3 Kinds of Taxes For Pinoy Freelancers

7/21/2016
3KindsofTaxesforPinoyFreelancers
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THE FREELANCE PINOY

EXPERT ADVICE FOR FREELANCERS
Guide #3: 3 Kinds of Taxes for Pinoy

Freelancers
JUNE 9, 2011 BY STEF
3
After a successful visit and registration process with the BIR, the next step is to identify the kinds of taxes youll be paying and
how to compute for them.
If you already have an accountant in mind who can take care of your taxes, thats great. But if youd still like to know where a
percentage of your professional fees are going to, continue reading this post.
There are three major kinds of taxes that a Pinoy freelancer must le and pay: the annual registration fee, income tax, and business
tax. To make things easy for you, lets tackle each one at a time.
1. Annual Registration Fee

After registering at the BIR, you are required to pay an annual registration fee of P500. This is paid on the rst or last day of the
month of January. The RF is paid after payment of initial registration as a tax payer.
Youll be using BIR form 605 for this. You can pay at your accredited agent bank under your RDO, through G-Cash, or through
the BIRs eFPS system. Again, I suggest paying directly at an AAB to avoid the risks of paying online.
2. Income Tax
Income tax is a percentage of our income paid to the BIR. Since we are registered as
professionals, we can declare how much our taxable income is by computing for our
gross income minus the allowable deductions.
According to the table on BIR form 1701 (Quarterly Income Tax Return for Self-employed Individuals, Estates, and Trusts),
income tax for individuals is between 5% to 32%. Use the tax table on page 2 as your reference every time you compute for your
taxable income.
A freelancer can apply two types of allowable deductions to their gross income:
Optional Standard Deduction the professional applies a maximum of 40% deduction to their gross income. Doing so will
not require you to prepare an Account Information form/Financial Statement. Im guessing that this type of allowable
http://thefreelancepinoy.com/3kindsoftaxesforpinoyfreelancers/
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deduction is for professionals who dont have the time, patience, and energy to itemize their expenses.
Itemized Deduction all ordinary and necessary expenses made for your business are accepted as itemized deductions.
These expenses must be made during the taxable year and at a time when your business is operational.Some good
examples are transportation fees, postage fees, rental expenses, etc. The catch here though is that you need to provide
proof that you made these expenses in the form of receipts, vouchers, sales invoices, and bank statements.
You can hire a CPA to compute for your income taxes if you feel that this is too much for you to handle. Just remember that your
taxable income is gross income less your allowable deductions.
3. Business Taxes
The third and nal type of tax we freelancers are required to pay are business taxes. As explained by the BIR of cer who handled
my brie ng, the difference between the business tax and the income tax is that the former is applied to every transaction made
between you and your clients. The latter focuses only on your taxable income.
There are two types of business taxes:
Value Added Tax the infamous VAT is applied if your annual gross income is P1.5M and above per year. VAT is 12% of
every transaction.
Percentage/Non-VAT tax this is used if the tax payer is non-VAT registered and if his gross income is not more than
P1.5M per year. The percentage tax is a minimum of 3%.
The VAT or percentage tax is led using BIR form 2550M and 2551M.
Important Reminders for You, the Professional

Im no expert when it comes to computing for taxes and ling them to the BIR, but I did pick up a couple of good reminders that
every freelancer should keep in mind.
1. You have to le for an income tax return EVEN when you didnt earn income for that speci c time period. If you dont, the
BIR will assume you are still operating and earning income and will investigate your case if they noticed the lapses.
2. If your clients are all dollar-paying customers, you are exempted from paying the 12% value added tax. It is only when
youre transacting with local/Philippine-based clients that you are required to pay VAT.
3. As soon as you receive your COR and TIN, start recording every single sale or expense made for your business. Save all of
your receipts, vouchers, and invoices so that you have complete proof for your declared allowable deductions.
4. Dont be tempted NOT to pay your taxes. Youve gone this far and are now under the watchful eye of the BIR, so do your
best to diligently pay your taxes OR le a return if you believe you didnt earn income for the current tax period. If you have
questions, contact the BIR or your CPA for clari cation.
A Copy of the Professionals Tax Guide

