A Self Employed’s Tax Filing Checklist


For those who have been employed and suddenly shifted to the freelancing world, it may get confusing at times on how this self employed tax returns to work. If you are already worrisome and panicking because it’s almost April 15, here are some of the tips that you should consider:

Receipts and Invoices Are Necessary

Quite often, people who are not issuing receipts, but it should always be issued for every service rendered or product sold. The Bureau of Internal Revenue specifically mandated that all receipts and invoices issued to the customer for every service rendered must be kept on file for 3 years for post auditing purposes too. Consequently, information like the serial number, your name, business, TIN, and business address should be readily available.

Well – Maintained Records

Self-employed tax payers should maintain books of accounts and he/she should preserve it for 3 years. This should be done in a consistent manner using any acceptable means. QuickBooks and Freshbook are some of the tools that you can use, but if you want something free. You can download Pocketbook and other accounting apps available on the internet. One word, it’s EASY!

If you have a quarterly income of P 150,000, unfortunately, you would have to be audited by a Certified Public Accountant (CPA). Annual income tax returns should be accompanied with balance sheets, profit and loss documents, and other attachments that can support your income tax return statement.

Kawang-Gawa” or Pro-bono Services

If you didn’t charge for a service, you still need to issue a receipt which has a 100 % discount note on it. Although easily overlooked by the government officials, there is no harm in including this information in your records. Actually, there will be harm if you don’t include them. Acts like these can be considered as fraudulent and can be contested to the BIR up to 10 years from its discovery. Just include it there.

Tax deductions“The Life Saver”

Don’t worry, there are tax deductions too. The Bureau of Internal Revenue gives considerations for self-employed tax payer’s career or business development, management, and operation. These include travel, rental, and entertainment expense.

Here are some of the documents that you need to produce so your tax deductions can be validated:

  1. Official Receipts
  2. Invoices
  3. Vouchers
  4. Bank Statements
  5. Debit or Credit memos

Registration Fees for the Self Employed

A 500 peso worth registration fee must be paid in the end of January. So, if you are reading this post and you are not yet paid, you are already late. You can visit this site for more information regarding penalties.

Online Payment

If you don’t have the time to painstakingly wait for your turn in able to just pay your tax, why not consider paying online. It’s easier, faster and definitely more efficient than the once you are used to doing. Better spend that whole day in doing business than waiting in line in order for you to pay your taxes. You’re a smart cookie, you’ll figure it out.

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