How to file the Income Tax Return. (For Individual Taxpayers)

Hi! April 15 is the deadline for the filing of the Annual Income Tax Return or simply the ITR. If you don't know yet, the Bureau of Internal Revenue has recently issued the following new BIR Forms: 

     BIR Form 1700 (for employees not qualified for substituted filing),
    BIR Form 1701 (for Self-Employed and Mixed Income Individual) and the three (3) new
     BIR Form 1702’s  (for company) which are as follows:

           Form 1702RT – for company using the regular rate
           Form 1702EX – for company exempt from Income Tax and the
          Form 1702MX - for company subject to the regular rate, special rate and /or with transaction exempt from tax.

For manual filers, you can either get the form applicable to you at your Revenue District Office or download it from the BIR website at www.bir.gov.ph.

The eBIR Forms are also available from the same site or at http://ww.bir.gov.ph/ebirforms.htm using latest software package version 5.

Provided below are the different BIR Forms together with the applicable documentary requirements and procedures for individual taxpayer as specified by the bureau at http://www.bir.gov.ph/taxinfo/tax_income.htm

Annual Income Tax For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income) and For Marginal Income Earners

Tax Form

BIR Form 1700 - Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income)

Documentary Requirements

1.  Certificate of Income Tax Withheld on Compensation (BIR Form 2316)

2.  Waiver of the Husband’s right to claim additional exemption, 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 filing an amended return for the same taxable year

Procedures

1.  Fill-up BIR Form 1700 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 1700, 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 1700, together with the required attachments and your payment.

• 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 returns, and for tax returns qualified for second installment:

• Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1700, together with the required attachments.

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

Deadline

On or before the 15th day of April of each year covering taxable income for the preceding taxable year

Annual Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income,i.e., Compensation Income and Income from Business and/or Practice of Profession )

Tax Form

BIR Form 1701 - Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With Both Business and Compensation Income)

Documentary Requirements

1.  Certificate of Income Tax Withheld on Compensation (BIR Form 2316), if applicable

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

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

4.  Waiver of the Husband’s right to claim additional exemption, if applicable

5.  Duly approved Tax Debit Memo, if applicable

6.  Proof of Foreign Tax Credits, if applicable

7.  Income Tax Return previously filed and proof of payment, if filing an amended return for the same year

8.  Account Information Form (AIF) or  the Certificate of the independent CPA with  Audited Financial Statements if the gross quarterly sales, earnings, receipts or output exceed P 150,000.00

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

Procedures

1.  Fill-up BIR Form 1701 in triplicate copies.

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 1701, 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 1701, together with the required attachments and your payment.

• 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" including refundable/ creditable returns, returns with excess tax credit carry over, and returns qualified for second installment:

• Proceed to the Revenue District Office where you are registered or to any established Tax Filing Centers established by the BIR and present the duly accomplished BIR Form 1701, 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 April of each year covering income for the preceding year

Account Information Form For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income , I.E., Compensation Income and Income from Business and/or Practice of Profession)

Tax Form

BIR Form 1701 AIF - Account Information Form For Self-Employed Individuals, Estates and Trusts (Including those with Mixed Income, i.e., Compensation Income and Income from Business and/or Practice of Profession) and Estates and Trusts (Engaged in Trade or Business)

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 1701 AIF in triplicate.

2.  Attach the same to BIR Form 1701.

Deadline

Same deadline as BIR Form 1701 - On or before the 15th day of April of each year covering taxable income for the preceding year

I will be posting separate blog for the filing of the ITR of corporation. For the meantime, individual taxpayers who have not yet filed their return still have until tomorrow to comply as a law abiding citizen and also to avoid paying not only their tax due but also penalty.