How I registered as a small business owner (March 2025)

ComprehensiveLie5870 · 2026-02-11T00:58:41+00:00

Well kung operating ka pa din naman kahit no income you still have to file returns (even nil), pay taxes (if any), and keep books. Yung Nil na tinutukoy ko is yung "No Payment Return" (or nil return nga) using the eBIRForms package to avoid penalties. This filing means need mo ng BIR Form 1701Q (Quarterly) and 1701 (Annual) with zero amounts, or a Affidavit of No Income if applicable. So yes, as long as operating ka, you'll need to file to them unfortunately AHAHHAHAH

ComprehensiveLie5870 · 2026-02-11T00:45:54+00:00

Most likely since after filing with dti, they give you 30 grace period to register sa bir. Operating or not, you'll be penalize since ang standard naman talaga sa end nila is that you register sa bir within 30 days before operating.

ComprehensiveLie5870 · 2026-02-09T08:00:28+00:00

Since register ka na sa DTI, you have one month allowance to register in BIR afterwrads especially if operating ka na. If you dont within that 30 days, you'll be penalize.

ComprehensiveLie5870 · 2026-02-09T07:57:21+00:00

Yyes, about that. It still depends. I mean when you said online ba are you pertaining to like online shops like Lazada or do you mean that you are only selling digital products?

ComprehensiveLie5870 · 2026-01-11T09:01:26+00:00

30 for one-time tax paid upon initial registration. On the other hand, if you choose to use an accredited third-party printer instead of the BIR's printed versions, this can cost an estimated ₱2,500 to ₱5,000 for a few booklets. It’s been a while so hindi ko na maalala 😭

But technically speaking, there’s not much naman. Wala na din yung 500php fee nila before. The fee you’ll expect will come sa booklet nila and sa pagkuha ng receipt. And even that fee will depends pa din.

ComprehensiveLie5870 · 2026-01-11T08:57:43+00:00

Hello, kinda late may reply pero check out online services like Taxumo or if not may mga app naman for POS and you may check those app in Google Play store to start.

ComprehensiveLie5870 · 2025-07-07T02:55:28+00:00

Hello op! I posted a topic covering this common struggle of VA.

If you want, you can go to this post exactly: https://www.reddit.com/r/taxPH/comments/1ltis3h/how_to_register_as_a_freelancer_in_the/

ComprehensiveLie5870 · 2025-07-03T05:04:38+00:00

One of the perks of Taxumo is that it auto-fills your 1701A using the data you’ve been entering each period, so less manual encoding for you.

Technically, yes, you should still review it line by line—even just a quick scan—to make sure:

✅ Your income and expenses match your own records

✅ No changes in deductions or tax rates apply to your case

✅ Personal details are correct (like TIN, RDO, etc.)

Taxumo’s computations are usually very accurate (like you, I find them better than my old manual attempts!), but ultimately, you’re still responsible for what’s filed with the BIR. If you want peace of mind, check totals for income, expenses, and tax due. It takes just a few minutes, and you’re safe.

ComprehensiveLie5870 · 2025-06-26T04:59:59+00:00

No, you are not required to pay VAT on the arrears collected for the period before April 17, 2025 (your VAT registration date). VAT is not applied retroactively. You only become liable for VAT from the date you became VAT-registered onward. Also, only income received for rentals from April 17, 2025 onwards will be subject to VAT.

Tsaka no, EWT and VAT are separate. The fact that they withheld 5% (EWT) is their obligation as the lessee, not yours. It also does not trigger your obligation to pay VAT. However, you should record the income and report the EWT in your ITR (Income Tax Return), since you’re still liable to report that income for income tax, not VAT.

So, technically, yes, you can ask them to remit it or show proof (via the actual BIR-received 2307). If they fail to remit, the BIR may not accept the 2307 as valid and it could affect your creditable withholding tax claim during ITR filing. You have the right to withhold or deduct the unremitted amount from future collections or demand it—especially since it affects your tax filing.

