COMPENSATION EARNER WITH OTHER INCOME

Gross compensation income 100

Less: Non-Taxable compensation 20
Taxable compensation income 80
Add: Other gross income 10
Taxable Income 90
Business income EARNER WITH OTHER INCOME
Gross compensation income 100
Add: Other gross income 120
Total Gross income 220
Less: Allowable deductions 105
 Net Income 115
mixed income EARNER WITH OTHER INCOME
Gross compensation income 300,000
Less: Non-taxable compensation 30,000
Taxable Compensation 270,000

Gross business income 400,000

Other gross income 20,000
Total gross income 420,000
Less: Deductions 250,000
Taxable net income 170,000
Taxable Income 440,000

mixed income EARNER WITH net loss on business or

profession
Gross compensation income 300,000
Less: Non-taxable compensation 30,000
Taxable Compensation 270,000

Gross business income 200,000

Other gross income 20,000
Total gross income 220,000
Less: Deductions 250,000
Net Loss (30,000)
Taxable Income 270,000
Reporting format for individuals engaged in business or
profession
Net Sales/Revenue/Receipts/Fees 4,000,000
Add: Other taxable income (RIT ONLY) 30,000
Total Sales/Revenues/Receipt/Fees 4,030,000
Less: Cost of sales or services 1,000,000
Gross Income from Business-P 3,000,000
Add: Non-Operating Income 40,000
Total Gross income 3,040,000
Less: Allowable deductions 2,000,000
Net Income 1,040,000

Taxable Income/Year. Income Tax Rate.

250,000 and below 0%
Above 250,000 to 400,000 20% of the excess over 250,000
Above 400,000 to 800,000 30,000 + 25% of the excess
over 400,000

Above 800,000 to 2,000,000 130,000 + 30% of the excess

over 800,000

Above 2,000,000 to 8,000,000 490,000 + 32% of the excess

over 2,000,000
 Above 8,000,000 2,410,000 + 35% of the excess
over 8,000,000

BIR FORM
Tax Return Form INDIVIDUAL TAXPAYERS
Form 1700 Purely employed taxpayers
Form 1701 Mixed income earners, Estates and
Trust
Form 1701A Purely in Business or profession,
using itemized, OSD or opting to the
8% optional income tax
CORPORATE INCOME TAX PAYERS
Form 1702-RT Corporations subject only to the
30% regular income tax
Form 1702-MX Corporations subject to special or
combination of tax rate
Form 1702-EX Corporations that are exempt with
no tax due
Form 1701Q Business or practice of profession
quarterly filling
Form 1702Q Corporations quarterly filling

DEADLINE OF QUARTERLY INCOME TAX RETURNS

QUARTERS INDIVIDUALS CORPORATIONS
1ST Quarter May 15, same year 60 days end of 1st
quarter
2nd Quarter August 15, same year 60 days end of 2nd
quarter
3rd Quarter November 15, same year 60 days end of 3rd
quarter