All this information I picked up from the BIR brie ng and from this tax guide provided by the BIR. I encourage you to download
this document right now:
Tax Guide for Professionals: A Quick and Easy Primer for Paying Your Taxes
This helpful guide covers most of the basic information regarding taxation for professionals. It also contains step-by-step
instructions on how to compute for your income and business taxes, where to le for taxes, and when the due dates for each
form is.
Use this as your reference whenever you feel lost or confused about your taxes. I also suggest consulting with a CPA to help
you compute and le for taxes to ensure that you arent making the wrong computations and you are paying the right amount
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in taxes every year.
>> GUIDE #4: HOW TO COMPUTE FOR YOUR INCOME TAX RETURNS <<
TUTORIALS / TAGGED: BIR, FREELANCERS, FREELANCING, TAXES
Comments
Hi Stef!
Ryan Delos Reyes
June 17, 2011 at 6:35 pm
I stumbled on your post in odesk blog awhile ago and Im very happy to nd out that youre a pinoy
freelancer on odesk. Ill be checking this site from now on. Cheers!
Hi Ryan and thanks for stopping by! Yep, been on oDesk since 2009 actually.
Stef G.
See you around!
June 17, 2011 at 8:00 pm
Stef G.
Valuable information here, Stef! Great job!

Alma
June 27, 2011 at 2:37 pm
Thanks Alma!
Stef G.
June 27, 2011 at 3:06 pm
Hi Stef,
Doe
July 18, 2011 at 1:51 am
Do you have an idea if we still have to go to that process if our source of income is online?
Ive tried talking to one of their representatives but they keep on telling me that I should have an invoice.
How could I provide an invoice for my offshore clients.
Hi Doe,
Stef G.
July 18, 2011 at 7:18 am
Well, I still believe we should make our freelance businesses legit by registering as
tax-paying individuals. Invoices are only being used for local clients though, so if
your clients arent from around you dont need to issue a physical invoice (unless
you wish to do so yourself).
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Hope this helps!
Hi,
3 min to Spreed
rbien
November 5, 2011 at 6:58 am
1. If we as professional online workers do not need an

invoice what documents should we attached? (printout
from paypal history, odesk transaction records? etc)
2. If we dont issue invoice since we have offshore clients
does it mean we skip Step 4: Apply for Invoices/Receipts
using BIR Form No. 1906 Authority to Print?
Two thumbs for you Stef! This is just in time for me
Hello rbien,
Stef G.
Issuing invoices is actually a

standard procedure and must
be done even if your clients are
all from abroad. You need these
as well in case a Philippinebased client comes to you for
your services because these
invoices are made speci cally
for local transactions. For ling
taxes, if Im not mistaken you
only need to show digital
receipts from PayPal or oDesk.
But I will check again with my
accountant.
If you
McPhee
July 5, 2012 at 3:05 pm
are
paying,
why
dont
you
know
the
answer
to this
question?
Im just
curious
because
I want
to pay
taxes
as well.
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3 min to Spreed
McPhee,
Stef G.
July 6, 2012 at 11:42 am
Issuing
receipts
is
important
and
must
be
done
as the
BIR
conducts
tax
mapping
once a
year.
Its
important
to
show
them
that
you are
issuing
receipts
since
you are
operating
as a
freelance
business,
especially
when
ling
your
annual
income
tax
return.
Im in
Jane
March 19, 2013 at 1:48 am
wreck
these
past
weeks
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because
I dont
know
where
3 min to Spreed
to start
on
this!
This
article
is very
informative.
Im
also an
oDesker,
so
what
substitute
doc I
can
send in
such
invoice
less
environment?
Would
the
trascation
history
be
enough?
What
do you
use in
your
case?
Please
advise.
Thanks
in
advance,
Jane
Jane,
Stef G.
March 19, 2013 at 8:47 pm
When
registering
as a tax
payer,
you
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need
to have
printed
receipts
3 min to Spreed
ordered
as this
is part
of the
process
of ling
your
taxes.
With
every
payment
you
receive
from
your
client
via
oDesk,
record
that in
a
receipt.
You
can
discard
the
clients
copy,
but
keep
the
BIRs
copy
for
recording
purposes.
Hi, Stef.
7/28
7/21/2016
Blessie
August 2, 2011 at 9:33 am
Just wondering: do you issue vouchers? Ive been told to get them, but Im not sure what for.
Hi, Blessie! Im not sure what you mean by vouchers. Do you mean invoices?
3 min to Spreed
Stef G.
August 2, 2011 at 10:02 am
No, I do mean vouchers, which we issue when we send

