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Freelancer tax Philippines: 8% flat vs graduated rates

Repo-linked (EBLR): your rate rises by the same 0.25% at the next reset date, unless your lender holds back some of it. Resets happen at least once every three months, so expect the change within about three months of 7 October.
MCLR-linked: your lender's own cost of funds drives the rate and it resets on its own date, often every six or twelve months. The effect arrives later and may be smaller. Our guide to [[blog:eblr-vs-mclr-home-loan|EBLR and MCLR]] explains the difference.
Fixed rate: nothing changes until the fixed period ends.

Work out which option costs you less: the 8% tax on gross receipts, or graduated rates with the 40% standard deduction plus 3% percentage tax.

Based on BIR rules for self-employed individuals: 8% option up to ₱3,000,000 of receipts; 3% percentage tax applies under graduated rates. Estimate; confirm with the BIR.

Common questions

Who can use the 8% option?

Individuals with gross receipts of ₱3 million or less, who choose it when they file.

Does 8% include the 3% percentage tax?

Yes. It replaces the graduated income tax and the 3% percentage tax.