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Freelancer taxes in the Philippines: the 8% option explained
Paid by foreign clients? A plain overview of the BIR 8% option for self-employed people. General information only.
By The PH Online Jobs Team
Being paid by a foreign client doesn't take you out of the Philippine tax system. Registering also makes it easier to apply for a loan or a visa, and to use government benefits.
The basics
- Register with the BIR as a self-employed individual or professional
- If your gross receipts are ₱3 million a year or less, you can choose the 8% income tax option
- The 8% option generally takes the place of both graduated income tax and percentage tax, and the first ₱250,000 of income is not taxed under it
- Keep a record of every payment you receive
This is general information, not tax advice. Rules change, so ask the BIR or a licensed accountant about your own case.
Benefits are separate
A self-employed worker can pay into SSS, PhilHealth and Pag-IBIG personally. Nobody does it for you, so it is worth setting up early.
