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.
Hi,
I want to file my BIR Form 1700 myself becasue I need the stamped copy for my visa application next week. If I go through substituted filing with my employer, it will take some time before they send me back my stamped ITR. My question is, aside from the BIR RDOs, where else can I file my ITR, ie, banks, malls…I am in the Libis area. I need to file it this week. Thanks for your help.
Yes you can voluntarily file 1700 aside from substituted filing. I’m not familiar with the the filing in Metro Manila. But if your income tax return has payable amount, maybe you can file with the BIR accredited agent banks. I would recommend you to make a call first with the BIR office to confirm where you can file your ITR. BIR head office Trunkline: 9817000, 981-8888
Hi Vic,
Just wondering, the BIR form 1703 is for foreign-sourced income. Can I use this to file an ITR? I work for an Australian-based company but I’m based here in the Philippines. We have a contract and I get salaries from them every month. Looking forward to your response.
I just started work last December 2011, do i still need to file income tax return on or before April 15?
Hi Sir Vic, Im a CPA, just want to ask if I can sign Financial Statements of my parents business? Also, I amn not a SEC-BIR Licensed to sign FS CPA, but I heard that I can sign as long as the gross sales is not above Php 600, 000.00. Need for your clarification. Thank you.
Hi Paul. I believe you could not sign. First, the independence issue based on relationship. Second is your accreditations because it is required BOA and/or BIR. We can recommend you an auditor in case you have not find one.
hi,
i am an enterpreneur and accredited member of BMBEs(barangay micro business Enterprise) under republic act9178.how should i apply for income tax exemptions.what bir form should i use?
hi sir. i recently applied for a korean visa through an agency and one of the requirements is an ITR. i just started working late november of 2011, do i still have to get an ITR or form 2316 from my company or is it understood that since I am working for less than 3 months (according to my COE), i don’t have to submit an ITR anymore? please enlighten me. thanks!
hi Sir,
i hav both compensation & business income, should i include my compensation(2316)in filing my business ITR? what if my 2316 is not yet released? or should I file business ITR only since my employer filed for my ITR(compensation)? sorry but i am really confused regarding this matter. thank you.
You need to file the 2316 together with your 1701. Actually, the taxes withheld by your employer will be treated as tax credit in your 1701. In your 1701, you should combine your taxable income from business and from compensation to arrive at the tax due for the year. Then less the tax withheld and tax paid in 3 quarters from your business. To support the tax withheld by your employer, you must attach the 2316 in your 1701. =)
sir Vic,
if i opt to used the the 40% optional deduction in my 1701 can i still enjoy the additional personal deduction such as married & Qualified dependents?
thank you very much
dext
Hi, Yes you can. You just need to use the 40% OSD instead of the regular/itemized deductions. The rest of the computation remains the same. You will notice it while filling up the fields in your income tax return/form.
Hi! I must thank you for putting up this really informative site. I just wanted to point out that perhaps you need to update some of the details published here.
In particular, you mentioned that:
“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”
are required to file form 1701.
I looked it up and the new 1701 form doesn’t say that anymore.
Is this a new protocol the BIR has implemented?
Thanks!
Hi, the particular information you’ve mentioned pertain to individual taxpayers who are required to pay income tax. It doesn’t specifically states 1700 or 1701. It generalizes individuals who are either required to file BIR form 1700 or 1701.
Employees earning purely compensation income are required to file 1700 rather than 1701.
Agree Vic. The quoted one is a general statement the way Tax Code requiring individuals to file income tax return.
The requirement for pure compensation income earners to file 1700 is likewise not absolute because of the rule on substituted filing.
For the information of everyone, the BIR has issued step-by-step procedure on filing income tax returns (1700, 1701, 1702) for the year ending December 31, 2011. To read about it, check Cpaccountant.wordpress.com/2012/04/10/e-filing-of-the-new-tax-forms-1700-1701-1702-excel-and-interactive-form/
I resigned last August and haven’t been employed since. Do I need an ITR? Or do I get it from my previous employer?
If your income tax due and income tax withheld are equal and correctly filed/remitted to the BIR, then you don’t need to file ITR. You can get BIR form 2316 Certificate of creditable withholding income on compensation from your employer. It will serve as your ITR.
Thanks for the response! I think I’ll do just that.
Hello Vic,
This Gerry from QC. I was not able to file my moms ITR for 2010. But I was able to pay the ITR for 2011. Can I still pay the late ITR (2010) thru the banks or does it have to be with the BIR? Where exactly do I file late ITR’s?
