A Comprehensible Guide for BIR Form 1901

  • Evan Tan 

What do you need to know about BIR Form 1901?

  1. The primary purpose of BIR Form 1901
  2. The people who need to file BIR Form 1901
  3. The steps you need to take to file the BIR Form 1901

Under the established TRAIN Law, all Filipino workers (aside from minimum-wage earners) are required to pay taxes.

That means yes,  even freelancers earning a certain amount need to pay their taxes.

Unfortunately, many people find it difficult to file and compute their taxes. They believe they are not properly equipped to do this on their own. If you’re not sure how much to file, there are online tax calculators in the Philippines that can help you do that easily.

But first things first: you must have all your BIR Forms in order. If you’re a freelancer, this entails properly filing your BIR Form 1901.

What’s the purpose of BIR Form 1901?

BIR Form 1901 is used to register self-employed individuals, mixed-income individuals, estates or trusts with start-up businesses, and business owners registering a new branch of their store.

Who needs to file BIR Form 1901?

  • Self-employed and mixed-income individuals
  • Freelancers
  • Employees who do freelance jobs as a sideline
  • Project-based employees
  • Estates and Trusts are also required to file the BIR Form 1901 when necessary.

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What are the steps to file BIR Form 1901?

Depending on which group you belong to, there are two different ways you can file BIR Form 1901.

Self-Employed and Mixed-Income Individuals

Along with a fully-accomplished BIR Form 1901, you need the following to file this form:

  • Any government authorized identification that clearly shows the name, address, and birthdate of the applicant. (NSO birth certificates, passports driver’s license, community tax certificate, etc.)
  • A photocopy of the Mayor’s Business Permit. If it’s still being processed, a duly received application for the Mayor’s Business Permit is enough. Along with this, you can also choose to include a Professional Tax Receipt. For those who are not required to have a PTR, an Occupational Tax Receipt is enough. Aside from them, you can also provide a DTI Certificate.
  • Payment proof of Annual Registration Fee (ARF).
  • BIR Form 1906 – Application for Authority to Print Receipts and Invoices
  • Final samples of Principal Receipts/Invoices

Once you have all the requirements, you can now apply for your BIR Form 1901.

Here is a simplified step-by-step guide:

  1. Accomplish both BIR Forms 1901 and 1906, then submit them together with the other documentary requirements in your Revenue District Office. (Tip: Have photocopies of all your documents readied. If you’re not sure about which RDO you should go to, it is the place where you applied for your TIN. When in doubt, call the BIR call center: 987-8888.)
  2. Pay the Annual Registration Fee (Php 500). Make sure that the payment form (BIR Form 0605) has the signature of the attendant. Also, some RDOs only accept payments through partner banks so it wouldn’t hurt to look for the nearest one beforehand.
  3. Afterward, you’ll be asked to pay for the Documentary Stamp Tax that will be needed for your documents. It is usually sold in the RDOs and costs only Php 15.
  4. Once all of the previous steps are done, the RDO will issue these 3 documents: Certificate of Registration (Form 2303), “Ask for Receipt” notice, and Authority to Print.
  5. Lastly, you are required to attend the taxpayer’s initial briefing that is conducted by the RDO for the new registrants.

The process of filing your BIR Form 1901 can be time-consuming depending on the volume of people in your RDO. It is also worth noting that different RDOs may have slightly different ways of handling this process.

Estates and Trusts

For Estates and Trusts, the procedure of filing their BIR Form is relatively easier and simpler. There are fewer requirements and even fewer steps.

Along with a fully-accomplished BIR Form 1901, the other documentary requirement is a photocopy of the death certificate of the deceased and judicial settlement for Estates; or a photocopy of the trust agreement for Trusts.

The process of this application is also as simple as handing over the documents.

  1. Accomplish the BIR Form 1901 and submit it with the required documents in the RDO that has jurisdiction over the registered address of the estate or the registered address of the trusts.
  2. Pay the Annual Registration Fee (Php 500) at the Authorized Agent Banks of the RDO.

Key Takeaway

Filing the BIR Form 1901 is usually a freelancer’s first step into the world of paying taxes. Once it is done, you can choose to do your taxes with the traditional pen-and-paper method or you could make your life easier with the help of an online tax calculator in the Philippines.

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