BIR GUIDE 2021

TABLE OF CONTENTS

I. BEING AN INDEPENDENT CONSULTANT 2

A. SOME TRADE-OFFS 2
B. TAX AND ACCOUNTING CONCERNS 2

II. BIR CONTACT INFORMATION 3

III. BIR COMPLIANCE 3

A. BEFORE COR APPLICATION 3
A1. Tax Identification Number (TIN) 3
A2. A Self-Employed Individual or Consultant 4
A3. Types of Self-Employed Individuals 4
A4. Your Current RDO 4
A5. Change or Transfer of RDO 4
B. DURING COR APPLICATION 5
B1. General Process and the Checklist of Documentary Requirements (CODR) 5
B2. Form 1901 6
B3. Government-Issued IDs 8
B4. Mayor’s Business Permit, Professional Tax Receipt, Occupational Tax Receipt, &/or
DTI Certificate 8
B5. Books of Accounts (BOA) 9
B6. Payment of Annual Registration Fee 10
B7. BPR / OR Booklets, Form 1906, and Sample of Principal Receipts 10
C. AFTER COR APPLICATION 11

IV. WHAT TO DO ONCE YOU HAVE YOUR COR 12

A. SWORN DECLARATION 12
B. QUARTERLY AND ANNUAL TAX OBLIGATIONS 13
C. ACCOUNTING 13

V. CONCLUSION 13

1
 BIR GUIDE 2021

Welcome to Bizmates, dear trainer!

This is Jig, a special projects coordinator / consultant working part-time with Bizmates regarding Bureau
of Internal Revenue (BIR) concerns. I’m not a BIR employee, Bizmates employee, or accountant. I’m just a
trainer like you who advises fellow trainers about BIR concerns.

In this guide, I’ll share a few notes about being an independent consultant, share BIR contact information,
give you information and advice about BIR compliance, and advice on what to do once you have your COR.

I. BEING AN INDEPENDENT CONSULTANT

A. SOME TRADE-OFFS

If you’ve never been self-employed, let me start by saying that working with Bizmates is not the same as
working for an employer. That needs to be your mindset from the start.

There are things you’ll give up in exchange for other advantages. There are no SSS, Pag-Ibig, PhilHealth or
other medical assistance, insurance, thirteenth month pay, and other similar benefits. There are also no
salaries. Instead, you’ll be paid professional or consultant fees. On the other hand, you have the freedom
to set your schedule, take holidays whenever you like, take on other clients, do other work or business
opportunities, and so on. And of course, you can work at home and don’t have to commute every day.

B. TAX AND ACCOUNTING CONCERNS

Because you don’t have an employer-employee relationship with Bizmates, when it comes to accounting
and tax matters, you are in charge of fulfilling your responsibilities to the Philippine government. The only
thing Bizmates will do for you is give you a quarterly tax document that states how much you earned with
them, and how much withholding tax was deducted, if any, from your consultant fees.

You can hire an accountant to help you with accounting and taxes, but the BIR still holds you as the person
responsible because as a self-employed individual, you’re your own boss -- the owner of your business.
That’s right: Being self-employed means being a business owner, whether you’re practicing a profession,
providing a service, or selling goods. That’s why you need to do these, with or without an accountant:

1. Register with the BIR (and the Department of Trade and Industry [DTI], if required by your RDO)
2. File quarterly and annual tax returns, and pay taxes when applicable
3. Maintain books of accounts, where you will record your business transactions
4. Issue receipts to your clients, such as Bizmates, when they pay you your consultant fees
5. Submit an annual income payee’s sworn declaration (SD for short) to Bizmates (and other clients you
might have) if you want to avoid the compulsory 10% withholding tax on your consultant fees.

Of the above, only #5 is optional. For more details, please read the ‘Four Things to Know About BIR
Compliance’ and the ‘SD Guide’ files. (All files mentioned in bold red font are in the Google folder.)