Blessie
August 4, 2011 at 9:22 pm
out payments rather than receive them. Do you do all

your work yourself, or do you have other people helping
you out?
Oh, really? Ive never heard or

Stef G.
August 4, 2011 at 9:58 pm
given out vouchers to anyone

before. Have you issued these
vouchers before?
No, I
Blessie
August 4, 2011 at 10:00 pm
havent,
thats
why I
wanted
to
know if
theyre
really
necessary.
So you
havent
either?
And
you
pay
freelancers?
Thats
great
news
Thanks
much!
You
Mac
September 4, 2012 at 8:39 pm
only
need
to send
out
vouchers
only if
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the
freelancer
youre
sending
3 min to Spreed
payment
doesnt
issue
any
receipts
or
invoice.
Otherwise
you
wont
have
any
proof
of your
expenses.
Hi Stef,
jhOy
September 7, 2011 at 2:11 am
great post. especially your other article, Taxes for Pinoy Freelancers. nally a based on experience guide. I
was just wondering, when you start paying for your monthly taxes, is it after you have registered or does it
also cover your previous months prior to your date of registration? thanks much
and great site too!
Thank you, Jhoy! My ITR and Monthly VAT returns cover only the months I after
Stef G.
my registering at the BIR. You can begin ling for your taxes for next month as
soon as you are registered as a tax payer.
cool! thanks
jhOy
Stef,
Francis
April 10, 2013 at 9:16 am
VAT for foreign currency payments of clients who are

outside and do business outside the Philippines are zerorated but such payments are to be accounted in
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accordance with Bangko Sentral (BSP) rules.

How do you or your accountant comply with such VAT
BSP rules?
Thanks,
Francis
3 min to Spreed
Francis,
Stef G.
April 10, 2013 at 9:20 am
Could you explain your question

further? What do you mean by
to be accounted in accordance
with BSP rules?
I think
Francis
May 25, 2013 at 12:24 pm
it
means
that
for
every
zerorated
VAT
transaction,
theres
a
Certi cate
of
Inward
Remittance
issued
by
your
bank
to
prove
that
you
were
paid in
foreign
currency
by a
foreignaddressed
client.
Thats
to
support
the
zero-
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rated
VAT
of cial
receipt.
3 min to Spreed
Hi! Its me again! Until now, I dont know what to do with my case. But upon browsing BIR site, I learned
Arger
that they have this Mixed Income Earner. If you still remember me, I am actually problematic because I
dont know which category I will fall. Few months from now, I will be working as a staff nurse in a
government hospital. From there, I will be classi ed as government employee. But, I am an Odesk
freelancer at the same time. Hence, I would like to declare my income since that would be bene cial for me
in the long run. But, I already have an existing BIR number due to the fact that I worked as a call center
agent in IBM (private employee). Hope I can nd a solution to this very soon!
Hi! Id like to know what to do in case I no longer earn anything online or I just decided to go abroad. Do I
Joy
still need to le BIR forms even if I dont earn anything anymore? Is there a procedure to declare Im no
longer in business as a self employed individual?
Hi, Joy. Im afraid I dont know how the process works for those who want to
Stef G.
November 12, 2011 at 2:14 pm
declare themselves out of business. The best way would be to call up the BIR for
advice about that.
you need to close it

tax101
Hi Stef,
rbien
How are you? hope everything is great!

