A Guide to Freelancer Tax in the Philippines: What You Need to Know

Are you a freelancer in the Philippines wondering about taxes? In this post, we'll provide a guide to freelancer tax in the Philippines and cover the essential information you need to know.

March 15, 2023
The types of taxes you’ll pay as a freelancer in the Philippines

There are several types of taxes that freelancers in the Philippines may be required to pay:

  1. Income Tax: Freelancers are required to pay income tax on their earnings. The income tax rate ranges from 0% to 35%, depending on the freelancer's income level.
  2. Value-Added Tax (VAT): Freelancers who earn more than PHP 3 million in a year may be required to register for VAT and charge their clients VAT on their services.
  3. Percentage Tax: Freelancers who earn less than PHP 3 million in a year are not required to register for VAT but may be required to pay percentage tax. The percentage tax rate is 3% of the gross receipts or earnings from the freelancer's business.
How freelancers can pay taxes in the Philippines

To pay freelancer tax in the Philippines, follow these steps:

  1. Register with the Bureau of Internal Revenue (BIR). Freelancers are required to register with the BIR and obtain a Tax Identification Number (TIN).
  1. Keep accurate records. Freelancers should keep accurate records of their earnings and expenses to ensure that they are able to calculate and pay the correct amount of taxes.
  1. File and pay taxes on time. Freelancers are required to file and pay their taxes on time. The deadline for filing and paying taxes varies depending on the type of tax.
  1. Seek professional advice. Freelancers who are unsure about their tax obligations or who need assistance with filing and paying taxes may seek the advice of a tax professional.

That’s about it. Want an easier way to keep track of all the payments you get from clients? Then you might want to think about Panther…

Want an easier way to organize your invoices and receive payments? Tell your clients to use Panther

If you’re a contractor, you know how it goes: clients pay you on different platforms, use different contracts, and don’t keep everything organized. That makes things a headache come tax season.

So consider asking your clients to hire you through Panther. We’re the contractor hiring & payroll platform that makes it easy for your clients to hire you, compliantly, no matter where you live. Invoices are auto-generated and your clients can run payroll in a click—no excuses for late payments or manual work getting in the way.

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