I just badly need advice right now regarding my situation.
So, I was employed locally for around 4 years. I was basically paying taxes. I then resigned and started doing remote work from 2023 up until now. I've been getting a stable income from this work. However, I haven't paid any tax yet for various reasons like the hassle of registering, and horror stories of penalties and whatnot. I'm also taking a leap of building my own agency/company in the near future, hence I would want to start paying taxes this year, but I kind of want to avoid having penalties for those undeclared years.
For context, I've been earning around P180,000 every month since working in 2023, and planning to avail the 8%.
I've been asking chatgpt about my situation, and here's the response:
🟢 OPTION A: CLEAN UP (Voluntary Compliance)
| Factor | What it looks like |
|---|---|
| Upfront cost | ₱100k–₱300k typical (with CPA negotiation)Worst case higher |
| Stress (short-term) | High (meetings, paperwork) |
| Stress (long-term) | Very low |
| Legal risk | Almost none after settlement |
| Future agency safety | ✅ Very safe |
| Bank / loans / visas | ✅ Clean history |
| Sleep at night | 😌 Yes |
Who this is best for
- You want zero anxiety later
- You plan to scale income
- You don’t want to look over your shoulder
- You can absorb a one-time hit
Hidden benefit
Once cleaned up, BIR usually leaves you alone unless you stop filing again.
🟡 OPTION B: START FRESH (Do NOT Lie)
| Factor | What it looks like |
|---|---|
| Upfront cost | ₱0 |
| Stress (short-term) | Low |
| Stress (long-term) | Medium (background risk) |
| Legal risk | Exists but dormant |
| Future agency safety | ⚠️ Moderate |
| Bank / loans / visas | ⚠️ Depends |
| Sleep at night | 😐 Mixed |
What this really means
- Register now
- Pay correctly going forward
- Do not say you were unemployed
- Do not fabricate stories
- If asked, you say you want to comply from now on
This is common, but it’s a calculated risk, not a guarantee.
I don't want to go with OPTION A, but I'm having 2nd thoughts on OPTION B, cause they might ask about those years, and chatgpt said saying I was unemployed those years is not practically safe.
Anyone here who's been in the same situation before? Thanks for reading, and looking forward to your response.
UPDATE: replaced lost screenshots with text
Okay lng naman na mag register ka now.
I also tried to have an agency before. It was doing good until ungrateful people came in. So many VAs pirating clients. I ran my agency for 5 years and closed it. Not worth the stress, especially sa pag manage ng tao.
I'm solo again now. Much peaceful and more money than having an agency.
u/Plastic_Menu_5084 sorry to hear about your agency story.
I plan to go solo for now until I need more capacity. I'm still tied to my one remote work, but I will be hustling on the side.
tip if mag sstart ka ng agency, mas ok na mag build ng solid client base muna, start small at slow.
yes, po that's the plan, but yung main concern ko ngayon is yung sa tax, okay lang ba register ako now, and I don't declare the years from 2023 to 2025?
Yes don’t declare. They won’t ask you naman.
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Go to your nearest BIR and have them check your registration status first. If hindi ka nakapagchange ng status from employed to self-employed in those 3 years, may penalty ka for sure but you can negotiate the charges naman. BUT the more you delay the change in status, the more penalties will incur so prioritize mo na yan.
With starting an agency naman, if you're okay with issuing receipts to your clients under your name and not the name of the agency, kahit wag ka na muna mag-register as business. As self-employed professional na lang. That's how you avail the 8% tax. May 250k pa naman na deduction to your taxable income yun so you won't have to pay anything unless your earnings go beyond 250k. Good luck!
Hala may penalty pala if nagresign sa work tapos di nachange status to self employed?
If may namiss kang filings, yes. Kahit zero yung income, you still have to file once you're already registered.
I didn't know this. Omg.
I had to learn it the hard way tbh 💀
How will people be encouraged to register professionally then 😭 I just waited for the right timing na makakuha ng stable clients sana.