2
 BIR GUIDE 2021

II. BIR CONTACT INFORMATION

Due to the pandemic, we’re in a fluid situation. Thus, I advise you to try your best to complete your BIR
compliance as quickly and safely as you can. This includes going to your local government unit (LGU), such
as city or municipal hall, and to your BIR Revenue District Office (RDO), or contacting them via phone or
email. I hope these will be helpful in contacting your RDO:

RDO Directory: https://www.bir.gov.ph/index.php/contact-us/directory/regional-district-offices.html

BIR Hotlines: https://www.bir.gov.ph/index.php/contact-us/bir-trunkline.html

Email (Please also check the RDO directory for your RDO's email address, if any): contact_us@bir.gov.ph

For applying for a COR online (launched in June 2021): https://www.bir.gov.ph/newbizreg/

For setting a BIR appointment online: https://www.bir.gov.ph/eappointment/

The last two are recent innovations and may not yet be available in all RDOs. Hopefully some processes
can be done online in your area. Please contact your RDO and LGU for specifics. Remember: The sooner
you begin, the sooner you’ll finish.

III. BIR COMPLIANCE

This section will help you obtain the documents you need to submit to Bizmates for your BIR compliance.
Bizmates needs to see that you have both a Certificate of Registration (COR) & official receipt (OR) booklets
[or BIR-printed receipt (BPR) booklets] so that you can issue receipts when they pay your consultant fees.

Please keep in mind that this is a general guide, and that your RDO’s requirements may be different. Your
RDO has the final say on what documents they’ll require from you so you can get your COR & OR/BPR.

Below is a long list, but I want you to have as much information as possible so that you can complete your
requirements without having to wait for me to be online if you have any questions. You may have already
done some of these, or some may not be applicable to you.

A. BEFORE COR APPLICATION

These are the things you need to know or have before you apply for a COR.

A1. Tax Identification Number (TIN)

If you don’t have a TIN yet, you can apply for one by going to the RDO that has jurisdiction over your
residence. It will be processed either just before or along with your COR application, so when you go there,
it’s better to have your COR application documents ready (please see part B. DURING COR APPLICATION).
If you already have a TIN, don’t try to get another one. That’s illegal.

3
 BIR GUIDE 2021

A2. A Self-Employed Individual or Consultant

You’re going to be an independent consultant providing online training or education services to Bizmates
students. Thus, you need to register with the BIR as a self-employed individual (or mixed-income earner).

For those who already have a TIN, perhaps you’re currently classified as a local employee. When you apply
for a COR, your classification will be changed to either self-employed individual or mixed-income earner.

A3. Types of Self-Employed Individuals

There are many types of self-employed individuals, including:

a. Mixed-income earner: A mixed-income earner is a compensation income earner (employee) plus either
professional, sole proprietor, or both. If you were or are employed by a company at any time since January
of this year, then you must register as a mixed-income earner. This is required, even if you resigned from
that company earlier this year. Taxes are reported on an annual basis, so you need to declare all of your
income sources from Jan. 1 to Dec. 31. Thus, you’re a mixed-income earner for this year. If you'll no longer
be an employee next year, you can switch to purely self-employed next year. (You can ask your RDO if
they have any requirements for that.)

b. Professional: If Bizmates will be your only source of income since January of this year, then it's easier
to register as a professional or freelancer if your RDO will allow it. It’s generally cheaper and faster than
registering as a sole proprietor.

c. Sole proprietor: Some RDOs don’t allow people without a professional license (ex. Integrated Bar of the
Philippines [IBP] or Professional Regulation Commission [PRC]) to register as professionals. In that case,
you can register as the owner of a sole proprietorship company. Your company will use the same TIN that
you use as an individual. You’ll probably need to register with the DTI (see Trade/Business Name, p. 7).

When you fill out BIR form 1901 to apply for a COR, you’ll see several options under '#6 Taxpayer Type.'
Please select only one box, the one that best fits your status.

A4. Your Current RDO

For those who already have a TIN: Before you apply for a COR, you need to know which is your current
RDO -- the one where your TIN is currently registered. If you don’t know, you can contact or go to the
nearest one to ask where your TIN is registered. If you don’t know where the nearest one is, please check
the RDO directory in part II. If you know which RDO it is, it won’t hurt to confirm.

