Individuals and businesses need to pay their taxes on or before the 15th of April. You can choose to file your tax manually or electronically. If you manually file, which is the traditional way, you need to visit the nearest Revenue District Office to submit your Income Tax Return.
If you want to electronically file your tax, you can file and submit your ITRs through an online application using the BIR portal. This would be easy to do if you have accounting and bookkeeping practices in place. Are you unsure of how to prepare and file your tax? If you are, then this is the right article for you, as it can serve as your guide to help you get started with your preparations and filing your ITR.
Who are required to file ITR?
Individuals
- Resident citizens who receive income from sources inside and outside the country
- Non-resident citizens who receive income from sources inside the country
- Non-resident or resident aliens who receive income from sources inside the country
Non-Individuals
- Domestic Corporations
- Partnerships
- Foreign Resident Corporations
- Trusts and Estates that are engaged in business or trade
Income Tax Returns for Submission
For individuals
- Form 1700 – Annual Income Tax Return
This is for those who earn purely compensation income and it includes non-business and non-professional income.
- Form 1701A – Annual Income Tax Return
This is for those who earn profit solely from a business or profession, for individuals under the graduated income tax rate with OSD used as a mode of deduction, or those individuals who opted to avail of the 8% flat income tax rate.
For Individuals, Estates, and Trusts
- Form 1701 – Annual Income Tax Return
This is for those who are self-employed.
- Form 1701Q – Quarterly Income Tax Return
For Corporations, Partnerships, and Other Non-individuals
- Form 1702Q – Quarterly Income Tax Return
- Form 1702-EX – Annual Income Tax Return
As amended, this is for those exempt under the Tax Code and other special laws with no requirement of other taxable income.
- Form 1702-MX – Annual Income Tax Return
This is for those who have mixed income that is subject to many income tax rates or those who have income that is subject to a special or preferential rate.
- Form 1702-RT – Annual Income Tax Return
This is for those subject to the regular income tax rate.
Take note that you should gather all related documents from your accounting records before you file your income tax return. If you are not sure of the requirements, you can check the guidelines at the back of each tax return.
Methods of Filing and Its Step-by-Step Process
- Manual Tax Filing
- Download, fill out, and print 3 copies of the required BIR Forms
- If you need to pay your tax, go to RDO’s accredited bank where you are registered. Show your accomplished BIR forms along with other requirements.
- Get a copy of your validated and duly stamped BIR form to serve as your proof for accomplishing the filing of ITR.
- Electronic Filing and Payment System
- Go to the official eFPS website and sign up by clicking the “login” page and click “enroll to eFPS” afterward.
- Fill up the application form.
- Submit your accomplished application form by clicking the “submit” button.
If your application is approved, you can proceed to file your tax returns and have them validated using this system. If you pay via eFPS, online banking facilities are available for you.
If your application gets rejected, it may be because of any of the following reasons:
- You have been identified as a bogus taxpayer during their investigation
- The information you gave did not match the data stored in their database
- The president of the corporation or the office head did not authorize your application.
- Electronic BIR Forms
- Go to the BIR website and click “eServices.”
- Download the offline eBIRForms package.
- Access the package. Select the required tax return.
- Fill up the required form and save a copy of the finalized tax return.
- Submit the accomplished form to the eBIRForms system.
- BIR will email to confirm receipt of your income tax return.
- Pay your tax dues through the nearest AAB of your RDO.
Deadline
You must submit and file your ITR on or before April 15. However, there are others who have a different deadline under the provision of the NIRC of 1997. There are many details to keep in mind when filing your taxes. Make sure you do it right with professional help. Call our accounting experts today and take advantage of our free 30-minute consultation offer.