Well, nally my application is accepted. I talked with their big boss hehhe, and it was pretty explained. No
need for any documents except, birth, marriage cert.
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I am now looking to pay required tax ASAP as my time runs that I need to submit as part of bank loan. Is it
possible that next week, after I have my accountant do the math and have it all on 1701 form will I have the
ITR?
2. My clients are all USD paying so I am not require the business tax? How about if I have less 1.5M for
3 min to Spreed
Percentage Tax?
3. I just received my COR today, can I pay income tax from the month of January to October this year?
thanks again.
Hi rbien! Thats great! Im glad it turned out well.

Stef G.
You can take a look at this article on how to le for your taxes at the BIR: Taxes for
Freelancers: How to File Your Taxes at the BIR
The only exemption I know for income in USD is the VAT. You can ask the BIR
of cer regarding the business and percentage taxes, just to be sure.
Income tax is paid every quarter. Its not advisable to pay and le your taxes too
early. The of cers at RDO 33 warned me about that, so I do my best to stick to the
usual schedule.
Hope this helps!
Hi Stef! You indicate that that Optional Standard Deduction is 10%, but when I checked the BIR Form it
Raffy
says 40% is this the same thing?
February 16, 2012 at 8:50 am
Hi Raffy,
Stef G.
If you have a copy of the Tax Guide for professionals, youll nd that it is 10% for
the optional standard deduction.
Which BIR form are you referring to?
yes, its is 40% see link for the latest tax guide for
cecille
professionals
http://www.pcp.org.ph/index.php?
option=com_content&view=article&id=340%3Ataxguide-for-professionals&catid=83%3Acommittee-oninformation-technology&Itemid=97
Thanks for sharing this cecille.

Stef G.
February 24, 2012 at 8:46 pm
Ill check with my accountant if

this is indeed the latest tax
guide. If it is, Ill be replacing the
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links and editing the tax posts.
3 min to Spreed
I dont really get this tax thingy for us freelancers. We pay for our internet connection which includes tax.
Ryan
April 27, 2012 at 1:50 pm
We pay for our electricity which also includes tax. I mean we dont need or even get any support from the
govt people. So why care paying tax if it will only get wasted on these people. They dont care about us they
only care for their own. Unless there is a really good reason
Good reasons to pay your taxes

emignatius
April 29, 2012 at 3:35 pm
1. You get to le your ITR, a legal document, that can serve as proof that you are indeed an earning
individual.
2. It is every citizens obligation to pay taxes. It doesnt matter if you think that it is not being put to good
use, which unfortunately is most likely, but still the money collected in taxes keeps our country a oat,
although possibly not all of it.
3. It is the law.
Excellent.
Stef G.
May 2, 2012 at 4:30 pm
Hi Stef,
rbien
June 5, 2012 at 7:38 pm
I just thought you might know if what procedure in case I want to discontinue to pay taxes for whatever
reasons.
What documents should I provide?
Let me share thought rbien. As a registered freelance taxpayer, you can

Ghar
July 9, 2012 at 12:37 pm
discontinue paying and dissolve your registration by ling a Registration Update

with the BIR using BIR Form 1905. You will be required to submit your unused
of cial receipts, your books of accounts, and other documents. BIR will examine
your books and will cancel your registration if it will nd no additional tax liability.
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Hi Ms. Stef,
Slice
I badly need your help. Im not sure if I can consider myself a professional or a freelancer since I only
3 min to Spreed
participate in design contests (99designs.com, crowdspring.com). If I win something, thats the only income
I have and Im not sure if that is taxable or not. I have no need for invoices or receipts as everything is made
on the internet. When I win something, I am paid via Paypal and then I withdraw the money to a local bank
as remittance. Please enlighten me. Thanks in advance!
Hello, Slice. Yes, you wont be considered a self-professional or a freelancer if your

Stef G.
income comes from design contests. Also, the money you receive is technically
prize money, not income for work done.
Hi Stef your own opinion,

ayaka chan
What would the government and the people do to address the problems that have been raised?
October 1, 2012 at 9:58 pm
What do you think of takes the Philippines tax system and its weaknesses?
Ayaka chan
Hi, Ayaka. Weve actually had some discussion about the Philippine tax system on
Stef G.
a different but similar blog post: http://thefreelancepinoy.com/gettingpaid/taxation-online-trade

