BIR Registration for freelancers wasn't a very popular topic. But after the recent announcement that online sellers and freelancers need to register their business until the end of July, this topic finally rang a bell to many, to really get serious with getting their businesses duly registered.
I know, if there’s one daunting tasks that every freelancer like you and me really need to get over with, it’s nothing more than taxes. In this video series, Taxation for Freelancers, we’re going to discuss, and learn more about taxes in the perspective of online workers, work at home freelancers, like you and me, and hopefully, this can help you and guide as you take your own business into the next level.
Our goal in this video series is to help guide and demonstrate the step by step process of BIR Registration for freelancers and be legally registered with the BIR. We will discuss how to pay your taxes, how to use eBIR Forms. We'll also look into the pros and cons as well as the benefits of paying our taxes, tools and services to make tax payments simple and easy and whole lot more.
Just a disclaimer, I’m not a tax whiz nor a CPA. I’m a freelancer just wanting to help another freelancer take a bold step to make our freelancing legal and BIR compliant. So in the course of this video series, we’re also aiming at inviting taxation experts who can fully guide us on the steps necessary to register, and comply with BIR mandates.
In this first episode, we’re going to talk about the WHY.
Five Reasons Why You Must Register Your Online Business with the BIR
It's mandated by law. RA 8424 or the National Internal Revenue Code of the Philippines (Tax Reform Act of 1997 Chapter 2 SEC 23 paragraph (A) states that A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines;
It's the right thing to do. Better service from the government will only materialise if there is enough money for implementation – simply put, if you pay taxes faithfully and honestly, then projects like free tertiary education, free hospitalisation, free wifi will be a lot more realistic to achieve. As a citizen of the country, we enjoy the different facilities, services, and amenities provided by the government. And the only way for the government to sustain those services and facilities is through the infusion of finances coming from its citizens through taxes.
- It legitimizes your business or profession/non professional practice – the ability to provide receipt for your clients whether local or foreign is an added security for them.
- It gives you more access to resources that will help you grow business – these days, getting loans whether housing, business, or personal loans requires that you submit a valid income source. And one of the ways to prove your financial capacity is to show your Annual income tax returns. Even applying for a Paypal Business account would require you some proof of your business.
- If you believe in Jesus, then you need to follow his example. Jesus taught that you should pay taxes to Caesar referring to the Roman government in his time and to give God what is due unto God.
So those are the five things I personally believe why we must pay our taxes. Let me know what’s your stand about taxes for freelancers. I’d love to hear what you think.
On episode 2 we're going to discuss the steps on “How to Register as Freelancer with the BIR“.
If you have any questions or suggestion, you can always leave a comment.