Tuesday, February 8, 2011

How To Register as a Professional

Hello and good day to all practicing professionals and would-be professionals. If you are in this category then this article is for you. To help you in registering your profession with the BIR so you would be able to dispense a BIR Registered Official Receipt. Hopefully to help you through the seemingly complicated process of applying for registration on your profession or professional service and thereby getting that registered ORs that your client needs. 

The professionals being referred here are those professions regulated by the PRC and those individuals who earn in a particular profession or field which is not regulated by the PRC. 

These refers to individuals who decided not to be under any EMPLOYER thus they are SELF EMPLOYED. If you do not fall under this or you are EMPLOYED by an EMPLOYER for that matter and does not really INTEND to practice his profession OUTSIDE of an EMPLOYMENT then you should not go through with the registration. As there are taxes required for you to file as SELF EMPLOYED on a monthly basis depending on the assessment or evaluation of a BIR revenue official based on your profession or field of expertise.

First the BIR Form you will need is BIR Form 1901 (click this link so you can get a good look of this form). In the Part 1 portion of this form. Check the box on “PROFESSIONAL”. As you can see this form is also used for “SINGLE PROPRIETORSHIP” ; “ESTATE” & “TRUST”. We will not go into those yet but focus on the ”PROFESSIONAL” category.

Now the documentary requirements for this application or the needed attachments are as follows:

1) Photocopy of your PRC ID or IBP ID (for lawyers);

2) Photocopy of Payment of Professional Tax Receipts (PTR) from your local Municipality or Occupational Tax Receipt (OTR) for profession not yet regulated by the PRC (e.i. Consultants, Agents, Artists, Underwriters & the like);

3) Simplified books of Accounts for Professional (You can get this in the National Bookstore. One each, a 14 Column Columnar Book, Ledger, & Journal Book)

4) Photocopy of your Birth Certificate if single or Marriage Contract if married; include Birth Certificate of qualified dependent child.

Once you have these documents you can now go to the BIR RDO where your TIN is currently registered. If you are not sure where this is please contact   981-7000 locals 7250- / 7251 / 7252 / 7561 or the BIR Contact center at 981-8888 or email contact_us@cctr.bir.gov.ph, just make sure you provide your full name, and birthdate. Asked where your TIN is registered or what Revenue District Office and the address.

I made a couple of locational maps for some BIR offices. Its not complete yet but it may help you if you are in these locations click this link BIR Locational Maps .

Now once you got your attachments and the location of your RDO. Print the BIR Form 1901 and fill this out. You will also need the BIR Form 0605 ”Payment Form“. Pay the Annual Registration Fee of P500.00.

After settling this, ask the BIR personnel who accepted your application on when you can get your Certificate of Registration (COR). Get also that persons number so you can follow it up. 

Please take note upon getting your COR you have 30 days to apply for an authorization to print your receipts. To avoid being penalized.

When you return to your RDO for that COR. Photocopy your COR for this is the required attachment so you can now apply for an Authority to print receipts using BIR Form 1906 “Application for Authority to Print Receipts and Invoices” (Click the blue link to get a copy of form in advance). Do apply on the day you get your COR.

The complete required attachment for BIR Form 1906 are:

1) Job Order - you can get this thru the BIR Accredited Printer of your choice once you have contracted them to the do the job. To get the list and addresses of the Accredited Printers of your RDO please call your RDO for this info go to the BIR RDO Directory ;

2) Final and clear Sample of Receipts & Invoices - again this will be given by the BIR Accredited Printer of your choice. So ask for a machine printed sample copy of the receipt;

3) BIR Certificate of Registration (COR) - this is the BIR Form 2303 which will be given to you after you filed your BIR Form 1901 and paid for the Annual Registration Fee of P500.00

4) Proof of Payment of Registration Fee - This refers to your payment of the Annual Registration Fee of P500.00 thru BIR Form 0605. So you need to photocopy this also for this is one of the required attachment for your application of authorization to print receipts.

Note: The other requirement stated in the BIR Form 1906, Application for Registration this is your BIR Form 1901 copy is no longer required once you attached your COR indicating you are already registered with the BIR. Same thing with the Photocopy of the Taxpayer Identification Number Card is no longer required for you to attach this.

Once you passed this 1906 application, if you are asked to return to get this authorization. Remember to ask that BIR personnel when you can get it or get his/her number for follow up. On the other hand some RDOs can release it on the same day, this is mainly due to workload of a particular office. Another thing, ask who and where are the accredited printers of your RDO.

This is where you will go. With that authorization so you can have your ORs printed. Now if you can’t wait because you already have clients who needs to be issued an OR. You can buy the BIRs BTR receipts for your temporary use. I think its 50 pesos per booklet (50 receipts per booklet).

Another advice for professionals who may not know how to handle their books, please do hire a bookkeeper. Its practical especially if you are not familiar with that process. I believe there are software’s for this also. Will update this article when I get the info.

Or you can ask your RDO to be oriented with the eFPS system (electronic Filing & Payment System) of the BIR. You will need to request your RDO to be able to access this facility. Registration for this can be done online after you made your request to enroll or upload your TIN in that facility.