BTW my mom died in 2011 but since the business permit is still registered under her name up to now; I paid the 2011 ITR using her TIN. Can I continue to do so?
Thanks
Hi. Yes you can still file 2010. However, it will already include penalties (interest,surcharge and compromise). Some BIR/RDO requires it to be computed by a BIR examiner, some perhaps can be computed personally and pay directly in through the bank. I’m not sure in your RDO. To be sure you can inquire with them.
With regard to your second question, when it’s a sole proprietorship business, and the owner dies, the business is dissolved and should be closed, with proper filing of closure. It will also form part of the state of your mother. Thus, it would be better if you will visit the BIR and inquire for the proper filing of the estate tax, as well as the income tax.
Hi vic. This is mike. I found this site very helpful to my situation right now. I am just hired from the company i,m working with right now. The HR happened to ask me to submit 2316, because according to them it’s not their duty anymore filing such to the BIR. Their explanation is that Last year i wasn’t able to finish my contract in the previous company where i was working with,which was supposed to end dec of 2011 and my transition from previous company to their company is neaR the end of my contract. I applied and got hired to their company on nov 14,2011. I already processed the transfer of my rdo. But what confuses me here is that in the previous company from private to public where i had been to, my transition was smooth, in this company, they are asking me not only me but also my other colleagues to file our 2316 individually and telling us it’s not their duty. They even ask us to sign an agreement which says that we are allowing a third party to do that one for us and we just have to pay 300 pesos as service fee. I did not concede with such arrangement. Is what they are doing legal or illegal? I need your help badly. Hope you would be able to post reply as soon as possible. Thanks in advance!
Hi. Employers who withhold tax from the compensation income of their employees are required to provide 2316 to those employees. It’s not the responsibility of the employees to prepare their own 2316. In fact, the employer should sign the BIR form 2316 as the one who declare, under the penalties of perjury, that this certificate has been made in good faith, and verified by them. The employees only sign it as conforme.
According to the BIR website, BIR form/certificate 2316 must 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.
thanks vic! You’re a big help. I somehow understood it now.As a follow up, due to the nature of my job now, having absences is almost impossible for me as a newly hire, is there a deadline for the submission of 2316?what if i don’t submit it, what would be the possible implication/repercussion of non-submission of 2316?
Thanks alot!
And vic.. Kindly give me the simplest explanation of what is the purpose of 2316 and the reason why it is a must to submit 2316 to the new employer. Will i be penalized for non submision of this?
thanks again and god bless!
Hi, you don’t submit BIR 2316 to an employer. BIR form 2316 (Certificate of Compensation Payment / Tax Withheld For Compensation Payment With or Without TAx Withheld) is a A Certificate to be accomplished and issued to each employee receiving salaries, wages and other forms or remuneration by each employer indicating therein the total amount paid and the taxes withheld therefrom during the calendar year.
This Certificate in turn should be attached to the Annual Income Tax Return (BIR Form 1700 – for individuals receiving purely compensation income, or BIR Form 1701 for individuals with mixed income).
I already stated when it should be issued by employers (withholding agent) in my previous comment. You can download BIR Form 2316 at the BIR website to understand more about this form. BIR.gov.ph/birforms/form_cer.htm
Hi. I have mistakenly been using my wife’s TIN in my bir filings. I am a part time employee and my wife is currently unemployed. What should i do? I have inquired thru the bir hotline and the lady said theris no problem with it since the payments made under my name were applied to my wife’s tin anyway. Is this true?
I have also registered a business with the SEC last august and apparrntly the tin indicated in the articles were also wrong.
Please help.
Thanks.
Hi. In my own opinion, each taxpayer should use his or her own TIN. Thus, it’s wrong to use your wife’s TIN on your own BIR filing. Besides, putting the wrong information on any field of a tax return may be considered as incorrect filing. You may personally visit the BIR office within your jurisdiction to clear these things out.
Hi! I moved to a new company in Aug 16, 2011. I failed to provide my new company my 2011 Jan to July BIR 2316 from my previous company. My new company has already given me my BIR 2316 but only for the compensation from Aug 16 to Dec 31, 2011. I am holding now a copy of my BIR2316 from the previous company. My current company advised me to file my 2011 first half BIR2316 in the BIR office. Will I be penalized for late filing my Jan-July BIR 2316? Admittedly, I was under the assumption that my new company has included my 1st half BIR 2316 but I only found out that last week that for new employees with previous BIR 2316 in 2011, we are requested to file it personally in the BIR office.