A5. Change or Transfer of RDO

Once you have confirmed where your TIN is registered, the next question is if that’s where your TIN should
be registered. Your TIN must be registered at the RDO that has jurisdiction over your residence, since
you’re starting a home-based business. If your TIN is not currently registered under the right RDO, then
you need to have it transferred before you apply for a COR.

4
 BIR GUIDE 2021

You can apply for a transfer by going to your current RDO or contacting them via email. They will tell you
what documents to submit including form 1905 (download from https://www.bir.gov.ph/index.php/bir-
forms.html). Please see the ‘1905 Change of RDO Sample Form’ file on how to fill it out.

Alternatively, it may be possible to go to your target RDO (the RDO to which you need to have your TIN
transferred) and ask them to help you process it. You can ask them if you can fill out form 1905 there and
then ask if they can email or fax it to your current RDO for you.

Notable cases:

a. Rental Property: If you live in a rented place, please ask the RDO that has jurisdiction over that property
if you’ll be allowed to register there, even if it's not your home. (I think it depends on the RDO's policy.
They may or may not consider how long you've been living there, whether your permanent address is in
a far province, etc.)

b. Former Employee: If you worked at a company located in a different city or province from where you
live now, your TIN may be registered under that company's RDO. If that’s different from the RDO that has
jurisdiction over your residence, then you must have your TIN transferred to the latter.

c. Current Employee: It's the same principle as with b. You must have your TIN transferred to the second
RDO. You can't stay under the first RDO because as a mixed-income earner, you're responsible for filing
your own tax returns, and they must be submitted to the RDO that has jurisdiction over your residence.
It’s no longer your employer that will file tax returns on your behalf at their RDO. This is called ‘substituted
filing.’ An employer is allowed to do that only for employees whose sole income is with a single employer.
They can’t do that for you because they have no control over your Bizmates or other income.

Reminder: Again, to emphasize, the transfer must be done before you get a COR. If you get a COR under
the wrong RDO then transfer, you may end up repeating some processes with the new RDO &/or LGU. If
you have questions on this, please talk with your RDO &/or LGU.

B. DURING COR APPLICATION

Once your TIN is registered at the correct RDO, you can apply for a COR (also known as BIR Form 2303).

Section B explains the seven requirements you’ll need, but RDOs aren't consistent with their requirements
or the order of steps, so please ask your RDO for specifics.
- Example 1: At some RDOs, you need to submit books of accounts and a sample OR layout before they
release your COR.
- Example 2: At other RDOs, the books of accounts and OR booklets must be registered within one month
from the printing of the COR (otherwise there will be a penalty of P1,000 or more).

B1. General Process and the Checklist of Documentary Requirements (CODR)

There are different kinds of application for registration. Each has its own set of requirements. Please make
sure that you use the one for Self-Employed Individuals, Estates, and Trusts. For the complete form, please
see the ‘CODR for Self-Employed Individuals’ file.

5
 BIR GUIDE 2021

The seven requirements listed there are discussed below. You can obtain some of them before going to
your RDO, and work on the others with your RDO. There are also four ‘additional documents, if applicable’
on the form, but most trainers don’t need to submit them.

B2. Form 1901

As stated by the BIR, form 1901 is the ‘Application for Registration for Self-Employed (Single Proprietor /
Professional), Mixed Income Individuals, Non-Resident Alien Engaged in Trade/Business, Estate and Trust.’
Please make sure that you are filling out the latest version, which says ‘January 2018 (ENCS)’ at the upper
right on page 1, and please don’t use forms 1902, 1903, or 1904.

a. General Instructions: Before you fill it out, please see the ‘1901 Sample Form’ file and note the
following:

1) Parts I to IV should be filled out with your personal information, not your employer(s) &/or client(s).

2) Part V should be filled out by your RDO. Please make sure that they do so. By the way, unless you earn
more than P3 million a year, please make sure that you are registered as non-VAT.

3) Part VI can be accomplished with the help of your RDO &/or your BIR-accredited printer (BAP), which is
the company that will print your OR booklets.