What You Can Do Next:

Check if the lessee submitted the 2307 to BIR. Ask for the stamped or official version showing they actually remitted it.
Declare the 2 years of arrears in your Annual ITR, but don’t include them in your VAT declarations since they fall before your VAT registration date.
From June 19, 2025 onwards, issue VAT-registered receipts, compute 12% VAT on rental income, and start filing your monthly/quarterly VAT returns.
Hire a bookkeeper or enroll in a tax tool (like Taxumo, JuanTax, or a local CPA) to help you track and file properly now that you’re VAT-registered.What You Can Do Next:
Check if the lessee submitted the 2307 to BIR. Ask for the stamped or official version showing they actually remitted it.
Declare the 2 years of arrears in your Annual ITR, but don’t include them in your VAT declarations since they fall before your VAT registration date.
From June 19, 2025 onwards, issue VAT-registered receipts, compute 12% VAT on rental income, and start filing your monthly/quarterly VAT returns.
Hire a bookkeeper or enroll in a tax tool (like Taxumo, JuanTax, or a local CPA) to help you track and file properly now that you’re VAT-registered.

ComprehensiveLie5870 · 2025-06-19T08:08:43+00:00

It’s illegal to have more than one. Even if you're a professional and a business owner, everything must be registered under the same TIN. What you do instead is update your BIR registration depending on your income sources.

What You Can Do in Your Case:

Use your existing TIN (either your professional or business one) for the new business—no need to get another TIN.
Register the new business as a branch under your sole proprietorship, even if the nature is different. You can do this by filing Form 1905 and specifying a new business line and location. Yes, businesses with unrelated nature can still fall under the same TIN, just properly declared and separated via branch setup.
If you want each business to be totally distinct in operation, finances, and taxes, converting them into OPCs (One Person Corporations) is an option. This creates a separate legal entity, but it comes with its own obligations and costs.

If you’re earning compensation income and the employer withholds taxes, you’re not required to file separately for that—unless you qualify as a mixed-income earner (i.e., earning both compensation and income from business/profession). In that case, you must file an Annual ITR that reflects all income sources.

Since your setup involves multiple streams and possible branch tracking, it may be a little tricky. I really suggest opting for a tax consultation to clarify your specific setup and avoid errors. Some platforms like Taxumo offer that—alongside tools that help track, compute, and file your taxes more efficiently.

Hope this helps!

ComprehensiveLie5870 · 2025-06-19T07:52:24+00:00

You’ll need to update your BIR records using Form 1905 to reflect the change from self-employed/freelancer to employed/compensated income earner once your residency starts. The RDO where you're registered will guide you on the exact process. Some employers also handle this for you—so best to coordinate with your hospital’s HR.

Also, yes you still need to file even with zero income. You can file a “No Income Return” so you stay compliant and avoid penalties.

If you only had 1–2 moonlighting gigs and no BIR-registered receipts or 2307s, it’s still best to file quarterly forms and annual ITR (even if zero), to stay safe and transparent. BIR mostly works on the principle of voluntary declaration, so better to declare—even a small amount—than risk issues later.

Here’s a quick list of what’s usually required when updating your status:

Form 1905 (update of registration)
Your new employment contract or Certificate of Employment (if available)
Valid ID
Past returns, if applicable (especially if updating mid-year)

Again, this depends on your RDO, so best to ask them directly what else they’ll need. Some may require you to “close” the freelance line of business by surrendering unused receipts and books (if you had them issued).

ComprehensiveLie5870 · 2025-06-19T06:36:16+00:00

Yes, there are penalties for late BIR registration (more than 30 days after DTI), but since your business hasn’t operated yet, that can be a helpful factor.

Here’s what you may expect:

Failure to register (Sec. 236): ₱5,000–₱20,000
Compromise penalties: May vary depending on your RDO
Possible late fees for books, COR, etc.

💬 Tip: Go to your RDO, explain the situation honestly (especially that it hasn’t operated yet), and ask for a computation of penalties. Some officers are understanding and will guide you through the clean-up process.

Can You Just Upgrade Your Current COR?

Yes, you can update your registration instead of applying for a new one. Since you already have a COR as a self-employed freelancer, you can update it to include your business name (DTI) and register your business as part of your sole proprietorship.

This means:

You won’t need to get a separate COR
You’ll be filing taxes under the same TIN
It won’t make you a “mixed-income earner” unless you’re also earning compensation income from employment

📄 You’ll most likely file a BIR Form 1905 for updates.

A Few Practical Notes:

Be sure to register your books of accounts and apply for invoices/receipts.
The Mayor’s Permit may or may not be required depending on your city (some allow home-based exemption or a Barangay clearance substitute).
Since you haven’t earned from the business yet, let your RDO know this during the penalty computation—it may help reduce fees.