Can you please enlighten me on this? thanks
Hi Ella. The Form 2316 is not required to be filed with the BIR. It is only an attachment to the BIR Form 1700 (pure compensation) to support your figures on compensation and tax credits. In filing the Form 1700, you will consolidate the total compensation from the two (2) employers. I suggest you still pursue the 2316 from your previous employer if you would file 1700 but filing would entail a penalty.
Hello Sir Vic,
We just opened a drugstore business, registered it last February. We started operations Mar. 20, and this week I started to work on our business taxes. Oh my, I’ve been penalized already, for late filing of two returns, 1901 and 2550M. And I still have to file for 1701Q. Pakiusap sana magbigay kayo ng tax seminar here in Cebu. Nagcharge ang BIR sa akin ng 1th, for not filing 2550M for February, and all I wrote in that form was “NO OPERATION”. So please magpa tax seminar naman kayo dito sa Cebu. Pakiusap Sir.
Hi Gina, how we wish Tax & Accounting Center, Inc. could organize one in Cebu sometime. Filing of reportorial returns like income tax, vat, and the withholding taxes starts from the time of registration an you have to file them regularly even if no tax liability.
Hi,
I would just like to ask if I’m still entitled to pay for the ITR Form 2316. My case is this, I received my BIR Form 2316 from my supervisor a week after I resigned from the company. I received it while I’m doing my clearance. I resigned last February 17, 2012 and until now I have no job since I’ll be studying this coming school year. I didn’t file my ITR because I believe that I’m no longer obliged to pay on the ITR since I have no job during the filing date. However I still have my doubts about it, so I just need a confirmation if I’m right about that.
Hope you could answer my question as soon as possible so I could already have a relief about this. Thanks!
The 2316 issued is enough because it seems you do not have other taxable income. Yes, no need to file ITR if you had been withheld correct tax.
Hi,
My husband has a real property sole prop business that builds & sells houses and the company is VAT registered. Under RR 16-2011, sale of properties not exceeding P3.199M is not subject to VAT. My question is, if he sells a property at, say, P2M (gross including construction cost), does this RR 16-2011 rule on VAT exemption apply even if the company if VAT-registered?
And the income (P2M less allowable expenses) is the amount subjected to income tax?
I’ve seen big VAT-registered companies like Landco selling their condo units under P2.5M (the 2005 threshold) without VAT but they impose VAT to buyer once the unit (bigger units) exceeds P2.5M.
Hope you can enlighten me on this.
Thanks
Carla
Hi Carla! Yes, I believe the VAT threshold applies to residential house and lot your father’s sole prop sells. The threshold is a price not exceeding P3.199M so selling price of P2M is covered. Let me invite you to participate our VAT seminar this May 28, 2012. Please click this link for more details – http://taxacctgcenter.org/programs/value-added-tax-in-and-out/.
Yes, the amount subject to income tax is the P2M less allowable deductions.
My friend needs a bir clearance. He is a resident alien but does not do business or earn income in the Phil. The clearance is just a reqt in his home country. How will he go about it? Does he need to reg or just a one time registration to transact with govt?
If your friend is not registered with the BIR, I do not think its possible. I suggest you go straight to the BIR for this.
Hi,
I’m currently working in a ROHQ with final income tax set at 15% via form 1601. I’m looking for a sideline to earn extra income while keeping my day job. Currently I’m leading to selling insurance and other investment products. My problem is that the insurance company will be witholding 10% or 15% of income and will most likelyfile this with the BIR. How do I go about filing my income tax with the extra revenue coming from insurance income? How do I file my taxes correctly so that it doesn’t become messy? Thanks.
-dennis
Hi Dennis. First, the 15% special tax as qualified employee of ROHQ is a final tax and no additional tax shall be due thereon. Next, as an agent, you are subject to income tax of 5-32% and the withholding tax of 10% or 15% is simply an advance income tax payment so you use them as tax credits.
Dennis, you may contact us for assistance in the filing so you will see to it that they are in keeping with the regulations.
Hi just want to ask what are the requirements for filling my 2 kids as my dependent for me to avail the tax exemption, and may i also know how much i can save if ever im done with filling my 2 kids, my company starts to deduct taxes to me last year december2011, as of now my deductions per month is almost P1,400.00 plus. its really a big amount for me since i have 2 kids to feed up, no husband. tnx im sorry for my english.
