New and Revised Income Tax Return BIR Forms

Feb 17, 2012 by at Taxation

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 the founder and chief writer of BusinessTips.Ph. Vic is a social media enthusiast who loves to share his knowledge and insights through blogging. He provides business coaching to aspiring small business owners and entrepreneurs to help them reach their business and life's goals. Follow him on Twitter at @viclogic or interact with him on Facebook.

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13 Comments

  1. Hi Guys, We are scheduling a program- seminar workshop, on how to properly fill out the new ITR forms and avoid unnecessary penalties. Please visit us at our website for your interests. Thanks.

  2. Jon

    I’d like to ask, as a real estate broker, if I’m able to sell a property and the developer withholds 10% of my commission, do I still have anything else to pay? For example, my commission is 300,000:

    VAT = 32,142.86
    10% withheld = 26,785.71

    Is this all I have to pay the BIR or is the 10% withheld just a part of the taxes I still will have to be assessed, assuming that’s the only sale I made for the year? Thanks for the help!

  3. Hi Jon. Yes, you are correct. The 10% withholding tax is only part of the 5-32% regular income tax that you have to compute and pay on a quarterly and/or annual basis.

  4. Jon

    oh my… and here I was thinking 10% is the only amount i have to give up… thank you Belle, your answer helps a lot. i wish you guys had a real estate specific tax course :)

    • Hi Jon! We really had a real estate broker student last week in our two-day program, basic bookkeeping course for VAT registered. He earned more courage to manage his tax compliance through he has his own bookkeeper.

  5. Mark Louie Galapon

    I’m just wondering, what kind of printer can we use to print this forms? It has been said that we can’t cut it..

    • rhon

      HI. How do you fill up the new 1701 form.?please teach me.

    • Hi Mark, maybe you use excel format of the form for printing using ordinary printer so less ink consumption using black and white features.

      • Hi Ron, I apologize its quite a long discussion to do it in comments. We have a program on how to fill out new BIR tax returns and related seminar on how sole prop and other individuals are taxes. Please visit our site by clicking my name above for more details.

  6. Alejandro Acierto

    What the note means? *If with multiple activities per tax regime, use Supplemental Form (Shedule 4).

    If we have two line of business both subject to 30% regular rate, do I have to account individually. Thanks.

  7. I do not think there is a need if it is both under normal tax.

  8. Joseph

    Hi just want to ask for help on what ITR form should i use to file for the year 2012? i am in a BPO company and have been informed that the company is not giving/provide income tax return but also informed that i can file it personally. so just want to ask your help on what ITR form should i use

    thanks

  9. Mae

    Hi Vic! I just registered myself sel-employed this month. I just want to ask since I am studying all the BIR forms I need to file monthly, quarterly and annually… Here in the interactive version of BIR form 1701 once I select “No” to Joint Filing it automatically does not let me enter the details for my Spouse’s Name, etc. which is of course understandable. Therefore, when I file for my 1701Q this August since this will come first and I have to manually fill out this form I just want to make sure– for Part 1 Spouse column I will leave it completely blank too, is that correct? By leaving the Spouse column blank will it mean I’m not doing joint filing for my 1701Q? My husband is employed by a local company while I will be working at home online. Thanks so much for your help!

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