Do Grab, Angkas, foodpanda, and Lalamove Riders Need to Register With the BIR and Pay Income Tax?

Yes — Grab, Angkas, foodpanda, Lalamove, and similar ride-hailing and delivery driver-partners are self-employed taxpayers under Philippine law, not tax-exempt gig workers. Revenue Memorandum Circular (RMC) No. 70-2015 confirms that transport network company “partners” must register with the BIR (typically on BIR Form 1901) and pay income tax on the payouts they actually receive from the platform, plus percentage tax or the 8% flat option in lieu of it.

Do TNVS and delivery riders actually have to register with the BIR? #

Yes. Under NIRC Section 236, every person who earns income from a trade or business — including a driver-partner earning fares and delivery fees — must register with the BIR before commencing that activity, and the BIR has a circular squarely on point for this exact scenario.

Revenue Memorandum Circular No. 70-2015, signed October 29, 2015, was issued to clarify the tax treatment of persons engaged in land transportation through Transport Network Companies (TNCs) such as Grab and similar app-based platforms, and their “partners” — the individual drivers and vehicle owners who actually provide the ride. The circular treats these partners as self-employed individuals, subject to income tax, VAT or percentage/common carrier’s tax as applicable, and withholding tax under the Tax Code, and directs them to register using BIR Form 1901, the Application for Registration for Self-Employed and Mixed Income Individuals. Although RMC No. 70-2015 was written for TNVS (Transport Network Vehicle Service) rides, the BIR and tax practitioners have consistently applied the same self-employed classification to food and parcel delivery riders on platforms like foodpanda and Lalamove, since the underlying arrangement — an individual “partner” earning fees through an app-based platform rather than as its employee — is identical.

A driver-partner who has never registered is not operating in a gray area; the obligation exists from the first peso of platform income, the same as it does for any other freelancer or sole proprietor. For the general mechanics of BIR Form 1901 itself — documents, RDO assignment, and what registration now costs since the Ease of Paying Taxes Act — see BIR Form 1901: How to Register as a Self-Employed Individual.

Are riders taxed on the gross fare or on what the platform actually pays them? #

Riders are taxed on what they actually receive from the platform, not on the fare a passenger or customer sees on their screen. Grab, Angkas, foodpanda, and Lalamove each collect the full fare or delivery fee from the customer, deduct a commission and applicable fees, and remit the net amount to the driver or rider as the payout — and it is that net payout that constitutes the driver-partner’s business income for BIR purposes.

This distinction matters because the platform, not the individual driver, typically issues the official receipt or invoice to the passenger or customer for the full fare — the platform is the registered business collecting that payment. The driver-partner’s own taxable gross receipts are the periodic payouts credited to their account or e-wallet, which already reflect the platform’s commission deduction. A rider should reconcile the platform’s in-app earnings summary or payout history against their own books of accounts rather than trying to back into gross fares collected, since gross fares were never the driver’s receipts to begin with.

The 8% flat option vs graduated rates: which fits a typical rider? #

Most riders can choose between two income tax regimes, and the right one depends less on income level and more on how much of that income has documented deductible expenses behind it. NIRC Section 24(A)(2)(b), as amended by the TRAIN Law (Republic Act No. 10963), provides:

“Self-employed individuals and/or professionals shall have the option to avail of an eight percent (8%) tax on gross sales or gross receipts and other non-operating income in excess of Two hundred fifty thousand pesos (P250,000) in lieu of the graduated income tax rates under Subsection (A)(2)(a) of this Section and the percentage tax under Section 116 of this Code.”

Riders whose annual platform payouts and other non-operating income do not exceed the ₱3,000,000 VAT threshold qualify for this option, implemented through Revenue Regulations No. 8-2018. Fuel, vehicle amortization, and phone/data costs are real expenses for a rider, but many drivers — especially those without a full paper trail of receipts for fuel and maintenance — find the 8% flat rate simpler and often cheaper than tracking itemized deductions or applying the 40% optional standard deduction against graduated rates.

Worked example: a Lalamove and foodpanda rider earning ₱45,000 a month net #

Suppose a rider works Lalamove deliveries on weekdays and foodpanda on weekends, and across both apps their net platform payouts — after each platform’s commission — average ₱45,000 a month, for ₱540,000 over the year. That is comfortably below the ₱3,000,000 VAT threshold, so the rider is eligible for either regime.

If this rider instead used graduated rates plus the 3% percentage tax on BIR Form 2551Q, they would owe ₱16,200 in percentage tax (₱540,000 × 3%) plus graduated income tax on taxable income after the 40% OSD (₱540,000 × 60% = ₱324,000, falling in the ₱250,000–₱400,000 bracket: 15% × (₱324,000 − ₱250,000) = ₱11,100), for a combined ₱27,300 — more than the 8% option in this scenario, largely because the rider has no large documented fuel or maintenance deductions to itemize. A rider with heavier, well-receipted vehicle expenses could see the comparison flip. Either way, the rider must file quarterly and annual income tax returns; skipping both because “the platform already takes its cut” is not a valid basis for non-filing.

