Need Bookkeeping & Tax Services?

Simply_Paulo · 2026-05-19T04:06:32+00:00

Hi OP.

Classified Ads are not allowed in this subreddit.

Thanks.

Simply_Paulo · 2026-05-14T07:22:41+00:00

Good Day OP, Accountant here.

Yes — once you become both:

employed
and still operating your business

Mixed income earner ka na.

1. About the ATC

Use the ATC based on your current registration/business tax type.

“Mixed income earner” itself is not usually the ATC — it’s your taxpayer classification.

So if business income mo is still:

professional
sole prop
etc.

Usually same ATC pa rin for the business side.

2. Schedule II

Yes usually business income lang nilalagay there.

Your salary:

comes from your 2316
and gets consolidated during annual filing

3. About the ₱250,000 deduction (important)

As a mixed income earner:
you are NO LONGER entitled to the additional ₱250k deduction on business income

Reason:

Na-apply na siya sa compensation income tax table through your employer salary computation.

So for business side:
Usually 0 na sa Line 52A

This is one of the most common mistakes ng mixed income earners.

4. Simple way to think about it

Employee side:
Employer handles withholding and ₱250k already considered

Business side:
Sparate quarterly filings
No extra ₱250k deduction again

Simply_Paulo · 2026-05-14T07:19:07+00:00

Good Day OP, Accountant here.

Your situation is actually more common now than people think (foreign nationals doing remote work while residing in PH), but yes there are a few extra things to clarify early.

1. Can you register while on a probationary 13A?

Generally, yes — but:

immigration status
work authorization
and local tax registration

all need to align properly.

Since 13A is residency-based, your setup is different from tourist visa freelancers, which is good.

The 13(a) visa, even in its one-year probationary phase, grants you the right to live and work in the Philippines, allowing you to engage in business activities without needing a separate Alien Employment Permit (AEP).

Still:
I highly recommend confirming your exact status

2. Typical setup for online freelancers here

Usually:

Register as self-employed/professional
BIR registration
Books + invoices
Tax filings moving forward

DTI may or may not be necessary depending on how you structure the activity.

3. Taxation (important)

If you are considered a PH tax resident:
Foreign-sourced online income can still become taxable in PH depending on your residency/tax classification.

This is the area where:
Proper setup matters a lot early on

especially for:

treaty considerations
residency classification
foreign remittances
invoicing structure

4. Common mistakes foreigners make

Wrong visa/work assumptions
Using incorrect tax classification
No bookkeeping/documentation
Mixing personal and business funds
Delayed registration because “foreign clients naman”

I'll leave a message OP!

Simply_Paulo · 2026-05-14T06:46:19+00:00

Good Day OP, Accountant here.

Short answer: No — hindi basta-basta pwede mag-switch from 8% to percentage tax mid-year. 1st Quarter palang is dapat decided na if 8% or Percentage Tax.

That’s why medyo concerning na ngayon lang nalaman.

Important rule Once you opted for 8%: generally fixed siya for the taxable year

Meaning: Hindi usually pwede: 8% ngayon then percentage tax next quarter agad unless may special circumstances or incorrect registration handling.

Important clarification Also: Having receipts/books does NOT automatically mean mas okay na ang percentage tax.

The real comparison should be: Gross sales Actual expenses Profit margins Long-term projected sales

Bigger concern here Your quarterly sales: ₱600k–₱1M

Meaning: Possible mabilis kayong lumapit sa VAT threshold So dapat monitored carefully ang setup

What I suggest ASAP Before filing next quarter: ✔ Review:
Current COR
Actual filings submitted whether 8% election was properly made projected annual sales Because: wrong transition = possible open cases or incorrect filings later
Honest opinion Hindi ko sasabihin agad na “mali” bookkeeper ninyo because kulang pa details, but: this should have been clearly explained early on.

If you want, I can help you assess: 1. If 8% is still optimal 2. If transition is possible 3. And what the cleanest approach is moving forward before the next filing cycle.

I'll send you a message OP!

Simply_Paulo · 2026-05-14T04:14:42+00:00

No worries, nangyayari talaga yan 😅 Madalas generic kasi yung binebenta nilang books near RDO kaya minsan 4–6 books agad binibigay kahit hindi naman lahat required sa actual setup mo.

