Tax Filing Guide For Self-Employed or Freelancers (Lone Income)

Freelancers are considered as professionals despite not being governed by a regulatory board or body. As is
the case of bloggers, web developers, graphic designers, writers and other people who provide specialized
services (this includes online teachers). Lone income payers get their salary from one client only; in this
case, it is UNHOOP Philippines, Inc.

Requirements - specifically for online teachers

(1) NSO Birth Certificate
(2) PRC ID (if applicable)
(3) Payment of Professional Tax Receipt (PTR), Occupational Tax Receipt (OTR), or Independent
Contractor's Contract (ICC) = only if applicable
(4) Affidavit indicating the rates, manner of billings, and the factors considered in determining service
fees (as specified in BIR Revenue Regulation 4-2014)

Forms to fill-out
(1) BIR Form 1901 – the first and second page is the registration form. Basically, this is the form for all self-
employed individuals.
>> https://www.bir.gov.ph/images/bir_files/old_files/pdf/20361901pg1.pdf

(2) BIR Payment Form 0605 – present this form upon payment in any authorized bank by the Revenue
District Office (RDO).
>> https://www.bir.gov.ph/images/bir_files/old_files/pdf/1210605.pdf

Step 1 Obtain a Tax Identification Number (TIN) via the BIR website or the BIR portal if you don’t have
one yet. You can skip this step if you already have one.

Step 2 Fill up the Application for Registration (BIR Form 1901) and the payment form (BIR Form 0605),
gather the applicable required documents.

Step 3 Submit to the form and the supplementary documents to Revenue District Office (RDO) that
has jurisdiction over your place of business.

Step 4 Pay the ₱500 annual registration fee. You can simply go to any authorized bank located within
your district and provide them the payment form with your payment.

Step 5 Pay the ₱15 Certification Fee and the P15 Documentary Stamp Tax. A form will be given, which the
taxpayer will be attaching to the registration certificate later on.

Step 6 Attend the required taxpayer’s briefing at the RDO before the release of the BIR Certificate of
Registration (COR or BIR Form No. 2303) and the “Ask for a Receipt” Notice (ARN). The COR will reflect the
returns that must be filed and the taxes to be paid.

Step 7 Apply for Invoices/Receipts using the Authority to Print form (BIR Form 1906).

Step 8 Register books of accounts (Journal/Ledger/Subsidiary Professional Income Book and Subsidiary
Purchases/Expenses Book) and have them stamped by the same RDO.
 Tax Filing Guide for Mixed Income Earners
Mixed income payers get their salary from several sources. This includes compensation if you are employed
and gross sales if you own a business.

Tutors who have existing CORs

Those with COR but for a different “line of business” need to have it updated. For example, if you’re a
registered insurance agent, the “line of business” indicated in your COR can be “VUL – Insurance”. You need
to have it updated to include “Other Service Activities” for online teaching. Again, CORs that are not yet
updated won’t be accepted.

Requirements - specifically for online teachers

(1) 3 pcs. Form-1905 (Application for Registration Information Update)
(2) 3 pcs. Form-0605 (Payment Form)
(3) 3 pcs. Form-1906 (Application for Authority to Print Receipts and Invoices)
(4) 3 pcs. Form-1901 (Application for Registration)
(5) 2-columnar
(6) Original Certificate of Employment
(7) Photocopy of Valid ID containing your address

Step 1 Check if Your TIN is in the Correct Revenue District Office (RDO)
>> The correct RDO is the prevailing RDO where you will conduct your business and NOT where you obtain
your TIN number or even the RDO of your current employment. Use form-1905 to transfer your TIN.

Step 2 Ask for Applicable Forms

>> Go to your new RDO and ask the guard at the entrance for a queuing number along with form 1901,
0605, and 1906 all in a triplicate copy. Normally, you just ask for COR application forms and they
already know what to give you.

Step 3 Pay Registration Fee at any Accredited Bank

>> Fill out the form 0605 and indicate that the payment is for the registration fee worth Php 500. Go to the
nearest bank from the RDO (make sure they are accredited) and pay. Photocopy the bank validated
payment forms because BIR will only need a photocopy.

Step 4 Buy Two Columnar Books and Photocopy Your Documents

>> You can buy columnar outside the BIR just ask around the premises (around Php50/book). Don’t forget
to have a photocopy of your ID. After buying the columnar, have it stamped by the guard at the entrance
and write the necessary information.
Step 5 Get a Clear Sample of Your Receipt
>> Fill-out the form-1906 or the Application for Authority to Print Receipts and Invoices and proceed to any
printing press outside BIR (around Php 1,500 for 10 booklets). Give the printing press about a week to
process your request so for the meantime ask for a sample receipt under your name and computerized
form-1906.

Step 6 Head back to BIR and Proceed to COR Counter

>> If your number was already called, proceed to the counter and explain what happened. They usually let
people return to their line.

Step 7 Submit and Get a Copy of Form-1901

The second to the last step is to submit the following: form-1901, photocopy of 0605, two stamped
columnar, form-1906, certificate of employment, and photocopy of ID. You will get a copy of 1901 and
again ask for a contact number. COR is normally ready after 3 working days but make sure to call the RDO
first.

Step 8 Get Your COR or Form-2303 After verifying, you can now get your form 2303 or the certificate of
registration from your new RDO and your receipt from the printing press where you get your sample
receipt.

FAQs:

 How much will be spent?

The total fee is around Php 2,100 excluding expenses for photocopying.

 How long is needed to process the registration?

Getting the COR and Authority to Print (ATP) is now a one-day process. The ATP is a document
you’ll get from BIR giving you approval to have your receipts printed. There might be a need for you
to change your Revenue District Office (RDO) so please allot time for this as well as the BIR Tax Filing
Seminar. You will get the schedule from the RDO where you’ll be filing your COR.

Based on feedback, transferring from one RDO to another takes around 2 weeks or more. You
may contact BIR through their Customer Assistance Division (CAD): (02) 981-7000; (02) 929-7676 (add
"8" in front of the number starting Oct. 6) locals 3018; 3016; 3022; 3033.

 How to have your Official Receipt?

Have a BIR-accredited printer print your sample receipt. Here is a list of BIR-accredited printers
(https://www.bir.gov.ph/index.php/bir-accreditations/list-of-accredited-printers-of-receipts-
invoices.html). The BIR-accredited printer doesn’t have to be within your RDO.

Once you have it, bring it together with your requirements when you register for a COR. BIR will
issue an Authority to Print (ATP) to you on the same day. Once you get the ATP, bring it back to your
chosen BIR-accredited printer for them to start printing your receipts. The receipts are usually ready after
2 weeks. Make sure that it has been duly-stamped by BIR (to be done by the printer).
  What to do with your Official Receipt?
As a COR holder, you are required to issue an Official Receipt every time you receive salary from
the company. Deadline is every 20th of the same month you received the salary.

Filing your Income Tax Return (ITR)

Filing for a tax return for the year is a straightforward process. If the documents and bookkeeping has been
consistently complied, filing should be as easy as these three steps:
1. Download and accomplish the ITR form from BIR’s website.
2. Proceed to Authorized Agent Bank of RDO where you are currently registered and present your filled out BIR form
and required documents.
3. Receive duly stamped and validated form as proof of ITR filing.