Hi there! If you are new to the freelancing world, this might be helpful for you. As I have read numerous blogs or videos on how to register or transition as a freelancer or Independent contractor. It was very hard for me to understand jargon about BIR and all.
Just a backstory I was a full-time corporate employee without any knowledge of filing my own taxes because our payroll does it for us. My niche is within Human resources – Recruitment and found my first client since then I started being a freelancer. This is based on my experience and this is how I did it.
Here are easy steps to follow on how to register yourself or transition to becoming a full-time independent contractor.
Step 1
Requirements
- Gov’t ID (Passport, Driver’s License) – 3 photocopies
- Birth Certificate – 3 photocopies
- Tax Identification Number/TIN – if you are a fresh graduate or don’t have any TIN yet make sure to register online
- BIR 1901 (Application for registration) – 3 photocopies
- BIR 0605 (Payment form) – 3 photocopies
- BIR Form 1906 (Application for Authority to Print Receipts and Invoices) – 3 copies
- Know your RDO Code
- 2 Columnar books
Upon entering you need to show your valid IDs to the guard or else you won’t get inside BIR and they will ask you what is your purpose of visitation – just say you will register as a freelancer or register your business.
Once I entered the building I saw there were free forms like BIR 1901, BIR 0605 – so if you forgot a copy, don’t have a printer at home or you lack one, you can just get there and its free! but if you don’t like wasting time make sure to bring filled-out copies of your BIR 1901, BIR 0605, BIR 1906. It is best to be prepared.
The guards will hand out numbers so make sure to tell that you are registering yourself as a freelancer because there are different lanes for every transaction.
I spoke with the BIR lady and told her that I would like to register myself as a freelancer. She immediately asked me what my niche is and I told her that my professional service is Human Resource-Recruiter, she then tagged my services as 96409 -Miscellaneous Service Activities, N.E.C and Line of business is Services – HR Recruiter and then gave me a copy of list to accomplish which is the step number 1 > the requirements. She also asked me if I issue receipts to my clients and I told her no because I receive my income directly through Transferwise. My client is based in the US and they don’t ask me to issue them receipts for my professional services.
Step 2
Pay and check everything you should receive
- Pay 500 pesos for registration
- BIR 1921 Authority to Print (Non Vat) – with Booklet – (click links for sample photo)
- BIR 2303 – Certificate of Registration with green placard – (click links for sample photo)
- Stamped Columnar books
I paid 500 pesos to the nearest bank which is PNB at that time, you can also pay in other banks like BPI or Unionbank. That’s the nearest one to the BIR branch I went to.
After accomplishing payment and the requirements needed, I handed over the documents to the BIR lady and she stamped my 2 Columnar books and gave me a book of Non-Vat receipts.
Step 3
Attend the Seminar
On the day I registered they weren’t having a seminar so I had to come back on the given date and time. In Las Pinas BIR 53A they usually conduct seminars at 10 am every Thursday. The Officer will discuss the details about filing taxes and penalties and after the seminar, they have a short quiz about what they have discussed. I won 1st place in the small quiz contest and they gave me 300 pesos through Gcash LOL. If you don’t have money for the registration make sure to study up and win the quiz haha!
That’s it! now it’s time for you to pay your taxes as a freelancer/independent contractor. Congratulations!
