If you’re a freelancer in the Philippines working with more than one client, you’re not alone—and that’s a good thing.
But with multiple income sources comes one crucial responsibility: tax compliance.
Many freelancers think small gigs don’t require registration, but the Bureau of Internal Revenue (BIR) sees it differently.
Let’s simplify how to register your tax properly when working with more than one client.
Tax Registration for Freelancers with Multiple Clients
Working with several clients means you’re self-employed, not employed by any one company.
The BIR requires all self-employed individuals to:
- Register as a professional or sole proprietor
- Issue official receipts (ORs)
- File and pay taxes regularly
This applies whether your clients are local, foreign, or both.
Why It’s Critical to Register Properly
Failing to register can lead to:
- BIR penalties and surcharges
- Frozen bank accounts or garnishment
- Missed business opportunities (some clients ask for ORs)
On the other hand, proper registration allows you to:
- Stay compliant
- Build a legal and trustworthy freelance business
- Qualify for business loans or travel visas
Step-by-Step Tax Registration Process
1. Get or Verify Your TIN
If you don’t have a TIN, apply for one at your nearest BIR office or online.
If you already have one, skip to the next step.
2. Fill Out BIR Form 1901
Register as a professional (most common for freelancers) or sole proprietor.
Bring the following:
- Valid ID
- BIR Form 1901
- Proof of freelance work (contract, invoice, etc.)
- Barangay clearance or Mayor’s permit (optional for professionals)
3. Pay the ₱500 Annual Registration Fee
Submit BIR Form 0605 at an Authorized Agent Bank or via e-payment.
4. Register Books of Accounts
Buy books and have them stamped by BIR. You’ll use these to track income and expenses.
5. Apply for Authority to Print Receipts
You’ll need these for issuing official receipts (ORs) to clients.
6. Start Filing Taxes
You’ll file:
- Quarterly Income Tax (1701Q)
- Annual Income Tax (1701)
- Percentage Tax (2551Q) unless you opt for the 8% income tax rate
The 8% tax option is simpler for many freelancers and applies to gross income over ₱250,000.
Who Should Register and When
You must register before receiving freelance income—or as soon as possible if you’re already earning.
This is for you if:
- You earn from two or more clients
- You receive income without taxes withheld
- You want to grow your freelance business legally
Even if your income is low, you’re still required to register.
Freelance Tax Advice for Multiple Clients
- Issue ORs for every payment—yes, even for foreign clients
- Use accounting software to track income from different sources
- Keep a spreadsheet for every payment received
- Don’t skip filing even if income is zero—file “no income” returns
- Hire a tax consultant if you feel overwhelmed
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