How to file your annual income tax return in the Philippines? On April 15, 2011, every individual or entity (eg., partnership or corporation), who are required to file their income tax return and or pay their corresponding income tax due and payable should already be done doing such obligations. To avoid being penalized and being imposed with additional charges, such as interest, surcharge and compromise due to non-filing and nonpayment on time, it is wise to file your income tax return as early as possible. The following are steps and guidelines in filing and paying income taxes.
Who are required to file?
The following individuals and entities are required to file income tax return.
A. Individuals
1. Resident citizens receiving income from sources within or outside the Philippines
a) Employees deriving purely compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year
b) 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
c) Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession
d) Individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession
e) Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
f) 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
g) 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
Who are not required to file Income Tax returns?
The following individuals are not required to file income tax returns:
1. An individual who is a minimum wage earner
2. An individual whose gross income does not exceed his total personal and additional exemptions
3. An individual whose compensation income derived from one employer does not exceed P 60,000 and the income tax on which has been correctly withheld
4. An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee occupying the same position as that of the alien employee of regional headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors and offshore-banking units, non-resident aliens not engaged in trade or business)
5. Those who are qualified under “substituted filing”. However, substituted filing applies only if all of the following requirements are present :
a) the employee received purely compensation income (regardless of amount) during the taxable year
b) the employee received the income from only one employer in the Philippines during the taxable year
c) the amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer
d) the employee’s spouse also complies with all 3 conditions stated above
e) the employer files the annual information return (BIR Form No. 1604-CF)
f) the employer issues BIR Form No. 2316 (Oct 2002 ENCS version ) to each employee.
Who are exempt from Income Tax?
The following individuals are exempt from income tax:
1. Non-resident citizen who is:
a) A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein
b) A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis
c) A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year
d) A citizen who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the year to reside permanently in the Philippines will likewise be treated as a non-resident citizen during the taxable year in which he arrives in the Philippines, with respect to his income derived from sources abroad until the date of his arrival in the Philippines.
2. Overseas Filipino Worker, including overseas seaman
An individual citizen of the Philippines who is working and deriving income from abroad as an overseas Filipino worker is taxable only on income from sources within the Philippines; provided, that a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade will be treated as an overseas Filipino worker.
Note 1: A Filipino employed as Philippine Embassy/Consulate service personnel of the Philippine Embassy/consulate is not treated as a non-resident citizen, hence his income is taxable.
Note 2: An individual, though exempt from income tax, is still required to file his or her income tax return (BIR form 1700).
BIR Forms to be used and documentary requirements/attachments
The following are the BIR Forms to be used for filing annual income tax return for different types of taxpayers.
1. BIR Form 1700 – Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income) – Please check the links at the bottom of this post for the new and revised BIR 1700 form as of November 2011.
Documentary Requirements:
a) Certificate of Income Tax Withheld on Compensation (BIR Form 2316)
b) Waiver of the Husband’s right to claim additional exemption, if applicable
c) Duly approved Tax Debit Memo, if applicable
d) Proof of Foreign Tax Credits, if applicable
e) Income Tax Return previously filed and proof of payment, if filing an amended return for the same taxable year
2. BIR Form 1701 – Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With Both Business and Compensation Income). Please check the links at the bottom of this post for the new and revised BIR 1701 form as of November 2011.
Documentary Requirements:
a) Certificate of Income Tax Withheld on Compensation (BIR Form 2316), if applicable
b) Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable
c) Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
d) Waiver of the Husband’s right to claim additional exemption, if applicable
e) Duly approved Tax Debit Memo, if applicable
f) Proof of Foreign Tax Credits, if applicable
g) Income Tax Return previously filed and proof of payment, if filing an amended return for the same year
h) Account Information Form (BIR Form 1701 AIF) or the Certificate of the independent CPA with Audited Financial Statements if the gross quarterly sales, earnings, receipts or output exceed P 150,000.00
i) Proof of prior year’s excess tax credits, if applicable
3. BIR Form 1702 – Annual Income Tax Return (For Corporations and Partnerships). Please check the links at the bottom of this post for the new and revised BIR 1702 form as of November 2011.
