If you’re a freelancer or online worker trying to comply with BIR rules, you may have heard of EO 98. But what exactly is it? Is it a tax status? A special registration? Does it mean you’re already filing taxes?
Many freelancers registered under EO 98 thinking it’s enough to become tax-compliant—but that’s only partly true. Understanding this Executive Order can protect you from penalties, missed filings, or being wrongly flagged by the BIR.
Let’s break down what EO 98 is, how it affects freelancers, and what you should do next.
What Is EO 98?
EO 98 stands for Executive Order No. 98, series of 1999. It’s a directive that allows Filipinos to apply for a TIN (Taxpayer Identification Number) even if they are not earning any income yet—primarily so they can transact with other government agencies.
Example purposes:
- Getting a passport (DFA)
- Applying for a driver’s license (LTO)
- Enrolling in PhilHealth or SSS
So, if you got your TIN through EO 98, it simply means you registered for administrative or identification purposes, not for income tax filing.
Why This Matters for Freelancers
Many new freelancers—especially those who start working online—apply for a TIN under EO 98. It’s fast, free, and doesn’t require a Certificate of Business Registration or proof of income.
But here’s the critical issue: EO 98 TIN holders are not registered taxpayers.
If you’re earning money from freelance work, you need to update your status at the BIR to one of the following:
- Self-employed professional
- Sole proprietor
- Mixed-income earner
If you don’t update it, you’re not filing taxes properly, even if you already have a TIN. That could lead to:
- Unfiled return penalties
- System flags for under-declaration
- Problems applying for loans, visas, or government clearances
How to Update Your EO 98 to Freelancer Status
Ready to be fully tax-compliant as a freelancer? Here’s how to upgrade your EO 98 registration:
Step 1: Go to Your BIR RDO
- Bring a valid government ID, your EO 98 TIN, and any documents related to your freelance work (like contracts or certificates).
Step 2: Fill Out BIR Form 1905
- Use this to update taxpayer information.
Step 3: Submit BIR Form 1901
- This registers you officially as a self-employed individual.
Step 4: Attend the Taxpayer Briefing
- This short session explains your tax obligations, forms, and deadlines.
Step 5: Get Your COR and Register Books
- You’ll receive your Certificate of Registration (COR) and register your books of accounts.
Step 6: Begin Filing
- Start filing quarterly and annual tax returns, even if your income is low.
Who Needs to Update EO 98—and When?
Who:
- Anyone earning income through freelancing, content creation, consulting, or online services.
- Anyone who got a TIN through EO 98 but is now working and receiving payments.
When:
- Immediately upon earning income. Waiting too long could lead to back taxes and penalties.
Tips to Avoid EO 98 Mistakes
- Don’t assume a TIN equals tax registration. Check your registration type at your RDO.
- Update ASAP once you start freelancing or receiving payments.
- Use the 8% tax option if you’re earning below ₱3 million per year and want simpler filings.
- Track all income from the time you started working—even informal earnings.
- Ask for help from tax professionals or book a free consultation before filing deadlines.
EO 98 gives you a TIN, but not tax compliance. If you’re now a freelancer, update your BIR status to avoid penalties and file correctly. Being misclassified can cost more in the long run.
The good news? Once you’re fully registered, you can enjoy peace of mind, qualify for business loans, and build a legit freelance career.
Follow Us & Make Tax Filing Easy!
👉 Follow us on our socials for more high-paying, effective freelancing and tax tips. (TikTok, YouTube, Facebook, and Instagram) and read our blogs for more tax tips designed for freelancers!
Ready to make tax filing easy? Download our Ultimate DIY BIR Tax Compliance Guide, try our Freelancer Income Tax Calculator, and schedule your Free Tax Consultation Call to take the next step toward confident, stress-free tax filing!