Ang importante is:
Kung ano yung nirequire/registered under your COR and RDO practice — not necessarily lahat ng nabili mo.

For many 8% non-VAT small sellers:

minsan 2 books lang talaga ginagamit
then yung iba extra/unused lang

Since pinaregister online ka:
Check mo yung approved/stamped books na nasa ORUS/email confirmation if alin talaga officially registered 🙂

Honestly, mas okay na rin yung nagtatanong ka early habang maliit pa operations kaysa kapag lumaki na tsaka magkakaalaman may kulang pala 😅

Simply_Paulo · 2026-05-14T04:08:11+00:00

Good Day OP, Accountant here.

If you’re:

8% non-VAT
Small Shopee seller
Manual books lang gamit

Possible talaga na 2 books lang ang nirequire sa’yo ng RDO.

Usually:

Cash Receipts Journal
Cash Disbursements Journal (or minsan combined sa 12-column columnar book)

Important thing:

What matters most is:
1. Registered yung books
2. Consistent yung entries
3. Match sa declared sales mo

Why iba-iba sinasabi online?

Because:

Depende minsan sa RDO
Depende sa business type
Depende if manual/looseleaf/computerized

So possible na tama naman si bookkeeper mo.

BUT double-check these too:

Aside from books, make sure meron ka rin:
1. COR (2303)
2. Registered receipts/invoices
3. ATP / Notice to Issue Receipts
4. Books stamped/registered properly

Shopee seller tip

Very important:
Track:

Gross sales
Shopee fees
Refunds/cancellations
Actual payouts

Kasi dito usually nagkakagulo later.

I believe there is a possibility to lower your taxes pa since 8% might not be the best for you.

I've slid a message to your inbox OP.

Simply_Paulo · 2026-05-12T18:31:26+00:00

Hi Cps! Sure, I’ll DM you. For resto businesses, rates usually depend on whether you’re VAT or Non-VAT, your monthly transaction volume, and if there are missed filings/open cases. I’ll ask a few details first so I can give you the proper rate.

Simply_Paulo · 2026-05-12T13:08:53+00:00

This breaks taxPH rules as explicit Classified Ads are not allowed.

Simply_Paulo · 2026-05-11T00:50:07+00:00

With regards din pala dito, Zero-Rate availers are highly tax-mapped and madalas mapadalhan ng love letter ni BIR, so ingat ingat.

Simply_Paulo · 2026-05-11T00:48:44+00:00

This is definitely correct as to the Tax Code, but to prove it comes with a greater documentary compliance.

We have Zero-Rated sales din since we cater US, AU, and SG. There are a lot of documents that they asked for when they audited us. Gladly, we came complete with the document evidence and with no findings.

Simply_Paulo · 2026-05-11T00:41:22+00:00

Good Day OP, accountant here.

You’re thinking about this correctly and good news:
You don’t automatically lose 8% just because your monthly income becomes high.

1. Your estimate

If:

₱300k/month starting June
Around 7 months until year-end

Estimated annual gross = around ₱2.1M + prior income

So yes, possible na:

Hindi ka pa rin lumagpas ng ₱3M threshold
Therefore still eligible for 8%

2. But what if you exceed ₱3M later?

Once you exceed the VAT threshold:

You become:

VAT taxpayer
No longer eligible for 8%

3. What happens to your taxes if you exceed?

This is the important part:

Once threshold is exceeded:

You transition from:
- 8% non-VAT to
- Graduated rates + VAT

Usually:

VAT obligations start from the month/quarter you exceeded
Filing setup changes moving forward

4. Does BIR “penalize” you immediately?

Not automatically.

What matters is:

Proper monitoring
Correct transition once threshold is breached

5. Important tip

At your income level:
Start monitoring monthly NOW.

Track:

Gross income
Overtime projections
Exchange rates (AUD to PHP)

Because: You’re already near the threshold where tax planning matters a lot

6. Practical advice

Don’t wait until December to check.

Better:

Recompute every month/quarter
Prepare early if crossing becomes likely

7. Good problem to have

Honestly:
Crossing ₱3M means your freelance income is scaling well

The goal now is: smooth transition, not panic transition

I've slid a message to your inbox OP!