Documentary Requirements:
a) Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable
b) Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
c) Duly approved Tax Debit Memo, if applicable
d) Proof of Foreign Tax Credits, if applicable
e) Income tax return previously filed and proof of payment, if amended return is filed for the same taxable year
f) Account Information Form (BIR Form 1702 AIF) and/or the Certificate of the independent CPA with Audited Financial Statements, if the gross quarterly sales, earnings, receipts or output exceed P150,000.00
g) Proof of prior year’s excess tax credits, if applicable
Note: Quarterly income tax returns (BIR Form 1701Q and BIR Form 1702Q) shall also be filed on or before their corresponding due dates. But for the purpose of simplifying this article, we only include income tax returns filed annually.
Computation of income tax due and payable
To learn about the preparation and computation of the income tax due and payable, please visit and read the following articles we have published in this site:
How to compute annual income tax payable in the Philippines (for individuals)
How to compute annual income tax payable in the Philippines (Partnerships and Corporations)
Steps and procedures for filing income tax return
1. Fill-up corresponding BIR Form (BIR Form 1700, 1701 or 1702) in triplicate.
2. Attach the corresponding documentary requirements
3. If there is payment:
a) Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form (return), together with the required attachments and your payment.
b) 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, together with the required attachments and your payment.
c) 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.
4. For “No Payment” Returns including refundable returns, and for tax returns qualified for second installment:
a) 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, together with the required attachments.
b) Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.
Deadlines
The following are the deadlines and due dates of filing income tax returns:
1. BIR Form 1700 – Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income)
Deadline: On or before the 15th day of April of each year covering taxable income for the preceding taxable year
2. BIR Form 1701 – Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With Both Business and Compensation Income)
Deadline: Final Adjustment Return or Annual Income Tax Return – On or before the 15th day of April of each year covering income for the preceding year
3. BIR Form 1702 – Annual Income Tax Return (For Corporations and Partnerships)
Deadline: Final Adjustment Return or Annual Income Tax Return – On or before the 15th day of the fourth month following the close of the taxpayer’s taxable year
Note:
For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession, when the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment 15 of the same year at on or before July the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.
Other Income tax returns required for certain individuals and entities
BIR Form No. 1703- Annual Income Information Return for Non-Resident Citizens / OCWs and Seamen (for foreign-sourced income)
Description
This information return is filed in triplicate by Non-resident citizens and Overseas Contract Workers (OCWs), including qualified Filipino seamen, on income derived from sources abroad.
An individual citizen of the Philippines who is working and deriving income from abroad as an overseas worker is taxable only on income from sources within the Philippines. Income from sources within the Philippines should be filed in either Form 1700 or Form 1701.
Filing Date
This information return is filed not later than the April 15 of the year following the taxable year in which the income was earned.
BIR Form No. 1704 Improperly Accumulated Earnings Tax Return
Description
This form is to be filed by every domestic corporation classified as closely-held corporation except banks and other non-bank finan-cial intermediaries, insurance companies, taxable partnerships, general professional partnerships, non- taxable joint ventures and enterprises duly registered with the Philippine Economic Zone Authority (PEZA) under R.A. 7916, and enterprises registered pursuant to the Bases Conversion and Development Act of 1992 (R.A. 7227), and other similar laws, shall render a true and accurate tax return in accordance with the provision of the Tax code.
Filing Date
The return shall be filed within 15 days after the close of the year immediately succeeding taxpayer’s covered taxable year.
Disclaimer:
New and subsequent BIR rulings, issuances and or laws may render the whole or part of the article obsolete or inaccurate. Furthermore, there may also be other relevant information that have been missed to include in this article. For more information, please visit the Bureau of Internal Revenue (BIR) website.
Update: The BIR has already issued new and revised BIR Forms 1700, 1701, 1702. You can also used the Interactive forms to easily fill-up these forms. Check out our articles regarding this matter. You will also find guidelines and instructions on how to use the new forms, as well as the Interactive forms.
– New and Revised Income Tax Return BIR Forms 1700, 1701 and 1702
–BIR Interactive Forms 1700, 1701 and 1702 for Income Tax Filing Now Available
Source:
BIR Income Tax information
Sections 23-59, 67-73 and 74-77 of the National Internal Revenue Code
Victorino Q. Abrugar is a marketing strategist and business consultant from Tacloban City, Philippines. Vic has been in the online marketing industry for more than 7 years, practicing problogging, web development, content marketing, SEO, social media marketing, and consulting.