4) Parts VII & VIII are about your current or former employer(s) within the current year (Jan-Dec).
a) These two parts are for trainers who are registering as mixed-income earners.
b) Since Bizmates is not your employer, Bizmates’ information should not be written there.
c) If you have not been an employee since January 1 of this year, then these two parts should be blank.
If the RDO officer asks why they are blank or insists that they shouldn’t be blank, please tell them that you
haven’t been employed since January 1 so there is no employer information to fill in, and no one to sign
the declaration in #51. If the RDO officer asks you to write Bizmates’ information there, please tell them
that you can’t because Bizmates is your client, not your employer. That’s why you’re registering as a self-
employed individual. (If Bizmates were your employer, then you wouldn’t need to register at all.)

5) Part IX can be filled out as shown in the above sample form.

Important: Some RDOs may not accept self-printed forms, while others may not provide hard copies. To
avoid wasting time going back and forth, you can try to ask your RDO. If you can’t contact them, you can
download form 1901 in PDF format from https://www.bir.gov.ph/index.php/bir-forms.html. You can print
three copies out (8.5” x 13” or legal size), and bring them to your RDO. Other TRAIN Law-compatible BIR
forms you need that can be downloaded from the same link are forms 0605, 1905, and 1906.

b. Specific Instructions:

1) 8% Option: This is partly explained in the ‘Basic Tax Information You Need to Know Before You Apply
for Your COR’ file. If you are going to be purely self-employed this year, it’s always more convenient and
almost always cheaper to be under the income tax classification known as the ‘8% flat income tax rate’
option. If you’re a full-time employee and you’re going to be a mixed-income earner this year, it is less
convenient but often cheaper to stay under the default income tax classification known as ‘graduated
income tax rates’ (GITR).

6
 BIR GUIDE 2021

If you wish to apply for the 8% option, you need to do the following:
a) Put an 'X' in the 'Yes' box in #23 (‘Are you availing of the 8% income tax rate option in lieu of Graduated
Rates?’), and make sure to ask the RDO staffer to record that on their computer. If possible, ask them to
show it to you on their monitor. Only the January 2018 version of form 1901 has this 8% option, as shown
in the ‘1901 Part I #23 (Jan 2018 ENCS)’ file.
b) When the RDO staffer fills out part V, make sure that ‘2551Q’ is not written in #39 under ‘Other
Percentage Tax under NIRC (specify).’
c) If required by your RDO, you need to submit a letter of intent to apply for the 8% option. You can submit
one similar to the ‘LOI Sample for 8% Option’ file.
d) If required by your RDO, you may also need to submit a form 1905. If so, please see the ‘1905 for 8%
Option Sample Form’ file.

Tip on Form 1905: This is the ‘Application for Registration Information Update / Correction / Cancellation’
form. It’s used for many reasons. As you read section B, please note what changes you may need to apply
for using form 1905. Each of the 1905 sample forms in the Google folder is specific for single changes.
Please ask your RDO if it’s okay to combine all of the changes you are applying for onto a single form 1905.
That will lessen the work for both you and your RDO.

2) Trade/Business Name: In part IV, #35, you need to write your trade or business name.

Please remember to ask your RDO if they’ll allow you to register as a professional or if you’ll be required
to register as a sole proprietor.

a) If you’re allowed to register as a professional, then you'll be doing business as a person. You won’t need
a DTI certificate, and your trade name must include your full name (either by itself or followed by the kind
of work, as instructed by your RDO). Your full name will be on both your COR & OR booklets. Examples:

- Juan S. Dela Cruz, Private Tutor

- Maria T. Reyes
- Maria T. Reyes, Online Trainer

b) If you're going to register as a sole proprietor, then you'll be doing business as the owner of a company.
You’ll be required to secure a DTI certificate, and the name of your company may or may not include your
full name. You’ll see the DTI’s rules on the business name when you apply at https://bnrs.dti.gov.ph/.
Please see the ‘DTI Business Scope’ photo to save some money. The business name on your DTI certificate
will also be your trade name on your COR & OR booklets. Examples:

- Juan Dela Cruz Educational Consulting

- JSDC Educational Consultancy Services
- MTR Training Consultancy Services

Important note: Because Bizmates is your client, you must not use ‘Bizmates’ as part of your business or
trade name. Bizmates definitely won’t accept that. That would be like you going to a store and seeing your
name on their COR, OR, and other business documents.

