Freelancers such as yoga teachers/fitness instructors, makeup artists, stylists, models, performance artists (actors), photographers, etc. oftentimes with the clients they have or the studios they teach in are required to produce an OR (official receipt). For most of us, doing government duties can be daunting and intimidating because we expect long lines, complicated procedures, and a lot of hassle. However, as responsible citizens, this is something that needs to be done and if you can do this at the beginning of your career, I really encourage everyone to do so.
Although the reason of doing the right thing may seem not as appealing, think of it this way. Having your business registered makes you more legit. It opens you to more job opportunities such as corporate clients or work in TV stations. Makeup artists who work in TV or movie productions/ ad agencies are required to produce an O.R. If you plan to also join bridal fairs, this is also required. Also, it makes you more legit. Sometimes makeup artists get bullied because people think this is just a "hobby" or not a real job (raise your hand if you have gotten this feedback). When you are registered honey, it is a legitimate real job recognized by the Philippine government, you pay taxes like any responsible citizen should.
So for those who would want to register their business whether they are writers or makeup artists, teachers, consultants, party or event hosts, I wanted to write this walkthrough. I am basing this article on my own experience and my own condition. Like I used to be an employee and want to be registered as a freelance self-employed consultant. If you would be having an employee status (i.e. have a regular day job) but would be say doing photography or makeup on the side, your situation may be different. Also, I am not a business or accounting graduate so everything here is spoken from personal experience with inputs from those with accounting experience or those who previously registered. This may also be the situation of most freelancers. Before starting do not panic. Panic will do nothing but just delay you. Also, have a mindset that it will be done and you are doing this for yourself and this will open you for better opportunities.
First of all, if you have an existing TIN number, you will use that. YOU WILL NOT AND NEVER WILL CHANGE YOUR TIN NUMBER. THAT TIN NUMBER YOU HAVE FROM YOUR FIRST JOB IS YOUR TIN NUMBER FOREVER. Again, my situation is that I was employed and now will work freelance as a self-employed individual. I know my TIN number so the next step is to find out what Revenue District Office (RDO) I am registered in. Now this will depend on your last employer. You can call their HR or Accounting department and ask. Or, you can go straight to the source, which is the
BIR Hotline, which is what I did and is usually most reliable. They will ask you a series of questions (name, birthday, mother's maiden name, etc). The only problem I have though is that the lines can get really busy so you just have to be patient. However, once you get through, the customer service representatives are very helpful and polite and answer all your questions clearly so really take advantage of the time they talk you and have a pen and paper and write everything down. Go to that RDO for Step 1.
Step 1: Update Your Registration Information
First off is that you need to know if your RDO would have to change. For self-employed freelance individuals, their registered address is the place of their residence. If you live in Taguig or Pateros, your new RDO would be Taguig. Gather necessary documents such as your birth certificate, 2 valid IDs, and marriage certificate (if applicable) and a working black ballpen. Download the BIR Form 1905 (Application for Registration Information Update/Correction/Cancellation) and fill it up in triplicate (meaning three copies) at the BIR website or you can just get from the guard in the RDO. Fill up the forms with your updated information. Go to the RDO you are registered in. You would usually be assigned a number and wait for your cue. Then submit your form 1905 along with supporting documents if necessary. The officer in charge would usually tell you what would be the RDO code for your new location. No need to pay anything since it's just an update. The update usually takes 3-5 business days but for nearby areas like say Makati to Taguig/Pateros, the update was instant. And from then on, all your business transactions with the BIR would be in the Taguig office.
Step 2: Register and Pay
Have all forms handy still and do not forget your 2 valid IDs, which need to be photocopied. Proceed to your new RDO and fill up a BIR Form 1901 (Application For Registration) in triplicate with your new information. Submit this to the officer along with BIR Form 0605 also in triplicate (Payment Form) to pay for your registration. Registration fee is Php 500.00 to be paid at accredited banks of your RDO. The BIR would give you a list of banks within the area you can pay. I suggest doing this early because there are certain banks with a cutoff with BIR payments.
Step 3: Submit and wait for your C.O.R.
Come back from the bank to your RDO and submit your BIR form 1901, photocopy of valid IDs, and a copy of your Form 0605 and proof of payment (deposit slip). BIR will also tell you to purchase two books of accounts (columnar notebooks). Some RDOs sell this outside, usually where the photocopying station is. I suggest just buy there. Then these would need to be stamped by the guard and fill up the information needed. Submit these as well and wait for your C.O.R., or your Certificate of Registration along with your stamped books of accounts, which can take 1 hour or 1 week, depending on the workload.
Step 4: Apply for Authority To Print
When you get your C.O.R., you can start having your receipts printed by accredited printers. So we then need to fill up a BIR form 1906 or Application For Authority to Print Receipts and Invoices. When filling up, ask the officer you are talking to if they know any accredited printers and they will recommend either a printing office nearby or there will be a manong representative from a printing office making tambay in the BIR playing games in his phone. Say hi to that manong and say that you want them to print your receipts. There's a provision in your 1906 form that they would need to fill up (printer's tin, name, accreditation, stuff like that). The printer would then need to produce a sample receipt to the BIR (that is why it is best to get a printer that your RDO knows). Once the BIR and you approve of the sample, then an authority to print would be issued and then there's a go signal to print your receipts.
Step 5: Get those Receipts Printed
Depending on your printer, your receipts can arrive in 1-2 weeks. Once you get your receipts printed, pay the manong, and then have your receipts approved and stamped by the BIR the same way you have your books of accounts approved. Some printers have their manong do it for them so they deliver the receipts to you stamped, approved, and ready for client use. Take note that these receipts are good for a good 5 years and if you need new receipts printed because you are bongga and have so many clients you may need to contact manong again.
After this, give yourself a pat in the back because congratulations, as this is your first step in becoming a responsible taxpaying citizen. It's not actually very hard and if you want, you can bring food, water, and snacks, or a book you've been dying to catch up on. I actually brought my crochet projects with me and I was actually able to finish a lot of my comissions with just fulfilling my BIR requirements.
Again, don't think of this whole thing as hard. Think of it as we are becoming more legit, doing the right thing for everyone in our industry not just ourselves. With this, the job we are in now becomes that real job. Have fun, good luck, and make things right.
Image Credits:
pexels.com
