A Comprehensive Guide to BIR Forms for Freelancers and Sole Proprietors

A Comprehensive Guide to BIR Forms for Freelancers and Sole Proprietors

As a freelancer or a sole proprietor, filing BIR forms and settling your taxes is your responsibility.

Knowing the right forms to secure and when they should be filed will save you from a lot of stress and penalties. So for today’s post, we’re giving you the ultimate list of BIR forms that every taxpayer should know.

Here we go.

BIR Forms for Freelancers

 

BIR Form 1701-AIF

This should be accomplished by self-employed individuals, estates, and trusts engaged in trade and business. This simply contains the taxpayer’s relevant information.

*BIR Form 1901 (Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts)

This form is for self-employed and mixed-income individuals, estates, and trusts. You have to settle this one to register your business to BIR.  

* Need a hand with Business Registration or updating of your COR? Click HERE

BIR Form 1900 (Application to Use Loose-Leaf / Computerized Books of Accounts and/or Accounting Records)

This is for freelancers and professionals who want to use loose-leaf, computerized books of accounts, or accounting records. You have to submit this to your RDO.

BIR Form 1906 (Application for Authority to Print Receipts and Invoices)

You should get this form first before you can print and issue receipts to your clients.

BIR Form 1701 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts)

This is for your annual income tax return. You have to file this on or before April 15 of each year.

BIR Form 1701Q (Quarterly Income Tax Return)

This must be accomplished by entrepreneurs, professionals, freelancers, and mixed-income earners. This should be settled quarterly.

Filing dates:
1st quarter: On or before May 15 of the current year
2nd quarter: On or before August 15 of the current year
3rd quarter: On or before November 15 of the current year

You can read more on how to file BIR Form 1701Q HERE.

BIR Form 2551Q (Quarterly Percentage Tax Return)

Under TRAIN, non-VAT freelancers must file their percentage tax on a quarterly basis. Instead of using the 2551M and filing it monthly, you’ll use the 2551Q.

BIR Form 0605 (Payment Form)

Every time you pay taxes and fees that do not require the use of a tax return, you have to use this. This includes second installment payment for income tax, deficiency tax, delinquency tax, registration fees, penalties, and advanced payments.

 

BIR Forms for Sole Proprietors

 

BIR Form 1901 (Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts)

Before starting your business, you have to register your venture to BIR through this form. If you’re about to open a new branch, you have to secure this as well.

BIR Form 1601-C (Monthly Remittance Return of Income Taxes Withheld on Compensation)

This is filed by every withholding agent or employer, who must deduct and withhold taxes from the compensation of employees.

Filing date:

January-November- On or before the 10th day of the following month

December- On or before January 15 of the following year

BIR Form 1601-EQ (Quarterly Remittance Return of Creditable Income Taxes Withheld-Expanded)

This is for employers who must deduct and withhold taxes from their employees’ income payments subject to expanded/creditable withholding taxes.

Deadline of filing and payment:
Not later than the last day of the month following the close of the quarter during which withholding was made.

BIR Form 1601-FQ (Quarterly Remittance Return of Final Income Taxes Withheld)

Employers file this form when they have to deduct and withhold taxes on income payments subject to final withholding taxes (i.e. payment of dividends).

Deadline of filing and payment:
Not later than the last day of the month following the close of the quarter during which withholding was made.

BIR Form 1603Q [Quarterly Remittance Return of Final Income Taxes Withheld (On Fringe Benefits Paid to Employees Other than Rank and File)

This is for employers who have to deduct and withhold taxes on fringe benefits their employees received.

Deadline of filing and payment:
Not later than the last day of the month following the close of the quarter during which withholding was made

 

BIR Form 1604E (Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Taxes)

This is for the taxes deducted on income payments that are subject to Expanded Withholding Taxes, or compensations that are not subject to withholding tax but subject to income tax.

Filing date: On or before March 1 of the following year

BIR Form 1604CF (Annual Information Return of Income Tax Withheld on Compensation and Final Withholding Taxes)

Private and government employers are required to file this return for compensations paid to employees that are subject to final withholding taxes.

Filing date: On or before January 31 of the following year

BIR Form 1606 (Withholding Tax Remittance Return (For Transactions Involving Real Property other than Capital Asset including Taxable and Exempt)

Withholding agents and buyers on the sale, transfer, or exchange of real property must file this form.

