In the Philippines is becoming the preferred way of working for many. Since the pandemic, more Filipinos have shifted to remote work, and the freelance market saw a remarkable 35% growth in 2022, highlighting the increasing value of independent professionals.
Like all workers, freelancers are expected to pay taxes, though there are exemptions for those earning less than 250,000 pesos annually and for non-residents. To pay taxes properly, your freelance business must be officially registered. Registering not only keeps you compliant but also opens doors to larger clients, better contracts, and access to government programs and benefits designed for freelancers.In this article, we’ll walk you through how to register as a freelancer and make sure you do it right.
Also read: Philippines taxes, visas and gig-work rules for expats and nomads
Did you know that in the Philippines, freelancing is treated almost like running your own small business? Whether you’ve set up your own business or are offering your skills independently, the law considers you a freelancer, which means taxes apply. Freelance services can be categorised under various professional fields, reflecting the diverse range of work being done remotely across the country.
Here are some of the most common types of freelancers in the Philippines:
Now that we’ve established who qualifies as a freelancer, the next step is registration. If you fall into any of the categories above, you’re required to register to comply with Philippine tax laws and legally operate your freelance business
The Bureau of Internal Revenue (BIR) is the government agency responsible for collecting taxes in the Philippines. As a freelancer, registering with the BIR is essential to legally report your income, pay taxes, and issue official receipts to clients. Registration ensures you comply with the law, access the right tax forms, and build credibility as a professional, setting a strong foundation for your freelance business.
Steps to register with the BIR
Also read: How remote workers in the Philippines protect their income with multi-currency tools
Registering with the Department of Trade and Industry (DTI) isn’t mandatory for all freelancers, but it’s highly recommended. It protects your business name, adds credibility with clients, and helps you operate professionally. Even if you use your own name as a freelancer, having a DTI registration shows you’re serious about your work and your brand.
Steps to register:
As a freelancer in the Philippines, you need to understand how your income is taxed. Start by calculating your gross income, which is the total amount you earn from freelance work. You can then choose between the Graduated Tax Rate or the 8% Flat Tax option. Under the graduated system, income between ₱250,001 and ₱400,000 is taxed at 20%, while ₱400,001 to ₱800,000 is taxed at 25%.
Keeping accurate tax records is just as important as paying your taxes. Your income statements, receipts, and tax filings serve as proof of earnings. These records are often required when applying for visas, getting approved for bank loans, or accessing government benefits. Good record-keeping also helps you track your progress and avoid issues during tax audits or future financial applications.
Freelancing means you’re in charge of your own finances. You need to clearly record what you earn and what you spend throughout the year. Well-kept records make tax filing easier and help you identify allowable expenses that can reduce how much tax you pay. These may include internet and phone costs, utility bills, home office rent, and essential work supplies.
Also read: How to convert US dollars to Philippine pesos
Registering as a freelancer can feel overwhelming at first, but the process becomes much easier when you have the right guidance, support, and reliable information to help you avoid mistakes.
Join a freelance community
Being part of a freelance community gives you access to shared experiences and practical advice. Fellow freelancers often share registration tips, trusted service providers, and common pitfalls to avoid. Communities also provide emotional support, making the registration process feel less intimidating and more achievable.
Consult with a business lawyer
Speaking with a business lawyer helps you understand your legal obligations as a freelancer. They can clarify tax requirements, registration steps, and compliance issues. This guidance reduces errors, saves time, and ensures you set up your freelance business correctly from the start.
Leverage online resources
Online resources such as government websites, freelancer blogs, and official guides provide step-by-step instructions for registration. They help you stay updated on requirements, forms, and deadlines, allowing you to complete the process confidently and at your own pace.
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Now that your freelance business is registered, the next step is choosing the right payment solution. Grey lets freelancers receive payments securely through a multicurrency account with competitive exchange rates. It helps you manage income easily while reducing payment delays. Sign up or download the app to start getting paid with ease
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