Necessary documents when filing tax as freelancers

The Philippine Statistics Authority or PSA in the short term has released a statement
indicating that self-employed professionals or freelancers are the second largest class of
workers in the country for the year 2017. In fact, independent professionals dominate the
27.8% of workers in the country.

It may be tempting not to file your tax since you are working from home and it seems that
the salary is just enough for the daily expenses. But, paying taxes will benefit you in the
long run.

Here are the documents you need to prepare when you are about to file your tax as a
freelancer:

  • NSO Birth Certificate
  • An affidavit that includes your services, rates and other related billings.

If applicable, here are the other necessary documents such as the DTI Certificate of
Business Name, PRC ID, and payment of professional tax receipt.
Due to the TRAIN Law (Tax Reform for Acceleration) here in the Philippines, there are
exempted freelancers in paying tax.

1. If you have an annual income of Php250,000.00 and below, congratulations you are
exempted to the rule.

2. Php250,000 to 400,000 earners would need to pay at least 20% of excess over
Php25,000.00

3. For freelancers earning Php800,000 to Php2,000,000.00 you need to pay as much as
Php130,000 plus the 30% of exceeding the Php800.000.00

4. Php490,000 plus the 32% of excess over Php2,000,000.00 are required to pay as
your tax, if you are earning almost Php2,000,000 up to Php8,000,000

5. For earners with an annual income of Php8,000,000 and above, the tax you have to pay
is amounting to Php2.41 million plus the 35% of excess over Php8,000,0

Freelancers include the bloggers, virtual assistants, writers, web and graphic designers,
web developers and other individuals who are catering the clients with specialized
services.

Paying your tax is not an option but an obligation.

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