3) Line of Business (LOB): Your RDO will fill out the PSIC Code and LOB. The code depends on whether your
RDO is using the new IRIS or the old ITS system. Both new and old codes are acceptable to Bizmates. Here
are the PSIC codes and LOBs commonly used by Bizmates trainers:

7
 BIR GUIDE 2021

a) Education: Based on the ‘PSIC 2009’ codes, our work falls under education, specifically:
- 8559 / 85590 ‘Other education n.e.c.’ [not elsewhere classified] (The old code is 8159.)
If the above is not listed in your RDO’s system, another one under education is:
- 85600 ‘Educational support services.’ (The old code is 8550.)

b) Others: These are not under education but are also accepted by Bizmates:
- 74909 Other professional, scientific, and technical activities (old code: 74999)
- 82990 Other business support service activities, n.e.c. (old code: 7499)
- 96409 Miscellaneous service activities, n.e.c. (old code: 9309)

We are not social media influencers or bloggers, but rather online teachers. Thus, RMC 97-2021 does not
apply to us. Please see these photos in the Google folder: ‘OM 49-2021 [with comments],’ ‘PSIC 2009
Pages 1 & 10,’ ‘PSIC 2009 47913,’ ‘PSIC 2009 85590,’ and ‘RMC 97-2021 (Selected Portions).’

4) BIR Printed Receipts (BPR): If there’s an option at your RDO to buy BPRs instead of having your own OR
booklets printed, and you'd like to do so, the cost of the BPR should be added to part IX of form 1901. The
BPR is discussed in B7.

B3. Government-Issued IDs

If there are any discrepancies, such as a change of maiden to married name, or a change in address, or
the current residence is not the same as the permanent residence, please ask your RDO if supporting
documents are required, such as a marriage certificate, additional IDs, etc., and if you need to fill out form
1905 for that as well.

B4. Mayor’s Business Permit, Professional Tax Receipt, Occupational Tax Receipt, &/or DTI Certificate

This is often a problematic requirement, especially when RDOs aren't familiar with our line of work. If you
are trying to register as a professional, here are some tips to hopefully minimize the requirements:

a. What you are not:

1) You’re not starting a company, so try to ask to be exempted from getting a Mayor's Business Permit.
2) You’re not starting a corporation, so SEC doesn't apply to you.
3) You’re not selling any products, so try to ask to be exempted from getting a DTI certificate. (Some RDOs
still require DTI certificates from professionals and service providers.)
4) You’re not a Bizmates employee, so you can’t submit an employee contract / certificate of employment.

b. What you are:

1) You’re a self-employed independent consultant / trainer, and Bizmates is your client.

2) As a consultant, you may be asked to submit a professional tax receipt (PTR) or an occupational tax
receipt (OTR), which can be issued by your LGU (city hall, municipal hall, or provincial capitol). If you have
a PRC, IBP, or other professional license, then you should be able to get a PTR from your LGU. If not, you
can try to get an OTR or an occupational permit (OP) instead of a business permit. For examples, please
see the ‘LGU Receipt Samples’ file.

8
 BIR GUIDE 2021

Note: Your LGU will tell you what their requirements are before they issue the PTR, OTR, or OP to you. It
may involve showing or submitting documents such as barangay / police / NBI certificates, government-
issued IDs, birth certificate, health certificate, etc.
3) Since Bizmates is your client, your RDO may require you to submit a letter of intent &/or a consultancy
contract:
a) letter of intent or endorsement: Please see your applicant portal.
b) independent contractor’s agreement
https://www.koseijyou.ph/portal/modules/trainer/essentials/ica.php
4) This rarely occurs, but if your RDO requires an affidavit of profession, you may be able to get one at
your local notary public. In that case, please see the ‘Affidavit of Profession Sample Form’ file.

B5. Books of Accounts (BOA)

As mentioned in part I, you’re required to register and maintain BOA to record your business transactions.
Please see the ‘1905 for Registering BOA Sample Form’ file.

