Short answer: yes. If you live and work in the Philippines, what you earn on Upwork, Fiverr, OnlineJobs or any other platform is income that the BIR expects you to report.
It does not matter that your client is abroad, or that the money sits in Payoneer, Wise or PayPal before it reaches your bank. For tax purposes you are a self-employed individual running a business or practising a profession.
The good news is that the rules for platform earners are the same as for any freelancer. Once you understand them, filing is routine.
Step 1: Register with the BIR
You register as a self-employed individual or professional using BIR Form 1901. You can apply online through ORUS (orus.bir.gov.ph) or at the Revenue District Office (RDO) that covers your home address.
The old ₱500 annual registration fee was abolished in January 2024 under the Ease of Paying Taxes (EOPT) Act, so registration itself costs nothing.
- Submit Form 1901 through ORUS or at your RDO
- Receive your Certificate of Registration (Form 2303)
- Register your books of accounts (manual, loose-leaf or computerized)
- Set up your invoices — under EOPT, the invoice is now the primary proof of sale for services
- Already have a TIN from a past job? Use Form 1905 to update your registration or transfer RDO
Requirements can vary by RDO
Documents asked for and processing steps differ a little between offices. Check with your RDO or the ORUS instructions before you go.
Step 2: Choose between 8% and graduated rates
Most platform earners can choose how they are taxed. The choice is made on your first quarterly return of the year (Form 1701Q or 2551Q), or when you first register. If you do not choose, you are placed on graduated rates by default. Once made, the choice is locked for the whole year.
Your two main options if you are purely self-employed
| 8% option | Graduated rates | |
|---|---|---|
| Who can use it | Non-VAT, gross up to ₱3,000,000 | Everyone |
| Income tax | 8% × (gross − ₱250,000) | 0% to 35% table, after OSD (40%) or itemized expenses |
| 3% percentage tax | Not due — the 8% replaces it | Due every quarter on Form 2551Q |
| Annual return | Form 1701A | Form 1701A (OSD) or 1701 (itemized) |
For many platform earners with few real expenses, 8% ends up cheaper and simpler. If your gross passes ₱3,000,000 during the year, you are moved to graduated rates for that year and the 8% tax you already paid is credited.
What about the platform fees?
Platforms take their cut before you see the money. Fiverr keeps 20% of each order. Upwork now charges a variable freelancer fee of 0% to 15% per contract, shown before the contract starts. These rates change often, so check your own statements.
The cautious approach is to treat the full amount your client paid as your gross income, and the platform fee as a business cost. That way your reported gross matches what the platform records show.
How the fee helps you depends on your tax option. On 8% or graduated with OSD, you do not deduct actual expenses, so the fee does not lower your tax. On graduated with itemized deductions, platform and transfer fees are deductible business expenses if you keep the records.
Practice on this point is not fully uniform. If your numbers are large, confirm the treatment with your RDO or a tax professional.
One Upwork payment, step by step
A client pays US$1,000. Upwork keeps a 10% fee (US$100), so US$900 reaches you. At an example rate of ₱56 per dollar, your gross is ₱56,000 and the fee is ₱5,600. Record both. Use the actual rate on your own transaction date.
Exchange rates: keep a paper trail
You file in pesos, but you are paid in dollars. The simplest defensible habit is to record the peso value on the day each payment is received or converted, using your bank or wallet statement.
Withdrawal fees and conversion spreads also eat into what you get. Payoneer charges 1.2%–4% to convert to PHP, Wise charges 0.49% plus US$0.56, and PayPal uses a 3% currency conversion spread. These are approximate and change often.
- Download monthly earnings reports from each platform
- Save your wallet and bank statements showing each conversion
- Keep a simple sheet: date, client, USD amount, fee, rate used, PHP amount
- Issue an invoice for each sale and keep a copy
- Store everything by month in one folder
W-8BEN in brief
Upwork and many US clients will ask you to submit Form W-8BEN. It tells them you are not a US person, so they should not withhold 30% US tax from your pay.
Filipinos working from the Philippines are generally taxable only in the Philippines on that income. The W-8BEN does not replace your BIR filings. You still register and file here.
Your quarterly routine
- 1701Q (income tax): May 15, August 15 and November 15
- 2551Q (3% percentage tax, graduated filers only): January 25, April 25, July 25 and October 25
- Annual return (1701A or 1701): April 15 of the following year
- If a deadline falls on a weekend or holiday, it moves to the next working day
Late filing costs more than the tax
Missing a return can add a surcharge, interest and a compromise penalty. Micro taxpayers (gross under ₱3M) get reduced rates, but it still adds up. File even if you owe nothing.
Bottom line
Upwork and Fiverr income is taxable in the Philippines. Register, choose your tax option early in the year, record every payout in pesos, and file on time.
Want to see what you actually keep? Run your numbers through the platform take-home calculator, then edit the fees to match your own account.