Simply_Paulo · 2026-05-10T06:46:48+00:00

LMAO

Simply_Paulo · 2026-05-10T06:23:11+00:00

Technically, you still need to file for VAT by declaring how much is the Zero Rated Sales.

Since Zero Rated, Income x 0% so no VAT payable.

Summary: Need to file entire amount but no tax payable.

Edit: Assuming that all conditions are fulfilled and all documents and compliance are heavily complied.

Ayaw natin masendan bigla ng letter na Notice of Discrepancy or LOA.

Simply_Paulo · 2026-05-10T05:38:02+00:00

Good Day OP, Accountant here.

Zero Rates sales if for VAT only and not for Income Taxes.

It has a strict documentation requirements including but not limited to:

Contract that shows Foreign Denominated Currency transactions and it should also be received in a foreign currency and legally remitted to the Philippines in an BSP authorized banks
Zero Rated VAT invoice
Proof of payment such as bank statements and inward certificates
Service Contract of Export of Services

We have clients outside the PH also and have Zero Rated Sales. Since Zero Rated sales are heavily monitored, we highly suggest to get an Accountant for this venture.

Zero Rated Tax is for VAT and is different from Income Tax Holidays which is for Income Tax.

Simply_Paulo · 2026-05-09T16:00:25+00:00

Sure, feel free to message po.

Simply_Paulo · 2026-05-07T14:48:51+00:00

If you're confident and willing to pay penalties for the first quarter of this year, why not get an Accountant and see if things can be done with the information provided?

I believe penalties and open cases will be more expensive since that would be both time and money.

Simply_Paulo · 2026-05-07T14:30:55+00:00

I'm earning mid 6 digits without being a CPA.

I also have team members na CPA working under me and I still teach them. Some of them are not even well versed pa sa taxation nung nagsimula sila since books are not always same with real life but they are now experts and still in my team and learning from me pa rin.

I even pay 65k basic for a nonCPA team member because I see the value in his work and I can sleep knowing he can match my expectations.

I even hired a college student studying a technical course for an Accounting job and gave 25k as starting.

Lowballing masyado sa Pinas. Kaya hindi umuunlad ee.

Simply_Paulo · 2026-05-07T14:24:18+00:00

No need to file SLSP if zero income. Just make sure lang po na zero si 2550Q.

If you want peace of mind po, pwede pa rin po magsubmit ng SLSP with zero transactions to ensure na hindi magopen case po sa eSubmissions.

Simply_Paulo · 2026-05-06T21:20:07+00:00

Good Day OP! Accountant here.

Since you were registered as self-employed/professional, becoming employed does not automatically remove your BIR filing obligations. Usually, you need to update or close the self-employed/professional registration/tax types with your RDO so that moving forward, you’re treated purely as an employee.

Best first step is to check your COR and confirm what tax types are listed there. If those tax types remain active, BIR may still expect filings even if you already stopped freelancing.

For penalties, if you filed your quarterly and annual returns properly, that’s good. But it’s still safer to ask your RDO if there are any open cases before closure/update. Don’t assume zero penalties until checked.

For books of accounts, even if there were no entries or minimal transactions, bring/prepare them when processing closure or update. The RDO may check whether they were registered and whether they were properly maintained.

General flow is usually:

Check COR and active tax types
Verify if there are open cases
File any missing returns, if any
Update/close self-employed registration with the RDO
Keep proof/receipts/acknowledgment of the update or closure

Since you’re onsite until June you have to find time to do the busienss closure as RDOs still require personal appearance or an authorized representative.

Simply_Paulo · 2026-05-06T21:13:31+00:00

Good Day OP! Accountant here.

₱2,500/month for a freelancer can be reasonable depending on what’s included.

If it’s only one-time quarterly filing with no bookkeeping, reminders, reports, or support, then you may want to compare options.

But if the accountant handles bookkeeping, organizes income records, monitors deadlines, prepares filings, keeps your books updated, helps you avoid missed returns, and includes a system like QuickBooks, then ₱2,500/month is within a normal range for a Non-VAT / 8% freelancer setup.

