How To Become A Freelancer And Get Your Business Registered (Voice Artist)

How To Become A Freelancer And Get Your Business Registered (Voice Artist)

There's a myth floating around that independent contractors don't have to file taxes or register their firms. Many freelancers avoid these responsibilities because they don't know what they should be doing.

N.I.R.C. 1997 Section 74 mandates taxation of individuals receiving income from anywhere in or outside the Philippines.

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If you do any of the following, you are considered self-employed:

A small or home-based business owner who is a sole proprietor;

unaffiliated professional who engages in their field of expertise; or

Writers, athletes, and others who "(pursue) an art and make their living from it" are examples of those who "pursue an art."

Freelancers and home-based service providers are classified as self-employed workers by the Internal Revenue Service (IRS).

The following is a rundown of the BIR registration procedure:

Get your BIR forms together (either online or offline), as well as any supporting documentation you'll need.

Contact the BIR RDO (Revenue District Office) that oversees your company's address.

Use a BIR-accredited printer to get copies of your official receipts (or sales invoices, if applicable).

Send your books of accounts and the corresponding BIR form to be registered.

Freelance Business Registration Requirements

Prepare the following paperwork prior to beginning the registration process.

Your full name, address, and date of birth can be found on your NSO Birth Certificate.

if required, a Mayor's Permit

if necessary, a DTI Certificate of Business Name;

if applicable, the ID of the Professional Regulation Commission; and

Payment of the local government's Professional Tax Receipt (PTR), if applicable

When submitting your PTR payment, be sure to check with your RDO to see if there are any conditions. This is optional in some areas. It's possible that someone else will ask you to send this in on their behalf, or that an authorized representative will do it on your behalf.

Prepare copies of these documents in advance, just to be on the safe side:

A copy of the document proving your child's

Certificate of marriage (if you're married) and birth certificate(s) of any children you have

Identification as a resident of the location

An identification card that includes the owner's name, birth date, and signature

registration requirements are received and are being processed

Here's what you'll need to do once you've obtained these records:

Complete two copies of BIR Form 1901 (for individuals) and submit them to the RDO that has jurisdiction over the address of your company, along with the required attachments.. Having a Tax Identification Number (TIN) makes applying for a loan a lot simpler. If you're not sure which RDO your business will fall under, you can use the BIR's directory to your advantage (). If you're unsure of your RDO address, you can reach the BIR Trunkline at 981-7000.

Pay the P500.00 registration fee at any Authorized Agent Bank in the RDO using BIR Form 0605 (Payment Form). Make two copies of this form, one for your records and the other for the government.

In addition, you must pay a Documentary Stamp Tax of P 15.00 and a Certification Fee of P 15.

Attend a briefing for taxpayers in your RDO. In this section, you'll learn about your tax-related rights and responsibilities.

The BIR will issue you your TIN (if you don't already have one), the BIR Certificate of Registration (COR or Form 2303), and a "Ask for a Receipt" Notice after you've submitted all of your requirements (ARN). Keep an eye on the COR. It'll show the tax returns and payments that need to be made.

Instead of manually filling out BIR forms, you can use the Offline eBIRForms Package. Encode, edit, and validate your information all on the web with ease. When you pay your fees, please include a copy of your receipt in your submission. The printed forms can be submitted to your RDO once you've paid everything.

When attempting to obtain a TIN via the internet, use caution.

In order to use BIR's eRegistration system as a freelancer, you must be a sole proprietor or have a mixed income. If you're a worker, you should avoid it. Only employers have the ability to apply for new TINs online.

Keeping Track of Receipts and Other Financial Records

Your sales invoices and official receipts will need to be printed after you become a registered professional. Receipts are strictly enforced by the BIR. Getting your receipts on the same day that you process your registration is the best option.

The terms "receipts" and "invoices" are sometimes used synonymously. Do not be perplexed. If you're in the business of selling products, you'll want to send out invoices. ORs are required if you are providing a service. ORs are a requirement for independent contractors who provide a service.

the best way to sign up for an OR

Compile BIR Form 1906, or the Authority to Print (ATP) Official Receipts and Commercial Invoices, into three separate copies. BIR Form 2303 and 0605, as well as a copy of your Certificate of Registration (COR) from the Bureau of Indian Registration (BIR).

Your RDO needs to know what you need. It's possible that you'll have to wait up to two weeks before your ATP is released.

Send your ATP to a BIR printer that has been approved.

Allow a minimum of 10 to 15 business days for receipts to be made available to you.

When issuing receipts, keep the following in mind:

Serial numbers are assigned to receipts.

the professional's name, style, TIN and company address should all be shown on the receipt. Logos and other customizations can be added, but they require approval and increase the printing time.

Every time you make a purchase, give out receipts to the customer. In the event that you're handling a large operation, you'll keep three copies: one for the client and one for yourself. Keep all receipts for 3 years after the tax year has ended. Make copies of your receipts with carbon paper. Or, if you're feeling flush, you can always spring for a carbonized copy. This will save you from having to keep a supply of carbon paper on hand and from having to rewrite the same information over and over again.

There's a possibility that you'll also be required to send out billing statements. To bill a customer for services, send a billing statement. Once the client pays, send an order confirmation receipt (OR). Some customers specifically ask for billing statements, while others don't care. Uncertainty is the mother of indecision, so always order a billing statement if you can. As a result, updating your ATP and printing receipts won't cause any downtime.

You'll have to provide a collection receipt if your company sells goods. Give it to the customer when you receive payment for the goods you've delivered.

Adding your Accounting Records to the Public Domain

As a professional, you're also required by the BIR to keep books of accounts. These could be handled consistently by any acceptable accounting method (accrual or cash basis). These will be kept for 3 years after the end of the tax year for post-audit examination, just like your receipts. Allow yourself enough time to process them along with your registration and invoices.

BIR Form 1901 must be submitted.

The same RDO can stamp all of your books of accounts (journal/ledger, subsidiary professional income book, and subsidiary purchases/expenses book). Bring these books with you when you meet with them.

Obtain a Documentary Stamp for P15.00.

The process of registering a business is time-consuming, but once you're done, you'll be able to present yourself to clients as a legitimate company.