BIR Updates : Freelancing

Topics:

CHANGE OF REGISTERED ADDRESS
CHANGE IN REGISTERED NAME
REQUEST FOR CERTIFICATE OF REGISTRATION
REQUEST FOR BOOK OF RECEIPTS

Just when I thought of leaving my regular office job and switch to a full-time home-based freelancer, I have prepared myself to do all the works of organizing my Government contributions and documents. Not to mention that I just recently got married so I also have to request for ID replacements and bank records updates. Truly when you get married, you will submit everything and lose your own identity! Lol!

In the year of 2014, that’s when I started working at home thru Odesk which is now UpWork. Way back then, and in the history of the Philippines, the Government has too little knowledge of a freelancer working home-based for an onshore client. So by saying that, most of the people I know who works in the same field, never updates their tax information. In short, we never pay our taxes. So that time, I only need a working PC, a reliable internet connection, a headset/headphone and a bank account that is acceptable to the Odesk platform for my incoming payments.

But now, four years later, everything has changed, really! Home-based works are now being known in the Government. They can now categorize you as  a “Professional” worker. Unlike before that you would have hard time explaining to a BIR representative on what you actually do. They cannot even call you a “Professional” but more of like a showbiz entertainer earning money for a certain project. I remember, when I was working on Kimpee’s BIR, he was a freelancer too. He was a Structural Detailer of a company based in the US. We wished to update his BIR to pay the right taxes so we can get an ITR to present whenever we wanted to acquire a property. But we had hard time explaining it to the BIR office. They can’t understand what Kimpee’s job. They asked for a contract or a letter from Kimpee’s employer as a proof that he is working for them. And that’s the only time that they can decide where to put him on their category list. We ended up leaving the BIR office and decided not to update it anymore until Kimpee got a regular job for the same field which now handles all his taxes and Government fees.

Due to the recent changes in the Philippine taxes, I could say that switching to being freelancer is more easier to handle in terms of updating your record in the BIR office. yes, it still tedious but you know your path this time. Plus, you can never run from BIR this time or else they will hunt you and face the consequence of not paying the right taxes.

CHANGE OF REGISTERED ADDRESS

So, my first step in working my tax information is to “Change my Registered Address.”
I have to switch from RDO 041 which is in Mandaluyong City to RDO 25A which is in Bulacan. Luckily, I don’t have to go to Mandaluyong just to request for this. BIR Plaridel Bulacan can process it for me but it could take longer. I was told that it could take up to 2 weeks instead of 3-5 working days. I’m not in a hurry thou, since I also need to update my ID’s as well. I also need to get a proof of residency which is part of the requirements of getting a Certificate of Registration in BIR. I’ll make a separate blog about this.

Switching from an old RDO to another RDO is quite easy. You will just have to do the following:

  1. Know your current RDO by calling the BIR or you can also go directly to any BIR office near you to check it.  – I had a bad experience in calling the BIR hotline number found in their website. So I ended up calling my previous employer to ask for my TIN’s RDO. read the whole story here.
  2. Once you get into the BIR office, you will need to fill out two copies of the Form 1905. One copy will be for BIR and the other is for your own copy.

Please see below image.

1.png

23.png

It’s very simple. You will just have to prepare for your TIN, the RDO where it is currently registered and the new address where you will work – this will be of course your home address. After the RDO is transferred to the new RDO, I will need to present the  documents needed to update my marital status and request for Certificate of Registration. The only problem I am having at the moment is I need to show an ID that will reflect my new address. I have requested for my UMID to be updated but that will takes at least 2 months to be delivered. I have my passport too but it has my old address. So I’m thinking what I can present to them to show my new address. Getting the digitized Postal ID takes up to 2 weeks to get. I will have to call BIR if they can accept a Police or Baranggay Clearance.

*This blog post will further be updated in every accomplishment done in every document and Government ID.

 

CHANGE OF REGISTERED NAME
REQUEST FOR CERTIFICATE OF REGISTRATION
REQUEST FOR BOOK OF RECEIPTS

 

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