RDO policies vary on the number and kind(s) of books to use. You can usually buy them at book stores.
Some RDOs sell them as well, or may even require you to buy the ones that they sell.

a. Some RDOs require just one book, called the simplified set of bookkeeping records (SSBR).

b. Other RDOs require two to four books, which may be any combination of these four common BOAs:
1) general journal (GJ, a.k.a. journal or cash journal) – Every page of the GJ has a wide column on the left
and two narrow columns on the right, as shown in the ‘General Journal Sample’ file.
2) general ledger (GL, a.k.a. ledger or cash ledger) – Every page of the GL has a giant T dividing each page
into two nearly identical sides, as shown in the ‘General Ledger Sample’ file.
3) cash disbursement journal/book (CDJ/CDB) and the cash receipt journal/book (CRJ/CRB): These are
usually ‘columnar books.’ They have a wide column on the left and 8 to 14 columns on the right.

c. Still other RDOs will allow you to choose which of the above books to register for a simple business.

At the basic accounting seminar I attended, the CPA lecturer taught us that of the four common BOA listed
above, the two most basic & important from an accounting point of view are the GJ & GL. The CDB & CRB
are subsets of the GJ. He then taught us how to fill out the GJ & GL.

For a simple business like ours (exercising a profession, providing a service, no sales inventory, with few
receipts issued per month and few expenses to report), he said the GJ and GL should be enough. If your
RDO will allow it, I recommend that you do what I did and register only the GJ & GL, and ask them not to
require you to register any other books of accounts.

If you register the GJ & GL, then once you have been activated as a trainer and have joined the ‘Bizmates
Family’ private group on Facebook, you can check out the guides I have posted on how to fill them out.
I’m sorry but I don’t know how to fill out the CDJ/CDB, CRJ/CRB, and the SSBR. I suggest that you consult
an accountant &/or do research about them.

B6. Payment of Annual Registration Fee

9
 BIR GUIDE 2021

Form 0605 is used for different kinds of payments to the BIR. You need to fill out three copies of form
0605 and pay an annual registration fee (ARF) of P500. Please see the ‘0605 for ARF (New Registrants)
Sample Form’ file to know how to fill it out.

The ARF covers your registration until Dec. 31 of the current year. As long as you are registered as a self-
employed individual, you need to pay the P500 ARF every January (even if for example you just registered
in Nov or Dec of the previous year). The form is filled out in a slightly different way for renewal: For new
applicants, #4 is the date when you pay your first ARF. For renewal, the due date is always Jan. 31.

Your RDO can tell you if you can pay it there or if you need to pay at one of their authorized agent banks
(AABs). If you need to pay at an AAB, make sure it is authorized by your RDO, not another RDO. If you pay
at the wrong bank, it’s inconvenient to have the payment transferred to your RDO. For a list of your RDO’s
AABs, you can go to https://www.bir.gov.ph/index.php/list-of-authorized-agent-banks.html then click on
your RDO. There should also be a list of AABs posted at your RDO.

B7. BPR / OR Booklets, Form 1906, and Sample of Principal Receipts

a. BPR Option: You can ask your RDO if they sell BIR-Printed Receipts (BPR) and if you may use BPR instead
of having OR booklets printed. The BPR option is a lot less expensive, but to use it, it must be your first
time to issue receipts (once you start using ORs, you can’t go back) and you expect to issue 50 or fewer
receipts in your first year. Also, based on the BIR's RMC 117-2019, the BPR booklet can be used “during
the first year of business operation or until its full consumption, whichever comes first.” IF your RDO will
allow it, you need to buy a new BPR booklet every year if you want to continue using this option, or else
you need to switch to OR booklets. Please see the ‘Blank BPR Sample’ file.

b. OR Option: For those who choose to have their own ORs printed, or if the BPR option is not available at
or allowed by your RDO, each RDO has a list of BAPs under their jurisdiction. Your RDO officer may assign
or suggest one to you, or may ask you to choose your own. There should be a list of BAPs posted at your
RDO. You can also go to https://www.bir.gov.ph/index.php/bir-accreditations/list-of-accredited-printers-
of-receipts-invoices.html, then click on the 'accredited' link to see the latest online list.