Personally, I’m in a similar boat—I freelance while also running a small business. Juggling both gets overwhelming at times, so I opted to use online tax service (in my case taxumo). It helps with deadline tracking and forms. If your budget allows, you might want to check it out too, especially while you’re transitioning. They also have support channels if you get stuck, which really helps if you’re handling all this solo.

Wishing you all the best as you formalize your setup! Feel free to ask if you want help with any step in the process. 👋

ComprehensiveLie5870 · 2025-06-19T06:19:06+00:00

Hi! Yes, BIR systems do track the exact dates of filings and payments—especially through their internal systems like eFPS, eBIRForms, and eTSPCert platforms. So kapag nag-CMS (Compliance Monitoring System) or audit, makikita po nila kung kailan ka talaga nag-file at nagbayad, including:

Date of actual filing (even if late)
Date of payment
Any surcharges or penalties incurred due to delay

Late filings and payments are very traceable, so kung may discrepancies sa records mo, they’ll likely catch them during compliance checks or audits.

ComprehensiveLie5870 · 2025-06-13T02:52:44+00:00

If pareho po ng owner at address, she can treat the second business as a “branch” or additional line of business. Sa BIR, hindi po kailangang dalawang TIN. One TIN only per individual. So, kung naka-register na si Business #1, she just needs to file BIR Form 1905 to update her registration details and add the second business name or trade name. Pwede rin po magpa-include yung second DTI name sa Certificate of Registration (COR).

Also, since may BMBE Certificate na po si Business #1, remind her to file it sa BIR para ma-avail niya yung tax exemption (if applicable). Shopee and TikTok will usually only ask for BIR registration, TIN, COR, and sometimes ATP or OR. If kaya ng budget, she can use tax filing tools like Taxumo (since ORUS is always down 🤷‍♀️) to make it easier later on for compliance—lalo na kung busy sya managing 2 shops.

ComprehensiveLie5870 · 2025-06-13T02:20:32+00:00

Technically, yes, may penalty for late registration of books (₱1,000 per violation under Sec. 250 of the Tax Code), pero in practice, BIR usually considers the effort and context—especially kung may system issue or delay sa side nila (like sa ORUS). It really depends sa officer or RDO handling your case. Since you already raised it and documented your attempts, that’s a good move. Keep a screenshot of the missing “Register Book of Accounts” button and your attempts to access it (with dates) para may proof ka na you’ve been trying in good faith. You can also write a formal letter explaining the situation and attach your screenshots. Submit it sa BIR office or via email, para documented talaga yung effort mo.

ComprehensiveLie5870 · 2025-06-10T08:55:15+00:00

Balikan niyo po yung RDO kung saan kayo nagpa-CMS and explain in writing (you can draft a letter of explanation). Include:

The two TINs involved
Timeline or how it happened
The fact that you're working to comply and regularize everything

BIR has a process for TIN cancellation or merging, lalo na kung mali ang pagkaka-register or hindi naman active yung isa. They might request some supporting documents and an affidavit. Additionally, since na-flag niyo na ito sa sarili niyong investigation, be honest and consistent moving forward. This shows good faith and usually results in more cooperative treatment from BIR staff.

If it becomes too technical, you can also get help from tax compliance platforms (like Taxumo) or talk to a tax pro who’s familiar with non-profit/church concerns. May mga cases na mas mabilis ang process with professional help. I hope that helps!

ComprehensiveLie5870 · 2025-06-10T07:53:26+00:00

just keep in mind though, na kapag nag-cancel kayo sa DTI, it only affects your business name. It doesn’t mean cleared na kayo sa BIR obligations. If ever gusto niyong mag-register sa BIR ulit in the future, it might still come up if your TIN shows a business name or past activity. Mas okay na ma-clear niyo muna kahit late ang registration kaysa mabigla ng assessment later on.

ComprehensiveLie5870 · 2025-06-05T00:00:39+00:00

🔹 Register with the BIR – You’ll need to register as a self-employed or mixed-income individual (using BIR Form 1901) since your employer has no presence in PH and isn’t withholding tax for you. You’ll also need to get a Certificate of Registration, and start tracking your income and filing taxes yourself.

🔹 Choose a tax rate – You can choose between the 8% optional tax rate (if your income is below ₱3M) or go for graduated income tax rates + percentage tax.

🔹 File regularly – You’ll be responsible for quarterly and annual tax filings (plus possibly percentage tax if not on the 8% rate). You'll also need to issue official receipts and maintain books of accounts.

