BUSINESS

#AskTheTaxWhiz: Should I use BIR Form No. 1701 or 1701A?

The Philippine Tax Whiz discusses when to use the new BIR Form Nos. 1701 and 1701A

Mon Abrea
Published 4:15 PM, March 27, 2019
Updated 4:15 PM, March 27, 2019

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Which form should I use if I'm self-employed, availing of itemized deductions under the
graduated rates? Is it BIR Form No. 1701 or 1701A?

You will have to use BIR Form No. 1701. Since you're availing of itemized deductions, it doesn't matter if your
income is purely business/profession or mixed.

The only ones who should use BIR Form No. 1701A are individuals earning purely from business/profession and
availing of either the 8% income tax rate or the Optional Standard Deductions under Graduated Rates.

It might be a bit confusing, so those who are self-employed and professionals can use the image below for easier
reference:

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For estates and trusts, they should also use BIR Form No. 1701.

When is the deadline for filing my annual income tax return (ITR)? And how do I file the new
BIR Form No. 1701? Can I do it online?

The deadline for filing your ITR is on April 15. It does not mean you should wait for the deadline and rush it on the
last day. It is better to handle your tax compliance early so that you'll have plenty of time in case you made
mistakes such as using the wrong form or miscalculating tax dues.

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To file the new BIR Form No. 1701, you have to go to the BIR. According to Revenue Memorandum Circular No. 37-
2019, the new form is not yet available via eBIRForms or eFPS.

However, payment can be done online via GCash Mobile Payment, Landbank's Linkbiz Portal, or DBP Tax Online.

Annual income tax is one of the most important types of taxes throughout the year. It does not matter if you filed
your quarterly returns responsibly. Failing to file your annual ITR means the BIR can still charge you for penalties.

The Center for Strategic Reforms of the Philippines recently launched the #April15Challenge to promote
information about ITR filing. Join by sharing the video on the CSR Philippines Facebook page, with your answer as
the caption, and use the hashtag #April15Challenge.

For more tax-related inquiries, you can contact us at (02) 622-7720 or consult@acg.ph. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move
Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO
Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) as well as the Center for
Strategic Reforms of the Philippines (CSR Philippines). Assisting him in his column is JM Miñano, communications
associate of ACG. He graduated with a bachelor's degree in Communication Arts from the University of the
Philippines Los Baños.

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For inquiries, you may email consult@acg.ph or visit www.acg.ph for tax-related concerns.

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BUSINESS

#AskTheTaxWhiz: Top questions on tax amnesty

Still confused about tax amnesty? The Philippine Tax Whiz answers the most frequently asked questions.

Mon Abrea
Published 9:40 PM, June 26, 2019
Updated 9:40 PM, June 26, 2019

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I was issued an assessment for my delinquencies but I filed an appeal regarding the
assessment because I knew that the amounts were wrong. Can I still avail of the tax amnesty
on delinquencies?

Only if you withdrew your appeal or protest before the effectivity of the rules and regulations (April 24, 2019). If
you did not withdraw your appeal or protest before that date, then the assessments are still not considered final
and executory, and are not covered by the tax amnesty on delinquencies.

I am currently being audited by the Bureau of Internal Revenue (BIR) for taxable year 2017.
Since the tax amnesty on delinquencies covers 2017 and prior, does this mean I can avail of
the tax amnesty as well?

No. Since it's an ongoing audit, your liabilities are still not considered delinquent. The tax amnesty on
delinquencies will not have any effect on a current audit.

To know if you are covered by the tax amnesty, here's a quick summary:

CASES COVERED

Tax liabilities prior to 2017

With Final Assessment Notice (FAN)/Formal Letter of Demand (FLD) and did not protest

No FAN/FLD
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 No FAN/FLD but a withholding tax case

With FAN/FLD, protested assessment, but did not submit necessary documents on or before April 2

With FAN/FLD, protested assessment, but withdrew the protest on or before April 24, 2019

How many tax amnesty returns (TARs) should I file? Should it be per taxable year or per tax
type?

For an easier process, you can just submit one TAR for all your delinquencies. This does not mean you are
required to file one TAR only. For instance, if you're planning on filing an appeal for a specific assessment then
only decided to avail of the amnesty later on, you can still file a separate TAR for that.

If you also cannot pay the tax amnesty at once, then you can file your separate TARs so that the payment will be
more staggered.

Can I pay the tax amnesty in installments?

No, the tax amnesty has to be paid at once. An alternative you may want to consider is filing separate returns for
each tax type and taxable year. With multiple returns, this means you can pay each of those delinquencies
separately.

Are there cases when I can avail of the tax amnesty even if the BIR has not yet issued the
Final Assessment Notice (FAN), the Formal Letter of Demand (FLD), or the Final Decision on
Disputed Assessment (FDDA)?

Yes. If the tax liabilities are unremitted withholding tax or if the liabilities are related to pending criminal cases with
the Department of Justice/Prosecutor's Office or the courts for tax evasion and other criminal offenses.

To share more information about tax amnesty, the Asian Consulting Group extends its Tax Hub Talks series to
various provinces. The next stops of the seminar are in Puerto Princesa (June 28), Laguna (July 9), Albay (July
10), Bacolod (July 19), Cebu (July 20), and Pampanga (July 25).

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Register for the Tax Hub Talks in Puerto Princesa here.

For more information, contact us at consult@acg.ph or (02) 622-7720. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move
Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO
Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) as well as the Center for
Strategic Reforms of the Philippines (CSR Philippines). Assisting him in his column is JM Miñano, communications
associate of ACG. He graduated with a bachelor's degree in Communication Arts from the University of the
Philippines Los Baños.

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For inquiries, you may email consult@acg.ph or visit www.acg.ph for tax-related concerns.

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