how to get an ITR para sa mga homebased ang work?

[mommytaf]

@mommytaf - how much did you pay for an advisor? accountant ba? Hindi tinanggap kahit bank statement lang sa post paid phone application?


I have worked in accounting and filed taxes (in millions) of our company, though I have experience doing that thru efps or manual, I am still not well educated on filing my own personal taxes.  Even my accountant friends could not provide correct answers to my kind of business (online kasi).  At the end of our discussion, they just tell me, it's okay to file taxes since no invoices nor receipts are issued on my business.  But I want it to be legal, and of course all the benefits of having business papers. 

I bump into my college friend whose business is processing of taxes and licenses.  They have their own accountant and knows what to do with my case.  I hired them to processed everything except for the DTI which is online.  We are still waiting for receipts.  Everything has been filed.

These are the docs that he sent me. 

F0605
F1901
F1905
BIR Sign
Cert of Reg

Mura lang ang processing fee na binayaran ko, (frendz kami!).  Mas affordable and hassle free kasi kesa ako pa ang gagawa.  Mahal ang rate ko per hour. 

Gusto ko din nga online processing later on pag alam ko na ang pasikot sikot.  One step at a time lang muna.  Yung ITR daw next year pa.

HTH

[ReservoirDogs]

On those who simply file 1701 form, I couldn't find any who had written about that experience. I learned that through social networks like FB - it was a quite a healthy discussion like yours, but minus the "reaction".

...On the other hand, I also worry if we (me, and the other freelancers I've mentioned) are paying the wrong set of taxes all along. Or I ended up paying the wrong taxes because I told a "wrong" description of my freelance business?

I'm also a bit confused if I need to get a DTI registration first or kahit 1701 form na lang.  Anyway, my FMIL (future mom in law) is working as consultant at ADB, UP, and other NGOs, for more than 10 years now.  She's not employed with any organizations.  My fiance said na form 1701 ata fina-file ni FMIL; his mom is also not registered with DTI.

When my fiance had a research project at UP in 2010, he also filed his taxes pero form 1701 rin kasi 6 months lang naman yung research.  Di rin sya registered with DTI.  Sabi nya he filed as a "professional consultant".

I'll get detailed info tomorrow from FMIL so I'll update this thread.  I'm wondering baka if you declare na professional consultant, form 1701 lang sya. Anyway, I'm assuming lang din kasi first time ako magfifile ng tax.

[freelancer_babe]

@mommytaf - Di ko narealize na struggle din pala ang computation ng personal taxes din sa inyo. I guess the problem lies on how to fill-out that form.

@ReservoirDogs - I've asked BIR why I didn't need to be registered with DTI. I'll be using my own name daw kasi sa business. Kung gagamit ako ng separate business name, then DTI is needed. The job you declared has nothing to do with DTI registration.

[inchiqueko]

I think the confusion here comes mainly on whether a freelancer conducts his/her business as a business owner, or as a someone who considers himself/herself as "employed", although irregular and non-permanent, by the companies/business/individuals he/she works for.

[mommytaf]

@freelancer_babe: Uu. Struggle kasi wala pa akong alam.  My business is not named to me kahit na sole proprietor ako, kaya siguro kailangan ng DTI.

Let's see what happens this coming months...  Sana magprosper ang biz.

[scrapbookjunkie]

Mas lalo akong naconfused.  Di pa din ako nakapunta sa BIR pero before mag 15 April, pupunta na talaga ako.

[mhaceq5]

Hello everyone, we were referred here by mommytaf , she mentioned us in her previous post  (about the accountant she hired/college friend    ). 

Feel free to ask me questions about filing your taxes, maybe I can help clear some things. I still don't know everything though, I have only been working for my father-in-law (he owns the accounting office) for almost a year now, but I can ask them questions for you guys. They have been in business for more than 30 years.

[mhaceq5]

sis, sent you PM.  sana ikaw na ang kasagutan sa mga katanungan ko. 

Hi sis, saw your message, I've been trying to find the reply button or send you a PM but it seems the PM button is "missing" or maybe dahil new account pa lang itong sakin.

Is there any way I can contact you? an email perhaps?

[Baby Madeline]

@sis mhaceq5: Sis, also sent you a PM. Medyo nahiya kasi ako sa mga questions ko kaya I opted to PM you na lang.  Pahabol question, dun sa line of business na item, do I put none or I should put my profession? Thanks!

[mhaceq5]

For those that sent me PMs sorry po di agad maka-reply. Disabled pa kasi PM ko since newbie I sent an email na lang po for the replies.

Feel free to send me any questions and I will do my best to answer them.

Thanks

[cheaca]

I want to file my ITR also but I'm confused as to what ITR form I should use. I work as a writer for Odesk clients at times and recently I started working as an english tutor pero I earn lang when my student wants to have a tutorial with me. Should I file for 1701 or 1701Q? Thanks in advance to those who would help me.

