Because of remote work, many Filipinos enjoy lucrative opportunities from the comforts of their homes.
With only a laptop and reliable internet, you can build a thriving online career. Some even live as digital nomads and get to travel the world while working.
However, remote work comes with legal responsibilities, particularly tax payments. You need to register your trade name with DTI and then do the same for BIR.
Moreover, many aspiring remote workers overlook a crucial requirement — the occupational tax receipt.
What is the Occupational Tax Receipt?
The occupational tax receipt is a document required by local governments to practice a profession within their jurisdiction. For most municipalities, here are the requirements:
- You must be working in a job that doesn’t require a license.
- You’re a freelancer and not a registered business or employee.
Steps to Get an Occupational Tax Receipt
It’s easy to secure an occupational tax receipt (OTR). Here are the general guidelines for almost all municipalities in the Philippines:
Step 1: Get a Barangay Clearance.
First, you have to secure a barangay clearance in your area of residence.
Just go to your barangay hall with the following requirements:
- duly accomplished application form
- valid government-issued ID
- proof of residency
Step 2: Go to Your City or Municipal Hall to Get Your OTR.
Next, go to the Occupational Tax Receipt office in your city or municipal hall.
Some municipalities mix up the Occupational Tax Receipt with the Professional Tax Receipt, so make sure you get the correct clearance.
An occupational tax receipt is for professionals who don’t need a license to practice (e.g. freelancers, virtual assistants, etc.) while a professional tax receipt is for the ones who do (doctors, accountants, etc.)
Step 3: Pay for the OTR.
The last step is to pay for the OTR.
The fee is about Php 200 plus additional requirements, depending on your profession and municipality.
This amount might vary slightly among municipalities, but not by much.
That’s it! Now that you have your OTR, you can now apply for your remote working practice’s BIR registration.
However, if you’re still looking for an online job, you can sign up with Remote Staff for the best remote working opportunities for Filipinos.
Remote Staff offers long-term contracts for different fields. With your permits and registrations in place, we can connect you to ideal remote clients for your career.
Register today!
