Who doesn’t want the convenience of owning your own car?
The second top reason Freelancers, why want to register in the BIR, is to purchase their dream car or family car. Buying a car in cash is recommended by many as the interest is quite high. But let’s accept the fact that not all have the luxury or the budget to pay it in cash.
Most of the time we still need help from a lender or bank. The same with the Home Loans. Banks usually require an Income Tax Return (ITR) as the main requirement for your proof of income.
Also, there are the ones with the budget or cash to pay in full but still prefer to pay it in installments, as they use the cash for other investments.
What’s the connection of BIR Registration in achieving your dream car? As ITR is one of their requirements. If you’re a Freelancer like Virtual Assistant or Social Media Manager. The only way to have an ITR is to register first in the BIR as a Freelancer. After your BIR Registration, you can now start filing your quarterly income tax return.
If purchasing your own car is one of your goals, you should prioritize registering your freelancing business to BIR.
Here are the requirements of the top banks in the Philippines. Note that the Freelancers category is Self-Employed.
BDO Auto Loan Requirements
- At least 21 years old but not exceeding 70 years old at the end of the loan term.
- Minimum gross family income P50,000/month
- With a stable source of income from employment or business.
- Self-employed – At least 2 consecutive profitable years of operation
- Clear copy of one (1) valid ID matching application details.
- If Self-Employed:
- Photocopy of Audited Financial Statements for the last 2 years with the latest ITR.
- Bank Statements or Photocopy of Passbook for the last 3 months.
- Certificate of Business Registration.
- Proof of other income, if any.
BPI Auto Loan Requirements
- Auto Loan Application Form:
- Duly accomplished Application Form.
- 2 valid Identification Cards.
- If married, both spouses to sign on the application form.
- If with a co-borrower or co-mortgagor, a separate application form is needed
- Income Documents
- DTI Registration or Mayor’s Permit.
- Latest ITR with financial statements.
- Working account (6mos) with an authorization letter to verify.
- Trade references with complete contact information.
- Authorization letter to conduct trade verification.
Metrobank Auto Loan Requirements
- Valid Government-issued ID.
- Audited Financial Statements and Latest Income Tax Return (ITR).
- Bank Statements.
Security Bank Auto Loan Requirements
- Basic Requirements:
- Duly accomplished and signed Auto Loan Application Form.
- Valid Government-issued ID.
- Latest Proof of Billing under the borrower’s name.
- For Self-Employed:
- Latest Income Tax Return (ITR).
- Latest Audited Financial Statements.
- Certificate of Business Registration with DTI (sole proprietorship) or SEC (partnership/corporation).
- Bank Statements or photocopy of Passbook for the last 3 months.
- Proof of Other Income (Certificate of Deposits, Stock/Bond Certificates, Lease Contracts, etc.).
PNB Auto Loan Requirements
- Filipino citizen or Foreigner based in the Philippines with a valid Alien Certificate of Registration (ACR).
- Age is between 21 to 65 years old at the time of loan maturity.
- Stable source of income. Business is in operation for at least 3 years
- Business papers with DTI Registration.
- Latest Income Tax Return.
- Latest Audited Financial Statements.
- Latest (6) six-month Bank Statements.
PSBank Auto Loan Requirements
- Completely filled-out PSBank Auto Loan Application Form.
- Business Registration.
- Financial Statements.
- Income Tax Return (ITR).
- Copy of valid IDs.
You will notice that ITR is listed as one of the primary requirements for your proof of income for availing of a car or auto loan. If purchasing your dream car is also your goal, you should consider being a BIR Registered Freelancer this year 2023!
Join our amazing community of BIR Registered Freelancers.