In my opinion, its really how backward the taxation system is. The BIR is still way
behind in streamlining their processes as theyre still stuck with doing their
paperwork manually. Also, the classi cation and speci c laws should expand to
include tax payers who receive income from online trade.
Hello, Ms. Stef! I am a college student who is currently working as a home-based online english teacher.
Daile
The company I am working for now requires us to pay 2%tax and to submit the BIR form 2307. The
problem is, I dont even have a TIN to start with. I tried to go to BIR to register but even the employee there
didnt really know how to classify me as a taxpayer since this type of job I have is freelance. I told the staff in
my company about it, but even they cannot help. How did you register for a TIN at the BIR? Thank you very
much.
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Thanks for the very informative post, Stef. For Daile, you may visit http://itphilippines.net/ for steps on how
EP
to register for a TIN as a student.
3 min to Spreed
Hi Stef,
John
If I say, Okay, ill start paying my taxes starting this year, and then the BIR nds that you havent been
paying your taxes on the earlier years, wont you get investigated and chase by the BIR for their lost years
of income to you?
Thanks
John
John, I cant say that they wont ask you about your working history, and if they do
Stef G.
nd out there will be penalties as told by my accountant. But you can always
approach the BIR as a new business owner with the intention of starting with a
clean slate.
Hi! I just want to share with you some tips with regards to ling income tax return. This applies to any selfAaron Jeffrey
employed individuals, whether those working online as freelancers or those who actually have brick and
mortar businesses. There are several important things to bear in mind that will help save a lot in taxes.
First, self-employed individuals play two roles for the business, the rst being the business owner, and
second being an EMPLOYEE of the business. Being an employee, the self-employed individual is entitled to
all the bene ts of any regular employee, including a xed monthly salary, thirteenth month pay, allowances,
etc. Second, minimum wage earners are not required to pay taxes, meaning if you pay a minimum salary to
yourself, you will not be required to pay taxes on that salary, and the total amount of your salary and
thirteenth month pay as well as SSS/PHIC/Philhealth contributions will help lower the income of the
business, which, in return, will help you avoid paying too much on taxes, and if you know how to play it well,
you will not even have to pay a single centavo on income taxes.
Heres how you do things:
1. Register as a business, since you are a self-employed individual
2. If you earn in foreign currency, such as when your clients are coming from outside the Philippines, opt for
VAT registration, otherwise you will be required to pay 3% out of all your earnings. VAT registered
businesses are exempt to pay VAT on earnings in foreign currency
3. When preparing income tax, ll up both forms 2316 and 1701. The 2316 is what you will use to declare
your earnings as an employee of the business, this is where you will put the minimum salary and other
bene ts you receive from your business. The 1701 is what you will use to declare income/loss for the
business. There is a section on the 1701 where you will need to put the salary you received from the
business, as indicated in the form 2316. This should be the income that is exempt from tax. If you are
married, you can claim for an additional exemption of 50 K and 25K for each child you have. it is probably a
good reason to get married and have children :). If you are lucky, you can actually even add some cost of
sales to the income statement and that will help reduce the bottom line. Also, if you are a freelancer like
me, you would most of the time opt for the optional 40% deduction for the business expenses, rather than
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an itemized deduction. If you are in Metro Manila, you can declare a monthly revenue of close to 40K
without even having to pay anything in business and personal tax. Those in other areas with lower daily
minimum rate can declare a monthly revenue close to 30K a month and be not required to pay anything in
taxes.
I hope this lengthy comment helped you.
3 min to Spreed
Hi Ms. Stef, thanks for this! I just want to ask, as a freelancer using the non-itemized deduction, do you still
HH
get non-taxable exemptions such as the de minimis and COLA? Thank you!
Hi HH, if I understood it correctly, its just 40% for the non-itemized deduction
Stef Gonzaga
and nothing else. You can always consult the BIR for clari cation.
u cannot use them. (de minimis and cola)

tax101
Hi Stef, you are doing a good job with these blogs! A little off topic, do you have any information on who
Marc
pays a higher tax in general, an employed individual or self-employed one?
Im not sure what you mean. Could you explain further?

