BIR Form 1901: registration for sole proprietors

Who files Form 1901

BIR lists Form 1901 under Primary Registration for self-employed and mixed-income individuals. Self-employed means you earn from your own business or profession. Mixed income means you also have a job with a salary.^[1]

Example: a call center agent in Makati who also runs an ukay-ukay page on weekends is a mixed-income earner and files Form 1901 for the business side. Her salary stays taxed through her employer at the graduated rates, while the business income gets its own tax treatment.^[4]

Corporations, partnerships, cooperatives and One Person Corporations do not use Form 1901. They use Form 1903.

What to attach

BIR's checklist for individuals includes Form 1901 (two originals for a manual application), a photocopy of any government-issued ID that shows your name, address and birthdate, and your DTI certificate if you use a business name. A BMBE-registered business adds its Certificate of Authority. You also show how you will issue invoices: buy BIR Printed Invoices at the New Business Registrant Counter or give a final sample of your own printed invoices. The ₱30 loose documentary stamp goes on your Certificate of Registration.^[1]

The parts of the form that trip people up

1. Taxpayer typeTick single proprietor, professional or mixed-income earner. Pick the one that matches how you earn today, not what you plan in five years.
2. Registering officeName the RDO that covers your business address, not your home address, if the two differ.
3. Line of businessDescribe what you sell in plain words (for example "retail of groceries and household goods"), and match the description on your mayor's permit.
4. Business nameCopy it letter for letter from your DTI certificate. A small mismatch can send the form back.
5. Tax typesTick income tax plus either percentage tax or VAT, depending on your expected sales. If you choose 8% income tax, mark it on this form.
6. Sign and dateSign both originals. Keep a photo of each page for your records.

Choosing the 8% option on Form 1901

A new business registrant can signify the choice of the 8% income tax rate on Form 1901 at registration. If you do not elect it, the graduated income tax rates apply. The 8% option is not available to VAT-registered taxpayers, so do not tick both 8% and VAT.^[2]

The 8% rate is open to self-employed individuals whose gross sales or receipts and other non-operating income do not exceed ₱3,000,000. Compare both choices on the 8% income tax page before you sign.^[4]

If you register as VAT, you charge 12% VAT on your sales. Most micro businesses under ₱3,000,000 register as non-VAT instead. See the VAT threshold.^[3]

After you file

You file Form 1901 once, before you start the business. BIR then issues your Certificate of Registration (Form 2303). If something changes later, such as your address or tax type, you file an update on Form 1905 instead of a new 1901.^[1,2]

Form 1901 or another form?

Questions people ask

Where do I get Form 1901?

You can fill in the registration online in ORUS, or file the paper form at your RDO. For a manual application BIR asks for two originals.

Can I change from 8% to graduated rates after filing 1901?

Not within the same taxable year. BIR says the income tax rate option, once elected, cannot be amended for that year.

Do freelancers without a store need Form 1901?

Yes. BIR lists Form 1901 for self-employed individuals and professionals, so freelancers who earn from their own work register with it.

Is there a fee for Form 1901?

No registration fee. The only charge is the ₱30 documentary stamp tax on the Certificate of Registration.