As I've mentioned in my previous blog (see post here), one thing that we cannot escape is paying taxes.
It's been two years since I registered as a freelancer and I feel I am getting the hang of filing taxes. I am always on the search for the best way to pay taxes.
In the past, the only way we know to pay taxes is via bank. Now, we have lots of ways to pay for it, and you do not even need to go out of the house to pay! Sounds cool, isn't it?
Here are some of the ways that you can pay taxes. Some may charge you a service fee, some are free:
1. Hire an accountant. An accountant can do other tasks for you aside from managing your taxes. The accountant can also do your annual renewals (business, tax registration, etc.) and other legwork for you. An accountant can even compute for your tax and record your expenses and profit.
Not all accountants are accredited with BIR, so if you need an accountant to sign tax documents (especially if you have an annual income of more than Php3 million), make sure that the accountant that you will hire is accredited. You may check the list of accredited tax practitioners here.
You may see accounting firms near BIR RDO. You can inquire with them for their fees depending on the scope of their job. I am paying an accountant to file the BIR form on my behalf since I do not have eBIR (this only works on Windows-based computers).
2. BIR Regional District Office (RDO). When you go to your RDO, there is a counter where you can pay your taxes directly. Make sure you have the correct change or better yet, pay in check. When you pay over-the-counter, you have to also present the BIR Form 0605.
3. Accredited banks. Kindly check the accredited banks where your RDO is. The first time I paid via an accredited bank, they asked for an eBIR-encoded Payment Form 0605. Banks do not accept manual entries on Payment Form 0605. No service fees collected.
There are banks that you can pay your taxes via their mobile apps or websites, like LandBank, DBP, and UnionBank.
4. GCash. Use GCash if you already know how much tax you're going to pay. I have paid my latest tax fees via GCash. It's very easy to use, just choose the type of tax that you will pay and your Tax Identification Number (TIN). Make sure you save the transaction (download the transaction or take a screenshot) for future reference. No forms to be submitted to BIR anymore. No service fees collected.
5. Paymaya. Just like GCash, Paymaya can also be used in paying taxes. This is also a good option if you already know the amount you're going to pay. The convenience fee for using Paymaya as a payment portal for BIR is Php20.
6. Taxumo. Taxumo specializes in taxation for professionals, micro-businesses, and SMEs. Apart from tax filing, Taxumo can take care of the annual registration and initial nonprofessional, professional, or business registration.
Taxumo is both a mobile phone app and a website. You can use either of the applications in managing your taxes and your accounting books. Taxumo automatically computes for the tax due and create the BIR forms for you.
Taxumo fees start at Php700 monthly.
7. Moneygment. Moneygment is a promising financial app. Apart from paying taxes, you can also pay other government institutions like Philhealth, SSS, and PAGIBIG on this app. Aside from paying income tax, you can also pay real estate tax via Moneygment.
If you chose to use Moneygment in paying and managing your taxes, the app has features where you can itemize your income and expenses. It can also help you compute your tax.
Fees collected by Moneygment starts at Php650.
You have plenty of options to choose from and it's very convenient! Our taxes help in funding government projects, so, please don't forget to pay taxes. And oh, delays in paying taxes can cause you penalties, so, please pay on time.
It's been two years since I registered as a freelancer and I feel I am getting the hang of filing taxes. I am always on the search for the best way to pay taxes.
In the past, the only way we know to pay taxes is via bank. Now, we have lots of ways to pay for it, and you do not even need to go out of the house to pay! Sounds cool, isn't it?
Here are some of the ways that you can pay taxes. Some may charge you a service fee, some are free:
1. Hire an accountant. An accountant can do other tasks for you aside from managing your taxes. The accountant can also do your annual renewals (business, tax registration, etc.) and other legwork for you. An accountant can even compute for your tax and record your expenses and profit.
Not all accountants are accredited with BIR, so if you need an accountant to sign tax documents (especially if you have an annual income of more than Php3 million), make sure that the accountant that you will hire is accredited. You may check the list of accredited tax practitioners here.
You may see accounting firms near BIR RDO. You can inquire with them for their fees depending on the scope of their job. I am paying an accountant to file the BIR form on my behalf since I do not have eBIR (this only works on Windows-based computers).
2. BIR Regional District Office (RDO). When you go to your RDO, there is a counter where you can pay your taxes directly. Make sure you have the correct change or better yet, pay in check. When you pay over-the-counter, you have to also present the BIR Form 0605.
3. Accredited banks. Kindly check the accredited banks where your RDO is. The first time I paid via an accredited bank, they asked for an eBIR-encoded Payment Form 0605. Banks do not accept manual entries on Payment Form 0605. No service fees collected.
There are banks that you can pay your taxes via their mobile apps or websites, like LandBank, DBP, and UnionBank.
4. GCash. Use GCash if you already know how much tax you're going to pay. I have paid my latest tax fees via GCash. It's very easy to use, just choose the type of tax that you will pay and your Tax Identification Number (TIN). Make sure you save the transaction (download the transaction or take a screenshot) for future reference. No forms to be submitted to BIR anymore. No service fees collected.
5. Paymaya. Just like GCash, Paymaya can also be used in paying taxes. This is also a good option if you already know the amount you're going to pay. The convenience fee for using Paymaya as a payment portal for BIR is Php20.
6. Taxumo. Taxumo specializes in taxation for professionals, micro-businesses, and SMEs. Apart from tax filing, Taxumo can take care of the annual registration and initial nonprofessional, professional, or business registration.
Taxumo is both a mobile phone app and a website. You can use either of the applications in managing your taxes and your accounting books. Taxumo automatically computes for the tax due and create the BIR forms for you.
Taxumo fees start at Php700 monthly.
7. Moneygment. Moneygment is a promising financial app. Apart from paying taxes, you can also pay other government institutions like Philhealth, SSS, and PAGIBIG on this app. Aside from paying income tax, you can also pay real estate tax via Moneygment.
If you chose to use Moneygment in paying and managing your taxes, the app has features where you can itemize your income and expenses. It can also help you compute your tax.
Fees collected by Moneygment starts at Php650.
You have plenty of options to choose from and it's very convenient! Our taxes help in funding government projects, so, please don't forget to pay taxes. And oh, delays in paying taxes can cause you penalties, so, please pay on time.
