How to Register as Self-Employed/Professional (Form 1901)
If you are a freelancer, licensed professional, sole proprietor, online seller, content creator, or commission-based worker earning income on your own, you are required to register with the Bureau of Internal Revenue (BIR) using BIR Form 1901. This guide walks you through the entire process -- from preparing your requirements and filing Form 1901 to receiving your Certificate of Registration (COR), registering your books of accounts, and understanding your tax obligations after registration.
Self-Employed Registration at a Glance
Processing Fee
P500 Annual Registration Fee (BIR Form 0605) plus P30 Documentary Stamp Tax (DST) for loose-leaf books of accounts. Additional fees may apply for printing of official receipts/invoices.
Processing Time
1 to 3 working days from submission of complete requirements. Some RDOs may issue the COR on the same day if all documents are in order.
Key Fact
BIR Form 1901 is specifically for self-employed individuals, mixed-income earners, estates, and trusts. It is different from Form 1903 (for corporations and partnerships) and Form 1902 (for employees).
Who Needs to File BIR Form 1901?
BIR Form 1901 is the registration form for individuals who earn income outside of regular employment. If you fall under any of the following categories, you are required to register with BIR using this form:
Freelancers & Digital Workers
- Freelance writers, graphic designers, web developers
- Virtual assistants and remote workers
- Online sellers and e-commerce entrepreneurs
- Content creators, vloggers, and influencers
- Commission-based agents and brokers
Licensed Professionals & Sole Proprietors
- Lawyers, doctors, dentists, and accountants
- Engineers, architects, and consultants
- Teachers and tutors with private practice
- Sole proprietors with DTI-registered businesses
- Mixed-income earners (employed + self-employed)
Requirements for Registration
Prepare the following documents before visiting your Revenue District Office (RDO). Having complete requirements from the start will help you avoid multiple trips and speed up processing.
| Requirement | Details |
|---|---|
| BIR Form 1901 | The official registration form for self-employed individuals and professionals. Can be downloaded from the BIR website or obtained at any RDO. Fill out all applicable fields accurately. |
| TIN (Tax Identification Number) | If you already have a TIN (from previous employment or application), bring your TIN card or any document showing your TIN. If you do not have a TIN yet, you can apply for one simultaneously with your Form 1901 registration. |
| Valid Government-Issued ID | At least one valid ID with photo and signature (e.g., passport, driver's license, PhilSys/National ID, UMID, SSS ID, PRC ID, postal ID). Bring the original and a photocopy. |
| DTI Business Name Registration | Required if you are operating under a business name (sole proprietorship). Not required for professionals practicing under their own name. Obtain this from the Department of Trade and Industry (DTI). |
| Professional License / PRC ID | Required for licensed professionals (lawyers, doctors, accountants, engineers, etc.). Bring a photocopy of your valid PRC ID or Professional Regulation Commission license. |
| Barangay Clearance | A clearance from the barangay where your business or professional practice is located. This confirms that you are allowed to operate in that area. Fee varies by barangay (usually P50-P500). |
| Mayor's Permit / Business Permit | Required if you have a physical office or place of business. Obtained from the city or municipal government where your business is located. Not required for freelancers working from home in some cases. |
| Contract or Proof of Self-Employment | A copy of your freelance contract, service agreement, or any document that proves your self-employment or professional engagement. For online sellers, a screenshot of your online shop or platform registration may suffice. |
| Annual Registration Fee (P500) | Paid using BIR Form 0605. This is an annual fee due every January 31 of each year. For new registrants, this is paid upon initial registration. |
| Documentary Stamp Tax (P30) | DST for loose-leaf books of accounts. Paid using BIR Form 2000. This is a one-time fee during initial registration of books of accounts. |
Step-by-Step Registration Process
Follow these eight steps to complete your BIR registration as a self-employed individual or professional. The entire process can typically be completed within 1 to 3 working days.
Get a TIN (If You Don't Have One Yet)
A Tax Identification Number (TIN) is required before you can register as self-employed. If you already have a TIN from previous employment, you can use the same TIN -- you do not need to apply for a new one. If you have never had a TIN, you can apply for one simultaneously with your Form 1901 registration at the RDO.
Important: Having multiple TINs is illegal under Philippine law and may result in a penalty of P1,000. If you are unsure whether you already have a TIN, check with BIR first by calling the hotline or visiting your RDO.