Hi Susana. To effect the additional qualified dependent, you need to update your BIR registration using BIR Form No. 1905 and their Live Birth Certificates. This will entail you P50,000 (P25,000 x 2) of additional personal exemption a year and you P1,400 a month withholding tax will likewise reduce. This will apply to you effective January 2012, though update will be made later within the year.
for the past 8 months, my husband and i saved, tried to invest in small ventures but none worked. overly daring and unprepared perhaps. we used up all our savings and have been unemployed for almost a year. we are currently trying to go back into the rat race and start over again. the problem is long, but i would like to limit our concern for now.
our question is, how do we file for TAX EXEMPTION ertificate as documentary support for our son’s education assistance? otherwise, he will be charged with the same tuition rate which we can hardly afford at this time, or stop schooling altogether.
very important inquiry for us, hope you can guide us on this.
deb
Hi Debbie, I think you touch base with your son’s education assistance. Some requires a barangay certification that family income falls short to justify assistance. You may use your income tax returns with net operating loss to further support. Hope and pray thatyou succeed with the sought assistance.
hi
i just want to ask if a company provides a 2316 to a person who is not an employee and for the purpose of going to china for tour. what may cause to that in BIR?thanks.
hi po,.question lang po, im applying kc on a car loan,however i lost my personal copy of my annual ITR,which is needed as a rquirement.. when I asked the bir here in my place sv po nila di n cla nagbbgay ng copy khit photocopy lng po nirerequest ko, then i also ask the bank wherein dun bnbyaran yung anual ITR, accdng to them di cla nag iisue na pag gnun n ktgal,gnun po b tlga?…pno po yun sir,how can I get a copy?please help po…thank you
I am newly hired finance officer in a corporation. I found out that the have not filed the ITRs for the years 2007- 2011. The directors want file all of them this 2012. can we still do it? Please advise. Thanks.
I am a newly hired finance officer in a corporation. I found out that they have not filed the ITRs for the years 2007- 2011. The directors want file all of them this 2012. Can we still do it? Please advise. Thanks.
Hi Sir Vic,
I need to get my ITR for Non-business before October for Tourist Visa Requirements. But you said that the deadline was on or before April 15, and I just started working last April 30. Help me please, what should I do?
Thank you,
Kristine
hi sir! may i ask if the person got lower than 10k salary are included in paying withholding tax? pls. response asap.. thanks po.. God Bless..
It depends on the place of business you may go to DOLE website for some inquiries, because you may fall under minimum wage earner if that’s the case therfore you are not required to pay witholding tax.
I just would like to ask if there are penalties for filing a tax return just like 160C and 2551M for percentage tax but in the Certificate of Regisration there is no tax type that is written as 1601C and 2551M. If there are penalties, how is it computed and should I continue to file it or stop?
– For the stockholders who receive their dividends from a domestic corporation, are they required to still file for their individual ITRs or form 2316? Can they file exemptions for those forms?
– Would there be an exemption if the amount of the dividend is too small? How much is amount that can be considered as taxable?
If the form given me is form 2307, representing all the taxes withheld at source; if this employer is my only source of income, which form shall I use, form 1700 or form 1701?
Hello,
I’ve been unemployed since January of 2012, previous income tax issues have been handled by my employer. Since January I haven’t given taxes any thought. Should I have? And how will the BIR know that I am currently unemployed? Do I inform them?
The reason I ask is because I’m eventually gonna start a business. If and when I begin I’d want to start fresh with no “sabit”. like failure to file taxes or whatnot. Thanks.
🙂
hello!
my parents have been unemployed since forever! and i would like to apply for a scholarship in my school. and they require an income tax return. i doubt if my parents know how to do all this and neither do i. so, what should i do?
Good afternoon, Can you please help me in solving this given problem ;
joey is an engineer for Hyundai.
In 2010, his monthly salary was 230,000
When he is not engage Hyundai. his professional services are retained by other engineering co.
Joey is paid by other co. a professional fee of 40,000.00 for every services he does.
For 2010, Joey rendered an engineering services for 11 months.
Joey is married to Yolly , a flight attendant earning 50,000.00 a month
They have 2 children. Jarel (12) yrs old and Janel ( 8) yrs old
In July 2010 Yolly gave birth to twins Eva and Nhel.
Following the birth, she decided to take care of the children full time and tendered her resignation effective the end of sept 2010.
