Friday, February 15, 2019

Online Filipino Freelancers BIR Registration Experience (RDO 80) Tips, Tricks and Advise



This has been a grueling process for me but I finally did it. I'm sharing with you my experience. 

Take note: It is important to check which RDO you belong to. I belong to RDO 80. Each RDO has different requirements. I've checked several blogs, but requirements are different talaga. 


Address: 

3/F FRC Building, Subangdaku, Highway, Mandaue City (This is near Innodata) 



Phone number: Don't bother. They won't answer. 


Area of Jurisdiction:
Comprised of 3 cities: Mandaue City, Lapu-Lapu City and Danao City with 24 municipalities, namely: Asturias, Balamban, Bantayan, Bogo, Borbon, Carmen, Catmon, Compostela, Consolacion, Cordova, Daanbantayan, Liloan, Madridejos, Medellin, Pilar, Poro, San Francisco, San Remegio, Sta. Fe, Sogod, Tabogon, Tabuelan, Tuburan, and Tudela. The district shall be bounded as follows: on the South, by Subangdaku, Mandaue City. Crossing to the island of Mactan comprising of Lapu-Lapu City and Municipality of Cordova from Mandaue City going north until Daanbantayan, Cebu. From Sogod, southwestward to Balamban, from San Remigio crossing to the island of Bantayan comprising 3 municipalities, namely: Sta. Fe, Bantayan, and Madridejos, from Danao City crossing to the island of Camotes comprising 4 municipalities, namely: San Francisco, Poro, Tudela and Pilar.





Requirements: 

1. Professional Tax Receipt OR Occupational Tax Receipt (You can get them at the City Hall Treasurer's Office.) 
2. Photocopy of NSO
3. BIR Form No. 1901 Application for Registration (Can be filed manually, meaning: handwritten)
4. Photocopy of valid ID
5. BIR Seminar Certificate
6. BIR Form 0605 + Php 500 (Won't accept manual filing. Computerized or eFPs talaga) 
7. 2 pcs of Documentary Stamps Php 15 each (You can buy these at the collection area, together with paying your Annual Registration Fee). Note: If you are going to get the Sworn Declaration, buy another two pcs. of documentary stamp. 
8. Book of Accounts (1 Ledger and 1 Journal)  (You can buy these at National bookstore for Php 22 each.)
8. Acknowledgement letter from your company (if you belong to one.) 


Other requirements that I brought, but wasn't asked: 

- current bill with present address 


You will be asked to choose between 3% or 8 % tax

I absentmindedly chose 3% which was  a big mistake. I can't change it na so I have to wait for the next year to be able to change it. 

The difference: 

Accordingly to my shallow knowledge about this. (Corrections are welcomed!) : 


-If your annual income is Php 250,000 or below, you won't be taxed but you should submit kind of a form to BIR for that. (Kindly ask BIR for that kind of form)


- For 8 percent: if your income is Php 260,000 per year:

260,000
-250,000
-------------------
10,000 
x .08
-----------
800= this is the tax you will pay for the whole year

- for 3 percent: if your income is Php 260,000 per year:

260,000
-250,000
-------------------
10,000 
x.20
------------------
 2,000-= this is the tax you will pay for the whole year

Note: There's ample of information in the seminar. To be honest, I zoned out during the seminar. I should have listened. I found out too late that 8 percent is better for people who don't earn way beyond Php 250,000. Oh well, charge to experience. 






Tips: 


When to go?

- The BIR Tax Seminar for RDO 80 is every Wednesday at 1 PM to 2 PM.It could extend until 2:30 PM to 3 PM. I suggest you go there on Wednesday para isahan nalang. What I did was I attended the seminar while waiting for my number to be called. I arrived there at 9:38 AM and I my number was called at 4 PM. Imagine that!

Other suggestion: Since the Certificate of Registration (COR) will come out 3 business days after you register, I suggest you apply on other days and come back on Wednesday to attend the seminar and after the seminar, you will be able to get the COR. 

In my case: I went there on February 6, I attended the seminar on the same day and I got my COR a week after. I went there 5 minutes before 5 PM. They entertained me naman. Thank goodness!

Other tips: 

1. Photocopy everything beforehand (PTR or OTR, NSO, ID) Mahal ang photocopy doon, Php 2.50 each. 
2. Bring long bondpaper (Php 1.00 each if you buy outside) You will be asked to use the  Electronic Filing and Payment System (eFPS), which is located inside the BIR building. It's free but you have bring lond bondpaper. For less hassle, do the eFPS Form 0605 at home.  I printed the Form 0605 and I filled it out, but they didn't accept that. Dapat eFPS talaga for Form 0605. 
3. While waiting for your number to be called, you can pay for the Annual Registration fee (The Form 0605, Php 500 + 2 Documentary Stamps). Make sure that your TIN number is correct. If hindi, you will be penalized for that. (Penalty is Php 1,000) 
4. Photocopy the Annual Registration Fee receipt and the Form 0605 after paying. Submit one copy each to the Collection Center. 
5. Bring entertainment coz waiting is a pain in the ass.I personally downloaded "Kingdom" from Netflix and I was able to finish the whole season while waiting. Imagine that!



Getting the Sworn Declaration: 

I was asked to get this by our company. I asked for the form and I headed over to Attorney Arendain's office for notarization.  His office is located within the vicinity. You just have to ask. Cost of notarization is Php 200. Two documentary stamps are needed for this. You can buy these stamps at the collection area. 



Steps:

1. Get a priority number which is located outside BIR. There's a small window. You won't miss it. There's a long line for that. Ask the guard for guidance. 
2. Wait for your number to be called (Windows 1, 2 and 3)