Tax for Freelancers in Philippines
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uhm., there is really nothing to say except that Freelancers in Philippines are exempted! Heard that correctly — we really don’t need to pay anything. This is according to a personnel in the BIR office in San Fernando City, Pampanga(I visited their office just this August 2009). That person pointed out that if we are not an employee of a legitimate company nor do we have business permit approved by DTI then we don’t have to pay anything. So I guess I should not be guilty of not paying at all. Works for me!
Some people asks me why the hell do I want to pay my tax?? I guess for dumb reason that I want to contribute to the government so some government officials can buy new clothes, houses and cars for their own profit AND to get a proof that I am a good paying citizen. I know, crazy reason but atleast it was already confirmed that I am not oblige of anything and nor any freelancers out there. Ain’t that cool??
6 Comments
rachel on August 25th, 2009
Can you describe the process for paying taxes as consultant? What form did you use? On what date are you paying? I asked the representative of BIR how to pay for taxes as consultant but he did not gave me any information.
Jed on August 25th, 2009
We hired an accountant or taga lakad so I really don’t know the process. The form is Annual Income Tax Return 1701. This was last April 2009. Next filing of ITR would be next April 2010.
jojo siao on August 26th, 2009
Ganun nga talaga kasarap ang buhay ng freelancer!
walang tax.
hannah on September 8th, 2009
hmm…mag-fulltime freelance na rin kaya ako la..hahahha..hindi naman ako nakikinabang sa taxes na binabayaran ko. Imagine, I’m forcing myself to work and pay taxes pero wla akong nakikitang benefit sa BIR contribution ko.
rachel on September 8th, 2009
@Jed, thanks for the info. I’ll see if I can ask some accountants about that info.
@jojo, oo nga. masarap pag walang tax. haha
@hannah, lol.. why not.
Jed on August 25th, 2009
Hi,
I think we are not obliged to pay taxes because our company which we work for is not based in RP. So if we pay here we are subjected to double taxation. However, for 2008 I paid my taxes (ITR) as a consultant which is around 15% of my gross because of our housing loan requirements.
Jed