How To File Income Tax Return (Corporation)

Greetings everyone! In observance of the Lenten Season, may we celebrate the Holy Week with a penitent and contrite heart.

I mentioned in my previous post that the BIR has recently issued the new income tax returns/forms. For corporation, there were three (3) BIR Forms and they are as follows:

      BIR Form 1702RT - for company using the regular tax rate 

      BIR Form 1702EX - for company whose transactions are exempt from Income Tax such as non-stock non-profit corporations, cooperatives, non-government organizations, homeowners associations, schools, churches and others. 

       BIR Form 1702MX - for company whose activities may includes transactions subject to regular rate, exempt transactions and at the same time engaged in the sale of goods or services which are subject to special rates or preferential rates. The user of this form comprised of companies registered with Philippine Economic Zone Authority (PEZA), Bureau of Investment (BOI) and company subject to other tax regime.

The eBIR Forms are available from the BIR website (use latest software package version 5) or you may download it on this alternative sites: 

Websites: www.knowyourtaxes.ph; www.dof.gov.ph
Dropbox link: http://goo.gl/UCr8XS
Direct link: http://ftp.pregi.net/bir/ebirforms_package_v5.0.zip

The documentary requirements and the procedures for the filing of whichever of the said forms can be found on the BIR website.

And they are as follows:

Annual Income Tax For Corporations And Partnerships

Tax Form

BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships)

Documentary Requirements

1.  Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable

2.  Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable

3.  Duly approved Tax Debit Memo, if applicable

4.  Proof of Foreign Tax Credits, if applicable

5.  Income tax return previously filed and proof of payment, if amended return is filed for the same taxable year

6.  Account Information Form (AIF) and/or  the Certificate of the independent CPA with Audited Financial Statements, if the gross quarterly sales, earnings, receipts or output exceed P150,000.00

7.  Proof of prior year’s excess tax credits, if applicable

Procedures

1.  Fill-up BIR Form 1702 in triplicate.

2.  If  there is payment:

• Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702, together with the required attachments and your payment.

• In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 with the required attachments and your payments.

• Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3. For "No Payment" Returns including refundable/ creditable returns and returns with excess tax credit carry over:

• Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by BIR and present the duly accomplished BIR Form 1702, together with the required attachments.

• Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative

Deadline

Final Adjustment Return or Annual Income Tax Return - On or before the 15th day of the fourth month following the close of the taxpayer’s taxable year

Account Information Form For Corporations And Partnerships

Tax Form

BIR Form 1702 AIF - Account Information Form (For Corporations and Partnerships)

NOTE: Pursuant to Revenue Memorandum Circular No. 6 – 2001, corporations, companies or persons whose gross quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof, they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules listing income-producing properties and the corresponding income therefrom, and other relevant statements duly certified by an independent CPA.

Documentary Requirements

None

Procedures

1. Accomplish BIR Form 1702 AIF in triplicate.

2. Attach the same to BIR Form 1702.

Deadline

Same deadline as BIR Form 1702 - On or before the 15th day of the fourth month following the close of the taxpayer’s taxable year

Quarterly Income Tax For Corporations And Partnerships

Tax Form

BIR Form 1702 Q - Quarterly Income Tax Return (For Corporations and Partnerships)

Documentary Requirements

1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable

2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable

3. Duly approved Tax Debit Memo, if applicable

4. Previously filed return, if an amended return is filed for the same quarter

Procedures

1. Fill-up BIR Form 1702 Q in triplicate.

2. If there is payment:

• Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments and your payment.

• In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q.

• Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3. For Refundable Returns and for those returns with second installment:

• Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments.

• Receive your copy of the duly stamped and validated form from the RDO representative.

Deadline

Corporate Quarterly Declaration or Quarterly Income Tax Return - On or before the 60th day following the close of each of the quarters of the taxable year

I hope this post helps you in anyway.