Many Filipino freelancers neglect taxes, and an employer wants to mitigate risk of a contractor facing legal issues or suddenly demanding higher pay to cover back taxes. It tests long-term professionalism.
Demonstrate awareness of BIR requirements: COR, official receipts, bookkeeping, and filing schedules. Mention specific regimes like the 8% income tax. If you haven't yet, outline a clear plan including consulting a tax professional or attending a seminar.
Start by showing that you treat tax compliance as a core part of your professional identity, not as an afterthought. Say plainly that you understand the BIR requires independent contractors to secure a Certificate of Registration, issue official receipts for every payment you collect, and maintain a simple but accurate record of your income and expenses. If you have already registered, name the specific steps you took, such as availing of the 8% income tax option on gross sales, which many freelancers use because it replaces the graduated rates and the percentage tax. Then explain your filing rhythm: quarterly income tax returns plus the annual return, and how you set aside a fixed portion of each client payout so the tax due never surprises you. If you have not registered yet, do not apologize vaguely; instead, lay out a concrete timeline, for instance, that you will complete your BIR registration within the next two weeks, open a separate bank account for business funds, and book a session with a local accountant or attend a DOLE and BIR webinar aimed at freelancers. Close by emphasizing that you see this as protecting both your client and your own long-term career, since a contractor with clean books is a safer and more reliable partner. Keep your tone steady and matter-of-fact, and avoid any hint of uncertainty about your obligations.
Avoid saying 'Bahala na, hindi naman siguro mahuhuli' – that signals legal risk. Instead, say: 'I've registered with the BIR, availed of the 8% income tax option, and file quarterly returns on time. I also consult a tax professional annually to stay updated.'
Situation
When I started earning from a small online shop while still a student, I didn't initially register with the BIR, but I later learned about the penalties.
Task
I needed to become compliant to avoid future issues and to properly document my income.
Action
I registered as a self-employed professional, learned to issue official receipts, and started filing quarterly and annual income tax returns using the eBIRForms system. I also set aside 8% of gross income for the flat tax and tracked all expenses in a simple ledger.
Result
I've been compliant for two years, avoided penalties, and feel confident handling taxes even if my freelance income grows.
Early compliance prevents stress and penalties later.
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