Where are your clients?
Your client is abroad. Your taxes are here.
Pick your client's country to see what they may ask for, whether anything gets withheld, and what you still file with the BIR.
Pick a country
- Treaty in force
United States
If you do the work from the Philippines, the income is generally not US-source, so you give your client or platform a Form W-8BEN and pay your tax to the BIR.
Read the guide →
- Treaty in force
United Arab Emirates
The UAE has no personal income tax, but that does not make your pay tax-free: as a Philippine resident you still report it and pay tax to the BIR.
Read the guide →
- Treaty in force
Singapore
Singapore withholding tax on non-resident professionals applies to services performed in Singapore, so work done entirely from the Philippines is generally not subject to it.
Read the guide →
- Treaty in force
Australia
You generally do not need an ABN if you are not carrying on business in Australia, and an Australian client generally does not have to withhold from a foreign supplier like you.
Read the guide →
- Treaty in force
United Kingdom
UK clients generally pay overseas freelancers in full with no UK tax deducted, and a UK business handles any UK VAT itself, so your tax is with the BIR.
Read the guide →
- Treaty in force
Canada
Canada's 15% Regulation 105 withholding only covers services provided in Canada, so work you do from the Philippines is generally paid without it.
Read the guide →
Same for every client
The Philippine side doesn't change.
If you live in the Philippines, you are taxed on your income wherever the client is. These steps apply whether they are in New York, Dubai or Sydney.
Step 1
Register with the BIR
Foreign clients do not register you. File Form 1901 (via ORUS or your RDO), get your Certificate of Registration, register your books and issue invoices.
Step 2
You are taxed on worldwide income
Filipino citizens living in the Philippines are taxed on income from everywhere. Where the client is based does not remove your Philippine tax.
Step 3
Pick 8% or graduated rates
If your gross is ₱3,000,000 or less and you are non-VAT, you can elect 8% (on gross above ₱250,000) instead of graduated rates plus 3% percentage tax. Elect it on your first quarterly return of the year.
Step 4
Report in pesos and keep the rate
Record each payment in pesos on the day you receive or convert it, and keep proof of the exchange rate you used (platform statement, bank or e-wallet record). Use the same method all year.
Step 5
Foreign tax withheld? Keep the proof
If tax was withheld abroad, Section 34(C) of the Tax Code may let you claim a foreign tax credit, subject to limits. Treaty relief may need extra paperwork, such as a BIR certificate of residence. Ask an accountant before relying on either.
General information for freelancers who live and work in the Philippines, not tax advice. If you travel to work, hold another citizenship, or run a foreign company, get advice from an accountant.