Registering as self-employed with the BIR is one of those steps a lot of Filipino freelancers and small business owners keep putting off. It feels like inviting extra paperwork and taxes into your life. In practice, being properly registered makes it easier to open a business bank account, issue official receipts, apply for loans, and file your taxes without the anxiety of knowing your business is technically running outside the system. This is how to do it.
Who needs to register as self-employed with the BIR.
Any individual earning income outside of formal employment needs to register. This includes freelancers, online sellers, professionals in private practice (doctors, lawyers, consultants, accountants), sole proprietors, and anyone running a home-based or online business. If you earn money from clients, customers, or business activities and no employer is withholding tax on your behalf, you are legally required to register and file your own taxes.
What you need before you register.
- Taxpayer Identification Number (TIN) – if you are already employed or were previously employed, you have one. If you do not have a TIN yet, you need to get one first through ORUS at orus.bir.gov.ph
- Valid government-issued ID
- Proof of address – a barangay certificate, utility bill, or lease contract works
- DTI Business Name Registration Certificate – required if you are operating under a business name rather than your own name. Available at the DTI OneStop Shop or online at bnrs.dti.gov.ph
- Mayor’s Business Permit from your LGU – required for businesses with a physical location
Purely online freelancers working under their own name and without a physical business address can register without the DTI and Mayor’s Permit in some cases, but check with your Revenue District Office as requirements vary.
How to register through ORUS.
The BIR’s Online Registration and Update System (ORUS) at orus.bir.gov.ph handles self-employed registration using BIR Form 1901. Here is the process:
- Log in to your ORUS account (create one if needed)
- Select Register Business or Register as Self-Employed
- Choose your taxpayer type – Self-Employed Individual or Professional
- Fill in your business details: name, address, nature of business or profession, and start date
- Select your tax types – for most self-employed individuals, this includes income tax and percentage tax or VAT depending on your expected annual gross receipts
- Upload supporting documents as required
- Submit the application
- Pay the annual P500 BIR registration fee through the ePayment portal
- Your Certificate of Registration (Form 2303) will be issued online through ORUS
8% flat tax versus graduated tax – which to choose.
One of the most important decisions when registering is choosing your income tax regime. Self-employed individuals and professionals with gross receipts below P3 million can choose between:
- 8% flat income tax rate – 8% of gross receipts above P250,000, in lieu of the graduated income tax rate and percentage tax. Simple to compute, lower paperwork burden. Ideal for most freelancers.
- Graduated income tax rate – taxed based on the tax table (0% to 35% depending on income), with the option to claim either the 40% optional standard deduction (OSD) or itemized deductions. Better if your business has high deductible expenses.
You indicate your choice on BIR Form 1901 during registration. You can change this election in January of the following year, but only once. If you are unsure, consult a CPA or tax consultant before deciding.
Official receipts and what to do after registration.
After registration, you are required to have official receipts or sales invoices printed by a BIR-accredited printer. You apply for the Authority to Print (ATP) receipts through ORUS as well. Once approved, bring the permit to an accredited printer to have your official receipts printed. You must issue an official receipt for every transaction – this is a legal requirement and the basis for your quarterly and annual tax filings.
You will also need to register your books of accounts (journal, ledger) with the BIR – these are available at bookstores and registered at your RDO or online through ORUS. Keep them updated because the BIR can audit them.
For more government guides, visit the Tutorial Hub.
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