Hi everyone, I’m a freelancer working as a videographer and photographer, and I’ve been wondering if I need to pay taxes. Here’s some context: I started freelancing in May 2023, but I took it more seriously this year. My income depends on projects, and it can go from as low as 15k to 50k per month. Last year, I earned less than 100k, and this year it’s a bit over 150k. Do I need to register with BIR and start paying taxes already? I don’t want any trouble down the line. Thanks in advance!
Yes, you should register with BIR as a freelancer. There are plenty of guides online for this. Since your income is below 3M/year, you can opt for the 8% tax rate, which also includes a 250k/year exemption. This means your tax liability could be zero, but you still need to file your taxes properly.
Vega said:
@Frankie
Thanks for this! Should I say I’m just starting now when I register?
If you’re not registered yet, do it ASAP. Any back fees can be dealt with later if needed.
Vega said:
@Frankie
Thanks for this! Should I say I’m just starting now when I register?
If you’re not registered yet, do it ASAP. Any back fees can be dealt with later if needed.
Got it, thank you!
A lot of freelancers assume they don’t need to pay taxes, but they’re wrong. You have to file your own taxes, and it’s a good idea to contribute to SSS too.
Noor said:
A lot of freelancers assume they don’t need to pay taxes, but they’re wrong. You have to file your own taxes, and it’s a good idea to contribute to SSS too.
That makes sense, especially in the long run. I’d hate for BIR to come knocking if they ever find out about my income.
@Vega
They won’t because of bank secrecy laws, but it’s still good to stay on the right side of things.
If you’re earning, you’re taxable. The amount depends on your income and expenses. Even if you don’t make money some months, your taxes are calculated yearly. Many freelancers skip filing, but it can limit you when you need things like receipts or proof of income.
Even if you only make ₱1 a month, you’re required to file taxes. Whether you owe money depends on your revenue and deductions.
Riley said:
Even if you only make ₱1 a month, you’re required to file taxes. Whether you owe money depends on your revenue and deductions.
Can you file taxes without being registered?
If you register with BIR, your taxes will depend on your quarterly income. When you register, just say you’re starting now to avoid being asked about past earnings.
Micah said:
If you register with BIR, your taxes will depend on your quarterly income. When you register, just say you’re starting now to avoid being asked about past earnings.
Do you think I should register ASAP? I’m 25, turning 26 soon, and I don’t want issues with my age being a factor.
If your annual income is under 250k, it’s not taxable. Anything over that is. For example, if you make 256k, only the 6k excess will be taxed.
Devi said:
If your annual income is under 250k, it’s not taxable. Anything over that is. For example, if you make 256k, only the 6k excess will be taxed.
So only the excess amount is taxed? Got it. Thanks for explaining!