Most freelancers register with the BIR late, and in a hurry. A bank asks for an income tax return. A client asks for an invoice. Paperwork that could always wait suddenly cannot.
The registration itself is the easy part, and plenty of freelancers do it alone. What comes after, one tax decision and a return every quarter, is where people decide whether to keep doing it themselves.
Here is all of it, in order, with the numbers.
At a glance
Who registers. Anyone earning from freelance or independent work: virtual assistants, writers, designers, developers, tutors, content creators. Clients abroad count too.
What it costs. ₱30, a documentary stamp tax on your certificate. The old ₱500 yearly fee was scrapped in 2024.
How long. A day at your RDO to submit. About a week before your registration shows up in the BIR’s system.
Where. The Revenue District Office (RDO) for the place you live.
What you can skip. A DTI business name, unless you work under one.
The one decision that sets your tax bill
Mika is a virtual assistant for a client abroad. She earns ₱50,000 a month, ₱600,000 a year. She never registered, until a bank asked for her income tax return when she applied for a credit card.
On the registration form she has to answer one question: how does she want to be taxed? The answer sets her bill for the whole year.
| If she chooses nothing | If she chooses 8% | |
|---|---|---|
| How it is worked out | Graduated rates on income less ₱60,000 of expenses, plus 3% percentage tax | 8% of income above ₱250,000 |
| Income tax | ₱57,500 | ₱28,000 |
| Percentage tax | ₱18,000 | None |
| Total | ₱75,500 | ₱28,000 |
One box on a form is worth ₱47,500 to her.
Graduated rates are the standard sliding scale, from 0% to 35%. Choose nothing and that is what applies, with your actual expenses as deductions, plus a separate 3% percentage tax on everything you earn. The 8% option replaces both with one flat rate on income above ₱250,000. A middle route, graduated rates with a flat 40% deduction in place of actual expenses, would cost Mika ₱34,500. That one has to be chosen too.
Three rules matter:
- You choose when you register, or on your first quarterly return of the year.
- The choice holds for the whole year. You choose again each year.
- The 8% option is open only while your income stays at or under ₱3 million.
The 8% option does not always win. When expenses are large compared with income, graduated rates can come out ahead. And if you earn under ₱250,000 a year on the 8% option, you owe nothing, though you still file.
The steps, in order
- Go to the RDO for where you live. Bring your IDs and the registration form, BIR Form 1901. You can start the form online through ORUS, the BIR’s registration portal, but plan on finishing at the RDO. If your TIN still sits with the RDO of a past employer, ask about moving it first. That is the most common cause of delay.
- Make your tax choice on the form. The 8% option or graduated rates, as above.
- Collect your Certificate of Registration. This is your proof of registration, and where the ₱30 is paid.
- Register your books of accounts. These are your records of income and expenses. Your RDO will tell you which kind to keep.
- Issue an invoice for every payment. That includes clients abroad who never ask for one. Since 2024 the invoice is the only document the BIR accepts for services. Official receipts no longer count.
- Post your Registration Seal Badge if you advertise online. The BIR now asks freelancers who sell their services online to show it. You get it through ORUS or your RDO.
Registered as a professional, you usually do not need a city permit. Some cities differ, so a quick call settles it.
What the year looks like
Every payment: an invoice.
Every quarter: an income tax return, due 15 May, 15 August and 15 November.
Every quarter, graduated rates only: a percentage tax return as well.
Once a year: the annual return, due 15 April.
If you have been earning for a while
You are in good company. Registering late is common and fixable, but the right way to do it depends on when your income started and how much it was. That makes it worth a conversation before you submit, not after.
If you registered in the past and then stopped filing, a BIR programme running until 31 December settles each missed year for a fixed amount. We explain who qualifies here.
If you also earn a salary, different rules apply, and this guide does not cover them.
Doing it yourself, or handing it off
Plenty of freelancers do all of this alone, and do it well. A few things decide whether it suits you.
| DIY works well while… | It stops being worth it when… |
|---|---|
| You have one or a few clients | Payments come from many clients and the invoices pile up |
| You chose the 8% option and your expenses are small | Your expenses are big enough that the choice is no longer obvious |
| You can set aside a few hours each quarter | You would rather never think about a deadline |
| Your income is well under ₱3 million | Your income is heading toward ₱3 million |
The last row is the one people miss. Registration describes your income on the day you register. The 8% option stops at ₱3 million, and above that you must register for VAT. Nobody sends a reminder when you cross. Your registration just stops matching your income.
If you would rather not do the registration yourself, we handle it end to end and walk you through every document afterwards. See how that works.
Where to start
- Find your RDO for where you live.
- Run your own numbers through Mika’s table: a year’s expected income and a realistic figure for expenses.
- Book a morning to register, with your choice already made.
Prefer to hand off the filings?
Register yourself using the steps above. If you would rather someone handle the quarterly filings from there, send us your situation.
If you don’t need us, we’ll say so. Tim reads every inquiry and replies within 24 hours.
Sources
- Section 24(A)(2)(b), National Internal Revenue Code, as amended by RA 10963 (TRAIN Law): the 8% option and the ₱250,000 reduction, for self-employed individuals with sales up to ₱3 million
- Revenue Memorandum Order No. 23-2018: how the 8% option is chosen, that it cannot change within the year, and that graduated rates apply if no choice is made
- Revenue Regulations No. 16-2008: the 40% optional standard deduction, chosen on the first quarterly return
- Section 116, National Internal Revenue Code: the 3% percentage tax on taxpayers not registered for VAT
- RA 11976 (Ease of Paying Taxes Act) and Revenue Memorandum Circular No. 91-2024: registration procedures, and the end of the ₱500 annual registration fee from 22 January 2024
- Revenue Regulations No. 7-2024 and Revenue Memorandum Circular No. 77-2024: the invoice as the document for a sale of services, applied to freelancers
- Revenue Memorandum Circular No. 38-2026, 29 April 2026: the BIR Registration Seal Badge for online businesses and freelancers
- BIR Citizen’s Charter: registration requirements, including the ₱30 documentary stamp tax
Mika is an illustration, not a client. Her income and expenses are ours; the rates and the ₱250,000 reduction come from the Tax Code. Processing times reflect our experience and vary by RDO. This is general information, current as of October 2026, and not advice on your situation. Rules change.