BIR Registration: Self-Employed Professional

I finally registered as a self-employed professional, which means, I will have to file and pay the monthly percentage tax (3%), among other payables. It’s kind of frustrating knowing that in my job as an online English tutor, my salary already gets deducted by 10%! However, in preparation for possible future travels that involve visas, I thought it was high time for me to do this. Adulting is hard huhu!

16298685_10154494630279332_2512577134591830960_n

Anyway, because I was employed for a few months before discovering RareJob, I first had to change my RDO – Revenue District Office. I did this on January 19, 2017. I prepared 3 copies of BIR form 1905 (Application for Registration Information Update) and for good measure, photocopies of 3 valid IDs as well (although the BIR staff didn’t ask for such, basta bring them nalang, just in case). I asked a former colleague from the finance department, and she said our old company’s RDO was 041 (Mandaluyong), but it was actually 43A (East Pasig, along Shaw)! Don’t be like me, guys! Make sure you have the right RDO to save time, money, and effort! Imagine, I spent almost 5 hours on the road just to get a stamp, which was completed in just 5 minutes! Ah well, lesson learned.

img_5939

To ensure that the change in RDO had already taken effect, I waited for a week (January 26) before going to my new RDO, 045 or the Marikina RDO. If you’re driving, don’t park within the RDO premises as you’ll have difficulty in getting out later. It is advisable to park on the sides of the road or maybe at the parking area of Blue Wave Mall, then just walk a little bit.

I was early, so when I got my computerized number (under “COR”), I was second in line for counter #2. When it was my turn, I presented the following documents:

Stamped BIR Form 1905 (original; they will provide a photocopy, wherein you’ll need to fill in just your name, TIN, and signature)

BIR Form 1901 (Application for Registration; 3 copies as well)

img_5935

RareJob Tutor Agreement (you can only view this if you’re already an RJ tutor; this is proof that we are contractors, not employees. The PDF link is on the bottom of the page)

Photocopy of my birth certificate (I brought the original, but the BIR lady returned it to me, so bring it pa rin just in case)

The BIR staff reviewed my documents, compiled them, gave me a few pieces of paper that looked like checklists, and asked me to fill in a form or two. She also checked my Form 0605 and input the registration fee, which is P500. Take note that new registrations and renewals can be done without any monetary penalty until January 31. If you fail to do so, there is a fine of P1,000, which will need a SEPARATE 0605. I was then advised to go to the “Officer of the Day” at the “ONETT” or “one time transaction.” You also need a computerized number for this, so make sure to get one before going to the separate ONETT room. When my number was called, the officer checked the docs and signed one of the checklist-like forms.

img_5936

As instructed by the counter #2 lady, I then went to the nearest accredited bank, which happens to be the BPI branch beside Save More Supermarket. It’s just a 5-minute walk from RDO 45, even less if you walk fast (I took my sweet time haha). I informed the guard that I will be doing a BIR-related transaction, and he gave me the corresponding deposit slip. I got a number from BPI’s BEA (Express Assist), waited for a while, submitted all copies of Form 0605, and paid P500. I was given back one copy each of Form 0605 and the BPI slip, which is now the official receipt. Make sure to have them photocopied – get 2 copies. There is a photocopying machine beside the ONETT room. I went back to counter #2 – I didn’t need to get another number because the BIR lady said so; just approach her counter lang daw once payment has been settled. She got all my docs, including a photocopy of the completed 0605 with the BPI OR and told me that I could already get my COR (Form 2303 – Certificate of Registration) the following day. However, I had to be somewhere else, so I returned on January 31.

img_5937

I was early again! 🙂 I presented the original copy of Form 1901 and submitted another photocopy of Form 0605 with the OR. I was asked to sign twice upon the release of my COR (they’ll ask you to check the details first). I then paid P15 for the documentary stamp, which was pasted on the lower left corner of the COR. Next, I completed 3 copies of Form 1906Application for Authority to Print Receipts and Invoices.

