The Philippines has one of the world's largest freelance workforces, from virtual assistants to developers and designers, most of them paid by clients abroad. Every one of them faces the same early decision: pay a flat 8% on gross receipts above ₱250,000, or graduated rates on net income plus 3% percentage tax.
For freelancers with few expenses, the 8% option is usually cheaper and simpler. The calculators below make that comparison with your own numbers, and show what platforms and transfer providers take before the money reaches your account.
1. Choose your tax option
Compare the 8% option with graduated rates using the 40% optional standard deduction or itemized expenses.
2. What platforms and transfers take
Your take-home after platform fees, and the real cost of converting dollars to pesos.
- Freelance Platform Fee Calculator (Upwork, Fiverr, Freelancer.com)See what you actually take home from Upwork, Fiverr or Freelancer.com after the service fee, Connects and withdrawal costs, and what to charge to keep the amount you want.
- International Payment Cost CalculatorCompare two ways of getting paid from abroad, such as a wallet, a transfer service or a bank wire. See the fees, the exchange-rate markup and how much actually arrives.
3. Rate, hours and savings
Set an hourly rate that covers tax and unpaid time, convert tracked time for invoices, and save for quarterly payments.
- Freelance Hourly Rate CalculatorWork out an hourly rate that actually covers your income goal, expenses, and self-employment tax, not just a guess.
- Time to Decimal Hours ConverterTurn tracked time like 4h 17m into decimal hours (4.28) for your invoice, with optional billing rounding and the amount to bill.
- Freelancer Tax Set-Aside CalculatorWork out how much of each client payment to put aside for income tax and social contributions, in any country, so the tax bill is never a surprise.
Questions people ask
Do Filipino freelancers need to register with the BIR?
Yes. Anyone earning business or professional income, including from foreign clients and platforms, should register and file quarterly and annual returns.
Is the 8% option always better?
Not always. It usually wins when expenses are low. If your real business expenses are large, graduated rates with itemized deductions can cost less. The calculator compares both.
When must I choose the 8% option?
When you register, or in your first quarterly income tax return of the year. Otherwise graduated rates apply for that year.