Hello, I just would like to clarify. I normally get 2316 from my employer. I saw here that ITR for an individual getting purely compensation is 1700. Does that mean that after getting the 2316 we still have a duty to fill out a 1700? If yes, how does it go. Will it require an additional payment?
Another issue. For 1701. If a person does not get any compensation but had an other income from a sale, will it be placed under #32 and all the rest are left blank? Is it still entitled to deduct the 50,000 exemption?
Sorry, i’m really confused with all these. Thanks for all the information you’ll share.
Thanks.
Hi,
1. If you are qualified under the “SUBSTITUTE FILING” as the requirements are listed in the article above, you are not required to file your income tax return (1701). Under “substituted filing”, an individual taxpayer although required under the law to file his income tax return (BIR Form 1700), will no longer have to personally file his own income tax return but instead the employer’s annual information return (BIR Form 1604-CF) filed will be considered as the “substitute” income tax return of the employee inasmuch as the information in the employer’s return is exactly the same information contained in the employee’s return. The BIR Form 2316 issued to you by your employer will serve the same purpose as the BIR form 1700. You can use that certificate (2316) as a sufficient proof of income earnings (for applying loans, etc.) since it is a statement signed by both the employee and the employer.
2. If you have no compensation income, and only had other income from sale, business or exchange during the taxable year, you use 1701. You can put Zero or N/A the fields if that is really the case. You should fill in the allowable deductions, if there is. You can deduct your personal exemption to your taxable income for the taxable year.
For more information, you may inquire personally with your RDO.
Hi!
Can I personally apply for ITR even if I am employed with an institution? or is it vital that the company I am with will apply for me?
Thank you!
What do you mean apply? Or you mean file? If you are earning purely compensation income from only one employer during the taxable year, you need not file. Just get the 2316 from your employer and that will be your ITR. If you have more than one employer during the taxable year or you have a wife also earning purely compensation or business income, you are required to file either 1700 or 1701.
Hello,
My question is which form to fill out (1700 or 1701) and what the process is since my situation is I work as an online customer representative (home based) for a U.S. based company. I do not have a written contract from my employer, just a verbal agreement that I will work for them and receive my salary on a monthly basis via paypal. How would I file this? Thank you.
Best,
Mary Ann
Do you have other income aside from the income source you mentioned? If you are practicing your profession or services with other clients, you should use 1701 for self-employed person / professional / or those who receives mixed income (both from compensation and business/profession. If that is the situation, you may claim as allowable expenses/ deductions your expenses directly relative to the practice of your profession or services (subject to limitation as provided by the NIRC, as amended). 1700 is for individual taxpayer who receives purely compensation income (i.e., a pure employee). If you consider the company as a client, instead of a pure employer, then you will consider yourself as a self-employed taxpayer, therefore using 1701. For more clarifications, please inquire personally with the revenue officer in your district. Thanks.
Hello again,
I appreciate the quick response. I will inquire the revenue officer in my district regarding my situation, thank you.
But no, I do not have any other source of income aside from the customer representative online and work for just one U.S. based company. So from my understanding, I will need the form 1700 for individual taxpayer who receives purely compensation income. Is this correct?
Best,
Mary Ann
Hi, I found out that my employer (small business) has not been filing my ITRs these last couple years. I heard that there are penalties for not filing. Should I be concerned? Any advice on what I should do? Thanks.
Hi,
How much is your salary? If you’re not a minimum wage earner, your employer should withhold tax on your compensation and remit it with the BIR. The certificate of creditable withholding tax on compensation (BIR form 2316) should be issued to you by your employer, to serve as your proof of earning and payment of tax with the BIR. Penalties will be imposed to your employer if they will not withhold tax on your wages, if required.
How about those working with foreign embassies in the Philippines? The compensation is purely derived from “outside” the Philippines (i.e. from the foreign government) and there are no other earned income. Are they required to file an ITR? What form/s is/are needed? Or are they exempted even in filing? Thanks.