Although having your own ORs is much more expensive than using BPRs, the OR’s main advantages are:
1) You will have a more legitimate and professional image if you can issue ORs with your name on them.
2) You can issue more than 50 per year, which is especially good for those who have more than one client.

Form 1906 is used to apply for the authority to print ORs so that when your clients such as Bizmates pay
you, you can issue ORs to them. Please note that you need to have receipts (used for providing services),
not sales invoices (used for selling goods).

Important: If you wish to start with BPR then switch to OR later, note that once you apply for an authority
to print receipts (using form 1906), you are required to complete the process. Once the authority to print
(ATP, a.k.a. BIR form 1921) is issued, I believe you have 30 days to have your OR booklets printed. Please
confirm your deadline with your RDO and BIR-accredited printer (BAP).

Please fill out form 1906 with the help of a BAP. It's best to choose a BAP who is near you and under your
RDO's jurisdiction. They deal with your RDO regularly, so they should be able to process your ATP and OR
booklets more easily and quickly.

10
 BIR GUIDE 2021

Remember that the following must be the same on your COR, ATP, and OR booklets (and DTI certificate if
you have one): #4 Registered Name, #5 Trade / Business Name, and #6 Business Address. Again, unless
you earn more than P3 million a year, please make sure that you are registered as non-VAT.

You can show the BAP the ‘Blank OR Sample’ file. I believe it’s called ‘one-third (1/3) size.’ A smaller size
may be cheaper, but I don’t recommend that because Bizmates’ address is long and it’ll be hard to make
it fit on a smaller OR. Your BAP’s format may be different from the sample. That’s OK. The important thing
is to have all of the necessary fields (client’s name, address, TIN, etc.).

Important: Due to the BIR's RMC 55-2019, please ask them to include the 'business style' field on your OR.

If they ask you what kind of receipts you need and how many, please ask for bound booklets. The number
depends on how many you think you’ll need to issue within the five-year validity period. Your Bizmates
work alone will require three booklets (150 ORs) in five years. Most BAPs have a minimum requirement
of five or ten booklets. Each booklet has 50 sets, and each set should have at least two copies (a white
original to be sent to Bizmates, and a colored copy for you to keep). You can ask them about receipts that
require carbon paper or that are carbonless (‘no carbon required’ or NCR).

Once the details are worked out, the BAP should create the final sample of principal receipts and ask you
to approve it. Remember to check that your trade name, address, and TIN are correct, and whether it says
VAT or non-VAT registered. They should then work the rest out with your RDO. It should be included as
part of the service for which you paid.

The cost varies by location. Five to ten booklets will probably cost anywhere from P1,000-P3,000. If your
RDO asked you to choose your own BAP, I recommend that you talk to at least three before selecting one.

C. AFTER COR APPLICATION

Once you’ve submitted all of your RDO’s requirements, you will probably be asked to come back on a
certain date to claim your COR. Please do the following once you get your COR:

1. Please see the ‘2303 COR Sample’ file. Note that yours may have a different format. If your COR doesn’t
have a schedule of tax deadlines, you can try asking them to give you a list.

2. The COR itself should be free, but it needs to have one or two documentary stamps (worth a total face
value of P30.00) affixed to it. You can buy the documentary stamp(s) at your RDO. If they aren’t available,
please ask them for other options. Perhaps they will tell you to pay then give you a receipt, or they may
tell you to use online payment methods such as GCash.

3. If you plan to submit a sworn declaration to each of your clients including Bizmates, then I suggest that
you buy documentary stamp(s), again worth a total face value of P30.00 for each SD. If the actual stamps
aren’t available, then please get a separate receipt for every P30 worth of stamps because each SD should
have its own attached receipt. Similarly, if you are using GCash, please do a separate P30-transaction for
each SD that you plan to execute and have notarized.

4. If you haven’t done so, register your books of accounts within one month from your COR printing date.

11
 BIR GUIDE 2021

5. If you haven’t done so, buy the BPR booklet (if that option is available and you chose to go that route)
or get your OR booklets from your RDO (if they have a tie-up with your BAP) or from your BAP, also within
one month from your COR printing date.

