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June 14, 2018

Printing receipts and books of account at BIR plus other tips| Part 2 of How to register as a freelancer

  • Posted By : prbsegovia/
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  • Under : Career, Personal, Photography

This is part 2 of How to register as a freelancer.

How to register as a freelancer at BIR and issue receipts | Part 1

Go visit that link if you want to learn the basics of registering as a freelancer at BIR.

OKAY I’m done with everything.

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Cool. Cool. Cool. Cool.

Since social media started making advertising cheaper and is disrupting traditional forms of media. Creatives are slowly being outsourced for projects to create relevant content on the internet. In the Philippines, particularly for creatives, it’s becoming a sort of gig economy. In fact there is a steady growth of freelancers and is a thriving industry thanks to the internet. I’m writing this so those who choose to be freelancers can start somewhere. Eventually price themselves properly. Because pricing is the bane of professional creatives–they always underprice themselves. So creatives are always in the losing end of the stick. “Palaging binabarat”.

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So what now?

After you get your COR (Certificate of Registration), you will have to accomplish a few more things within 30 days indicated on your COR.

  • Books of Account
  • Authority to Print (invoice/receipt)

BOOKS OF ACCOUNT

All of these things can be done on the same RDO where you registered your COR. Again, just make sure you have all the documents you have currently photocopied for verification. Line up to get your books of account stamped. You’ll fill up a form and depending on the type of business you’ll need to buy your own set of books. Luckily my officer only required two. FOLLOW INSTRUCTIONS.

What was required from me as a freelancer or a professional in general under photographic activities:

  • General Ledger
  • Journal

Some will need four depending on the nature of your business. Buy from your local office supply/bookstore.

ATP (Authority to Print)

Line up on the ATP desk and you’ll be asked to fill up basic forms. It was a breeze because my ATP guy processed everything including printing.
You’ll have to wait around 1-2 weeks to get your booklets printed. After all of these you’ll be able to do business as a creative professional.

TIPS

Be professional enough to be first name basis with your BIR desks officers
They’ll be there to help you process quick and easy. Plus having a genuine relationship with them will help you deal with your RDO in the future.

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Wear appropriate clothes
You don’t know how many times power dressing can significantly change how people perceive you, in malls, banks and establishments. Especially with security guards. They’ll make your life easier.

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Ask the right questions po and speak Filipino!
I’ve heard too many people ask dumb questions because they didn’t do research or call BIR prior to gather information.
Speaking Filipino eases EVERYTHING. I had observed a young lady millennial who was too “inglesera” for her own good. It didn’t go smoothly for her. The security guard wasn’t having it because she didn’t know which RDO she was going to. By the time she got to my RDO she was throwing a fit. She couldn’t understand the process and which desks to go, even the guy handing the ticket for the desks wasn’t having it. PURE ENTERTAINMENT. SO DO RESEARCH.

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Bring a pen. EVERY SINGLE TIME.
I minimize risk of getting sick by NOT touching other people’s pens, especially pens used in public. Those things are filthy. Buy a nice metal Parker and have it engraved. You’ll have the pride of signing documents with your own pen.

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Document cases are important
Those brown envelopes won’t work especially that it’s currently the rainy season. Get the legal sized plastic ones from the office supply sections. I use my leather one to keep all of my documents organized. Keep a small pocket sized notebook in there to record pertinent information.

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Photocopy all relevant documents 5-8 times
Have copies ready to attach and give. New forms should immediately be copied because your BIR officers will use these as reference.

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Hassle Free timing
When paying in the bank, pay in the morning because they have a cut-off period for accepting payments. When going to my BIR RDO I usually go on Thursdays or  Fridays where there aren’t a lot of people to deal with. I come around 3:30PM or 4PM when people stop showing up to fill the lines. It’s easier for me to process things, by 5PM I’m done. The office closes and I’m out of there.

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Carry 4-5K Pesos pocket money to pay for documents, photocopying, food and things you need.

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DON’T BE “THAT” CREATIVE

There are so many claim to fame creatives out there but don’t contribute! Time to pay taxes and do your part. Don’t be the dipshit who doesn’t want to pay taxes (That’s called tax evasion). Don’t be that person who destroys the creative industry because they don’t price themselves properly–let’s talk about that some other time.

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#LegalizeIt

The most important thing is to do everything legally. Getting registered and issuing receipts is the first step. The procedures may have slight variations at certain BIR RDOs so the best way to know is to go do it now and get registered!

