According to the BIR, you should file your income tax return if you are:

1. A Filipino citizen living in the Philippines, receiving income from sources within or outside the
Philippines, and if you are:
 Employed by two or more employers, any time during the taxable year.
 Self-employed, either through the conduct of a trade or professional practice.
 Deriving mixed income. This means you have been an employee and a self-employed individual
during the taxable year.
 Someone who derives other non-business, non-professional related income in addition to
compensation income not otherwise subject to a final tax.
 Married, employed by a single employer, and your income has been correctly withheld—the tax
due is equal to the tax withheld—but your spouse is not entitled to a substituted filing.
 Marginal income earner.
 Someone whose income tax during the past calendar year was not withheld correctly—if the tax
due is not equal to the tax withheld.

2. A non-resident citizen i.e if you are a Filipino who works or resides abroad, receiving income from
sources within the Philippines. (You are taxable only for the income you earn from the Philippines.)

3. Not a Filipino citizen but you receive income from sources within the Philippines, regardless of your
residency. (You are taxable only for the income you earn from the Philippines.)
Those that are also required to file your income tax return include domestic corporations and partnerships
receiving income from sources within and outside the Philippines as well as foreign corporations and
partnerships receiving income from sources within the Philippines.

Lastly, estates and trusts engaged in trade or business are also required to file their ITR.

Also, according to the BIR’s guidelines, you are not required to file an income tax return if you are:

1. A minimum wage earner.

2. Someone whose gross income (total earned for the past year) does not exceed your total
personal and additional exemptions.
3. Someone whose income derived from a single employer does not exceed P60,000 and the
income tax on which has been correctly withheld.
4. Someone whose income has been subjected to final withholding tax.
5. Qualified for substituted filing.

Taxable benefits
1. Christmas parties and other special events
2. Non-cash gifts and awards
3. Employer- paid professional membership fees
4. Group sickness or accident insurance plans.

Non-taxable Benefits
 reimbursement of certain moving expenses, including reasonable expenses related to the
reinstallation of services and connection of appliances, as well as the modifications required to install
moved property
 reimbursement of a loss from the disposal of an employee’s residence subsequent to a move at
the employer’s request, up to a maximum of $15,000
 an expense allowance paid to a member of a municipal organization, to the extent that it does not
exceed one-third of the remuneration and allowance received
 the employer’s contributions to a private health services plan

 the employer’s contributions to an RPP, a supplementary employment benefit plan or a DPSP

 discounts granted to all employees

 use of the employer’s recreational facilities, subject to certain conditions

 subsidized meals, provided the employee is required to pay a reasonable amount for the cost of
food
 meals or meal allowances of up to $17,where an employee works two or more hours of overtime
before or after regular hours, and the overtime is infrequent or occasional
 uniforms and special clothing required for work

 transportation to the work location where such transportation is provided by the employer

 meals, lodging and transportation when an employee is performing duties at a remote location or,
in some
circumstances, at a special work site
 certain transportation passes to employees of bus, rail or air companies

 counselling services relating to mental or physical health, re-employment or retirement of an

employee
 allowances paid to a part-time employee for travel expenses, provided that the employee holds
another job or carries on a business, the amount is reasonable and this part-time function is performed
at a location not less than 80 km from his or her normal place of residence and principal place of
employment
 travel expenses incurred by an employee’s spouse, when his or her presence is required by the
employer and he or she has a role to play in achieving the business objectives of the trip
 transportation and parking expenses paid by the employer to a blind or motor-impaired employee

 membership dues to a sports club paid by the employer, provided it’s principally for the
employer’s own advantage
 Internet services made available to employees, to the extent that they use it in carrying out their
work or when such use mainly benefits the employer
 loyalty points collected on an employee’s personal credit card for business expenses (where the
employee is reimbursed for such expenses), as long as the points are not converted into cash and are
not indicative of an alternative form of remuneration
 reimbursement of childcare expenses by an employer to an employee if the employee is required
to work out of town at the request of the employer

Substituted filing is when the employer’s annual return (BIR Form 1604CF) may be considered as the
“substitute” Income Tax Return (ITR) of employee since the information that will be provided by his
income tax return (BIR Form 1700) is also the same information contained in the employers BIR Form
1604CF.