A Filipino employed as Philippine Embassy/Consulate service personnel of the Philippine Embassy/consulate is not treated as a non-resident citizen, hence his income is taxable. I’m not sure about those employed with foreign embassies. For more clarifications, please inquire or call BIR:
BIR National Office Bldg.,
Agham Road, Diliman,
Quezon City, Philippines
Trunkline:
929-7676 | 927-2511
Thank you.
Hello, hope you can help me. I’ve been been working 3 years now as a freelancer. In those 3 years I didn’t file any ITR. Can you please estimate how much I owe the gov’t, if any. I’ll appreciate any help.
Thanks in advance and god bless.
H, maybe you should first register with the BIR as a self-employed professional or one who’s engaged in business. You can visit personally with the BIR officer in your area for more inquiry. For registration, here is our article.. http://businesstips.ph/how-to-register-your-business-with-the-bir-philippines/
Is it okay to file for a 1700 even if my taxes are correctly withheld and I am qualified under substituted filing? I was given a 2316 by my employer.
Hi Kazandra,
If you’re qualified for substitute filing in accordance with the NIRC, as amended, it would be unnecessary to file 1700. Your 2316 will serve the purpose of 1700. It means that you can use your 2316 as your proof of earnings, and you can use it for obtaining loans i.e., Pagibig loans, credit card application, etc.,
Hi. My taxes are correctly withheld but I have 2 employers this year and was required to file BIR 1700 form. I just filed it today and effectively late. How are late penalties computed? thank you.
Hi Jenny,
Please read our post on this link http://businesstips.ph/penalties-for-late-filing-of-tax-returns/
Hi! I would like to seek your advice. who will you pick on who will file the additional exemption claims on having a dependent and you are married? Will you choose the one who will has the higher income or the one with the lower income between the husband and wife? Thanks!
Hello John,
Since the Philippine income tax rates on individuals are based on graduated /progressive tax rates (i.e., the rate increases as the amount subject to taxation increases), it would generally be beneficial if the spouse who has the “higher taxable income” claims the additional exemption (dependent).
Hi,
I would like to ask… when filing ITR for a nonstock nonprofit educational institution (corporation) which is in its first year of operation and does not have any income tax to pay, do i need to file ITR with AUDITED financial when its gross receipts for 7 months (from operation to end of accounting period) did not exceed 100,000? What documents are needed then? tnx.
Hi Micah,
For non-stock non-profit corporations,
1. You need to file ITR whether you have tax to pay or not.
2. Please refer to the documentary requirements in the 1702 in the article above.
Take note that there is a penalty for non-filing of ITR on time.
Hi Vic. What tax form do we need to file if we are just probationary residents?
Hi,
Homebased jobs are trending right now and I am one of the homebased workers in our country. Now, I need to have an ITR, but I don’t know how to start with. I need your advice please.
Thanks in advance and God bless!
Hi Aia,
These articles will guide you:
http://businesstips.ph/how-to-compute-income-tax-in-the-philippines-single-proprietorship/
http://businesstips.ph/how-to-register-with-the-bir-for-professionals/
Dear Sir Vic,
Just wanna ask what is the purpose of MCIT and how or what is the treatment of excess MCIT over BCIT for the suceeding qtr or years?
Thanks
— I think the purpose of BIR is to collect taxes from corporations, whether they have regular taxable income or they haven none.
A minimum corporate income tax (MCIT) of two percent (2%) of the gross income is imposed upon any domestic corporation and resident foreign corporation beginning the fourth (4th) taxable year (whether calendar or fiscal year, depending on the accounting period employed) immediately following the taxable year in which such corporation commenced its business operation. The MCIT shall be imposed whenever the corporation has zero or negative taxable income or whenever the amount of minimum corporate income tax is greater than the normal income tax due from such corporation. Any excess of the MCIT over the normal income tax shall be carried forward and credited against the normal income tax for the three (3) immediate
succeeding taxable years. The computation and the payment of MCIT shall apply each time a corporate income tax
return is filed, whether quarterly or annual basis.
Hi Sir Vic,
How is the treatment for MCIT for previous qtr/ years?
Thnx
Any excess of the MCIT over the normal income tax shall be carried forward and credited against the normal income tax for the three (3) immediate
succeeding taxable years. The computation and the payment of MCIT shall apply each time a corporate income tax return is filed, whether quarterly or annual basis.