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LET ME KNOW HOW YOUR EXPERIENCE WENT!

Comment below!

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Featured Photo by Nigel Tadyanehondo on Unsplash

Reach me through my contact page, facebook page or comment for any questions.
Oh! Don’t forget to follow me on Instagram! @patricksegovia  and subscribe to my newsletter!


May 28, 2018

How to register as a freelancer at BIR and issue receipts | Part 1

  • Posted By : prbsegovia/
  • 14 comments /
  • Under : Career, Personal, Photography

FINALLY the time has come!

I’ve quit my 4 year stint in publishing and have decided to become my own boss. I took it upon myself to hit the final nail in the coffin and bury the freelancer’s dilemma: How to register as a freelancer in the Philippines. I refuse to pay people  make someone “palakad my papeles.”

My knowledge from school won’t help; THANKS DEP-ED/CHED for not including adulting classes. Even Jesus can’t save me now. So I’ve turned to the internet!

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I’ve encountered too many photographers, graphic designers and general creatives who refuse to register, confused or are just freaked out by the whole ordeal–well some of them just don’t want to pay taxes, YIKES–and I can’t blame them.  It’s like everyone’s being left out because there isn’t enough information circulating when it comes to registering as a freelancer plus we all know how corrupt and shitty the government can be. I dedicated the whole month of May 2018 to do my research and register as a freelancer. Lets go through the whole experience.

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I started by doing some research on Google.

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Most articles talk about registering at DTI, getting the mayor’s permit and applying at BIR. This is the standard procedure. So I called BIR and asked them the proper process of registering for an official receipt. A guy answered and told me to just submit the following stuff I found on Google.  I caved and followed it so I registered my trade name at DTI and went over to the barangay to get a clearance.

I finished and received my DTI permit and barangay clearance in two days.

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The next step was to go to Makati city hall to get the mayor’s permit. I  talked to the business registration counter but before getting processed they told me to go all the way to the old building to get a locational clearance. That means I have to eventually pay for things I don’t need like sanitary permits, fire code stuff, and like you have to pay 12.50sq/meter for the locational clearance. I realized that the whole process was ridiculous because I didn’t have an actual office space to declare and I felt like the whole thing was rigged to take money away from me. NO THANKS! I REFUSE TO PAY FOR UNESSENTIALS AND MULTIPLE GOVERNMENT PERMITS I DON’T NEED.

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So I  went all the way to BIR Makati to get a list of requirements.

They handed me this.

I saw the options and started asking people online on how to register as a professional and verifying that with my own personal experience. There were so many conflicting opinions.

 

YOU NEED LGU PERMIT

 

NO NEED FOR LGU PERMIT

 

 

 

 

 

 

 

 

 

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I wasn’t having any of it.

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I turned to Google again.

Sadly there aren’t enough articles that talk about freelancers BUT I found this website.

How to Register as a Taxpayer (for Freelancers and Online Professionals)

 

 

 

 

 

 

 

The blog revealed a solution by registering as a professional.  Finally a facebook friend messaged me how he just registered himself as a professional. Thanks at Paelo! All you have to do is submit an OTR (Occupational Tax Receipt)?? or PTR (Professional Tax Receipt)??

Theres a list that summarizes where you fall under.

https://psa.gov.ph/sites/default/files/4publication.pdf

Multimedia Artist is under 3131. THAT’S ME!

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So I called Makati city hall and asked if they issued the OTR/PTR.

THEY DON’T.

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The level of frustration. I SWEAR.

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I called BIR again and asked if there’s a way to register as a professional. A lady answered at my RDO. Her name was Tina and I explained everything from registering DTI and all that shebang. Bless her patience!

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She enumerated all the things I needed to show her since I can’t give an OTR.

  1. Government issued ID’s or NSO Birth certificate. Basically any document that proves you’re a real person
  2. A contract from a company or business that proves you really are indeed a professional (instead of an OTR or DTI/Mayors Permit)
  3. BIR Form 1901 (Select Professional in General)
  4. Proof of payment of Registration fee (RF)

FINALLY I’M GOING PLACES

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REMEMBER TO PHOTOCOPY ALL OF THESE REQUIREMENTS.

Like 3.4.5.6.7.8 times just to be sure.

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OFF TO BIR I GO

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I submitted everything, paid my registration fee at RCBC Makati (an accredited bank), and gave Tina my all my documents.

