If you’re a freelancer or once worked on a job order (JO) status, you may be facing an issue many overlook: your BIR registration is still active, even if you’ve moved to a regular job in a government agency like an SUC. This blog tackles what happens when you don’t close your BIR registration after job order work—and what you should do about it.
Understanding Job Order Status and BIR Registration
When you worked in an LGU (Local Government Unit) on a job order basis, you were considered self-employed or a mixed-income individual under BIR rules. This means you were required to:
- Register with the BIR as a self-employed professional,
- File your own taxes,
- Submit annual income tax returns (ITRs).
But now that you’re employed full-time in an SUC (State University and College), your employer already files Form 2316 for you each year.
Here’s the catch: If you never closed your old BIR registration, the system still treats you as someone with a self-employed or business income. That may cause future problems.
Why You Should Care About This Issue
Many government workers make this common mistake. They switch jobs—from job order to permanent—but forget to update or cancel their BIR registration. The result?
- You may receive BIR open cases for non-filing of ITRs.
- Penalties and interest can accumulate silently over the years.
- If you apply for a loan, BIR issues could delay or reject approval.
- You may be tagged as non-compliant despite being regularly employed.
Steps to Resolve Your BIR Job Order Status
Here’s what you should do if this applies to you:
1. Check Your BIR Status
Visit the nearest RDO (Revenue District Office) or call BIR to see if there are open cases or tax filings under your name.
2. File a BIR Form 1905
Submit BIR Form 1905 to update your registration—from self-employed to employed only.
3. Secure a Certificate of No Pending Liabilities
This ensures you’re cleared of past tax obligations.
4. Submit a Letter of Request for Closure
If you no longer plan to engage in freelance work, request closure of your self-employed registration.
5. Keep Your Form 2316s
These prove you’ve been paying taxes through your employer (SUC) for the last five years.
When and Who Needs to Act
If you were:
- A job order contractor for any LGU,
- Transitioned to permanent government work in an SUC, and
- Have been receiving Form 2316 for 5 years,
Then you need to check and update your BIR registration. Don’t wait for a notice or penalty letter from the BIR—act now.
Tips for Freelancers and Government Workers
- Always check your BIR registration when changing work status.
- File Form 1905 immediately after switching from JO to permanent.
- Keep all BIR documents and proof of filing organized.
- If unsure, consult a registered tax agent or accountant.
- Ask for a printout of your BIR registration status annually to avoid surprises.
Switching from job order to permanent status doesn’t automatically update your tax profile. That’s your responsibility. Keep your records clean, file the right forms, and avoid penalties that could have been prevented with one simple visit to your RDO.
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