Goodevening Sir,
After reading this article, there are some questions I would like to raise. I am a newly starting entrepreneur and wanted to make things smooth but it is really hard for me to understand all these taxes terms since I have studied a different field.
I have my registration from BIR since April 2011 but have not done anything with it, what and when should I file to BIR. Should I file monthly?If so, what do I need to submit since I am newly operating and no income has been generated yet?
Your clarification is really a big help for my puzzled mind.
Thank you.
Check your BIR Certificate of Registration (BIR Form 2303). Check the taxes you are required to file or pay, which are stated in the certificate. If you don’t have taxes to pay (no sales or no operation), you still need to file the required BIR returns with the BIR office, and have them stamped received (although you don’t have an amount to pay). Please browse our other tax articles or read the answers in other comments for more information. You may also inquire with the BIR RDO in your jurisdiction.
Hello Vic,
This is a very helpful article. I was previously employed and has recently moved to a home based job. I already have previous contributions and even have a TIN number already. Do I have to register again? What form do I have to accomplish. Thank you very much.
Regards,
Steph
Hi There,
I plan to retire in the Philippines next year. Is my retirement income (social security from the US, individual retirement account or savings taxable in the Philippines?
Thanks,
max
Hi,
I just got in to this page while I was looking for information regarding tax refund and I just saw your answers to all those people’s query. I can see that you are really good at this.
I’m 22 and I’ve been working for more than a year now. I generally don’t have any idea about tax refund and I just want to know if I am entitled for one.
Is there also a way to find out if my employer is submitting all the taxes they are taking our from my salary?
Thank you so muck in advance and hope to see your response on this.
Hope you have a great day and may God bless you always.
regards,
Albert
Hi Albert! Refund from withholding taxes on compensation is determined on an annual basis when the amount withheld exceeds your actual tax liability at the end of the year. To check if your employer is remitting withheld taxes, you may have to inquire with the BIR. Alternatively, you may ask from your employer a Certificate of withholding taxes on compensation or BIR Form No. 2316 on annual basis. The amount stated to have been remitted is presumed to have actually been remitted by the employer to the BIR.
We do offer tutorial on “Compensation, computations and must know exemptions” that might interest you for you to learn more about withholding taxes on compensation. Please click on my name above for the schedule. Thanks.
I’m currently unemployed but have been using the money I have saved before by giving personal loans to my friends and relatives. The small amount of interest from each loan is what I’m using to cover my monthly expenses. Do I still have to file an income tax and if yes, what form should I use?
Hi Onie! Your small business is a lending business and interest income you derive is taxable. Being engaged in trade or business, you are required to file an ITR irregardless of the amount of income.
Thanks Ghar. Do I need to register it as a business?
Hi!
Thank you for this very informative article!
I just wanted to ask something about the ITR. I wanted to apply for a credit card so I asked my employer for an ITR. She emailed me an electronic form of the 2316 and the 1700.
The forms were already filled up with my income information and other details. She asked me to print them and asked said that all that was left to do was sign them.
I wanted to ask if this was ok or do I need to still take the filled up forms to the BIR?
Thank you!
Hi Jeana! If you are an employee with no other taxable income and you employer is withholding the correct amount of income tax on your compensation, then, you are no longer required to file an ITR. The Form 2316 is you ITR under the substituted filing and you may use the same for credit card and other applications requiring ITR.
Hi Ghar!
Thank you for the quick response! One follow up question, I was told that the ITR needed a BIR Stamp on it. The 2316 I printed out didnt have a stamp. Is this something I need to have a look at or is my 2316 ok to use now even without the stamp?
Also, my employer has been correctly withholding my tax for the past year now.
Thank you so much!
2316 signed by the employer and confirmed by you would suffice. No need for BIR filing under substituted filing.
Hi Ghar!
Sorry for being such a bother. Just wanted to follow up on my inquiry below if that’s ok. 🙂
Thank you for the quick response! One follow up question, I was told that the ITR needed a BIR Stamp on it. The 2316 I printed out didnt have a stamp. Is this something I need to have a look at or is my 2316 ok to use now even without the stamp?
Also, my employer has been correctly withholding my tax for the past year now.
Thank you so much!
Hi jeana! 2316 under substituted filing need not be stamped. It only requires the signature of the employer and the employee as confirmation. if you file ITR and you use 2316 as tax credits, then, it should be stamped received bu the bank upon payment or with the BIR if no payment.
