A professional in private practice: your forms
Reviewed by Mar Angelo N. Revelo, founder of PhilForms.
A doctor, lawyer, CPA, engineer or other licensed professional earning fees in their own name.
Forms in this pack: Register with BIR; Quarterly income tax; Quarterly percentage tax; Annual income tax return; Annual income tax return (itemized or mixed income); The 2307s your clients give you.
Register with BIR: Once, on or before you start: the form for self-employed people and professionals.
Quarterly income tax: Three times a year. To take the 8% rate, choose it in the first quarter's return: the choice holds for the whole year.
Quarterly percentage tax: Every quarter, unless you chose the 8% rate, which replaces it.
Annual income tax return: Once a year, on the 8% rate or the optional standard deduction.
Annual income tax return (itemized or mixed income): Instead of 1701A if you itemize deductions or also earn a salary.
The 2307s your clients give you: A client that withholds from your fee gives you this; claim it against your income tax.
Professional tax (PTR): paid each year on or before January 31 to the province where you practise or keep your main office; a city may levy it too. If you start mid-year, pay before you practise.
The 8% rate is open only if your gross receipts are ₱3 million or less and you are not VAT-registered.
Clients withhold 5% of your fee if your gross income for the year is ₱3 million or less, and 10% above that.
A client gives you a 2307 within 20 days after the quarter ends, or when you ask.
Continuing professional development (CPD) is required to renew your PRC ID.
Not for: A professional who earns only a salary (see First job), or a partnership or corporation.
Not affiliated with BIR, SSS, PhilHealth, Pag-IBIG or any government agency.