Filing date: On or before the 10th day of the following month in which the transaction occurred.

BIR Form 1900 (Application to Use Loose-Leaf / Computerized Books of Accounts and/or Accounting Records)

To be able to use loose-leaf, computerized books of accounts, or accounting records, you have to submit this to the RDO.

BIR Form 1905 (Application for Registration Information Update for Updating / Cancellation of Registration / Cancellation of TIN / New Copy of TIN card / New copy of Certificate of Registration)

If you wish to update or change your business’ information, you have to get this form. This includes the closure of business or transfers to another location or district. This is also used for Replacement of Lost TIN Card/Certificate of Registration.

BIR Form 1906 (Application for Authority to Print Receipts and Invoices)

Your business must secure this first before you can print and issue receipts or invoices.

BIR Form 1907 (Application for Permit to Use Cash Register machines/Point-of-Sale Machine)

If you tend to use cash register machines in issuing receipts or invoices, you have to get this file.

BIR Form 2305 (Certificate of Update Exemption and of Employer’s and Employee’s Information)

Whenever the employer or employee wants to update or change their information, they have to accomplish this form. This includes change of status, change in the type of employment, or acquiring employment after being registered as engaged in business or exercise of a profession.

BIR Form 2306 (Certificate of Final Income Tax Withheld)

This should be accomplished and issued by the employer to file the income subjected to final tax. It should state the total amount paid and the total taxes withheld during the year.

BIR Form 2307 (Certificate of Creditable Tax Withheld at Source)

This reflects the income subjected to expanded withholding tax settled by the employer. This serves as income tax credits or advanced income tax. It must be attached to the 1702 and 1702Q forms.

BIR Form 2316 (Certificate of Final Income Tax Withheld)

Employers must issue this to their employees as well. This certificate proves that employers filed and paid the accurate income tax on behalf of their employees.

BIR Form 1701 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts)

This is for individuals who are engaged in trade/business, professionals, freelancers, and those with mixed income.

Filing date: On or before April 15 of each year

BIR Form 1701Q (Quarterly Income Tax Return)

This form is for your quarterly income tax return. This must be settled regardless of your gross income.

Filing dates:
1st quarter: On or before May 15 of the current year
2nd quarter: On or before August 15 of the current year
3rd quarter: On or before November 15 of the current year

You can read more on how to file BIR Form 1701Q HERE.

BIR Form No. 2550M (Monthly VAT Return)

On a monthly basis, it must be filed Value Added Tax (VAT)-registered person and a person required to register as a VATpayer but failed to register. VAT is required for persons whose annual gross sales or receipts exceed the P3.0 million threshold.

Deadline of filing and payment of VAT return: (1) For manual taxpayers, not later than 20th day following the close of the month or (2) For eFPS taxpayers, 21st-25th day following the close of the month.

BIR Form No. 2550Q (Quarterly VAT Return)

The monthly gross sales or receipts reported in the 2550M and the 3rd month of the taxable quarter should be consolidated by the VAT-registered person in this return. VAT is required for person whose annual gross sales or receipts exceed the P3.0 million threshold.

The return must be filed and paid not later than 25th day following the close of each taxable quarter.

BIR Form 2551Q (Quarterly Percentage Tax Return)

Under the TRAIN Law, VAT-exempt taxpayers with annual revenues not exceeding P3M must file their percentage tax on a quarterly basis.For this, you have to accomplish the BIR Form 2551Q, which means the Form 2551M is out of the picture.

What do I have to do after securing the right form?

Once you accomplish the right BIR forms you need, you have to file them at the RDO office in your area. Keep in mind that the line is usually long at RDO offices so you might want to get there early. 

Luckily, there’s an online tool like Taxumo that can help you register your business and file taxes. No long lines, no fuss.   Just enter your income and expenses and Taxumo does the job for you – by auto-calculating your tax dues, and auto-generating your tax forms. With a click of a button, you can submit and pay for your taxes. 

 

Need help with business registration or filing your taxes?  Contact us at customercare@taxumo.com and check out taxumo.com!

 

You may also want to check out our other articles below:

Brand New 2551Q Form (Quarterly Percentage Tax) with 8% Opt In

How to File Quarterly Percentage Tax (BIR Form 2551Q) 

How to File Quarterly Income Tax ( BIR Form 1701Q )

Withholding Tax Table 2018 for Freelancers / Professionals OR How much should my client withhold?