Hi Ghar, I am applying for a loan and they are requiring me to file form 1700 since my 2010 income has 2 employers. Would like to know what is the process of filing this 1700.. Am I the one who will fill-up the form? does the attached ITRs needs to be signed by the employer (item 58)? what if I only have 1 original copy but they are requiring 3 original copies? thanks
Hi Vin! You have to personally file the ITR – form 1700, in which case, you may either do it yourself or secure a knowledgeable one to assist you. Employer is off hand on it.
If that pertains to 2010, they, sad to say it is late already and penalties will apply – 25% surcharge, 20% interest and compromise penalties based on basic tax due, if any.For payments, bank will require three (3) original copies. You can reprint and sign new copies.
hi…i just want to ask, i’m a retainer physician in a company not a regular employee since oct last year…they told me that im the one who will file my ITR last april but its too late. what will i do?what do i need from my company to file itr?how much will i pay for it?
Hi Dok Jan! Yes, you should have filed and that is now an exposure. You need the details of their income payments to you and the withholding taxes, if any, for ITR purposes. Additionally, you are required to register your practice of profession with the BIR, register books of accounts, file tax returns and pay VAT or percentage tax and other taxes.
Can I personally file form 2316 or should my employer should file? I already been working 3years at my company and i didn’t even received any certificate of compensation payment. I want to know if my company is remitting my tax. If not, what necessary measure should i do? Can i refund it?
Hi John! 2316 is not required to be filed. Your employer will prepare the same and you sign on confirmation if you agree with the details therein. You can only refund if you were withheld more than what should have been. Should they not remit withheld taxes on compensation, BIR may run after them.
Hi Vic, I’ll be travelling to China next month, and one of the requirements for the visa is that I need to submit an ITR. I’ve been employed twice before, and I believe they’ve withheld taxes from my salary. But currently, I’m not employed to any company. How would I be able to get my ITR? Can I get it from BIR? Much thanks!
Hi Louie! If you have filed ITR, then, you may try retrieving some copies with the BIR. Should there be none, then, you may try with your previous employer a copy of your 2316 when you were still with them. In either case, that relates to past ITRs. If the Visa requires a new ITR, you may have to file a new one.
Is this the right place to ask thing regarding ITR?
I would like to know things regarding ITR in case the employee had 4 employers in a year.
Jan-Mar: Employer A
Apr-Aug: Employer B
Jul-Dec: Employer C and Employer D
1. How many times do ITR will be filed?
2. Who will file ITR’s?
3. When they will be filed?
4. What or how will be the following will be computed?
a. Gross Income
b. Taxable
c. Non-taxable
d. Exemptions
e. Tax due
Thanks in advance!
As a pure compensation income earner with 4 employers during the year, you are required to file one (1) ITR not later than April 15, 2012. This would contain your compensation income for the entire 2011, and the withheld taxes supported by 2316 from each employers.
Unfortunately, other questions would require soo much explaining. Nevertheless, we can provide you tutorial on how to do it at our Tax & Accounting Center. Please contact me for related concerns.
Isn’t necessary for Employer A and B to file the Quarterly-ITR?
May Employer C file the ITR for me?
>Thanks for answering my previous questions.
Pure compensation income earner is not required to file quarterly ITR. It is personal for the employee to file hiw own ITR.
I would like to inquire regarding the issuance of form 2316 from my previous employer.
I worked there for 8 months from November 2010 to August 2011. I’m now working on another company and I was tasked to submit my form 2316 from my previous employer. When I contacted my previous company and asked for that form, they said that they can only give me the form 2316 on April 2012.
Should I really wait for next year just to have my 2316 form?
I need to submit the form 2316 this November 2011 to my current employer.
@Jed
BIR 2316 has to be issued to payee on or before January 31 of the succeeding year in which the compensation was paid, or in cases where there is termination of employment, it is issued on the same day the last payment of wages is made. Since you’re employment is already terminated – they must gave you the certificate as stated.
i am applying for visa and itr is required what form should i fill up.i am self employed
Hello Sir Vic,
I have a newly establish business in our town a small internet cafe with 10 computers including the server, I would like to ask you sir if what form should i use, and magkano
lahat ang gagastuhin ko for the registration…..
if you can provide a computation sir much better….
