Client country · USD
Your client is in the United States. Here's what to know.
For Filipino freelancers who live in the Philippines and do the work here.
The short answer
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.
Where the tax goes
Who taxes your pay from a client in the United States?
The IRS generally treats income from personal services as sourced where the work is physically done. Work you do while in the Philippines is generally foreign-source income for the US, which is normally not subject to US tax for a non-US person.
The treaty points the same way: income from independent personal services is taxed in your country of residence, unless you have a fixed base in the US, spend 90 days or more there in a year, or earn over US$10,000 for services performed in the US.
Different rules can apply if you are a US citizen or green card holder, travel to the US to do the work, or run a US company. Get advice in those cases.
Before you get paid
Will anything be withheld?
US payers must document who they pay. Without a valid form on file, a client or platform may withhold 30% of certain payments.
Giving them Form W-8BEN (for individuals) shows you are a foreign person. For services done outside the US, that generally means nothing is withheld.
If US tax was withheld anyway, first ask the payer to correct it with your W-8BEN. Recovering wrongly withheld US tax is slow, so fixing it early matters.
Paperwork
What clients commonly ask for
- Form W-8BEN: give it to the client or platform, not to the IRS. Use your Philippine TIN as the foreign tax ID.
- Not W-9 (that is for US persons) and not W-8BEN-E (that is for companies).
- An invoice for each payment, plus your contract or statement of work.
- A W-8BEN is generally valid until the end of the third calendar year after you sign it, unless your details change.
Consumption tax
VAT / GST
The US has no federal VAT. Sales tax is set by each state and is generally not something a foreign freelancer charges a US business for services. If a client raises it, ask them to confirm with their own tax team.
Getting paid
Common ways clients pay
- Upwork, Fiverr and similar platforms (they collect the W-8BEN in your tax settings)
- Payoneer or Wise USD account details
- PayPal
- Direct bank wire to a Philippine USD or peso account
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
MythSigning a W-8BEN means I am registered with the US or owe US tax.
FactIt only certifies to the payer that you are not a US person. It is not filed with the IRS and does not replace BIR registration.
MythMy client pays me in full, so my tax is handled.
FactNothing was withheld for Philippine tax either. You still file quarterly and annual returns with the BIR and pay the tax yourself.
MythI need a US tax ID (SSN or ITIN) to work with US clients.
FactMost Filipino freelancers leave the US TIN blank and use their Philippine TIN on the W-8BEN.
Your checklist
Before your next US payout
- BIR registration done (Certificate of Registration in hand)
- Form W-8BEN submitted to each platform or direct client
- Invoice issued for every payment
- Peso value and exchange-rate proof saved for each payout
- Tax option (8% or graduated) chosen on your first quarterly return
- Note when your W-8BEN expires
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 pay US tax if my client is in the US?
Generally no, if you live in the Philippines and do the work here. The IRS treats service income as sourced where the work is done, so it is generally not US-source. You pay income tax to the BIR instead.
What happens if I do not submit a W-8BEN?
The client or platform may withhold 30% of certain payments because they cannot document that you are a foreign person. Submit the form before your first payout.
Do I send the W-8BEN to the IRS?
No. You give it to the client or platform paying you. They keep it on file.
Do I still need to register with the BIR?
Yes. A W-8BEN only deals with US withholding. As a Philippine resident you register with the BIR, file quarterly and annual returns, and pay tax on your freelance income.
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
Clients & platforms
W-8BEN for Filipino freelancers: what it is and how to fill it out
Form W-8BEN tells a US client or platform that you are not a US taxpayer. Filling it out correctly generally keeps 30% from being withheld from your pay, but it does not replace your BIR filings.
Read the guide →6 min read
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Do you pay tax on Upwork and Fiverr income in the Philippines?
Money you earn on Upwork, Fiverr and similar platforms counts as business income in the Philippines, even if it lands in a foreign wallet first. Here is how to register, pick a tax option and keep records that hold up.
Read the guide →7 min read
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
Sources: IRS: About Form W-8BEN · IRS: Source of income, personal service income · BIR: RP–US tax convention (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.