How to Register as Self-employed or Freelancer?

To register as self-employed or freelancer in the BIR is a key step you need a to take not only to formally legalize it. It will also help avoid any future consequences for not doing so.

In our earlier article, 5 Benefits of Registering, Filing and Paying Your Taxes as Freelancer or Self-Employed, we mentioned that one of the benefits of registering as freelancer is to be able to have proof of income. And having proof of income gives you the ability to build credibility with your client as an accountable freelancer, increase access to bank credits, and travel document proof. You may read that article here.

In this article, you will learn how to register as a freelancer or self-employed, especially in the Bureau of Internal Revenue (BIR).

(Note: Original article was written in October 2023. Updated in May 2024 based on changes from RA 11976 – Ease of Paying Taxes Act (EOPT), BIR Revenue Regulations No. 7-2024, Revenue Memorandum Circular 14-2024 and 53-2024)

1. Prepare the Documents Required to Register as Self-employed or Freelancer

To register as self-employed or freelancer, the first step is to prepare the documents needed for registration.

Below is the list of documents needed:

• Valid Government ID that shows full name, address, and birthdate
• Proof of Address like lease contract (if renting) or property title (if owned)
• Fill-up BIR Form 1901, click here to download the latest version of BIR Form 1901 January 2024.
• Fill-up and pay BIR Form 0605, click here for guide. You may now skip this part. Per RMC 14-2024, effective January 22, 2024, the BIR will cease collecting Annual Registration Fee (ARF). As a result, business taxpayers are exempt from filing BIR Form 0605 and paying the P500 ARF for new business and annual renewal.
• Fill-up BIR Form 1906, click here for the latest version BIR Form 1906 January 2024.
• Manual Columnar Books for Journals and Ledgers. You may also register MPM Accounting Software for computerized books of accounts (CBA).

Prepare these documents in duplicate, in A4 or legal-size paper, for your copy and BIR copy.

2. Submission of Documents in the BIR RDO

Once you have the required documents ready, submit the following to the Bureau of Internal Revenue (BIR) Regional District Office (RDO) where your Barangay is located:

• Valid Government ID
• Proof of Address
• Filled-up BIR Form 1901
• Filled-up and paid BIR Form 0605

To know which RDO, you may click here. It’s a listing of all the BIR RDO and corresponding barangay covered.

Alternatively, you may also use the online facility of BIR such as ORUS, click here.

3. Pick-up your BIR Form 2303 – COR and NIRI in the BIR RDO

Ideally, once BIR accepted your application and documents, your BIR Form 2303 – Certificate of Registration (COR) is available within the day.

However, in most cases, you will wait a couple of days before you pick up your COR in the BIR RDO.

In addition, the BIR RDO will give you Notice to Issue Receipt and Invoice (NIRI) which serve as a reminder to issue official receipt to avoid legal consequences.

Once you have your BIR Form 2303 – COR and NIRI, make sure to display it on your office premises.

4. Apply for Authority to Print Receipt and/or Invoice

Once you have your BIR Form 2303 – COR, submit, and register your sales document, as follows:

• Invoice – this is a supplemental sales document used in billing customers or clients, if applicable. It is also known as Statement of Account, Billing Statement or Service Invoice. Skip this if not applicable. Per RR 7-2024 and RA 11976, Invoice is now the primary evidence to account for sale of goods, properties, service and/or leasing properties. This includes Sales Invoice, Commercial Invoice, Cash Invoice, Charge/Credit Invoice, Service Invoice or Miscellaneous Invoice. It is categorized into two: VAT Invoice (if VAT Registered) and Non-VAT Invoice (if Non-VAT Registered). As a primary document, it is mandatory to register Invoice if you are a freelancer or self-employed.
  
  
• Official Receipt – this is a mandatory sales document issued to customers whenever you receive payment for your service. It is important that you register and issue this sales document. Per RR 7-2024 and RA 11976, Official Receipt is now a supplementary document and no longer the primary evidence for sale of service or leasing of properties. As a supplemental document, you may or may not register an official receipt depending if you are using it or not in the course of your self-employment or freelancing.

To register your sales document, you will submit to BIR the following:

• Filled-up BIR Form 1906, click here for the latest version BIR Form 1906 January 2024.
• Sample Official Receipt or Billing Invoice Invoice (as primary) and Official Receipt (as supplemental, if applicable).
• Accredited Printers Document (you may skip this requirement by availing the service of BIR to print your sales document)

For a sample official receipt Invoice and complete process of registering official receipt invoice, you may read this article, “How to Get Official Receipt from BIR?”, click here. (Important Note: The process mentioned in this suggested article is still the same except that you don’t need to file and pay BIR Form 0605 Annual Registration Fee anymore and register Invoice instead of Official Receipt as primary sales document)

Once BIR accepts your application, normally it will take 2 weeks before you can pick up the printed OR Invoice.

After 2 weeks, follow-up and pick up the printed Official Receipt and/or Billing Invoice in your BIR RDO.

5. Apply for Registration of Books of Accounts

Last but also a crucial step is to register your books of accounts, such as ledgers and journals.

There are three types of books of accounts you can register in BIR:

• Manual – this is a columnar book journal and ledger which you can buy in office supplies store.
• Looseleaf – this is a printed version of your journals and ledgers. To use looseleaf, you need to apply for a Permit to Use (PTU).
• Computerized Books of Accounts (CBA) – this is a computer software aided books such as MPM Accounting Software. If it will be your official BIR Registered book, you need to inform BIR by submitting documents needed.

Based on the three types of books you can register in BIR, choose one and submit your application in your BIR RDO together with the documents needed. If you need help, we can assist you.

That’s it! You just learn how to register as a freelancer or self-employed in Bureau of Internal Revenue (BIR).

Just a reminder, once you are registered, make sure to do the following:

• Issue official receipt invoice for your sale
• Do proper bookkeeping and tax filing. If you don’t know how, you may join our free webinar “Bookkeeping and Tax Made Easy for NonVAT Individual Self-Employed, Freelancer or Professional” click here. Or you may simplify and do it efficiently with MPM Accounting Software, subscribe here.

If you do not have time to register or need help, we can help you. Just reach out to sales@mpm.ph or 09176243720.

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