I wish you will reply me before christmas..thank you
Advance merry x-mas sir
Hi,
Are you starting a sole proprietorship business? Your business should be registered with several government agencies, such as DTI, SEC (for partnership or corporation) BIR, City Mayor’s Office, etc., You can join our business forum at BusinessForum.Ph to discuss you matter more specifically. It’s free to register. You can ask more specific and several questions there. You may also read our tax guide article here for you to have an idea on other matters to be considered when starting a business. : businesstips.ph/tax-guide-philippines
Hi Sir
I have two employers within this taxable year, my current employer computes my wtax in Annualized / year-to-date basis and when i saw my Nov30 payroll i wondered how come that my earnings from my previous employer amounted to 110K+ since my salary there was only 14k a month and i worked there for only 4 months (May-Sept 2011). I just want ask how compensantion from previous employer is being computed in a year-to-date basis? because i beleive that it will lead to overstatement of my Withholding Tax.
Hoping for your Intellectual and Immediate response.
Thanks!
Hi,
My mom has a sole proprietor business under her name but the employee salary and expenses are all being sent from here, US. I was wondering what’ll be her tax obligations, both business and personal. Also, do you have any reference i could check to file them for her? Thanks a million!
Hi vic,got a question,i really need the 2316 this week for my visa application,im working and im not sure if our HR can easily process my 2316 and have it within this week.So my question is,can i get my 2316 by going to any bir office?do they issue or release 2316?thank u and more power!
Hi Vickey, what I know is that your employer must sign the 2316 form. Hence, it is your employer that prepares and issue 2316 to you and not the BIR. It’s not actually hard to prepare 2316 for your employer’s accountant if their records are updated.
hi! i have been an entrepreneur for a year now. I have registered with the bir last 2011 and paid the 500 fee but i have not done anything about it. i’m about to renew my business registration and one of the requirement is the bir clearance. what shall i do? thanks
Hi. You should comply with the BIR clearance. Check out your BIR Certificate of Registration. There, your taxes that should be filed and/or paid are listed. If you haven’t filed anything, then you should file. But I’m afraid there might be penalties involved for late filing. For more information and confirmation, you can inquire with the BIR office in your jurisdiction.
Hello sir! Hihingi po sana kase ako ng tulong sa PAO to file a case kaso po need nila ng latest ITR ko. eh yung last po na employed ako is nung 2006 pa. pano po kaya yun? mabibigyan po kaya aq ng BIR ng proof na wla ako work na wla aq ITR? ndi ko po kase alam pano proseso eh
PLEASE make some clarifications for me regarding a charitable, non-profit NGO. we started a residential care center for children 5 years ago. We used a reputable (and expensive) lawyer to set everything up. We filed all the necessary documents to receive SEC approval, DSWD approval (and subsequent accreditation), and even BIR approval (though this made no sense to me as a charitable organization; nonetheless we did as we were told). We continue to file all necessary documents every year. Just today, the BIR called regarding tax-exempt status that we’ve been asking for since day one. The officer told us that we owe back-taxes on all the rent we’ve paid (5% per month!) back to 2009. WHAT?!? this is the 1st we’ve even heard of such a thing! Why would a non-profit CHARITABLE. (no income, spending p120,000+/month on destitute Filiipino children!) be asked to pay the taxes for the lessor?!? Shouldn’t tax exemption be a “given” for a legal organization such as ours?!? What should we do about this?!?
Hi Kim. The 5% withholding tax is not a tax upon the org but imposed because the org is constituted as a withholding agent on some income payment. Obligation to withhold is not covered by your tax exemption. We wish to educate you on withholding taxes and we offer a one-day program in case you will be interested. Please refer to the site beside my name for more details.
Hi, Vic.
I qualify for substitute filing, but I missed the internal deadline within the company. I wasn’t able to give them back my signed 2316 on time (long story). And they had already submitted to the BIR. So now, I’m assuming I just submit the 1700 on my own.
Questions:
1. Since all my taxes have been correctly withheld, does this mean that I just have to file the ITR? No more other payments and fees? I received purely compensation income from my employer. Not married.