Practical registration steps for a first-time rider #

Registering as a driver-partner follows the same path as any other first-time self-employed taxpayer, with a few rider-specific documents layered on. The steps below assume the rider has not previously registered with the BIR under any other TIN.

1. Secure a Taxpayer Identification Number (TIN) if you don’t already have one, and file BIR Form 1901 at the Revenue District Office (RDO) covering your home address or principal place of business, or through the BIR’s Online Registration and Update System (ORUS).
2. Bring your TNVS or delivery-platform partner agreement/accreditation, a valid ID, and proof of address; some RDOs also ask for the vehicle’s OR/CR if the driver owns the unit.
3. Pay the documentary stamp tax on the Certificate of Registration and receive your BIR Form 2303 (Certificate of Registration), which lists your registered tax types — income tax, and either percentage tax (BIR Form 2551Q) or, if elected, the 8% option in lieu of it.
4. Signify the 8% option, if chosen, on BIR Form 1901 itself or on the first quarterly income tax return of the year, per RMO No. 23-2018.
5. Register books of accounts and secure authority to print or issue receipts/invoices for any income not already reflected in the platform’s payout records.
6. File BIR Form 1701Q quarterly and BIR Form 1701A (or BIR Form 1701 for mixed income earners who are also employed) annually, plus BIR Form 2551Q quarterly if not on the 8% option.

For the underlying mechanics of the 8% election itself — including irrevocability for the year and what happens if you miss the first-quarter signification — see 8% Income Tax Rate vs Graduated Rates: Which Should Self-Employed Professionals Choose?. Riders comparing their situation to other digital-economy taxpayers may also find BIR Tax Obligations for Online Sellers and Content Creators useful — a related but distinct scenario, since that post covers platform sellers and creators rather than transport and delivery partners.

Frequently asked questions #

Do Grab, Angkas, foodpanda, or Lalamove drivers need to register with the BIR? #

Yes. Revenue Memorandum Circular (RMC) No. 70-2015 confirms that drivers and riders operating as “partners” of a transport network company are self-employed taxpayers who must register with the BIR, typically using BIR Form 1901, the same registration rule NIRC Section 236 applies to any person earning income from a trade or business.

Are Grab or delivery drivers taxed on the full fare or on what the platform actually pays them? #

Driver-partners are taxed on the income they actually receive from the platform — the net payout after the platform’s commission and fees are deducted — not on the gross fare a passenger or customer paid, because the platform, not the driver, is the party that collects the gross fare and remits the driver’s share.

Should a rider elect the 8% income tax rate or graduated rates? #

Most riders whose gross platform payouts and other non-operating income stay at or below ₱3,000,000 a year may elect the 8% flat rate under NIRC Section 24(A)(2)(b) on the excess over ₱250,000, in lieu of both graduated income tax rates and the Section 116 percentage tax — often the simpler and cheaper option for riders with few documented business expenses, though graduated rates with deductions can win for riders with significant fuel, maintenance, or amortization costs to claim.

What BIR forms does a rider or driver-partner need to file? #

A rider registers with BIR Form 1901 to get a Certificate of Registration (BIR Form 2303), then files BIR Form 1701Q quarterly and BIR Form 1701A (or 1701 for mixed income earners) annually for income tax; a rider who does not elect the 8% option also files BIR Form 2551Q quarterly for percentage tax unless VAT-registered.

Does foodpanda, Grab, or Lalamove withhold tax on a rider’s earnings? #

Platforms are not generally required to withhold expanded withholding tax on driver-partner payouts the way a corporate client withholds on a supplier invoice, so most riders should not expect a BIR Form 2307 from the platform and must compute and remit their own income tax based on their registration.

What happens if a rider never registers with the BIR? #

Operating as a driver-partner without registering is failing to comply with NIRC Section 236, which exposes the rider to compromise penalties, back taxes, surcharges, and interest once discovered, and BIR field offices have run registration drives specifically targeting TNVS and delivery-platform partners since RMC No. 70-2015 was issued.

Summary #

Grab, Angkas, foodpanda, Lalamove, and similar driver-partners are self-employed taxpayers under RMC No. 70-2015 and the ordinary NIRC Section 236 registration rule — not informal gig workers outside the BIR’s reach. Registration runs through BIR Form 1901, taxable income is measured on the net payouts a rider actually receives from the platform rather than the gross fare a customer paid, and most riders can choose between the 8% flat rate under NIRC Section 24(A)(2)(b) and graduated rates plus percentage tax depending on how much documented business expense they carry. Whichever regime fits, the filing obligation is the same: quarterly and annual income tax returns, and percentage tax unless the 8% election is in place.