Prepare All Required Documents
Gather all the requirements listed in the table above. Make sure to bring original documents and at least one photocopy of each. If you are a professional, have your PRC license or PRC ID ready. If you are a sole proprietor, secure your DTI business name registration, barangay clearance, and mayor's permit before visiting the RDO.
Tip: Download and pre-fill BIR Form 1901 from the BIR website (www.bir.gov.ph) to save time at the RDO. You can also check the BIR website for the latest version of the form and any updated requirements.
Go to the RDO Where Your Business or Practice Is Located
Visit the Revenue District Office (RDO) that has jurisdiction over the city or municipality where your business or professional practice is located. If you are a freelancer working from home, go to the RDO that covers your home address. You can find your RDO by using the BIR's RDO locator on their website or by calling the BIR hotline.
Note: If you are currently registered under a different RDO (e.g., your previous employer's RDO), you will need to transfer your RDO first using BIR Form 1905 before you can register as self-employed. See our Transfer RDO guide for details.
Submit BIR Form 1901 and Supporting Documents
Proceed to the registration section of the RDO and submit your accomplished BIR Form 1901 along with all supporting documents. The BIR officer will review your documents and may ask clarifying questions about your business or professional activity. Make sure to indicate the correct tax type (income tax, percentage tax, or VAT) and your preferred method of deduction (itemized or optional standard deduction/8% flat rate).
Pay the Annual Registration Fee (P500) and DST (P30)
Pay the P500 annual registration fee using BIR Form 0605 at the Authorized Agent Bank (AAB) located within or near the RDO. Also pay the P30 Documentary Stamp Tax (DST) for the registration of loose-leaf books of accounts using BIR Form 2000. Keep the stamped and validated payment forms as proof of payment.
Reminder: The P500 annual registration fee is due every January 31 of each year. Failure to pay on time results in a penalty of P1,000 per year of non-payment. If you register mid-year, you still pay the full P500 for that year.
Receive Your Certificate of Registration (COR / Form 2303)
Once your registration is processed, the RDO will issue your Certificate of Registration (COR), also known as BIR Form 2303. This document confirms your registration as a taxpayer and lists your registered tax types, line of business, and RDO. Display your COR prominently at your place of business or keep it accessible if you work from home.
The COR will include your registered tax types such as Income Tax, Percentage Tax (or VAT if applicable), and Withholding Tax (if applicable). It also includes the "Ask for Receipt" notice which you must display at your place of business.
Register Your Books of Accounts
After receiving your COR, register your books of accounts with the RDO. Self-employed individuals typically need to register the following books: Journal, Ledger, Cash Receipts Book, and Cash Disbursements Book. You may use either manual books (bound type) or loose-leaf books. If you opted for the 8% flat tax rate, you are only required to keep a simplified set of books (a single journal and a ledger).
The BIR officer will stamp your books of accounts. This is a one-time registration. In subsequent years, you only need to have new books stamped before using them.
Have Official Receipts/Invoices Printed (ATP)
Apply for an Authority to Print (ATP) receipts and invoices by filing BIR Form 1906 at the RDO. Once approved, have your official receipts or sales invoices printed by a BIR-accredited printer. You are required to issue official receipts for every transaction with your clients.
Tip: If you chose the 8% flat tax option and your gross sales/receipts do not exceed P250,000 in a quarter, you may be exempt from issuing receipts for individual transactions below P25. However, it is still best practice to always issue receipts. See our ATP guide for the complete process.
Tax Obligations After Registration
Once registered, you are expected to comply with the following tax obligations. Failure to file or pay taxes on time results in penalties, surcharges, and interest.
File Quarterly Income Tax Return (BIR Form 1701Q)
Due within 45 days after the end of each quarter (April 15, August 15, November 15). This covers your gross income, allowable deductions, and tax due for the quarter.
File Annual Income Tax Return (BIR Form 1701 or 1701A)
Due on or before April 15 of the following year. Form 1701A is used if you availed of the 8% flat tax option or the optional standard deduction (OSD). Form 1701 is for those using itemized deductions.
Pay Percentage Tax or VAT
If your gross annual sales/receipts do not exceed P3 million, you are subject to 3% percentage tax (filed quarterly using BIR Form 2551Q). If your gross annual sales exceed P3 million, you are required to register as a VAT taxpayer and file monthly/quarterly VAT returns. If you chose the 8% flat tax, you are exempt from percentage tax.