img_5938

It’s mandatory for my tax payer type to also register for and have 4 books of accounts: journal, ledger, cash receipts, and cash disbursement. I paid P200 for these, and I was told to get a number (under “Books of Accounts,” if I recall correctly) – counter #3. While waiting for my turn, I had to write my name, business name (also my name), and business address (my home address) on the first page of all the books. The lady at counter #3 signed them and made me label each one, and apparently, they are valid for 3 years. I am supposed to write down my expenses and other financial transactions, but I have yet to fully understand how these work.

img_5926

One thing left to do is to have receipts printed out, so I went back to counter lady #2 who gave me the option to have them made via her contact, which I accepted since I don’t know where else to get them. I will come back for the receipt booklets in 2 weeks. I was a bit shocked, though, as I’ll be paying P1200 for 10 booklets, which are good for 5 years. Ah well.

Before leaving, I was instructed to attend a seminar, which happens every Thursday at 9am, at least, in RDO 045. I will update this post as soon as I can or if I learn something new. Hope this is detailed enough for my fellow RareJob tutors!!! 🙂

I had help, by the way, thanks to Tutor NikkiB’s blog, which has a lot of entries about her tax adventures. I also did my own research and consulted with some CPAs and a lawyer about this. It sounds daunting at first, but the registration process is actually easy, especially if you have the complete documents and requirements. 🙂 The “real” ordeal begins when I start paying the monthly & quarterly taxes, but with the help of our fellow tutors, I know we can all survive this taxing aspect of being a home-based self-employed professional! Ganbatte! 😀

p.s. not yet a RareJob tutor? Join now! 🙂

Advertisements

10 thoughts on “BIR Registration: Self-Employed Professional

  1. Book of accounts?! I thought I’m done with accounting stuff already 😦 BTW, about the business name, is there a need to file something with DTI? And the receipts grabe 10 booklets! Andami ha!

    Like

    • Re DTI, in my experience, walang mention si BIR staff kahit isang beses. However, may ibang tutors na nagsabing pinapag-DTI nga sila. I guess it depends on the RDO. Oo nga eh, nagulat din ako, pero sabi ni ate, minimum of 10 booklets daw kasi talaga.

      Like

  2. This is so helpful thank you! I just want to ask regarding the Book of Accounts, did you buy them at the BIR office directly or can you buy them in a bookstore too?

    Like

  3. Hi teach! thanks for this! very helpful. Ako naman I’m thinking (pero urong-sulong pa due to money issues) na mag file na talaga not for travel / visa reasons pero baka need sa scholarship grant ng kiddo ko. University level na kasi sya by 2018 June. Sort of to prove lang na hinde malaki ang income ko at sigle mom ako kaya we seek financial educational assistance for college education. Yes narinig ko nga yang DTI registration kaya umurong din uli ako kasi ang laki na ng gastos. Meron pa nga pati Mayor’s Business Permit depende siguro sa RDO or sa city where the tutor resides. Imus, Cavite ako. Teach never pa ako nag file pero 5 yrs na ako with RJ this April 2017. Wala bang penalties? Or next year na ako mag file January 2018 siguro para fresh start tsaka hindi mahaba pila. What do u think? Thanks in advance mwaah! — Tita Marissa

    Like

  4. Hello teach. Thank you so much for this! Btw regarding sa reply mo sa taas, may idea ka ba kung mgkano ang penalty if in my case, I worked at several call centers before and then hindi nkapagfile sa BIR since I started working in Rarejob 2 yrs ago? Thanks!

    Like

    • Bale po after ng last call center employment nyo, never pa kayo nagdeclare na self-employed na kayo? In that case po, walang penalty unless hindi na-update ng last employer nyo ung BIR status nyo. Normally po kasi, pag may nagresign, inauupdate nila ung list. Kung updated naman, ibig sabihin, sa records ng BIR , unemployed po kayo for the past 2 years, which means no penalty rin if you decide to register next year.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s