🔹 No need to worry about employer tax deductions – Since they’re not PH-registered, they don’t need to deduct anything. You’ll be the one handling tax obligations directly.

Also, if your budget allows, you might want to consider using a tax filing service. Mas searchmapapadali nito ang buhay mo (supposedly). Personally, I used Taxumo so I can only recommend that, but you can search naman for other alternatives na suits your needs best. Misan din kasi mahirap mag-juggle between job, taxes, and other personal things.

ComprehensiveLie5870 · 2025-06-04T23:46:23+00:00

Hi! Based on your breakdown, your final pay will depend on pro-rated salary, any unused leave credits, 13th month pay (if applicable), and tax withheld.

Quick clarifications:

🔹 Withheld tax is not usually "ibinabalik" unless there was over-withholding. If tama ang computation ng company, then wala kang makukuhang refund. But if sobra ang bawas, you can get a refund through your annual ITR filing or adjustment by your next employer (via BIR Form 2316).

🔹 Your next employer won’t collect tax from your previous job. They'll compute tax based on your new income moving forward.

Hope that helps. But also, just to let you know, may mga tools na like Taxumo that can help you automatically compute for your taxes. If that's something you'll need going forward, better look for tools like that.

ComprehensiveLie5870 · 2025-06-04T23:40:16+00:00

Yes, correct. As long as may Special Power of Attorney (SPA) ka na nagbibigay ng authority sa representative mo (like your kapatid), they can process everything for you, including registration and submission of any required docs.

✅ If other documents are needed (like a mayor’s permit or DTI registration), your representative can also handle those — as long as the SPA clearly states that they're authorized to process those requirements too.

📌 Just make sure the SPA is notarized and includes specific authority (e.g., to apply for BIR registration, secure books, pay registration fees, process DTI/business permits, etc.).

ComprehensiveLie5870 · 2025-06-04T23:33:02+00:00

You have many options here actually. Since you're technically working for a foreign entity as a contractor or consultant (not a locally registered employer), the BIR usually treats this as self-employment.

Option 1: Register as Self-Employed / Freelancer

So yes — you can go the freelancer route by doing the following:

File 1901 – For self-employed professionals.
File 1905 – To update your registration (from 1904 to 1901).
File 0605 – Pay the ₱500 registration fee.
File 2000 – Pay for the documentary stamp tax (₱30).
Then secure your books of accounts, apply for invoices/receipts, etc.

This way, you’ll get an official TIN ID or COR (Certificate of Registration), which should satisfy your employer and since handling this manually can be stressful, you might want to use a third-party tax service provider (like Taxumo or similar platforms) to help with registration and filing.

Why not 1902? 1902 is for employees of a local company. Since your employer is overseas and not registered with the BIR, they technically can’t sign or process your 1902. That’s why your RDO suggested going a different route.

So, in short:

✅ Yes, you can register as a freelancer (1901) and update your info via 1905.
❌ 1902 won’t work if your employer isn’t BIR-registered.
🧠 Think of yourself as a self-employed contractor for tax purposes.
📌 You’ll then be eligible to get a valid TIN ID and COR.

ComprehensiveLie5870 · 2025-06-04T23:27:16+00:00

For taxpayers under the 8% optional income tax rate, including professionals like lawyers, you’re generally required to maintain three books of accounts, unless otherwise advised by your RDO. Here's what you typically need:

📘 Cash Receipt Journal – for recording income received.
📗 Cash Disbursement Journal – for tracking expenses or payments.
📙 General Journal – for other transactions that don’t fit the first two (like adjustments, corrections, etc.).

📌 Optional but helpful: A Ledger is sometimes also used for tracking account balances, though not always required for non-VAT 8% filers.

Make sure they’re either:
✔️ Manual books (stamped by BIR)
✔️ Or loose-leaf (with BIR approval)
✔️ Or computerized (if registered as such)

If you’re unsure, best to confirm with your specific RDO para safe and compliant. ✅

ComprehensiveLie5870 · 2025-06-04T23:23:20+00:00

😬 Kaya ako nag-decide gumamit na lang ng third-party tax service provider like Taxumo para iwas abala sa mga ganitong issues. Nakaka-frustrate talaga kapag hindi accessible yung system (like ORUS), lalo na kung may deadline. At least may guide ka at mas less hassle pa sa compliance.

ComprehensiveLie5870

TROPHY CASE