[aspau]

I want to file my ITR also but I'm confused as to what ITR form I should use. I work as a writer for Odesk clients at times and recently I started working as an english tutor pero I earn lang when my student wants to have a tutorial with me. Should I file for 1701 or 1701Q? Thanks in advance to those who would help me.

pareho tyo sis, I also work through online sa odesk kasi nga homebased ang work ko. I dont know kung [textspeak!] dapat ifile sa BIR. Sana someone can help us.

[scrapbookjunkie]

am hoping to revive this thread dahil hanggang ngayon clueless pa din ako how to file. i did some freelance work last year and the company gave me a form 2307. gusto ko sana magfile this year attaching that form but am kinda clueless (actually, i think the term is scared on how to do it right). parang takot din ako pumunta mismo sa BIR kasi feeling ko  mukha silang pera lahat (although i know na you pay sa bank and not sa BIR). sa mga GTalkers na freelancer, baka you want to share on how you do it. or baka you can recommend an accountant (with minimal fee sana hehe ). thanks much!

[elai.santos]

Hello everyone, we were referred here by mommytaf , she mentioned us in her previous post  (about the accountant she hired/college friend    ). 

Feel free to ask me questions about filing your taxes, maybe I can help clear some things. I still don't know everything though, I have only been working for my father-in-law (he owns the accounting office) for almost a year now, but I can ask them questions for you guys. They have been in business for more than 30 years.

Hi sis, thank you. I have a question about my online shop. I sent you a PM. Thanks.

[immortalspider]

Thank you to sis freelancer_babe and freelancebuddy for the links you posted.  I didn't know that freelancers had the option of registering as professionals.  The only way I knew was the regular self-employed route -- DTI, mayor's permit, then BIR.  I don't want to register that way because I have no money for the fees (a fellow GT member once mentioned that she tried to get a mayor's permit in Quezon City for her online business and was told that she needed to pay P 10,000).

I've been wanting to work via oDesk for a long time now, but I wanted to get the BIR registration out of the way first (or perhaps this is just my way of procrastinating because I'm nervous about working through oDesk  ).  I spent a lot of time last week finding out how to register as a professional, and last Monday, I finally went to BIR to register.

Unfortunately, I was unsuccessful.  I tried to explain that I wanted to register as a professional, and that I didn't need a PTR since my profession didn't require a license (this is what I read at the freelancepinoy blog).  I said I was going to work as a writer.

The person I spoke with asked me what documents I had already submitted to the company.  I said I would not be working for a company, but that I would be self-employed.  When I said self-employed, he asked me if I had already registered with DTI.  I said I didn't need to since I was registering as a professional.  He asked if I had a PTR.  I repeated that I didn't need one since I don't need a PRC license to write. 

I read at the BIR website that the PTR is for professions that need a license, and the OTR is for those who don't, so I asked him if I needed an OTR.  He said he didn't even know what that was.  He also asked me if I needed to issue receipts.  By that time, I was starting to feel silly, as though I was registering even though no one told me I needed to.  Finally, he said I needed proof that I was working as a writer -- a contract or something.

I left empty-handed.  I had better luck at our city hall, because there I received detailed instructions on how to get an OTR.  The thing is, I'm not really sure I need one, so I didn't get one yet.

I don't know what to do.  I went over all of the available oDesk threads, and I read about the contract that you get when a client hires you.  How detailed is it?  Do you think I could just print that out to give to the BIR as proof?  I really want to register as soon as possible so that I can get an ITR next year.  Sorry for the long post.

[owstalaga]

Ayos 'tong thread na'to. Laking tulong din kahit papa'no.

[ikaela]

Ang haba-haba ng tinaype ni immortalspider, walang nag-reply. 

Just upping this thread to share that this is my work-around this whole freelancer without an ITR situation: open a brick-and-mortar business -- a gadgets shop, a clothing store, anything more easily understandable by our traditional Filipino taxation laws -- and file the proper forms for that one. Then use those forms for applying for housing loan, a credit card, a visa, and etc. Magpaka-totoo na, yun naman talaga mga reasons natin lahat bakit natin gusto ng ITR, and not because we feel morally obligated to feed those crocodiles and pigs in the government. 'Di rin naman natin kailangan maging 100% transparent with our finances when applying for things that require an ITR. Yun nga lang, opening a business, and one that earns a significant amount, is much easier said than done. But I thought I'd share it anyway.

Oh and I just came across this comment, which is possibly the most helpful guide on how we can file taxes as freelancers. He/she also mentions how we can declare an income of about 40k without having to pay taxes on it! : http://thefreelancepinoy.com/2012/08/taxation-online-trade/#comment-1413149132

[MissChievous]

Subscribing. Planning to quit the corporate world real soon.

[chelvin26]

Iba iba ng answers ng BIR, as what my friend said ( working sa BIR), you don't need to register it as a business etc etc. Nag iissue ka ba ng receipts sa client mo? mga ganon, I am considering myself kasi as employed pa din though homebased nga, tama si sis  @chicafabulosa, isang form lang submit yearly.

I am an accountant naman so I can compute my taxes, right away and knows how to lessen it.
Just my two cents.

[lgf08]

subscribing to this thread, for future reference.. thanks to all na nagbigay ng input..