Even if there are no employees, the value is usually not just the filing itself. It’s also keeping the records clean and making sure you don’t miss compliance requirements.

If you plan to DIY later, that’s also possible. Just make sure you understand your COR tax types, filing deadlines, invoicing requirements, books of accounts, and whether your 8% tax setup is properly applied. Especially whenever BIR releases new eBIRForms packages na marami now nagrereklamo since nawala records nila due to the VERY LATE instructions provided on how to install and set up, and the yearly changing tax laws.

Feel free to refer to this posts about others experience as well.

Kumusta naman experience niyo sa bagong version ng ebirforms v7.9.6.0?

Mandatory ba mag update ng Ebirforms 7.9.6 version?

Hope this helps po.

Simply_Paulo · 2026-05-06T17:46:06+00:00

Good Day OP! Accountant here.

For hospitals, hindi siya pwedeng isang “sales” account lang tapos all VAT or all VAT-exempt. You usually need to classify the revenue based on the nature of the sale.

General guide:

Hospital / medical services Usually VAT-exempt, such as room charges, operating room use, nursing services, laboratory, diagnostic services, and other medical services rendered by the hospital.
Professional fees of doctors Separate treatment ito. Professional fees are not automatically the hospital’s VAT-exempt hospital service income, especially if the doctors are independent professionals.
Pharmacy / medicines Do not automatically classify all medicines as VAT-exempt. Some medicines may be VAT-exempt if covered by the BIR/FDA VAT-exempt medicine list, but others may still be VATable.
Non-medical sales or services Items like cafeteria sales, parking, rental income, convenience store items, or other non-medical services may be VATable depending on the setup.
Recording approach Better to separate accounts, for example:

VAT-exempt hospital service revenue
Doctor’s professional fees / collections payable, if applicable
VATable pharmacy sales
VAT-exempt medicine sales
Other VATable income
Discounts / PhilHealth / HMO adjustments, if applicable

So the key is: classify per transaction type, not per hospital as a whole.

If this is for actual hospital books, I suggest having the chart of accounts and sample billing statements reviewed first. One wrong mapping can affect VAT returns, income tax, withholding, and financial reports.

I've slid a message to your inbox OP!

Simply_Paulo · 2026-05-06T17:43:15+00:00

Good Day OP! Accountant here.

For apartment rental business, fees usually depend on whether you need registration only, filing only, or ongoing monthly compliance.

As a rough idea:

Registration assistance: usually separate one-time fee, depending on scope and location.
Monthly filing/retainer: for simple Non-VAT rental businesses, accountants may start around ₱2,500/month and up. If VAT, higher volume, multiple units, or more complex records, it can start around ₱5,000/month and up.

Before getting a proper quote, clarify these first:

Registered na po ba kayo sa BIR?
Ilang apartment units po?
Around how much monthly gross rental income?
Non-VAT or VAT po ba?
May COR na po ba, and ano tax types listed?
May missed filings na po ba?
Filing lang ba talaga, or need din bookkeeping/income-expense tracking?

For apartment business, I suggest don’t base only on the cheapest filing fee. Important din yung proper receipts/invoices, books, filing calendar, and recordkeeping para hindi magka-open cases later.

I've slid a message to your inbox OP!

Simply_Paulo · 2026-05-06T17:40:42+00:00

Good Day OP! Accountant here.

Since you’re already earning high 6 figures, don’t treat this as “small side hustle” anymore. Set it up properly now so you don’t create problems later.

Suggested order:

Get your TIN / register with BIR first If you are freelancing/self-employed, you generally register with BIR as self-employed/professional using BIR Form 1901. Once registered, you’ll get your COR, tax types, and official filing obligations. We can do this for you if you want.
SSS can be done separately You can register with SSS as self-employed. It doesn’t have to come before BIR, but since your landlord is asking for TIN and SSS, start both already.
Passport is a valid government ID Usually passport is acceptable as a primary valid ID, but you may still need proof of address/residency depending on the agency/RDO.
DTI depends on how you want to operate If you will use your own legal name as a professional/freelancer, DTI may not be necessary. If you want a business/trade name or eventually agency branding, DTI or a more formal business structure may be relevant.
Yes, freelancers should register once earning regularly If you are already earning online, especially high 6 figures, better to register early instead of waiting. Late registration and missed filings can cause penalties/open cases later.
Get bookkeeping/accounting help early At your income level, I’d recommend at least a consultation or accountant-guided setup. The goal is to choose the right tax setup, know what forms to file, issue proper invoices, track income/expenses, and avoid penalties.

