April 15, 2013 is just a week away. This means that taxpayers, who are required to file and pay their 2012 annual Income Tax Return with the government through the Bureau of Internal Revenue (BIR), should make sure that their ITR would be filed and or paid on or before that due date.
According to the Philippines’ Tax Code, the following are required to file the Income Tax Returns:
1. 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.
a. 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
b. Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession
c. Individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession
d. Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
e. 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
f. Marginal income earners
2. Non-resident citizens receiving income from sources within the Philippines
3. Aliens, whether resident or not, receiving income from sources within the Philippines
B Corporations no matter how created or organized including partnerships
1. Domestic corporations receiving income from sources within and outside the Philippines
2. Foreign corporations receiving income from sources within the Philippines
3. Taxable partnerships
C. Estates and trusts engaged in trade or business
If you own a business or if you are practicing your profession, perhaps you are still on the process of preparing your 2012 annual income tax return at this moment. If you have hired a bookkeeper or an accountant, your accountant is probably very busy interviewing you and computing your income tax payable right now.
If you have any question or if you want to share some thoughts regarding the computation, preparation, requirements, filing, and other matters about the 2012 Annual Income Tax in the Philippines which is due on April 15, 2013, come and join us in our discussion at Business Forum Philippines.