Many Filipino virtual assistants (VAs) ask, “Do I need to file BIR as VA earning 10k monthly?”
The income may feel small, but tax laws don’t always work that way.
Even if your earnings seem below the taxable threshold, the Bureau of Internal Revenue (BIR) still has rules you must follow.
Understanding these rules can save you from stress, penalties, or missed financial opportunities.
What the BIR Requires from VAs
If you’re working as a VA and earning income regularly—even just ₱10,000 per month—the BIR considers you self-employed.
This means you’re responsible for:
- Registering as a professional or sole proprietor
- Filing your annual income tax return (ITR)
- Submitting quarterly tax forms
Even if your income is low, you’re still required to file.
Why Filing Still Matters at 10K Monthly
At ₱10,000 per month (₱120,000 annually), you fall below the ₱250,000 taxable income threshold.
That means:
✅ You won’t pay income tax
❗But you’re still required to file your ITR to prove you’re below the threshold.
Here’s why it’s important:
- Non-filing leads to penalties, even if you owe nothing
- Clients may request BIR-registered receipts
- You can’t get a tax clearance, business loan, or government permit later if you have gaps in your tax records
Step-by-Step Guide to File as a Low-Income VA
1. Register with BIR
- Get a Taxpayer Identification Number (TIN)
- File BIR Form 1901 as a professional
- Pay the ₱500 annual registration fee (Form 0605)
- Register books and apply for receipts
2. Choose Your Tax Option
For low-income freelancers, the 8% income tax option is often best.
You only pay taxes on income above ₱250,000 annually, which means at ₱10k/month, your tax is ₱0.
3. File Returns
Even if your tax due is zero:
- File Quarterly ITR (1701Q)
- File Annual ITR (1701)
- File Percentage Tax (2551Q) if you didn’t choose the 8% option
When You Must File as a VA
You should register and begin filing as soon as you start earning—even at ₱10k/month.
This applies to you if:
- You work online for foreign or local clients
- You receive payment directly (GCash, bank, PayPal)
- No taxes are withheld by an employer
Smart Filing Advice for Low-Income VAs
- Choose the 8% option during registration or on your first ITR
- File zero-income returns if you skip a month or year
- Use simple bookkeeping tools like Excel or Notion
- Keep BIR forms and deadlines on your calendar
- Hire a freelance tax consultant if you’re unsure
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