How to register as professional self employed tax payer? Philippines

[Jennifer N]

Just want to ask if you have an idea regarding payment method from u. S to Philippines ?

[Avery O]

Hi Jennifer, 

Are you asking what payment methods are best for freelancers in the Philippines? There are a mix of Filipino users using either of the following methods - Payoneer, Paypal, and the Direct to Local Bank Transfer. You can look into each to know which ones best suits you and your needs as a freelancer. You may also read up on this help article to know about the different payment methods available on Upwork. 

[Maristella L]

I want to file a Certificate of Registration this month so that I could start to pay my taxes this year, but I'm afraid of the penalties because I have been working via Upwork as a freelancer since 2012 but got only a regular client in 2015. So I have a regular income since 2015. I'm afraid of the penalties for the 3 years work. Is there anyone here have an idea how much would be the penalties? By the way, I'm planning to file as a sole proprietorship so that no need for barangay clearance and Occupational Tax Receipts.

[Juvy Ann P]

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@Maristella L wrote:

I want to file a Certificate of Registration this month so that I could start to pay my taxes this year, but I'm afraid of the penalties because I have been working via Upwork as a freelancer since 2012 but got only a regular client in 2015. So I have a regular income since 2015. I'm afraid of the penalties for the 3 years work. Is there anyone here have an idea how much would be the penalties? By the way, I'm planning to file as a sole proprietorship so that no need for barangay clearance and Occupational Tax Receipts.

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 Hi Maristella!

Only registered taxpayers who have tax delinquencies may be "penalized".  Occupational tax receipts are for individuals who do not have a PRC license.

For the first phase of your registration, I think there is a need to accomplish BIR Form 1901.

Other requirements include the following:

a) DTI certificate

b) Mayor's Business Permit (or Application for a Mayor's Business Permit)

NOTE:  A barangay clearance will be necessary for this step.  Last year I shelled out Php 600.00 for this clearance.

c) Contract of Lease

Payment may be facilitated by downloading the v7.1 of the eBIR offline software.  BIR Form 0605 is accessible via the software.  Deadline for the registration will be this 31st day of January.

For more details, you may want to visit the official website of the Bureau of Internal Revenue at https://www.bir.gov.ph/.

[Mary Rose B]

Hi Juvy Ann, 

I get confused with the thread, so I need to prepare the following for sole proprietorship:

Certificate of Earnings

Certificate of Inward Remittance 

DTI? Mayor Permit? 

[Juvy Ann P]

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Mary Rose B wrote:

Hi Juvy Ann, 

I get confused with the thread, so I need to prepare the following for sole proprietorship:

Certificate of Earnings

Certificate of Inward Remittance 

DTI? Mayor Permit?

Valeria and the rest of the mods will come to sort this out, I hope.  They seem to have this magical pair of scissors which makes it possible for threads to get organized.  But then I will not be off-topic anymore and that will be tragic.

As for the sole proprietorship thing, Mary Rose, the Certificate of Earnings will suffice for beginners or new registrants.  The Certificate of Inward Remittance used to be a very confidential document which can only be handled by bank executives.  A DTI permit seems to be necessary these days.  A Mayor's Business Permit is good for those who have commercial spaces.  A barangay clearance is necessary whether or not the aim is to secure a Mayor's Business Permit.

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[John Paul Z]

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Maristella L wrote:

I want to file a Certificate of Registration this month so that I could start to pay my taxes this year, but I'm afraid of the penalties because I have been working via Upwork as a freelancer since 2012 but got only a regular client in 2015. So I have a regular income since 2015. I'm afraid of the penalties for the 3 years work. Is there anyone here have an idea how much would be the penalties? By the way, I'm planning to file as a sole proprietorship so that no need for barangay clearance and Occupational Tax Receipts.

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 No need to worry about the previous years. If you have yourself registered this month then BIR will only tax you onwards