2. If I just need to file with no payment, where can I find a list of tax filing centers? There’s a BPI near my residence, but I don’t know if they just accept ITRs with added fees, or if they also accept ITRs just for filing.
Thanks!
based on the Philippine Labor Code, when is the deadline for employers to give the tax refund due to the employees?
Hi. Not based on labor code, but based on tax code: “Any excess of the taxes withheld over the tax due from the taxpayer shall be returned or credited within three (3) months from the fifteenth (15th) day of April. Refunds or credits made after such time shall earn interest at the rate of six percent (6%) per annum, starting after the lapse of the three-month period to the date the refund of credit is made.” – Sec.79 (C) Chapter XIII Withholding on Wages
I still haven’t received my 2316 from my previous employer though they already told me that it will be available by the 2nd week of November. I just called them last night and they still can’t give me a date wherein they can hand it to me. They are giving me a lot of excuses. Anyway, I just have few questions below since I really don’t know the process of filing ITR on my own.
1. I don’t know how to fill out the BIR Form 1700. What I mean is what fields specifically I should fill out. My colleague told me that there will be computation first and I don’t know how to do that.
2. What would be the basis of my “payment” in case, does it depend on the Total Amount Witheld? I wanted to make sure how much I need to pay first before going to the AAB.
I apologize if my questions weren’t that clear. Thanks for your understanding. 😀
Just a follow up regarding my concern. What I have now is my 2316 from my present employer and I haven’t received yet the one from my previous company. What I really want to know is how much I would be paying. I was told by one of my friends that I can no longer pay it partially. Was it true?
Hi Melissa. For 2011 ITR filing, you should use the new bir forms. Filing out the new forms is just the same as the old one, you just follow through the requred information and computations. This area is one of our advocacy to educate and we have a one-day program to teach participants the technicalities of filing out BIR ITRs. You may join for minimal fees.
Can I file income tax refund since I’m a solo parent and I have three children. I’ve been paying tax for three years because i did not submit to my employer the birth certificate of my three children.
Hi Radieta. It might be too late now to go after the previous years and I suggest you just catch up with the present year and onwards. Make registration update with the BIR to claim your dependents. Thanks
2/22/12
Good morning sir,
Just would like to ask if a School Service Operator/Driver is required to file ITR?
We have one school service ( L300) and my husband is the one driving it. I know that he is paying something upon registration and renewal of his permit. Is this considered the tax for the given year? My son is enrolling for college and one of the requirement is copy of ITR or Affidavit of Not filing ITR? Can you help me on this on what to provide? If you have specimen of the affidavit, please send to me so I can have it notarize.
Thank you
Hi Maricel. Yes you are required to file ITR and is also subject to percentage tax. The one paid upon registration is a different one. Thanks
Hi, Our company released the Tax Refund just recently. I joined my current company just last September and my previous employment ended last June 2011. Unfortunately, what i was able to provide my company was my 2010 2316 BIR form instead of giving them the latest 2316 from my previous employer. Thus, i was not given any tax refund. My question now is, is it still possible for me to file or ask for computation of tax refund even if my company has released the refund already?
Thanks.
Yes, please check with your employer the computation.
sir is form 2316 enough to prove that my previous employer is remitting the tax they are duducting from my salary.. this is my first time to work, i dont have tin no yet.. i didnt filled up any forms from bir, to get my tin no. , how can i know that the deductions from my salary are being remitted to bir? im worried that a problem may occur regarding theese taxes for my next employer
Issuance of form 2316 presupposes that employer remitted taxes thought may not be conclusive especially in your case where you said you have no TIN yet. I suggest you secure alphalist filed and check if your employer had secured a TIN in your behalf.
Sir what is the requirement needed if there’s no transaction for the FY2011 ?
what documents needed to prepare and what form should we file ?
what is the so called pre-operating expenses since we are non-vatable ?
we are online retailer .
Hi Abby. If a business registered, you just have to file ITR using new BIR Forms No. 1701 (sole prop), 1702 (corp) even if no transactions. Special rule for pre-operating expenses no longer applicable and you just claim as expense as the comes. we do offer basic bir compliance seminars and workshops and I invite you to join so you will develop a better working knowledge on tax implications of your online retail business. It is really a waste to pay penalties so it may be worth to educate to avoid them. Thanks.