In May 2010, seeing the need to move to a larger home,
Joey & Yolly sold their home for 7.5 M
They had earlier purchased the house and lot for 4 M
In July the spouse moved to a new home which they purchased for 6 M
ANNUAL SALARY OF JOEY
ANNUAL SALARY OF YOLLY
GROSS INCOME OF JOEY
GROSS INCOME OF YOLLY
IS YOLLY ENTITTLED TO AN EXEMPTION , WHAT EXEMPTION
IS JOEY ENTITLED TO AN EXEMPTION, WHAT EXEMPTION
DEDUCTION OF YOLLY
DEDUCTION OF JOEY
COMPUTE FOR WITHHOLDING TAX OF JOEY
ITR OF SPOUSES
Thank you.
Good pm po Sir, patulong po nito: employed po ako dec 2008 – june 2012 for commany A ngayon po newly hired po ako sa company B july 2012 to present and they asked for my 2316 para daw sa annualization. Sir sa company A po kasi sss, philhealth at pag ibig lang deduction ko, walang tax.. ano po ang e sasubmit ku sa company B? tataas po ba ang tax ku monthly sa company B dahil wala akong tax dati? Salamat po. 🙂
Hi I have a question. I am now with my second employer, I was employed here last october 1, so considering this is my 2nd company/employer, towards the end of the year December 31, 2012, am I gonna receive a tax refund? I was 1 year and 9months with my previous employer.
Hello everyone, I’m just very confused about the Phils. tax law now. Could anyone please help me. I had invited my sister to visit here in Korea and one of her visa requirement is ITR. She’s a widow with 4 dependents and just only a babysitter in the Phils and ofcourse her monthly salary is very small. Is she can file an ITR or if not can a BIR issue a certificate for her ITR exemption?
Thank you very much and hope to get an information from all of you friendly people.
Best regards to all.
Hi Jiji!
I’m not good in taxation but I remember about 2 to 3 years ago, I applied for SPES (a government program for the employment of students) and they are also requiring for ITR of parents. My mother is a minimum wage earner, actually below minimum, so what she did was to get a certificate of tax exemption from the BIR and that is what I used to apply for the program.
How long does it usually take to get a certifictae of non-filing from BIR?
good day sir.. nagresign po ako last May 2012 sa dati ko trabaho.. last month natanggap po ako sa isang bagong company at nirerequire nila ako magpass ng copy of BIR form 2316. Tumawag po ako sa HR officer ng previous company ko para magrequest ng 2316, sabi po sa akin sasabihin daw po muna sa boss at tatawagan nalang daw po ako kung kelan ko makukuha. hanggang ngayon po di parin nila binibigay ung 2316, kaya di ko pa po nakukumpleto yung mga requirements ko..kaylangan ko na po magstart magwork. pwede po ba ako ako kumuha ng copy ng 2316 sa BIR mismo?
Hi Susan. Form 2316 is an obligation of your previous employer and BIR could not issue the same. I suggest you closely coordinate with your previous employer.
Great
Hi!
We are following fiscal year, which ends every May 31. We haven’t yet file BIR form 1604-CF since our fiscal year has not yet ended. One of our employees is requesting for BIR form 2316, one requirement for the loan that she is applying for. Can we issue BIR form 2316 even if her contract with us has not yet ended and our fiscal year has not yet ended as well and that we haven’t yet file BIR form 1604-CF?
Hi Sir Vic,
My sister and I are both CPAs. She is rendering accounting services to her clients who are inclined with single line of business. One of them owns a tutorial center and soon availed a convenience store franchise.
My sister is asking how should she file the return for individual engaged in several lines of business(ITR, VAT,etc…)? The registered names reflected in CORs are the names of both businesses.
Thanks and regards,
Patty
Hi I just wanted to know when is the legal date for releasing income tax for employee..im working on a bpo company they promised us to release our income tax early in January this year but until now we are still waiting and we’re clueless when they will give us our ITR. We need your immediate respond thanks.
hi!
Last year, my employer is asking me to pass BIR form 1905 to my home RDO where i took my TIN. Unfortunately, until now I haven’t yet passed the form so my home RDO was not yet transfered to the RDO of my employer. What would be the possible implication of this? Will i still be issued BIR form 2316 even though my RDO is different from my employer’s RDO and will i be still be qualified for substituted filing?
Hello!
What about governtment employees..such as teachers..Can they also file for a tax return?
Tnx~
Hi . I have two employers for the year since I transferred jobs. I was told I need to file my 1700 since I’m not convered under substituted filing. It says in your article that attachments required would be the 2316. Should I submit the original 2316 forms? I have the original 2316 from my present employer but I gave the original 2316 from my previous employer to my present one when I transferred. I only have a copy. Will this suffice? Or should I get the original 2316 form from my present employer?
Please also note that the 2316 issued by my present employer already contains details of my income for the year from my previous employer.
Thank you!