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BIR Registration for Freelance Writers and Other Non-Licensed Professionals (2021)

Dems Angeles

[Updated as of March 25, 2021] This guide covers the BIR registration process, requirements, and expenses for SELF-EMPLOYED, FREELANCERS, OR NON-LICENSED PROFESSIONALS with existing Tax Identification Number (TIN) only. Also, please note that my transaction happened around February 2021 at RDO 045 – Marikina.

I recently decided to register with the Bureau of Internal Revenue (BIR) and get my government contributions in order.  Why?

I know you may have different reasons on why you are here and researching how to register with the BIR but I hope you will see it as more than compliance and a burden (yes, despite the horrors of corruption et al). Let’s stop the rambling and dive into this comprehensive guide:

WHAT TO PREPARE

Physical copies of forms and requirements needed when transacting with the BIR. You may get a soft copy of the BIR forms online or ask the Officer of the Day at your Regional/District Office (RDO)’s Information Booth. If you have access to a printer, it’s best to fill them out electronically and print them in A4 paper to avoid erasures and save time.

The following requirements are required by RDO 045 (Marikina):

I didn’t include Form 1906 (Application for Authority to Print Receipts and Invoices) as I opted to avail of BIR-Printed Receipts (BPR) instead, which I can use for the 1st year of business (or continue to do so if I didn’t have enough transactions for 2021) according to BIR Revenue Memorandum Circular 117-2019.

HOW TO REGISTER

The following steps assume that you have an existing TIN from your previous employment. In case you don’t have one yet, you may register for a TIN online or at your nearest RDO.

STEP 1: REQUEST FOR TRANSFER OF RDO (VIA EMAIL)

STEP 2: APPLY FOR A CERTIFICATE OF REGISTRATION (COR) / FORM 2303

A. IN-PERSON

Note: you may only apply for COR in person so make sure to be early at your RDO. It may take 1-2 business days to finish the entire process, depending on the volume of transactions or delays due to their system going offline or signatories going on break.

MARCH 25 UPDATE: SELECT BIR RDOs SUCH AS 045 MARIKINA ARE NOW ACCEPTING ONLINE AND DROPBOX APPLICATION SERVICES. THIS IS IN LINE WITH BIR’S DIGITAL TRANSFORMATION PROGRAM. I HAVEN’T TRIED IT BUT YOU CAN REFER TO THIS POST FOR MORE INFORMATION. PLEASE CHECK WITH YOUR RDO IF THEY ARE OFFERING THESE SERVICES.

B. VIA EMAIL

C. VIA COURIER or DROPBOX

STEP 3: REGISTER BOOKS OF ACCOUNTS

A. IN-PERSON

B. VIA EMAIL

C. VIA COURIER or DROPBOX

Note: best to clarify with your RDO first if you only need to prepare two (cash disbursement and cash receipt) or all four books.

HOW TO FILL OUT THE FORMS PROPERLY

FORM 1905 for TRANSFER OF RDO / CHANGE OF REGISTERED ADDRESS

Fill out fields: 1 (TIN), 2 (RDO CODE), 3 (CONTACT NUMBER), 4 (REGISTERED NAME – Last Name, First Name, Middle Name), check the applicable option under 7B, and sign under 12.

Note for 7B:

FORM 1901 for APPLICATION OF REGISTRATION FOR SELF-EMPLOYED

Put an “X” mark on question 6 (Taxpayer Type) under PROFESSIONAL – IN GENERAL and question23 YES to availing 8% INCOME TAX RATE OPTION.

Fill out the REQUIRED fields in BLUE: 4 (TIN), 7 (TAXPAYER’S NAME), 8 (GENDER), 9 (CIVIL STATUS), 10 (DATE OF BIRTH), 11 (PLACE OF BIRTH), 12 (MOTHER’S MAIDEN NAME), 13 (FATHER’S NAME), 14 (CITIZENSHIP), 16 (LOCAL RESIDENCE ADDRESS), 22 (PREFERRED CONTACT TYPE – Landline/Fax Number/Mobile Number and Email Address), and sign under 51.

Only fill out fields in GREEN if applicable: 15 (Other Citizenship), Part II 24-28 (for legally married applicants), Part VI 40 (if you will print your receipts with your name), Part VII 41 (if previously employed in the same calendar year as of registration).

FORM 0605 – PAYMENT FORM

FORM 1905 for REGISTRATION OF BOOKS OF ACCOUNTS

Fill out fields 1 (TIN), 2 (RDO CODE), 3 (CONTACT NUMBER), 4 (REGISTERED NAME), 10 (TP), and sign under 12.

EXPENSE BREAKDOWN

Type Amount
Annual Registration Fee P 500.00
COR Certification Fee + 2 Documentary Stamps 30.00
BIR-Printed Receipts 32.00
Books of Accounts (4 pieces & stamped; brought from a store near my RDO) 200.00
Notarized affidavit as proof of nature of work (2 copies) 300.00
Photocopies (valid IDs, annual reg fee receipt, etc.) 27.00
DIRECT EXPENSES: 1,089.00
OTHER EXPENSES
Fare and Food expenses (trike x 4 @ P40 one way + lunch) 374.00
1 copy Notarized Sworn Affidavit of Gross Receipts/Sales (Annex B-2 of RR 11-2018) + 2 Documentary Stamps (client requirement) 200.00
TOTAL EXPENSES: 1,663.00

TIPS & OTHER NOTES

I hope that you find this guide useful and able to clarify any of your questions prior to your BIR registration. Feel free to share with your friends and family who transitioned to or are starting a new career as a freelancer or self-employed individual.

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