three months from now and it is projected that the take-out phase will be next year.

 

By November of this year, I will be notified whether the documents that we signed today will be ready for processing.

 

This implies requirement compliance.  Documents that will matter at this phase of the loan processing are the following:

 

  • Updated bank statement (reflecting inward remittances)
  • Updated and audited Financial Statement of Business
  • Certified True Copy of the 2017 ITR
  • Updated Pag-IBIG verification slip
  • List of Pag-IBIG monthly contributions (updated)
  • Barangay Business Clearance

After these documents have been submitted, the first stage of official loan processing will commence.  This step entails intense verification and credit investigation of the platform and my earnings.  This will likely take 1 and a half months.

 

If I pass this stage successfully, then I will be declared as qualified for a housing loan through Pag-IBIG.  All signed documents will be processed at two government agencies within a duration of 2 to 6 months.  These government agencies include the Registry of Deeds and the Bureau of Internal Revenue (BIR). The land developer which handles my application for a housing loan has separate accounts in each of these government agencies.

 

I think that to sum up everything that transpired today, the best word that can capture the entire proceedings will be verification – a word that can mean dreams are about to come true.

 

 

 

 

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

Two days after the advanced signing of Pag-IBIG loan documents, I got notified about the submission of the lacking documents.  It looks like the process has gone quite fast. 

 

I tried to comply with the remaining requirements as fast as I could.  I prepared updated versions of the bank statement, CPA-audited Financial Statement of Business, Pag-IBIG verification slip, list of Pag-IBIG monthly contributions, barangay business clearance and a certified true copy of the latest ITR.

 

  • Updated bank statement (reflecting inward remittances)

My bank statement has been updated up to August 10, 2017.  My bank charged Php 50.00 for every  quarter stated in the bank statement.

 

  • Updated and audited Financial Statement of Business

The accountant said that there is a need to plot all income statements and balance sheets per year for Php 7,500.00 per year for 2015, 2016 and 2017.  The package consists of income statement, balance sheet, financial statement of business, CPA-certified audit report on the Financial Statement of Business.  For auditing purposes, I was told that the required documents include invoices, bank statements, ITRs, and Books of Accounts among all others.  I decided to go for a second opinion (as if accountants are physicians).

 

Last August 16, 2017 I had the Financial Statement of Business, Income Statement and Balance Sheet submitted to an accountant.  The accountant agreed with the other accountant’s assessment for the need to have a three-year comparative financial statement but after assessing my documents (those that I have mentioned above), I was allowed to pay for the CPA-certified Auditor’s Report of my Financial Statement of Business for years 2015-2017.  He asked me to photocopy three sets of my Income Statement and Financial Statement of Business. 

 

The next day, I was able to get three sets of documents including an Independent Auditor’s Report signed by a Certified Public Accountant.  The Accountant and the CPA did not find errors in my Financial Statement of Business as well as the Income Statement.  The CPA signed the Auditor’s Report that the accountant prepared.  In addition to the Auditor’s Report, the accountant prepared the “Statement of Management’s Responsibility for Annual Income Tax Return” for me to sign.

 

  • Certified True Copy of the 2017 ITR

A certified true copy of the 2016 ITR has been acquired already.  The certification together with the documentary stamp costs Php 115.00.  The process of having the document certified was very fast since all pages of income tax returns have been stamped by the bank teller already.  The 2017 ITR may be prepared as early as the second week of January of next year.

 

The accountant said that if the ITR has already been received by the bank then there will be no need for the certificate receipt derived from BIR.  I had to explain it to him that the certificate is required for filing purposes.

 

  • Updated Pag-IBIG verification slip

Remittance errors have been committed in the system as I paid at Bayad Centers and these establishments remitted to the Head Office of Pag-IBIG.  The system has records for up to 06/29/2017 only when I have been paying on time.

 

I decided to make a request for the transfer of my records from the Head Office to my home branch.  I was reminded not to pay at Bayad Centers and payment kiosks inside malls anymore as they complicate matters concerning the database. 

 

I paid for all my remaining monthly contributions (September-December, 2017) to cover the whole year of 2017.  It was established by the officer that the transfer of records is a must for Principal Buyers and that the database will update itself after payment entries has been encoded.

 

  • List of Pag-IBIG monthly contributions (updated)

I already submitted my request for the transfer of my records from the Head Office to Marikina branch.  I submitted a photocopy of the invoice showing that I already paid for all my monthly Pag-IBIG fund contributions for the year 2017.  It looks like what matters is the total accumulated value and the certainty that the Principal Buyer is, indeed, a member of Pag-IBIG Fund.

 

  • Barangay Business Clearance

In order to secure a copy of the Barangay Business Clearance (which has a validity of one year only), the following have been required for submission:

 

a) Certificate of Membership to the homeowner’s association with dues amounting to Php 20.00. This will cover the community's financial response to solicitations for anyone’s burial needs, activities linked to the basketball league in the community, calamity-associated donations, and etcetera.

 

b) Official Receipt attached to the Certificate of Membership to the homeowner’s association

 

c) Community Tax Certificate that covers basic and additional community taxes or voluntary taxes

 

d) Official Receipt of the payment fee amounting to Php 500.00 (for the Barangay Business Clearance)

 

e) Application Form for the Barangay Business Clearance

 

f) Photocopy of a Government-issued ID

 

I got the certificate after around one hour of transaction.  Everyone in the office was very attentive to my concerns.  The last requirement in this list looked like a bridal shower (which I never experienced before).  Needless to say, I am grateful to everyone who have been and are very supportive of this dream, no matter how crazy this is.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

In the midst of climactic crises prevailing in the US and with so many platform users who may have had to leave their homes and abandon other prized possessions so their lives may be saved, I know this update is completely useless.

 

But as early as 05 September 2017, the credit investigation team started doing their task already.  However, I could not receive their call as it (the number) was not identified by my phone.

 

Today, I received a text message stating that I need to resubmit an authenticated copy of my 2016 ITR.  They seem to want the BIR-stamped copy together with the official receipt of the certficate fee and the documentary stamp.  I had to recall how I did it last time and what steps I missed in the process.

 

I decided to draft a letter addressed to the Administrative Assistant of the office concerned requesting for a Certified True Copy of my ITR for the year 2016.

 

The said document has to be submitted tomorrow.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

Last Friday, I submitted the letter requesting for an authenticated copy of my ITR from BIR.  When I reached the Office of the Administrative Assistant, I was told that the officer was having a seminar for two days and will be assuming her office roles next week.

 

So I went to the officer who could, at least, receive the letter on behalf of the Administrative Assistant.  The lady was very accommodating and went the extra mile by checking my records at the database.

 

To my horror, she announced that I am SUSPENDED.  When I heard her declaration, every neuron in my body seemed to react by racing against each other.

 

I asked the officer why I had a suspended status when I have been paying my dues diligently.  I showed her the original copy of my latest ITR.  She then asked for a photocopy of my ITR and began to reconcile the figures in the paper and those which have been entered into the database.

 

After several mouse clicks and ENTER key hits, she was done sorting the issue out and finally said, "This is okay." She further told me to return next week in order to get the signed authenticated copy of my 2016 ITR.

 

The take-home message arising from this incident is for me to make sure that I have hard or backup copies of everything that I submit via the database.  BIR may have a secure website as it follows the HTTPS protocol but not everything gets to be updated on time.