How to Avail of the 8% Income Tax Rate on Gross Sales/Receipts

Tax Reform: How to Change from VAT to Non-VAT

Hungry for more? Visit our Taxumo blog HERE.  

 

File & Pay Taxes Online In Minutes!

Author Trish Rodriguez

Trish Rodriguez is a full-time consultant at Taxumo, and also serves as an Event Director of Manila Workshops.  She is passionate about entrepreneurship and helping freelancers and startups grow their businesses. You may reach her at trish@taxumo.com.

More posts by Trish Rodriguez

Join the discussion 12 Comments

  • Kay says:

    Hi. Can we already file quarterly tax return even if there are no revised forms available yet?

    • Alex says:

      Hi, BIR already posted their updated 1701q on their website. What is not clear, for those availing 8%, is Schedule II item 52. Do we deduct all 250k already for 1st quarter or do we divide it by 4?

    • Hi Kay, as of April 12, 2018, BIR Form No. 1701Q has already been updated and available for downloading in BIR’s website. It’s also available in eBIR. 🙂

  • Joy Dumaplin says:

    Tanung ko lang ng update ako ng cor to avail 8percent pagkakuha ko cor meron pa rin quarterly percentage tax may kaibigan ako ibang rdo tinanggal na percentage tax kahit quarterly. Mag file p b ko ng quarterly percentage tax?

    • Hi Joy!
      Unfortunately, deadline for the updating of CORs to the 8% option ( other words, no percentage tax) has passed. So if you weren’t able to update, and your COR shows that you are required to file quarterly percentage tax + quarterly income tax based on the graduated tax table, then yes you MUST file 2551Q. 🙂

  • steffi says:

    Hi po. ask ko lang po kung mape penalty-han ako if ung lumang form ung nagamit ko at nagmonthly ako (255M-Monthly percentage tax return) from jan2018-april2018. tapos po nagbayad ako ng 1701Q gamit din ung lumang form. di ko po kasi alam na kelangang i update ung COR.

    • EJ Arboleda says:

      Yes po may penalty po because BIR is expecting the 2551Q na. In a completely fair world, it’s not really our job to keep ourselves up to date on the ever changing rules and regulations of the BIR. Unfortunately, it’s not a fair world. If you use Taxumo, however, we’re always keeping ourselves up to date so your submissions are always going to be compliant with the latest Rules & Regulations. 🙂

  • Jo-Ann F. Figueroa says:

    gud am… please clarify…. is 8% the new thing? or it is just another option just like the OSD
    naguguluhan po ako,,, nagkaroon ng orientation about the train law sa opis ,,, and they that if you will use the 8% option need to reguster na ang deadline is march ,,,, at yung di mag register will still have to use the old one…
    ngayon ayaw tanggapen sa bank ang 2551m????
    tas naglabas nga ng version 7,,, pero the tax rate, old rate p den di pa adjusted to the new tax table
    ang labo di po ba?
    please enlighten me,,,,
    1st – 8% option is it mandatory
    2nd – if it is but your not able to register what is your other option
    3rd – accdg to bir personnel….if you use the 8%,,,, your computation of the 1701 for 2018 will be NI – 250,000 + Taxable income x 8% = tax due???? is the 250,000 your personal exemption? if it is where is ur expense???

    • EJ Arboleda says:

      Hi Jo-Ann – yes ang GULO. Haha! But we’ll try to clarify things as much as we can. 🙂

      1. 8% option is optional. In fact, if you don’t opt in, you’re “defaulted” to the Graduated (Table) Income Tax + Percentage Tax.
      2. See above. 🙂
      3. The 8% tax is computed on your GROSS income. So expenses don’t figure into the computations at all if you opt in for that. 🙂

      Hope that helps!

  • Jonathan Maglahus says:

    Hi, wala na po bang 2551M?
    hindi pa kami nagpapaupdate ng COR eh. paano po yun?
    thanks.

    • EJ Arboleda says:

      According the RR’s released by the BIR, there should be no need to update your COR to turn “monthly” into “quarterly.” Having said that, it would be most prudent still to check with your respective RDO whether you still need to do that.

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