File Withholding Tax Returns (If Applicable)
If you have employees or hire subcontractors, you must withhold and remit taxes on their compensation or payments. File BIR Form 0619E (monthly) and BIR Form 1601EQ (quarterly) for expanded withholding tax.
Keep Books of Accounts Updated
Record all income and expenses in your registered books of accounts. These must be kept for 10 years from the date of the last entry. BIR may audit your books at any time, so keep them accurate and up to date.
8% Flat Tax Option vs. Graduated Rates
Under the TRAIN Law (RA 10963), self-employed individuals and professionals with gross annual sales/receipts not exceeding P3 million can choose between the graduated income tax rates or the 8% flat tax option. Here is a comparison to help you decide:
8% Flat Tax Option
- Rate: 8% of gross sales/receipts in excess of P250,000
- Who qualifies: Self-employed individuals and professionals with gross annual sales/receipts not exceeding P3 million
- No percentage tax: Exempt from the 3% percentage tax
- Simpler bookkeeping: Only a simplified set of books is required (journal and ledger)
- No itemized deductions: You cannot claim business expenses as deductions
- Best for: Freelancers and professionals with low operating expenses
Graduated Income Tax Rates
- Rates: 0% to 35% depending on taxable income bracket (after deductions)
- Who should use: Self-employed individuals with significant business expenses that can be deducted
- Subject to percentage tax: Must pay 3% percentage tax on quarterly gross sales (if not VAT-registered)
- Full bookkeeping required: Must maintain complete books of accounts
- Itemized or OSD deductions: Can claim actual business expenses or use Optional Standard Deduction (40% of gross sales)
- Best for: Businesses with high operating costs (rent, supplies, utilities, employees)
How to choose: If your business expenses are less than 40% of your gross sales, the 8% flat tax is likely more advantageous. If your business expenses exceed 40% of your gross sales, the graduated rates with itemized deductions may result in lower taxes. Consult with a tax professional or accountant to determine the best option for your situation. You must signify your choice during registration or on your first quarterly return (Form 1701Q).
Example: Juan Registers as a Freelance Graphic Designer
Juan is a freelance graphic designer who has been working with international and local clients for several months. He earns about P50,000 per month from his freelance work. He decides to register with BIR to comply with tax laws. Here is how Juan completed his registration:
Prepared Requirements
Juan already had a TIN from his previous employment. Since he works from home under his own name (no business name), he did not need DTI registration. He downloaded BIR Form 1901 from the BIR website and filled it out. He prepared a photocopy of his national ID, a copy of his freelance contracts with clients, and his barangay clearance (which cost P100).
Visited the RDO and Filed Form 1901
Juan went to RDO No. 39 (South Quezon City), which covers his home address. He submitted his accomplished Form 1901 and supporting documents. The BIR officer asked about his line of business ("graphic design services") and whether he preferred the 8% flat tax or graduated rates. Juan chose the 8% flat tax option since his business expenses are minimal (just a laptop and internet). He then paid the P500 annual registration fee (Form 0605) and P30 DST (Form 2000) at the Authorized Agent Bank inside the RDO.
Received COR and Registered Books
The RDO processed Juan's registration on the same day. He received his Certificate of Registration (Form 2303), which listed "Graphic Design Services" as his line of business, Income Tax and 8% Tax as his registered tax types, and his assigned RDO. Juan also had his simplified books of accounts (journal and ledger) stamped by the BIR officer.
Applied for ATP and Had Receipts Printed
Juan filed BIR Form 1906 (Authority to Print) at the RDO. The ATP was approved within a day. He then went to a BIR-accredited printer and had 10 booklets of official receipts printed. The printing cost was approximately P1,500. Juan was now fully registered and compliant with BIR requirements.
Juan's Registration Cost Summary
Total timeline: 2-3 days. Juan chose the 8% flat tax option, so he only needs to file quarterly and annual income tax returns. He is exempt from the 3% percentage tax. Actual costs may vary depending on RDO and location.
Frequently Asked Questions
Do I need to register with BIR if I am a freelancer?
Yes. Under Philippine tax law, all individuals earning income are required to register with BIR and pay taxes. This includes freelancers, online sellers, content creators, and anyone earning income from self-employment. Failure to register may result in penalties, surcharges, and potential criminal liability for tax evasion.
Can I use my existing TIN from employment?
Yes. You should use your existing TIN. Philippine law mandates that each taxpayer can only have one TIN. Having multiple TINs is punishable by a fine of P1,000 or imprisonment. If your TIN is currently registered under your employer's RDO and your business address is in a different RDO jurisdiction, you need to file BIR Form 1905 to transfer your registration before filing Form 1901.