Stef Gonzaga
employed inividual.
tax101
Hi Stef, interesting reading:)

Geir
December 7, 2013 at 9:00 am
I will start as a freelance, I already have TIN, work permit and VISA, yes I am alien, married in Phils.
As a freelance I will invoice companies in Norway, not local, do you or anyone else in here know if I have to
add VAT on invoives going abroad for selling consultancy services?
Kr
Geir
16/28
7/21/2016
As per BIR policy, if youre selling purely services, of cial receipts are issued to
clients, not invoices. But you may bill your client. If you are non-VAT registered,
Francis
December 9, 2013 at 12:03 am
you dont add VAT. Otherwise, you have to add VAT.

3 min to Spreed
If your VAT-registered services go a foreign or non-local client and you are paid in
foreign or non-Philippine currency, you may claim zero-rated VAT. But such
transactions must be accounted for in accordance with central bank regulations
which I think means such transactions must be supported by bank certi cates of
inward remittance.
Hi Stef,
name*
January 28, 2014 at 9:27 am
Its nice to nally see something on the internet about this.. To navigate the gov pages is super hard for
some reason
If i understood what you wrote above.. If I have a website and all sales are outside the philippines.. And
every once in awhile ill send money from my paypal to my philippine bank account, I MUST pay 5% tax
minimum?
would it be a problem if a just hired someone to handle my orders for me locally, would I have to register as
a business?
Hi name*, it would depend on your income and at what range it falls under. If
Stef Gonzaga
January 28, 2014 at 9:58 pm
youre earning taxable income not more than PhP 10,000, then your tax due is 5%
of that amount. For more info on how to compute for your income tax, this post
should help you out: Taxes for Freelancers: How to Compute For Your Income Tax
Returns
Hi Stef,
Reish
Im almost nish with my registration. I have my COR already so I guess Im done. Im done with stamping
my booklets as well, my problem is for the printing of receipts and invoices. The BIR of cer offered to do it
for me. He asked me to pay 100 pesos per booklet. He also told me that they cant issue booklets less than
10. He asked me to pay 1000pesos for 10 booklets. Did you have the same case? They told me to come
back after two weeks, I did not pay yet. They told me to pay after claiming the booklets.
Im working as a freelance online tutor so I really dont need the receipts but the BIR of cer told me its for
compliance.
Can you tell me how much did you pay and how many booklets did you get? How long did it take them to
issue the receipts? Do you have any idea how much will it cost if Ill have my booklets printed outsde
instead?
Thank you.
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Hi Reish,
Stef Gonzaga
If Im not mistaken, I paid P2000 for 2 bundles of receipts, 10 booklets each. So

P1000 is about right. You can opt to hire a third party printer if you want to save
3 min to Spreed
on costs.
Oh woah, that is expensive!

watermelon
March 1, 2014 at 5:44 am
Can anyone share their experience with third party printers? Is it a hassle to opt
for third party printers instead? Because if it is, it sounds like you have to shell out
2k (and choose the BIR printers) if you want a smoother/easier transaction. :/
It is expensive, but its an option for those who dont

Stef Gonzaga
March 7, 2014 at 6:51 am
know any third party printers and who need to have their
receipts printed right away to get started. You can always
opt to change once youve used up all of your receipts.
Just follow the right procedures when doing so.
Hi Stef,
Reish
Thank you very much. Another question, do you use your books of accounts? How do you ll it out? I hope
you can do a separate blog post about it. Thank you very much. More power to your blog and your
freelance career. <3
Hi Stef,
HBK
March 31, 2014 at 1:58 pm
What do you think is the advantage of registering as Professionals instead of Self-Employed?

And secondly, why have you not registered as BMBE?
Thanks! I appreciate your blog
Hi HBK,
Stef Gonzaga
March 31, 2014 at 2:10 pm
I registered as a self-employed professional w/o the need of a license to operate.