She told me to comeback the next day and she’ll have everything done.

BTW attend the short seminar/talk.

They offer it at my RDO every 2PM Fridays. Its just in a conference room with some guy who can answer all of your BIR/accounting related inquiries.

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True enough I came back the next day (Friday) and all my documents were ready for the next step.

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All I had to do now was have my ATP (Authority to print) done so I can issue official receipts. So after photocopying the documents she gave me, she passed me on to the ATP guy just beside her.
The guy processed my papers and I was off to the “officer of the day” to pick which Tax Type under the new Train Law I’m going to apply for as a NON-VAT TAXPAYER (since I’m below the 1 million something earnings).

OPTION 1: PERCENTAGE TAX AND INCOME TAX
Percentage Tax 3% on Gross Sales/Gross Receipts for the quarter
Income Tax Use graduated income tax table on Net Taxable Income

OPTION 2: INCOME TAX ONLY
8% on Gross Sales/Gross Receipts for the quarter in lieu of Income Tax and Percentage Tax

I asked for advice from an accountant and my dad and they suggested I go with OPTION 2 because it’s easier to manage. The officer of the day pointed out the same option and applied me under professional/occupational code 7494 Photographic Activities. The BIR system was not updated for the Multimedia Artist code so she just put me under the activity I’ll be doing most.

There are a few things you have to understand. You are in a sense a business but you’re going to register as a professional instead of using a trade name. If you’re hiring employees then you’ll have to definitely register as a trade name and sign up for all those LGU permits. Here’s the formula

Professional service based = BIR
Sole-prop business = BIR + DTI(or SEC) + LGU + Other units like BFAD if you’re in the business of food, cosmetics or drugs

And that’s it!

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All I have to do now is wait for some two weeks to get my official receipts!
I’ll update you guys if anything comes up but for now, Imma get them projects rolling!

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READ PART 2 discussing Books of Account and ATP (Authority to print receipts)

Printing receipts and books of account at BIR plus other tips| Part 2 of How to register as a freelancer

Featured Image by rawpixel on Unsplash

Reach me through my contact page, facebook page or comment for any questions.
Don’t forget to follow me on Instagram! @patricksegovia  and subscribe to my newsletter!

 

 


April 1, 2018

Anvaya Summer

  • Posted By : prbsegovia/
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  • Under : Personal

Justin is celebrating his birthday at Anvaya. We left Manila around 10-11AM and arrived at Subic around 2PM. Funny how the Corvette was caught speeding, so I had time to take some photos of Subic Bay. The trip from Subic to Anvaya was a good 20 minute drive through zig-zag roads.

An immediate change of clothes when we arrived. Mandatory beach photos were taken at the private beach. We drove to the main beach around sunset. We had our dinner and a few beer and boardgames. I drove the ladies back to their resort. We headed back to our Casita for sleep.

We had our breakfast and morning dip. Went back to Subic for late lunch around 2-3PM and hurriedly went back to Manila. Drive took longer than expected as 2 major road accidents clogged a good part of Mexico Pampanga for about an hour. We got back to Manila by 6:30PM and I finally arrived home by 8PM. Damn Filipino drivers can’t fix themselves. Such inconvenience.

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January 4, 2018

Quick Tagaytay Trip

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Before I start working again, I took the liberty to join the mother side of the family. The titas of Manila and Laguna had convened at Taal Vista Hotel for a brunch overlooking the Taal Volcano.


January 1, 2018

New Year 2018

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New Year dinner at the roof deck. John, Cesar and JD. Pura Vida to cap the night. Had to rush to Early Night to meet up with other friends. We partied till dawn.


December 25, 2017

Holiday 2017

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The community is lit.

Dinner at the residence.

Served my special sangria.

  • Franzia Box
  • Anise in muscovado syrup
  • mint
  • lemon
  • Washington apples
  • straberries
  • seedless grapes
  • Valencia oranges
  • cinnamon

Anuj–a friend of my Teofilo cousin–visited from Canada and joined us.

Beer and boardgames.


December 1, 2017

Before the Year Ends

  • Posted By : prbsegovia/
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  • Under : Personal

Royalty launches at Toyo Eatery at The Alley, Karrivin Plaza.

Starts partying at Early Night

Finishing some work before the Holidays

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September 30, 2016

Protected: Dried

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  • Printing receipts and books of account at BIR plus other tips| Part 2 of How to register as a freelancer
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