Money

4 Steps in Filing Income Tax Returns in the Philippines

Tax guides

Taxation may not be everyone’s favorite topic and often taxpayers rely on their company’s accountant to do it for them. But for the individual who cannot afford to commission an accountant to prepare their Annual Income Tax return, they would have to do it on their own which is why we have come up with this easy guide. Below are four easy steps to comply with this annual BIR requirement and to avoid penalties.

Tax Filing Forms

BIR Form Screenshot (ftp://ftp.bir.gov.ph/webadmin1/pdf/82255BIR%20Form%201701.pdf)

1. Fill up the applicable BIR Form in TRIPLICATE:

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  • BIR Form 1700 – Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income)
  • BIR Form 1701 – Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With Both Business and Compensation Income)

2. Attach the required documents

  • For your duly accomplished BIR Form 1700 the following are the required documents:
    • Certificate of Income Tax Withheld on Compensation (BIR Form 2316)
    • Waiver of the Husband’s right to claim additional exemption, if applicable
    • Duly approved Tax Debit Memo, if applicable
    • Proof of Foreign Tax Credits, if applicable
    • Income Tax Return previously filed and proof of payment, if filing an amended return for the same taxable year
  • For the BIR Form 1701, the following required documents should be attached:
    • Certificate of Income Tax Withheld on Compensation (BIR Form 2316), if applicable
    • Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable
    • Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
    • Waiver of the Husband’s right to claim additional exemption, if applicable
    • Duly approved Tax Debit Memo, if applicable
    • Proof of Foreign Tax Credits, if applicable
    • Income Tax Return previously filed and proof of payment, if filing an amended return for the same year
    • 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
    • Proof of prior year’s excess tax credits, if applicable

3. Make your Payment

Present the complete three sets of documents and your payment to the nearest Authorized Agent Bank (AAB) or the to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer of the Revenue District Office, on or before 15th day of April following the taxable year.

For “No Payment” Returns including refundable returns, and for tax returns qualified for second installment, taxpayer may 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

4. Receive your copy of the duly stamped and validated form

The teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer, or from the RDO/Tax Filing Center representative, in cases of no payment issues this stamped and validated form. 

Taxes may be an unwanted outflow from us but it is our way of giving back to our Country what is due Her. Our Country needs these taxes to continue to serve it citizens. Without these taxes, our country will cease to exist leaving us with no place to go to. A man without a country is like an aimless bird wandering in the sky. We hope to aid you more about taxation in our future issues. Feel free to suggest what topic can better help you.

 Source: www.bir.gov.ph

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