What is the difference between Form 1901 and Form 1903?
BIR Form 1901 is used for the registration of self-employed individuals (sole proprietors), professionals, mixed-income earners, estates, and trusts. BIR Form 1903 is used for the registration of corporations, partnerships, and other non-individual taxpayers. If you are a freelancer or sole proprietor operating under your own name or a DTI- registered business name, use Form 1901. If you have incorporated your business (e.g., registered with SEC as a corporation), use Form 1903.
What is the 8% flat tax option and should I choose it?
The 8% flat tax option, introduced under the TRAIN Law, allows self-employed individuals and professionals with gross annual sales/receipts not exceeding P3 million to pay a flat 8% tax on gross sales in excess of P250,000, in lieu of the graduated income tax rates and the 3% percentage tax. This option is ideal for freelancers and professionals with minimal business expenses. If your expenses are less than 40% of your gross income, the 8% option is generally more beneficial. You must signify your choice on your first quarterly return or upon registration.
Can I register online with BIR?
BIR has been expanding its online services through the BIR eREG system and the Online Registration and Update System (ORUS). Some RDOs now accept online submissions or appointments. However, as of the latest guidelines, most self-employed registrations still require a personal visit to the RDO for verification of documents. Check the BIR website or call the hotline (8538-3200) for the most current online registration options available in your RDO.
What happens if I earn income but do not register with BIR?
Operating without BIR registration is a violation of the National Internal Revenue Code (NIRC). Penalties include: a fine of not less than P5,000 but not more than P20,000, imprisonment of not less than 6 months but not more than 2 years, or both. Additionally, you may be assessed for unpaid taxes plus 25% surcharge, 12% annual interest, and compromise penalties. The BIR has been actively monitoring digital platforms, freelance marketplaces, and social media to identify unregistered taxpayers.
I am both employed and freelancing. How do I register?
If you are a mixed-income earner (employed and self-employed at the same time), you still need to file BIR Form 1901 to register your self-employment or freelance activity. You will use the same TIN as your employment. For tax filing, you will use Form 1701 (annual) which consolidates both your employment income (based on BIR Form 2316 from your employer) and your self-employment income. You can avail of the 8% flat tax option for your self-employment income if it does not exceed P3 million, while your employment income remains subject to graduated rates.
Do I need a mayor's permit if I work from home?
Requirements vary by local government unit (LGU). Some cities and municipalities require a business permit even for home-based freelancers, while others may exempt or have simplified requirements for home-based businesses. A barangay clearance is almost always required regardless. It is best to check with your local government and your RDO to confirm what specific permits are needed for your situation. In practice, many RDOs will process your registration with a barangay clearance even without a full mayor's permit if you are a home-based freelancer.
Important Reminders
- Register before you start earning: Ideally, you should register with BIR before you start your business or freelance activity. Late registration may result in penalties and back taxes.
- Never apply for a second TIN: Each taxpayer is allowed only one TIN for life. If you already have a TIN, use the same one when registering as self-employed. Apply for a TIN transfer (Form 1905) if needed.
- Pay the annual registration fee every January 31: The P500 annual registration fee (Form 0605) is due every year. Non-payment results in a P1,000 penalty per year. Mark this date on your calendar.
- File taxes even if you have zero income: Once registered, you must file your quarterly and annual income tax returns even if you had no income during the period. Failure to file results in penalties.
- Choose your tax option carefully: The 8% flat tax vs. graduated rates decision affects your tax liability for the entire year. Once you make the election on your first quarterly return, you generally cannot switch until the next taxable year.
- Keep all receipts and records for 10 years: BIR may audit your books of accounts and supporting documents at any time within the prescriptive period. Maintain organized records of all income and expenses.
- Display your COR at your place of business: BIR requires that your Certificate of Registration (Form 2303) and the "Ask for Receipt" notice be displayed prominently at your business premises. For home-based workers, keep it in an accessible location.
- Update BIR if your information changes: If you change your address, business activity, or RDO, file BIR Form 1905 to update your registration. Moving without updating your records may cause issues with tax filing and compliance.
Need Help?
Contact BIR
- BIR Hotline: 8538-3200
- Email: contact_us@bir.gov.ph
- Website: www.bir.gov.ph
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM (no noon break)
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the BIR you visit. We recommend visiting your nearest BIR first to confirm the specific requirements and process before preparing your documents.