Freelance Categories in the Philippines
In the present day, many Filipinos are taking advantage of the opportunities presented by the expanding gig economy. Also, because the pandemic has caused many people to lose their employment, freelancing has become the dominant source of funds for many families. Working some extra hours in part time gigs funds those little extras that people need.
Many Filipinos regard freelancing as their ticket out of the 9-to-5 grind and onto a more fulfilling career path, and for good reason. With the rise of the digital economy, freelancing and its umbrella term, the “gig economy,” have spread swiftly throughout the globe. Well, it is easy to see why so many Filipinos choose to freelance in addition to their regular jobs, since doing so allows them to work from the convenience of their own homes without worrying about the traffic and the hassle of reporting physically for work.
Depending on the nature of your work, you may provide freelancing services in one of these two categories:
1. PROFESSIONAL CATEGORY
The Bureau of Internal Revenue (BIR) defines freelancers as self-employed experts, or those who earn personal income from their profession with or without a license from a regulating body. Professionally speaking, a freelancer may be someone who offers a service for profit, whether they work from an office or from home. This may also include jobs like virtual assistants, writers, and other such creative jobs. There are many jobs in IT that are freelance. There are jobs throughout the driving and couriering sectors in the Gig Economy. It is a diverse place to work.
2. SINGLE OR SOLE PROPRIETOR
A sole proprietor’s tax obligations are comparable to those of a freelance worker unless the sole proprietor decides to add personnel and/or a physical location to the business. People selling baked products, food cart owners, fashion designers, or fashion line owners may fit. It doesn’t matter how basic your company model is, as long as you register your freelance business to the BIR for tax compliance and of course to other applicable government departments related to the operations of your business.