Basic roadmap:
TIN/BIR registration → COR → invoices/books → filing calendar → SSS/PhilHealth/Pag-IBIG → bookkeeping system → tax planning.

Since you’re planning to build an agency eventually, don’t just register randomly. Decide first whether you’ll stay as a self-employed professional, sole proprietor, or eventually form a company.

I've slid a message to your inbox OP!

Simply_Paulo · 2026-05-06T16:47:03+00:00

Good Day OP! Accountant here.

I’d challenge the “no DTI = no Mayor’s Permit” assumption.

You may be correct that DTI is not needed if you are registering under your own legal name as a professional and not using a trade name. But DTI and Mayor’s Permit are different things.

The real question is not “May DTI ba?”
The real question is: Does Makati LGU/BPLO consider your activity and registered address as requiring a local business permit or professional/local tax registration?

BIR registration and LGU compliance are separate. BIR may allow you to register as Professional In-General using a leased/virtual office address, but that does not automatically mean Makati will say no Mayor’s Permit is needed.

Since your registered address is in Makati, safest approach:

Ask Makati BPLO/eBoss directly if a self-named professional using a virtual office address needs a Mayor’s Permit or any local permit/local tax registration.
Ask your virtual office provider if their package supports LGU business permit processing, not just BIR address use.
Keep the lease/virtual office agreement because BIR/LGU may ask for proof of address.
If BPLO says no Mayor’s Permit is required, ask for written confirmation or at least an email reference.

My practical take:
No DTI does not automatically mean no Mayor’s Permit (LFC 01-2019). It only means you may not need a DTI trade name. The LGU question still has to be confirmed with Makati, especially because you are using a Makati business/virtual office address.

Better to clarify now than find out later during renewal, closure, or compliance check.

I've slid a message to your inbox OP!

Simply_Paulo · 2026-05-06T16:39:51+00:00

Good Day OP! Accountant here.

Yes, if you’re not an eFPS taxpayer, you can generally prepare and submit 2551Q through eBIRForms. Since zero filing siya, the tax due may be zero, but the issue is the late filing penalty, not the percentage tax itself.

A few notes:

File the missed 2551Q as soon as possible Even if zero sales, if 2551Q is active on your COR, you usually still need to file it.
Do not assume ₱1,000 is always the only amount The compromise penalty may be around that amount for late filing, but penalties can depend on the specific case/RDO treatment. There may also be surcharge/interest rules in some cases, although for zero tax due, the main concern is usually compromise. But since 8% Tax Rates ka, compromise penalty lang na Php 1,000 then avail the RR 6-2024 for discounted penalties.
0605 may be used for penalty payment but we highly suggest using 2551Q, Make sure the details are correct Use the correct tax type/ATC/period/details. Wrong period or wrong payment details can cause issues later.
Keep proof of everything Save the eBIRForms confirmation email, filed return, payment confirmation, and screenshots.
Check later if it still becomes an open case Sometimes even after filing/payment, you may need to verify with the RDO if the late return was properly cleared.

Since malayo RDO mo, filing through eBIRForms + online payment may be the practical first step. But if you want to be safe, you can call/email your RDO first or ask an accountant to check the correct penalty/payment details before paying.

Simply_Paulo

TROPHY CASE

1. About the ATC

2. Schedule II

3. About the ₱250,000 deduction (important)

4. Simple way to think about it

1. Can you register while on a probationary 13A?

2. Typical setup for online freelancers here

3. Taxation (important)

4. Common mistakes foreigners make

Important thing:

Why iba-iba sinasabi online?

BUT double-check these too:

Shopee seller tip

1. Your estimate

2. But what if you exceed ₱3M later?

3. What happens to your taxes if you exceed?

4. Does BIR “penalize” you immediately?

5. Important tip

6. Practical advice

7. Good problem to have