Roy Tang

Programmer, engineer, scientist, critic, gamer, dreamer, and kid-at-heart.

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Thanks for your reply, but I'm still not clear on the "employer-employee relationship part.

For example, a contractual part-time service worker in a fast food chain, he is not considered a regular employee is this correct? Is he required to register as a business? (I assume no.) Is he deduced the 8% withholding tax or the regular income tax?

How is this different from the scenario where you are a consultant working as a contractor for a local (PH) client (say, as a graphic designer or software developer)? Is the consultant considered an employee? Is he required to register as a business?

Also, I've worked for a number of clients as a consultant under contract, and they always just withhold the 8% and when I ask if there's anything else I need to do for tax purposes, they never advise me that I need a business permit. Should their accountant been telling them otherwise?

> Recurring like, you expect to engage in that particular kind of transaction for more than 1 time

-> does that mean if you are only doing this once, it is not considered recurring? i.e. a client asks me to build an application for them and I receive a one-time payment from them upon delivery and afterwards we no longer have a relationship, in this scenario you do not have to register as a business?

Sorry for all the follow-ups, I just want to clearly understand the scenarios wherein I would or would not be required to register as a business, because honestly I would like to avoid the bureaucracy as much as possible, hence I prefer not to register as a business if it can be avoided. I understand our duty as citizens to pay the right taxes etc and I would like to make sure I comply with any requirements and I don't mind the withholding tax being deducted from me. But I would prefer to know under what conditions I could structure freelance/consultant work without having to register as a business.

BTW, I wanted to say I appreciate your answering these questions. I had been planning to look for an accountant to consult on related matters so this thread really helps.

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Last modified at: Oct. 23, 2020, 4:44 a.m.. Source file