Income Tax is 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 less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws.
Who are Required to File Income Tax Returns?
Individuals
- Resident citizens receiving income from sources within or outside the Philippines.
- Individuals deriving compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year.
- Employees deriving 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.
- Employees whose monthly gross compensation income does not exceed Peso 5,000 or the statutory minimum wage, whichever is higher, and opted for non-withholding of tax on said income
- Individuals deriving other non-business, non-professional 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 substitute filing.
- Non-resident citizens receiving income from sources within the Philippines.
- Citizens working abroad receiving income from sources within the Philippines.
- Corporations no matter whether created or organized including general professional partnerships.
- Domestic corporations receiving income from sources within and outside the Philippines.
- Foreign corporations receiving income from sources within the Philippines.
- Estates and trusts engaged in trade or business.
Annual Income Tax for Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income)
Tax Form
Bureau of Internal Revenues (BIR Form 1700) - Annual Income Tax Return (for individuals earning purely compensation income including non-business/non-profession related income)
Documentary Requirements
- 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.
- Return previously filed return and proof of payment, if amended return.
Procedure
- Fill-up BIR Form 1700 in triplicate.
- 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.
For Refundable Returns and for Tax Returns with 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 income for the preceding taxable year.
Last Updated on: 15-02-2010