Not sure about the difference youre referring to.
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This is the rst time Ive heard of BMBE. Could you explain further what this is
about? Thanks!
3 min to Spreed
hi Stef
wandermom
April 3, 2014 at 9:11 pm
Can you recommend a good accountant?
http://www.olx.ph/index.php/view+classi eds/id/49900259/Accounting+Services%2C+CPA?
Rell Virtudazo
event=Search+Ranking,Position,1-1,1 click this
August 15, 2014 at 10:14 am
Hi Stef,
HBK
April 4, 2014 at 8:18 am
BMBE is a law that is intended for any business that has an asset of not less than 3M. The advantage is that
it the registered one will be exempted from income tax. I just read it on this link
http://www.nanaynotebook.com/2013/01/the-bmbe-in-real-life.html.
I think your RDO is considerate enough for you to not submit requirements such as municipality permit
and / or DTI registration. Other RDOs insist that those are required. Well, you know how challenging to get
business permit especially for those who are working at home.
Thanks!
Hi Stef,
Sunshine
August 5, 2014 at 10:31 am
What if you have missed paying your taxes for months and are late in ling? Will the BIR not question you
for not taking care of it right away?
Hi Sunshine, if you registered as a tax payer yet missed out on paying your taxes,
Stef Gonzaga
the BIR will impose penalties for that.
August 5, 2014 at 10:32 am
Hi Stef,
glady
I have a question regarding Percentage tax/Income tax. My father has a business which is also the
19/28
7/21/2016
main/only source of his income making his total taxable income equal to his business income. When we le
for the quarterly income tax return, is there a way to deduct the taxes already paid thru the monthly
percentage tax?
Thank you in advance.
3 min to Spreed
Best regards,
Glady
you cant le it.. business income is different from income tax.

tax101
i can help. im a tax and compliance of cer. unfortunatelly luma na yung ibang post
tax101
hi, would you know how i will be classi ed? i work online for a US based
kyuusei
company(not registered in the philippines) but i am not a freelancer. should i le as

self-employed? parang mas swak ako under ofw description except that im
staying in the philippines now
my only question is.. do they tax you? i mean the us based

tax101
company.
hello. in the US yes, but im

kyuusei
staying in the philippines for

good already so i need to le
taxes in the ph
let me
tax101
check
rst.
since
you
seem
to be
classi ed
as
purely
compensation
income
earner.
pero i
need
to
20/28
7/21/2016
clarify
this.
btw, do
that
3 min to Spreed
company
gives
you
certi cate
of
compensation
payment?
hi,
kyuusei
thanks
for the
quick
reply.
no. a lil
background,
i was
an
immigrant
in the
US and
le
taxes
there
and i
just got
back to
the PH,
so
parang
starting
from
scratch
here
i see.
tax101
well
you
seem
to t
here:
d) A
21/28
7/21/2016
citizen
who
has
been
3 min to Spreed
previously
considered
as a
nonresident
citizen
and
who
arrives
in the
Philippines
at any
time
during
the
year to
reside
permanently
in the
Philippines
will
likewise
be
treated
as a
nonresident
citizen
during
the
taxable
year in
which
he
arrives
in the
Philippines,
with
respect
to his
income
derived
from
sources
abroad
until
the
date of
his
22/28
7/21/2016
arrival
in the
Philippine
s.so
far..
3 min to Spreed
you are
exempted
from
ling
income
tax.
make it
sure
lang
that
your
current
company
will
give
you
that
form.
(form
2316
in the
philippines)
para
next
year
youll
be able
to use
that as
tax
credit
to
avoid
double
taxation
thank
kyuusei
you for
replying
again,
because
im
really
23/28
7/21/2016
confused.
please
correct
me if
im
3 min to Spreed
wrong
but
form
2316 is
for
withheld
taxes
by a
PH
company/employer
right? i
still
work
for the
same
US
company(pinatuloy
lang
nila
work
ko
kahit
balik
pinas)
and
have
no plan
of
resigning
from
them(yet:)
), and i
now
have to
le
taxes
on my
own
here sa
PH
kaya
naguguluhan
ako
ngayon
paano
ako
mag le
since
24/28
7/21/2016
hindi
na
jurisdiction
ng BIR
yung 3 min to Spreed
US
employer
:/
basically
tax101
youll
fall
under
this
category
kasi
Resident
citizens
receiving
income
from
sources
within
or
outside
the
Philippines.
ao you
just
need
to le
you itr
(income
tax
return).thats
true
form
2316 is
issued
by ph
employer.
wala
naman
akong
nakikitang
problem
except
that if
25/28
7/21/2016
you are
going
to le
your itr
3 min to Spreed
for the
year
2014
(which
is sa
2015
pa,
your
2014
will fall
under
the
exempt
category)
you
need
to
show
proof
na you
have
been
taxed
by
your
employer
already.
let me
check
if kung
anong
form
and
iniissue
ng
emoyer
mo
abroad
based
on irs
standards
ah, i
kyuusei
see!!
26/28
7/21/2016
so i just
need
to
attach
yung 3 min to Spreed
from
US?
thanks
so
much
for
enlightening
me on
this
topic
yes
tax101
maam.
to
avoid
double
taxation.
remember
what
happened
to
manny
paquiao?
his
accountant
was
unable
to
secure
this
forms.
anyway,
unless
you
have a
business
here in
the
country
thats
another
story.
glad
to be
27/28
7/21/2016
of help
3 min to Spreed
2016 THE FREELANCE PINOY ALL RIGHTS RESERVED
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3 Kinds of Taxes For Pinoy Freelancers

