Client country · AUD
Your client is in Australia. Here's what to know.
For Filipino freelancers who live in the Philippines and do the work here.
The short answer
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.
Where the tax goes
Who taxes your pay from a client in Australia?
If you live in the Philippines and do the work here, the income is generally taxed in the Philippines.
Doing work while physically in Australia, or setting up a business there, can change this. Get advice before you travel to work.
Before you get paid
Will anything be withheld?
Australian businesses must normally withhold a large share of a payment when a supplier does not quote an ABN.
The ATO says that rule does not apply to a payment to a non-resident who is not carrying on an enterprise in Australia. Foreign suppliers generally do not need an ABN unless they carry on an enterprise in Australia (for example, through an agent or branch there).
If a client asks for your ABN, explain that you are based in the Philippines. They may ask you to sign the ATO "Statement by a supplier not quoting an ABN" or give a similar written statement.
Paperwork
What clients commonly ask for
- ATO "Statement by a supplier not quoting an ABN" (if the client asks for it).
- An invoice for each payment with your name, address in the Philippines and the services provided.
- A contract or statement of work.
Consumption tax
VAT / GST
Australia has GST. When an Australian business buys services from overseas, any GST is generally dealt with by that business, not by you. Selling digital services directly to Australian consumers can bring registration rules, so check the ATO if you sell to individuals.
Getting paid
Common ways clients pay
- Bank transfer in AUD
- Wise (AUD account details)
- Payoneer
- PayPal
- Upwork, Fiverr or other platforms
Fees and exchange rates differ by provider and change often. Compare what lands in your account with the take-home calculator.
Common mix-ups
Myths vs facts
MythI need an Australian ABN to invoice an Australian client.
FactGenerally not, if you are not carrying on an enterprise in Australia. A written statement usually satisfies the client.
MythNo ABN means the client must withhold from me.
FactThe ATO says no ABN withholding does not apply to non-residents who are not carrying on an enterprise in Australia.
Your checklist
Before your next Australian payout
- BIR registration done
- Supplier statement ready if the client asks why you have no ABN
- Invoices show your Philippine address
- Peso value and exchange-rate proof saved for each payout
- Tax option (8% or graduated) chosen on your first quarterly return
Same for every client
The Philippine side
- 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.
- 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.
- 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.
- 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.
- 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.
Common questions
Do I need an ABN to work for an Australian client?
Generally no. The ATO says foreign suppliers generally do not need an ABN unless they carry on an enterprise in Australia.
My client says they must withhold because I have no ABN. Is that right?
Not usually. The ATO says no ABN withholding does not apply to payments to a non-resident who is not carrying on an enterprise in Australia. The client may ask you for a written supplier statement.
Do I pay tax in Australia?
Generally not when you live and work in the Philippines. You report the income to the BIR. If you travel to Australia to work, get advice first.
Tools for this
How much tax do I owe?
Self-Employed & Freelancer Tax Calculator
Compute your income tax under the 8% flat rate or graduated rates, with quarterly amounts and client-country warnings.
Open tool →
Upwork or Fiverr take-home?
Upwork & Fiverr Take-Home Calculator
From client rate to pesos in your account: platform fees, transfer fees, exchange rate and tax.
Open tool →
How much should I save each month?
Monthly Set-Aside Calculator
Know how much of each payout to set aside for tax and contributions so filing season is never a surprise.
Open tool →
Read next
Getting started
How to register as a freelancer with the BIR: a step-by-step guide for 2026
Registering with the BIR is the first step to freelancing legally in the Philippines. Here is what to prepare, how the process works online or at your RDO, and the mistakes that cost new freelancers money.
Read the guide →7 min read
Choosing your tax
8% flat rate vs graduated tax: which one actually saves you money as a Filipino freelancer?
The BIR gives Filipino freelancers a choice: pay 8% flat on gross income, or use the graduated tax table with optional deductions. The right answer depends on your income level and how many legitimate expenses you can document.
Read the guide →7 min read
Choosing your tax
How much should a Filipino freelancer set aside for taxes each month?
No one withholds tax from your freelance payouts, so a big bill can catch you off guard. Here is how to work out a set-aside amount, with a full ₱50,000-a-month example on both tax options.
Read the guide →7 min read
Sources: ATO: Payments you don't withhold from · ATO: ABN for non-residents · ATO: Statement by a supplier not quoting an ABN · BIR: Philippines–Australia agreement (PDF) · BIR: Philippine Double Taxation Agreements
Last checked October 19, 2026. General information, not tax advice. Rules change, and your situation may differ if you travel to work, hold another citizenship, or run a foreign company. Check with the client's tax team or an accountant.