IV. WHAT TO DO ONCE YOU HAVE YOUR COR

Congratulations, you finally have your COR! Now don’t just stick it somewhere in your room and forget
about it. Please READ your COR and understand that it marks the start of your tax obligations, which will
continue as long as you are registered with the BIR.

Remember that your relationship/s with your client/s is/are separate from your relationship with the BIR.
If you decide to stop working with Bizmates someday, that doesn’t mean that your tax obligations have
ended. It just means that you lost a client. If you decide to close your business, then you must close your
registration with the BIR.

I recommend that you do the following once you have your COR:

A. SWORN DECLARATION

To avoid the 10% withholding tax deduction from your consultant fees, please execute an annual income
payee’s sworn declaration (SD) and have it notarized. The SD should then be submitted to Bizmates, not
to your RDO. Bizmates will submit it to their RDO, who will then authorize Bizmates not to deduct the 10%
from your fees.

If you have other clients who also deduct withholding tax, then please execute and submit an original SD
for each one. To get the correct SD form and to know how to fill it out, please follow the instructions in
the ‘SD Guide’ file. As explained there, the submission deadline is based on your Bizmates activation date
or your COR printing date (whichever of those two is later). If you don’t have your OR booklets yet, please
don’t wait for them before submitting your SD to Bizmates. If you miss the deadline, then you will have
10% withholding tax deductions on all of your consultant fees until Dec. 31.

Notes:

You don’t need to submit an SD for the sake of getting cleared by Bizmates to receive your consultant
fees. However, per BIR Revenue Regulations (RR) No. 11-2018, Bizmates is required to deduct 10%
withholding tax from your consultant fees and remit it to the BIR. It’s like an advance payment that can
be credited toward your income tax.

Those who have high income taxes don’t mind the 10% withholding tax because they won’t need to shell
out as much cash when it’s time for them to pay their income taxes. For VAT registered individuals, the
withholding tax rate is automatically 10%. Submitting an SD won't change it, so there's no use in doing it.

If you are NON-VAT registered and you expect your annual income to be around P250,000 or less, then
it’s better to submit an SD to Bizmates (and other clients you might have who are also BIR-registered
withholding agents) every year in order to avoid the 10% withholding tax.

12
 BIR GUIDE 2021

B. QUARTERLY AND ANNUAL TAX OBLIGATIONS

1. Know your tax obligations.

For more information, you can start by reading these files:

a. ‘Four Things to Know About BIR Compliance’
b. ‘Basic Tax Information You Need to Know Before You Apply for Your COR’

2. Talk to your RDO.

Your RDO should be your primary resource regarding your tax obligations. Please contact them, especially
when you have RDO-specific questions. Remember: As an independent consultant, it is your responsibility
to know and fulfill your tax obligations, and it’s your RDO’s responsibility to explain them to you.
It is not Bizmates’ responsibility to tell you what to do about your taxes, nor is it their responsibility to do
them for you (because again, Bizmates is your client, not your employer).

3. Attend tax seminars.

If your RDO offers tax seminars, please ask for the schedule so you can attend. Ask them to explain your
obligations as a self-employed individual, and which deadlines you need to meet every quarter and year.
I suggest that you also attend a tax seminar by a reputable company. You can find such companies online.

C. ACCOUNTING

If you aren’t an accountant, then I suggest the following options:

1. Hire an honest, competent, and affordable accountant to handle and explain your taxes and BOA.
2. Attend accounting seminars and learn to handle your own books. Think of it as investing in yourself.
3. Start with 1. then gradually move to 2.

V. CONCLUSION

Being self-employed and doing everything associated with it may seem daunting at first; it won’t always
be that way. As you go through the process, stay focused on why you decided to work with Bizmates in
the first place.

Becoming self-employed means leaving fixed salaries and schedules behind in favor of going into business
for yourself, so be informed and be proactive. Hire an accountant if you need to, but either way, take
charge of your own future.

I hope this guide has helped you, and I wish you a relatively quick and easy BIR registration. Stay safe.

Jig

13