If you earn money from clients as a freelancer, the BIR treats you as a self-employed individual or professional. That means you need to register, even if your clients are abroad and pay you through a platform.
The good news: registration is simpler than it used to be. You can start online, there is no more yearly ₱500 registration fee, and you can pick the 8% tax option right from the start.
This guide walks you through the process in plain terms. Exact requirements can differ a little between Revenue District Offices (RDOs), so check the BIR website or ask your RDO before you go.
What you get when you register
Registration puts your freelance work on the BIR's records under your TIN. When you finish, you should have these in place:
- A TIN (Taxpayer Identification Number) — if you already have one from a past job, you keep it. You should only ever have one TIN.
- A Certificate of Registration (COR), also called Form 2303 — this lists your registered tax types and filing obligations.
- Registered books of accounts — manual, loose-leaf, or computerized.
- Invoices you can issue to clients for every sale of your services.
- Your chosen income tax option — the 8% flat rate or graduated rates.
Step 1: Fill out BIR Form 1901
Form 1901 is the registration form for self-employed individuals and professionals. You can file it in two ways:
- Online through ORUS, the BIR Online Registration and Update System (orus.bir.gov.ph). You create an account, fill in your details, and upload your documents.
- In person at the RDO that covers the place where you live.
Register with the RDO where you live
For most freelancers working from home, your RDO is based on your residence address. If your TIN is still registered under a former employer's RDO, you may need to transfer it first using Form 1905. Our guide on transferring your RDO explains how.
Step 2: Prepare your documents
The BIR asks for proof of who you are and where you live. Requirements can vary, so treat this as a starting list and confirm with your RDO or the ORUS checklist:
Common registration requirements (confirm with your RDO)
| Document | Who usually needs it |
|---|---|
| Accomplished Form 1901 | Everyone |
| Government-issued ID showing your name, birthday and address | Everyone |
| Proof of address, if your ID does not show your current address | Some RDOs ask for this |
| PRC ID and Professional Tax Receipt (PTR) | Licensed professionals, if applicable |
| Your existing TIN | Anyone who already has one |
Step 3: Choose the 8% option at registration
If your gross receipts for the year will be ₱3,000,000 or less and you are not VAT-registered, you can choose the 8% flat rate. It replaces both the graduated income tax and the 3% percentage tax.
You can signify this choice when you register, or on your first quarterly return. If you don't choose, the BIR puts you on graduated rates by default. Once made, the choice holds for the whole year.
For a purely self-employed freelancer, 8% is computed on gross receipts minus ₱250,000. If you earn ₱600,000 in a year, your tax is (₱600,000 − ₱250,000) × 8% = ₱28,000.
Missing the 8% election is a common, costly mistake
If you forget to choose 8% at registration or on your first-quarter return, you are on graduated rates for that year. That also means filing the 3% percentage tax return (2551Q) every quarter.
Step 4: Get your Certificate of Registration (Form 2303)
Once your application is approved, the BIR issues your COR (Form 2303). Check it carefully. It should show your correct name, address, RDO, and the tax types you need to file.
Keep a copy where you can find it quickly. Clients, banks and government offices may ask for it. If anything on it is wrong, ask your RDO to correct it right away.
Step 5: Register your books and set up your invoices
You need books of accounts to record your income (and expenses, if you use itemized deductions). You can use manual books, loose-leaf books, or a computerized system. Each type has its own registration steps, so ask your RDO which applies to you.
You also need invoices. Since the Ease of Paying Taxes (EOPT) Act, the invoice is the main proof of sale for services. It replaced the official receipt. If you plan to use printed invoices, they must be printed by a BIR-accredited printer with the proper authority. Your RDO can tell you the current process.
What changed: no more ₱500 registration fee
Freelancers used to pay ₱500 every year using Form 0605. The EOPT Act abolished this fee starting January 22, 2024. If someone asks you to pay it now, double-check with your RDO.
The EOPT Act also lets you file and pay taxes at any RDO or authorized channel, not just your home RDO. Registration, though, still belongs to one RDO.
Common mistakes to avoid
- Getting a second TIN. Having more than one TIN is not allowed. Use the one you already have.
- Waiting too long. Register when you start freelancing, not after years of earning.
- Forgetting the 8% election, then paying more tax than needed.
- Leaving your TIN under an old employer's RDO when you now live somewhere else.
- Not filing quarterly returns because you earned little. You still need to file, even with zero income.
- Not issuing invoices to foreign clients. Every sale needs an invoice, wherever the client is.
Bottom line
Register with Form 1901 through ORUS or your RDO, get your COR, set up your books and invoices, and choose 8% early if it fits you. There is no annual fee anymore. Once you're registered, run our compliance check to see if you missed anything.