Being a BIR Registered Freelancer can help you achieve your Dream Home Goals, your Car Goals, and your Travel Goals! It can also help you to work with big companies, as they prefer to work with Freelancers that are operating legally and can provide Official Receipts. BIR Registration is also the first step for you to have an Income Tax Return. We hope this guide will help you to level up your freelancing business and be a BIR Registered Freelancer.
Requirements to register your Freelance Business:
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- Taxpayer Identification Number
- Occupational Tax Receipt.
- Valid ID – with birthdate and address.
- BIR Form 1901 – Application for Registration.
- BIR Form 0605 – Annual Registration Fee.
- BIR Form 1906 – Application for Authority to Print Receipts and Invoices.
- BIR Form 1905 – For Registration of Books of Accounts.
- Intent to avail of the 8% Tax Option.
- DTI Certificate of Business Name Registration – Optional Only.
- Special Power of Attorney (SPA).
A detailed explanation of the requirements:
1. Taxpayer Identification Number or TIN
Usually, you already have a TIN. But in case you don’t like you’re a fresh graduate, your TIN will be generated during the registration. Note that your new RDO can now process your transfer of RDO, meaning you can do it on the same day of your BIR Registration. Just bring 2 copies of BIR Form 1905 for the request for a change of RDO.
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2. Occupational Tax Receipt.
You will get this in your Municipal Hall.
Requirements: Valid ID, bring 2 to be sure.
Fees are 200.00 to 450.00, depending on the Municipality.
In our experience, there are Municipal Hall that don’t issue Occupational Tax Receipts (OTR). For this, just proceed to the BIR registration process and skip OTR.
Note if you have a DTI Business Registration, you can skip the OTR.
3. Valid ID – with birthdate and address.
Make sure that your address is current and the same as the address that you will use in your registration. If not, you may get a barangay certificate with the current address. You may also bring billings like Meralco, Maynilad under your name for proof of address.
4. BIR Form 1901 version July 2021.
- Duly fill-out.
- Print in 2 copies
- Sign the form.
5. BIR Annual Registration Fee (BIR Form 0605). PHP 500.00
For taxpayers that already have a TIN and with updated RDO already. You may pay in advance the Registration Fee using Maya. If you did not pay this in advance, you will have to pay this in the nearest bank in the RDO, which will take a lot of time and will delay your registration. Please note that some RDO accepts BIR registration fee payment. Note, that if you don’t have a TIN yet, you cannot pay the Registration Fee in advance.
Video Guide to Filing Your BIR Annual Registration Fee 2023.
Video Guide for Maya Payment of BIR Annual Registration Fee.
6. BIR Form 1906 – Application for Authority to Print Receipts and Invoices
This is for your printing of Official Receipts. You will ask the BIR officer who is processing your registration if they can help you to process the Official Receipts (O.R.) printing. The cost for the minimum of 10 booklets with 50 pcs receipt per booklet, is around 1,500 to 2,000.
In our experience, all of the BIR RDO has a suggested printer and printing of O.R. with the help of the BIR Officer makes the process easier. The BIR or the BIR Officer doesn’t own the printing company. They just have contact with BIR Accredited Printers.
Your chosen BIR Accredited Printer should assist you with everything. Just finalize with them what size of the O.R. you prefer. The standard is about ⅓ of Short Bond Paper. 7 inches in Length and 5 inches in height. This is non-carbon and duplicate. You may request a Carbon O.R. but expect the pricing to be higher. The printer will usually take 2 weeks to complete.
Application for Authority to Print Receipts is also now integrated into the BIR Form 1901 in Part VII, so there are instances that the BIR Form 1906 will not be used.
7. BIR Form 1905 – For the Registration of your Books of Account
Print the BIR Form 1905 in 2 copies. You can buy Books of Account in Shopee or Office Supplies. Some RDO requires the complete set of BIR Books of Account: General Journal, General Ledger, Cash Receipt Book, and Cash Disbursement Journal. Some RDO allows 1 Cash Receipt Book only if they know that you’re a Freelancer and availing of the 8% income tax rate option.
8. Intent to avail of the 8% Income Tax Rate Option.
9. DTI Business Name – Optional
You may consider getting DTI if you have plans for loans. As many loan providers include it as one of the requirements. Note that we have clients who got their loans approved even without DTI. But we also received feedback that the loan provider is asking for a DTI Certificate of Registration. Getting a DTI Business Name for Freelancer is also stress-free.
You can do it all online. From the application to payment until receiving the Business Name Certificate of Registration. For payment, you can use GCash or Maya. We recommend the National territorial scope so that no other freelancer can use your name in the Philippines. No DTI means that your business name will be your Full Name.
10. Special Power of Attorney (SPA)
If you prefer someone to process it for you, you need a SPA.
Estimated Total Cost to Register:
- BIR Registration Fee: 500
- 4 Books of Accounts: 200
- Occupational Tax Receipt: 400
- Official Receipts: 2,000Total: P3,100
If with DTI Business Name, additional P2,030 for National territorial scope. Total P5,130.
Now that you have all the requirements. You may now proceed to your BIR RDO but don’t forget to book an online appointment if it’s available in your RDO. Check if your RDO is now accepting Online Appointments. This is like the passport appointment system. Less hassle and save a lot of time in queuing.
Read more about BIR online eAppoinment system.
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You have now decided to have an online appointment or do a walk-in? Now let’s proceed with what you will expect inside the BIR office. Proceed to the window assigned for new Business Registration and submit all the documents. Ask the BIR officer if you need their help to process your BIR Official Receipts.
There are RDO that can finish the registration in one day, especially if your schedule is morning.
There are also instances when they will advise you on what date you can claim your BIR Certificate of Registration.
I recommend that you get the number of the BIR officer so that you can follow up and just return when both the COR and Official Receipts are ready for pick-up. This is to save time. As the BIR Certificate of Registration is usually completed in 1 or 2 days. If you returned the next day to claim your COR, your Official Receipts are not yet available, so you will have to go back again to get your OR.
If you already got your COR in 1-day processing, you can already process the registration of your Books of Account. If not, then on the day that you will pick up your BIR COR and the Official Receipts, bring with you the 4 Books of Account and the BIR Form 1905 in 2 copies. Register the Books of Accounts.
Complete BIR Registration Documents:
1. BIR Certificate of Registration
2. 4 Books of Account or at least 1 Cash Receipt Book.
– Cash Receipt Book – This is the most important journal to be registered.
– General Journal
– General Ledger
– Cash Disbursement Journal
Note that some BIR Offices only require 2 books or there are instances that only 1 book. Make sure the one that the BIR register is the Cash Receipt Book Journal. This is what we need for the 8% taxpayer bookkeeping compliance.
3. Official Receipts: 10 Booklet
4. Received Copy of BIR Form 1901 – Registration Application
5. Received Copy of BIR Form 1905 – Books
P.S. Online Submission of registration documents is now possible.
Please note that this is not yet smooth as of writing this guide, as the BIR is still adjusting also on this online registration of business. If your BIR RDO is too far away, you may consider this. Basically, it is the same with manual registration, you just have to scan all your registration documents in PDF and email them to the BIR.
Important: This is not completely online, you will still have to claim personally your BIR Certificate of Registration and process the printing of your O.R. and Books of Account with the same steps in this guide.
Read more about BIR Online Registration using the NewBizReg.facebook.com/TheGAConsulting/posts/786578031907525
Congratulations! You are now a registered Freelance Business! We would love to hear about your BIR registration journey inside our community of BIR Registered Freelancers.