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Grow Your Biz

The Freelance Life

THE FREELANCE PINOY

Guide #3: 3 Kinds of Taxes for Pinoy

1. Annual Registration Fee

Important Reminders for You, the Professional

A Copy of the Professionals Tax Guide

in taxes every year.

See you around!

June 17, 2011 at 8:00 pm

Valuable information here, Stef! Great job!

Hope this helps!

1. If we as professional online workers do not need an

Issuing invoices is actually a

August 2, 2011 at 9:33 am

No, I do mean vouchers, which we issue when we send

out payments rather than receive them. Do you do all

Oh, really? Ive never heard or

given out vouchers to anyone

and great site too!

VAT for foreign currency payments of clients who are

accordance with Bangko Sentral (BSP) rules.

Could you explain your question

you need to close it

How are you? hope everything is great!

Hi rbien! Thats great! Im glad it turned out well.

says 40% is this the same thing?

February 16, 2012 at 8:50 am

Which BIR form are you referring to?

Thanks for sharing this cecille.

Ill check with my accountant if

links and editing the tax posts.

Good reasons to pay your taxes

Let me share thought rbien. As a registered freelance taxpayer, you can

discontinue paying and dissolve your registration by ling a Registration Update

Hello, Slice. Yes, you wont be considered a self-professional or a freelancer if your

Hi Stef your own opinion,

October 1, 2012 at 9:58 pm

a different but similar blog post: http://thefreelancepinoy.com/gettingpaid/taxation-online-trade

to register for a TIN as a student.

August 9, 2013 at 7:02 am

September 26, 2013 at 11:06 pm

September 27, 2013 at 9:09 am

u cannot use them. (de minimis and cola)

pays a higher tax in general, an employed individual or self-employed one?

November 4, 2013 at 1:56 pm

Im not sure what you mean. Could you explain further?

Hi Stef, interesting reading:)

December 9, 2013 at 12:03 am

you dont add VAT. Otherwise, you have to add VAT.

If Im not mistaken, I paid P2000 for 2 bundles of receipts, 10 booklets each. So

Oh woah, that is expensive!

It is expensive, but its an option for those who dont

What do you think is the advantage of registering as Professionals instead of Self-Employed?

I registered as a self-employed professional w/o the need of a license to operate.

Can you recommend a good accountant?

event=Search+Ranking,Position,1-1,1 click this

August 15, 2014 at 10:14 am

the BIR will impose penalties for that.

August 5, 2014 at 10:32 am

you cant le it.. business income is different from income tax.

company(not registered in the philippines) but i am not a freelancer. should i le as