How Online Freelance Workers Can Get An ITR

One of the biggest questions online freelance workers have long wanted to ask but are afraid to do so is, “How do I pay taxes?”

Chances are, a good number of online freelance workers today want to pay taxes but have no idea how to do it. They are aware of what taxes are supposed to do.

Bureau of Internal Revenue – image source: philstar.com

You see, taxes are mainly used to allow the government to run. It is used to build roads and bridges. It is used in paying the salaries of public servants. It is used for basic services that some online freelance workers may even take advantage of. In a nutshell, taxes are supposed to be used to make our lives better.

These online freelance workers are also aware of the benefits of getting an Income Tax Return (ITR) from the Bureau of Internal Revenue (BIR). The ITR is quite useful in getting a loan, be it a car loan, housing loan or any other type of loan.

In order to pay taxes and get an ITR, it will be necessary for you to register as a self-employed individual at the BIR. The requirements for a registering as a self-employed individual are as follows:

• NSO Birth Certificate
• Community tax certificate (cedula)
• Barangay captain certification to verify your address
• Mayor's Permit, if applicable
• DTI Certificate of Business Name, if applicable
• BIR Form 1905 (for those who already have a TIN and used to work in an office, to change your Regional District Office)
• BIR Form 1901 (registration form page 1 and page2)
• BIR payment form (Form 0605)

BIR Form 1901

1.     The first form you have to fill up is the BIR Form 1901.

·    Since online freelance workers derived their income exclusively from online work, the taxes they have to declare are income taxes and Other Percentage Taxes Under the National Internal Revenue Code (freelancers should put in “Self-Employed” in this portion of the form.)

·   Under the Registration of Books of Accounts portion, freelancers should put in “Cash Receipt Book” and Cash Disbursement Book.”

o This is necessary since they have to issue receipts for transactions over P25 and maintain a disbursement book for expenses in the business.

2.   The next step is to fill out BIR Form 0605 to be able to pay for the Certificate of Registration (COR) or BIR Form No. 2303.

·         The annual registration fee is P500

3.   Submit BIR Form 1901 and Form 0605 at the local BIR office and attend a seminar to get the COR.

BIR Form 0605

4.     Fill up BIR Form 1906 or the Authority to Print form for your application for Invoices/ Receipts.

5.     Register your books of account and have them stamped at the BIR RDO.

Once you have gone through the entire procedure, it will be necessary for you to keep in mind the following the step, you will have to think about the following taxes to pay and the forms to fill out:

·         Monthly Percentage Tax or 3 percent of the gross income

o Form 0605 and Form 2551M

o Tax is due every 20th day of the month

·         Quarterly Income Tax (based on net income)

o Form 0605 and Form 1701Q

o Tax is due on April 15, August 15 and November 15

·         Yearly and Final Quarter Payment of Income Tax

o Form 0605 and Form 1701

o Tax is due on April 15 of the next year

·         Annual Registration Fee for renewal of the Certificate of Registration

o Forms: 0605

o Registration fee is due on or before January 30 of each year

Since it may take some time before you can get used to the system, it may be good for you to ask for some help from a friend who is an accountant, or better, you can have an accountant work on your books for you. 

6 Tips In Nailing That Skype Interview

When online freelance workers apply for jobs, they go through a process similar to that of a regular job application. Aside from submitting your proposal or application letter, there are instances when a client would want to interview you through Skype.

Skype Interview– image source: Skype.com

A Skype interview is similar to an office interview, but it does not require the interviewer and interviewee to be in the same place at the same time. What are the things you can do to nail that Skype interview and get the job you want?

#1 Prepare the Computer

Before you agree to a Skype interview, it is necessary for you to ensure your computer is ready for the interview. You should make sure all the necessary software and applications are installed on your computer. While laptops already have an integrated webcam, it may be advisable to use an external camera since these cameras normally have a better microphone and optics, as indicated on lifehacker.com. Make sure the lens of the webcam to be at your eye-level to ensure the frame shows a triangle of your shoulders and face. To reduce, if not eliminate, interruptions during the interview, it is advisable to use an Ethernet cable rather than rely on a Wi-Fi connection. If possible, have prepare a backup, both internet and power, in case the power goes out.

UPS and Mobile Wi-Fi Hotspot – image source: lazada.com

#2 Prepare Yourself

After making sure your computer is ready for the interview, it will be necessary to ensure you prepare yourself. Since it is a video interview, it is advisable for you to look presentable to your potential client. Forbes.com points out that “it’s best to dress from head to toe.” There may be instances during the interview when you need to stand and adjust your equipment, which means the interviewer will see that you paired a business suit with your favorite sweatpants. This may not give the interviewer a good impression about you.

Skype Interview Attire– image source: biz.uiowa.edu

#3 Prepare your Surroundings

Aside from making sure you look good in front of the camera, it is also important for the interview to be conducted in a business-like environment, or at least it should have a business-like setting.  Make sure the room has suitable lighting. A quiet, well-lighted room with a door with a neutral background is ideal. You should also tell everyone in the house that you will have an interview since you wouldn’t want someone calling out your name or stereo music blasting in the background. You should also set you phone on silent mode.

#4 Check your Body Language

Body language – image source: en.wikipedia.org

The Daily Muse says it is also important for you to take your body language into account. Remain animated while not moving around too much. Whenever you talk, it is advisable to lean towards the webcam. The author of “The Essential Digital Interview Handbook,” Paul Bailo, says give a ‘digital handshake’ or make a "slow, confident, professional, firm nod" to the interviewer without showing the top of your head. This simple gesture will give the interviewer an impression that you are prepared for the interview. It is also important to be mentally present all the time.  Call to Career coaching center coach Cheryl Palmer suggests using interjecting listening sounds, like “yes” or “hmm,” during the interview.

#5 Maintain Eye Contact

When you maintain eye contact with the interviewer, it can create rapport and shows your confidence and positive attitude towards the job. But, it is important to make sure you look at your camera and not at the screen. In addition to maintaining eye contact, you should not forget to smile. Palmer adds smiling breaks the ice and develops rapport with the interviewer. Since it is not easy to smile when you sit alone in a room, you may want to loosen yourself before the Skype interview, according to Forbes.

Eye contact – image source: themuse.com

#6 Take Advantage of the Technology

Since a Skype interview does not require the interviewer and interviewee to be in the same place at the same time, you can take advantage of this situation. You can make some notes about the job and the company on the screen of your computer in case you forget some details. One thing though, don’t overdo it.

Post Notes– image source: plus.google.com

Preparing for a Skype interview is as difficult as preparing for a regular interview since you have to give the interviewer a good first impression. But, when you take these tips into consideration, you will have a better chance of acing the interview and get the job.