You’ve just graduated. You’ve been working online as a virtual assistant (VA) for nearly a year.
And now you’re wondering: Are there penalties if I register now on BIR?
This is a crucial question for many freelancers who started working right after school without knowing the tax rules.
Let’s break it down so you know exactly what to do next—without panic.
What Happens When You Delay BIR Registration
In the eyes of the Bureau of Internal Revenue (BIR), any income-earning activity—online or offline—is subject to tax laws.
If you’ve been earning without registering, you’re technically non-compliant.
This includes:
- No TIN registration
- No filing of tax returns
- No payment of annual registration or tax dues
This can lead to penalties, even if you weren’t aware of the requirement.
Why You Could Face Penalties
BIR penalties stack up fast. Here’s what you may face if you’ve delayed your registration:
- ₱1,000 for failure to register
- ₱1,000–₱25,000 for each unfiled return
- 25% surcharge + 12% interest for any unpaid tax due
Even if your income is below the ₱250,000 annual threshold, the penalties for non-registration and non-filing still apply.
What to Do If You Haven’t Registered Yet
If you’re asking, Are there penalties if I register now on BIR?, here’s what you need to do:
Step 1: Don’t Delay Further
The longer you wait, the more risk you face. Go to your local BIR office or online and secure your Taxpayer Identification Number (TIN).
Step 2: Register as a Freelancer (Professional)
Use BIR Form 1901 to register as a professional.
Submit your government ID, proof of billing, and fill out the required forms.
Step 3: File Back Taxes (If Needed)
If you’ve earned income in the past year, prepare to file back returns.
You may be able to negotiate or settle penalties, especially if it’s your first offense and you explain your case properly.
Step 4: Pay Annual Registration Fee
This is a mandatory ₱500 due every year (Form 0605). Pay it as part of your registration process.
Who This Applies To
This advice is for:
- Freelancers or VAs who started working before registering
- Recent graduates who skipped BIR registration unknowingly
- Anyone earning from clients (local or abroad) without BIR compliance
You need to register as soon as you start earning—not just when your income grows.
What New VAs Should Know
- Choose the 8% income tax option—you won’t pay tax unless you exceed ₱250,000 per year
- File zero-income returns if you had no income in any quarter
- Use an online tax calculator to estimate possible penalties
- Consult with a tax pro to settle and minimize past issues
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