INCOME TAX RETURN FOR INDIVIDUALS

REPORTERS:
Flora, Renelyn G. Dellosa, Edelyn Z. Murillo, Liezybell I.

Income

Income


Income means all wealth, which flows into the taxpayer other than as a mere return of capital.

Taxable Income

Tax Code of 1997



a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.

Computation
Gross Income Less: Allowable Deductions (Itemized or Optional) Net Income Less: Personal & Additional Exemptions Net Taxable Income Multiply by Tax Rate (5 to 32%) Income Tax Due: Tax withheld (per BIR From 2316/2304) Income tax payable/ Taxable Income P ___________ ___________ P ___________ ___________ P ___________ ____________ P ___________ P____________

Who are required to file the Income Tax returns?

Individuals

a. Resident citizens receiving income from sources within or outside the Philippines


employees deriving purely compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return

self-employed individuals receiving income from the conduct of trade or business and/or practice of profession individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession individuals deriving other non-business, nonprofessional related income in addition to compensation income not otherwise subject to a final tax

individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing marginal income earners

Individuals
b. Non-resident citizens receiving income from sources within the Philippines c. Aliens, whether resident or not, receiving income from sources within the Philippines d. Corporations, no matter how created or organized, including general professional partnerships e. Domestic corporations receiving income from sources within and outside the Philippines f. Foreign corporations receiving income from sources within the Philippines g. Estates and trusts engaged in trade or business

Who are exempt from Income Tax?

1. Non-resident citizen who is:



A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis

1. Non-resident citizen who is:



A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year A citizen who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the year to reside permanently in the Philippines will likewise be treated as a non-resident citizen during the taxable year in which he arrives in the Philippines, with respect to his income derived from sources abroad until the date of his arrival in the Philippines.

2. Overseas Filipino Worker, including overseas seaman



An individual citizen of the Philippines who is working and deriving income from abroad as an overseas Filipino worker is taxable only on income from sources within the Philippines;

What are the tax forms, Documentary Requirements, Procedures, and Deadline for filing Income Tax returns (ITRs)?

Annual Income Tax For Individuals Earning Purely Compensation Income (Including Non-Business/NonProfession 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/NonProfession Related Income)

Documentary Requirements
1. Certificate of Income Tax Withheld on Compensation (BIR Form 2316) 2. Waiver of the Husbands 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.

Procedures
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 SelfEmployed 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 Husbands right to claim additional exemption, if applicable 5. Duly approved Tax Debit Memo, if applicable

Documentary Requirements
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 years 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

Procedures
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

Quarterly Income Tax For SelfEmployed 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 1701Q - Quarterly 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 at Source (BIR Form 2307), if applicable 2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Previously filed return, if an amended return is filed for the same quarter

Procedures
1. Fill-up BIR Form 1701Q in triplicate. 2. If there is payment:  Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you registered and present the duly accomplished BIR Form 1701 Q, 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 1701Q, 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.

Procedures
3. For "No Payment" Returns including refundable/ creditable 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 Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1701Q, together with the required attachments.  Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.

Deadlines
  

April 15 for the first quarter August 15 for the second quarter November 15 for the third quarter

Annual Income Tax For Corporations And Partnerships

Tax Form


BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships)

Documentary Requirements
1. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable 2. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), 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 amended return is filed for the same taxable year 6. Account Information Form (AIF) and/or the Certificate of the independent CPA with Audited Financial Statements, if the gross quarterly sales, earnings, receipts or output exceed P150,000.00 7. Proof of prior years excess tax credits, if applicable

Procedures
1. Fill-up BIR Form 1702 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 1702, 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 1702 with the required attachments and your payments.  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/ creditable returns and returns with excess tax credit carry over:  Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by BIR and present the duly accomplished BIR Form 1702, 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 the fourth month following the close of the taxpayers taxable year

Quarterly Income Tax For Corporations And Partnerships

Tax Form


BIR Form 1702 Q - Quarterly Income Tax Return (For Corporations and Partnerships)

Documentary Requirements
1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable 2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable 3. Duly approved Tax Debit Memo, if applicable 4. Previously filed return, if an amended return is filed for the same quarter

Procedures
1. Fill-up BIR Form 1702 Q 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 1702 Q, 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 1702 Q.  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 Refundable Returns and for those returns with second installment:  Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments.  Receive your copy of the duly stamped and validated form from the RDO representative.

Deadline


Corporate Quarterly Declaration or Quarterly Income Tax Return - On or before the 60th day following the close of each of the quarters of the taxable year