8% Flat Tax vs Graduated Rates (2026)
Freelancer or business owner? A side-by-side of the 8% flat tax and the graduated rates, with the exact expense ratio where graduated starts winning.
13 min read
Taxes & Income
Registration, taxes, and money mechanics for freelancers, sole proprietors, and mixed-income earners.
Freelancer or business owner? A side-by-side of the 8% flat tax and the graduated rates, with the exact expense ratio where graduated starts winning.
Freelancing on Upwork, Fiverr, or for clients abroad? When you actually need to register with the BIR, what you owe below ₱250,000, and why no one withheld tax from your payout.
VAT or Non-VAT? A side-by-side comparison of the ₱3M threshold, the 12% output tax, and the 8% flat rate, with worked scenarios.