Many remote workers in the Philippines are wary of paying taxes. Some feel they’re handing over a chunk of their earnings without gaining anything.
That’s far from the truth. There are actual advantages when you file your taxes as a remote worker or freelancer. Here are 6 you should know about:
Grow Your Client-base
A lot of clients abroad prefer to work with tax-registered remote workers because they can issue receipts. It allows them to claim your salary as a deductible expense.
When you legitimize your business by paying taxes, you can get more premium clients in the long run.
Enjoy Government Benefits
Tax funds support public amenities like schools, roads, healthcare, and various government initiatives.
When you pay taxes, you can contribute to these projects for a better Philippines.
Enhance Financial Recordkeeping
Most remote workers or freelancers fail to keep their accounting records in check.
However, it’s important to keep good records for any successful business, right?
So when you register your remote working or freelancing business, you need to practice proper bookkeeping.
This helps you keep track of your income and expenses, which can be important for tax purposes.
Seamless Visa Application
Want to travel the world as a digital nomad? With an online job, you can build a career while exploring different countries. However, Filipinos do need a visa for this.
When you pay your taxes, you get an Income Tax Return (ITR), which can improve your chances of getting approved for a visa.
Loan Approvals
Got plans for a major purchase in the future? Like a house, a car, or maybe capital for a business?
Most banks won’t lend you the money if you can’t prove your earning capacity. That’s why an ITR is crucial if you want a higher chance of getting your loan approved.
Peace of Mind
Some remote workers don’t pay taxes because they get away with it. However, it’s only a matter of time before the government improves its collection process.
You want to avoid risking your hard-earned money with fines if caught. Tax evasion can incur hefty fines and jail time.
So, if nothing else, pay your taxes to have peace of mind.
However, if you don’t have an online job yet, you can sign up with Remote Staff for the best remote working opportunities for Filipinos.
Remote Staff can even assist you with registering in the BIR.
Plus, you can also enjoy statutory benefits like SSS, Philhealth, and PAGIBIG — even if these aren’t typical in many remote jobs.
Register today!