Through this system you can actually file and pay online. You can do this even if your in Tagaytay drinking your favorite brew in Starbucks. Or while basking in the sunny beach of Boracay. How’s that for convenience? Anyway, I will be doing an article on this soon.

Another point for professional who are on RETAINER or being paid not as an employee but only for particular project for a certain time or paid for consultancy work. Or a doctor who is not an employee of a clinic or hospital but is paid for services rendered. 

That PROFESSIONAL should submit an affidavit of sworn declaration of income to the contracting party/company or the one who will pay for the services he/she may render. This will determine how much that company will withheld from your actual pay as required by the BIR.

If that professional states in his affidavit that his/her annual income is below 720K then the company will withheld 10% if above then 15% on amount to be paid for the service. The company will likewise issue BIR Form 2307 indicating that tax was withheld from your pay or retainer for your services. This can be credited to your annual income tax return or for more information on this you can call the Withholding Tax Division of the BIR National Office 926-9347 / 926-9351 to help you out or clarify certain issues you regarding this matter.

Hope this article has helped you regarding this matter. For added information you might want to print a copy of TAX GUIDE FOR PROFESSIONALS (Just click the link).


  1. For a new self-employed like online tutors, how will I be able to get OTR or PTR?

  2. Hi there,

    This article is quite enlightening but I need to be familiarized with those jargons (OTR, PTR, etc.). I have some concerns regarding this matter. I was employed since 2007 up to March 2011 from different institutions but I haven't got 2316 from all the employers that I have worked with. I did not request for it anyway since I wasn't fully aware about it and none of those employers asked me for it when I got hired from their company. They just asked for my TIN number and that's it. Do I still need to get my 2316 from my previous employers? I wanted to fix/update my status in BIR but I'm clueless as to where should I start.
    Since April 2011 up to present, I'm working as Part-time Consultant in 3 Centers. Only one center that deducts 10% tax from my professional fee. When I requested for an ITR, they provided me with 2307 (Is this the ITR for Professionals? Do I need to request for it yearly and file it personally to BIR?). Aside from that, they also provided an affidavit of my gross income and asked me to have it notarized and give it back to them (What is that for? Isn't that affidavit is one of the docs that I should file to BIR for update?). And also, my BIR status is EMPLOYED. How will I change it to PROFESSIONAL? will I follow the one stated in your blog? And what will I do to 2 other centers where I am also working, they don't deduct taxes from my professional fee. Does it mean that I should be the one to deduct and personally pay the taxes to BIR unlike in the other center? I'm so worried that I may violating something I don't really intend. We were not advised and oriented by the center as to who should file and update our taxes to BIR. All the while I thought they are the ones who's updating it since they're the ones deducting from our pf to pay for our taxes.

    I hope you could help me...


  3. Hi Aubrey, the OTR are for those professions not regulated by the PRC. Or which does not need a license or certificate to practice it like writers, artists, illustrators, and the like.

    While PTRs are for professions like lawyers, engineers, nurses, CPAs, and other professions which the PRC regulates and issues a license to authenticate these professions.

    Now if your profession is not regulated by the PRC and you apply for TIN as a self employed. The requirement to get a TIN for these type of people would be the OTR. If your a CPA, Lawyer or the like the doc requirement would be the PTR.

    These OTR and PTR are issued by our local LGU. Or Municipality which has jurisdiction over the place where we intend to practice our profession or work.

    No, the 2307 is not the itr for professionals. It is certificate which proves you where paid by your client and the amount deducted from you which is indicated in the 2307 can be used by you when your file your itr as an additional deduction against our actual Income Tax return come filing season which is on the 15th of April of the following year.

    The affidavit is a requirement by BIR to its withholding agents as a basis on the deduction of the 10%. Your affidavit would indicate that your gross income is within the threshold that allows then to withheld the 10%.

    The 2307 they issued to you is duly reported to the BIR and your affidavit is a requirement that they need to attach when they report it to their BIR branch.

    To update your registration from employed to professional. You will be required to pay a 500 annual registration fee.

    Do take note the responsibility of a self employed, would require you to regularly report on a monthly basis to BIR the taxes which are required for your profession or business. So do take the orientation that they regularly give. To avoid any open case due to non filing.

    On who would file. Both of you are required to file, You are a consultant and not an employee as I understand based on what your said.. If you report to BIR that you got income from the center which did not withhold. That center will be penalized.

    Hope this info has helped you out. Should you need more info. You can call 981-7247 or 981-7250

    1. This comment has been removed by the author.

  4. hi tomtax, what's the requirement in getting a PTR for insurance agents? thanks!

    1. PTR are for professionals whose profession are regulated with the PRC.

      OTR or Occupational Tax Receipts are for Insurance agents or professions which are not regulated by the PRC like consultants,agents, artists, underwriters and the like.

      Sorry, I am not yet familiar with the LGUs requirements on OTR. Try to research on this.

      Thanks also. This is a good concern that I need to include in my post.

  5. Is the PTR can be a tax credits? Or just a deduction from the income?


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