New and Revised Income Tax Return BIR Forms

Revised income tax form in the PhilippinesTaxpayers who are required to file their income tax returns under the Tax code, and those who are not required but opt to do so, will be filing with the new income tax returns issued by the BIR. This is for their annual income tax covering and starting calendar year 2011, which is due on or before April 15, 2012. The following revised forms (please visit to the link to download the forms), which are issued by the BIR on November 2011 under Revenue Regulation No. 19-2011, are required for individual and non individual taxpayers.

 

1. BIR Form 1700 version November 2011 (Annual Income Tax Return for Individuals Earning
Purely Compensation Income);

2. BIR Form 1701 version November 2011 (Annual Income Tax Return for Self-Employed
Individuals, Estates and Trusts); and

3. BIR Form 1702 version November 2011 (Annual Income Tax Return for Corporation, Partnership and Other Non-Individual Taxpayer).

Furthermore, all juridical entities that follow a fiscal year of reporting are also required to start using the new BIR Form 1702 if they are under the fiscal year ending January 31, 2012.

The regulation is issued to revise the previous BIR Form Nos. 1700, 1701, and 1702 to reflect the changes in information requested from said BIR Forms and to enable the said forms to be read by an Optical Character Reader. Thus, if you are filing for you annual income tax return for the taxable year 2011 which is due on or before April 15 this year, you should already use the new form applicable for you.

The new BIR Form 1700, which is filed by individuals earning purely compensation income, subject to exemptions stated by the Tax code, already includes supplemental information (as shown in Part IV –Items 53 to 68 of the form). However, the filling-up of these fields is still optional.

This also goes the same with BIR Form 1701, which is filed by self-employed individuals, estates and trusts (including those with both business and compensation income). The new form now also includes a supplemental information section (see Part IX –Items 108 to 123 of the form). But the filling-up of these fields is also optional as of this year’s filing.

For corporations, partnership and other non-individual taxpayers that will be filing for BIR 1702, the new form already includes a section on taxpayer’s activity profile and on Tax Relief Availment. Those who avail of any tax relief under the Tax Code and or any prevailing special laws must completely fill-up
Schedule 1 of the form showing the details for each and every registered activity and or program.

Guidelines and instructions for filling-up the new forms are stated in the last page of the forms.

Update: The BIR has also issued on March 2012 Interactive BIR Forms 1700, 1701, and 1702 on their website. You may check the details here.

Victorino Abrugar is a retired CPA practitioner, a blogger, speaker, and an entrepreneur. He's the CEO of Optixor, Inc., a digital marketing company based in the Philippines. Follow him on Twitter at @viclogic.