More Filipinos today work full-time while doing freelance on the side. But with two income sources comes one big question: How do you register your taxes?
This isn’t just a paperwork issue. Registering and filing taxes correctly protects you from BIR penalties and gives you peace of mind. If you’re unsure how to start, this guide is for you.
Tax Registration for Dual-Income Earners
If you have both a full-time job and freelance work, you are earning from two different sources:
- Compensation Income (from your employer)
- Income from Self-Employment or Profession (from your freelance work)
The Bureau of Internal Revenue (BIR) treats these separately—but both must be reported. This means you must register your freelance income even if your employer is already withholding tax for your salary.
Why Proper Tax Type Matters
Failing to register your freelance income can lead to:
- Penalties for non-registration
- Ineligibility for future loans or permits
- Delays in tax clearances or refunds
Correct tax registration ensures:
- Transparent tax records
- Access to financial tools like bank loans
- Avoidance of BIR red flags
Even if your freelance income is irregular, registration is still required under the law.
How to Register Freelance Taxes If You Have a Job
Here’s a step-by-step guide:
1. Visit Your BIR Revenue District Office (RDO)
Bring these documents:
- TIN (Taxpayer Identification Number)
- Valid ID
- BIR Form 1901 (for registration as a self-employed/professional)
- Occupational Tax Receipt (if needed by LGU)
- DTI Certificate (optional, only for sole proprietors)
2. Choose the Right Tax Type
As a freelancer, you can register as either:
- Professional (if you offer services using skills like writing, tutoring, VA)
- Sole Proprietor (if you sell products or operate a business)
Most side hustlers choose Professional.
3. Select Between Two Tax Options
For your freelance income, choose between:
- Graduated Tax with Optional Standard Deduction (OSD)
- 8% Flat Tax Rate (on gross income above ₱250,000)
The 8% option is often simpler and cheaper for small earners—but you can’t claim expenses.
4. Register Books and Print Receipts
You must log your freelance income in registered books of accounts and issue official receipts (OR) to clients.
5. File Regular Returns
You’ll file:
- Quarterly Income Tax (1701Q)
- Annual Income Tax (1701)
- Percentage Tax (2551Q) – unless under 8% option
Even if you earn little, you must still file—zero income returns are allowed.
Who Needs to Register and When
You must register before you start receiving freelance income. If you’re already earning without registration, register as soon as possible to avoid penalties.
This applies to:
- Full-time employees with freelance work
- Government workers with side hustles
- OFWs or remote workers with PH freelance clients
Smart Advice for Dual-Income Taxpayers
- Keep freelance and job income records separate
- Ask for 2316 from your employer—it helps in your annual filing
- Use BIR’s eFPS or eBIRForms to file online
- Consult a tax expert before choosing between 8% and graduated tax
- Pay early to avoid surcharges or interest
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