How to File for Income Tax Return in the Philippines


Payment of taxes in the Philippines is required for all individuals and companies in order to sustain important governmental functions.  This is so because tax is considered as the lifeblood of the government wherein most government expenditures come from.  In order for the government to create roads, amusement parks, boulevards, market and other important structures for the citizens, the government encourages everyone to pay their taxes religiously.

If you are a pure compensation earner, you should use BIR form 1700 to pay for your taxes.  You will be only exempt to pay your tax if either your company is the one who withholds payment for your taxes, or if your compensation income does not exceed your total personal and additional exemptions, or your income has been subjected to final withholding tax by multinational corporations or regional headquarters here in the Philippines.  You will also be exempted to pay taxes if you are a minimum wage earner.

File for Income Tax Return in the Philippines

For self-employed individuals, BIR form 1701 instead of 1700 is use to pay for the taxes.  These individuals include a resident citizen, non-resident alien, resident alien, non-resident citizen who is engaged in trade, business or practicing profession in the Philippines.  Resident citizen engage in trade, business or practice of a profession outside the Philippines is also required to pay Philippines Taxes.

You can either file your return electronically or manually.  For electronic payment, you can file using the BIR website to file your return and process payment.  This shall be done on or before April 15 of each year covering the income of the preceding taxable year.  For manual payment, you can go to the Authorized Agent Bank where the Revenue District Officer is located such as the Land Bank of the Philippines.  If no authorized bank is located, you can go to the assigned Revenue Collection Officer under the jurisdiction of the Revenue District Officer in your area.

Read Also: How to get BIR TIN Online

You also need to file for nonpayment returns in your respective RDO even if you are exempted to pay the tax.  You also can pay your tax in installment if your due exceeds 2,000 pesos.

In accomplishing the form, remember to write and fill up the form in all capital letters using black ink.  In addition, take note of your TIN because you need to place it there.  If there are questions that need to be answered in the form, mark it “X” rather than a checkmark.  Take note of spaces for your answers and do not mark “NONE” or make any other remark in the boxes.

Codes will be asked for you to fill up.  Visit the local BIR office if you are confuse with what code to use or log-in to for the answer.  Take note of other information to be given and make them accurate such as your address, civil status, name of qualified dependents and other pertinent information.

After all has been filled-up properly, you can then proceed to filling up computation of your tax.  Ask the help of BIR personnel if you are confuse of how to compute the tax.  Also take note of attachments like Certificate Compensation Payment, Waiver of the Husband’s Right to claim exemption, Duly approved Tax Debit Memo and others as required by BIR.

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