In the Philippines, individuals and businesses must submit their tax returns by April 15 of each year. Remember, there are different ways to get this done. You can file electronically or manually, depending on the nature of your business. But what’s important is to ensure you have proper accounting and bookkeeping to make correct computations and support your claims. You can use bookkeeping services in the Philippines to keep updated and accurate records.
To submit your Income Tax Returns (ITRs), you can do the traditional way and go to the nearest Revenue District Office (RDO) for manual filing. Alternatively, those who are registered to do so can use an online application to file their ITRs with electronic filing.
If this sounds confusing for you, tax services in Manila are always ready to help. You can also read this short guide since it provides you with a list of the necessary forms, tax returns, and filing methods to get you started if you are unsure of how to prepare and file your ITR.
Who Are Required to File an ITR and Pay Taxes
1. Individual taxpayers
a. Filipinos who reside in the Philippines and generate income from domestic or international sources, such as the following:
i. Citizens of the Philippines who are residents and have earned more than PhP60,000 from sources both inside and outside the country. This includes people who work for someone else, run their own business, or make a lot of money.
ii. Citizens of the Philippines who do not reside there and earn money from sources within the country. Taxable income is only earned in the Philippines.
b. Foreign nationals, regardless of residency, earning money within the Philippines. Income that comes from sources within the Philippines is taxable.
2. Non-Individual/Corporate Taxpayers
a. Domestic businesses that derive revenue from sources both inside and outside the Philippines.
b. Companies from other countries that make money in the Philippines.
c. Trusts and estates in the trade or business
List of Income Tax Returns for Submission
1. Individuals
a. Form 1700
b. Form 1701A
2. Individuals, Estates, and Trusts
a. Form 1701
b. Form 1701Q
3. Corporations, Partnerships, and Other Non-Individuals
a. Form 1702Q
b. Form 1702-EX
c. Form 1702-RT
Methods of Filing
According tax and audit services in the Philippines, there are three main methods of filing your taxes. These are Manual Tax Filing, Electronic Filing and Payment System (eFPS), and Electronic BIR Forms (eBIRForms). Learn more about each fiing method below:
- Manual Filing Process
Step 1. Three copies of the completed BIR Forms can be downloaded, completed, and printed.
Step 2. Go to the RDO-accredited bank where you are registered if you are required to pay taxes. Present the completed BIR form and any necessary documents (check the BIR website for requirements).
Step 3. Get a copy of the BIR form that has been properly stamped and verified. This will serve as evidence that you have submitted your ITR.
- Electronic Filing and Payment System Process
Step 1. Three copies of the completed BIR Forms can be downloaded, completed, and printed.
Step 2. Go to the RDO-accredited bank where you are registered if you are required to pay taxes. Present the completed BIR form and any necessary documents (check the BIR website for requirements).
Step 3. Get a copy of the BIR form that has been properly stamped and verified. This will serve as evidence that you have submitted your ITR.
With an approved EFPS application, you can file your tax returns and get them validated using this efficient system. If you pay via eFPS, you can take advantage of online banking facilities.
A rejected application may be due to any of the following reasons:
- The BIR has tagged you as a bogus taxpayer during their investigation.
- There’s a mismatch between the info you gave and the data in the BIR’s database.
- The office head or presdient of the company did not authorize your application.
- Electronic BIR Forms (eBIRForms) Process
Step 1. Go to the website of BIR. Select “eServices.”
Step 2. Get the most recent Offline eBIRForms Package downloaded.
Step 3. Select the necessary tax return from the package. Complete vital details.
Step 4. Maintain a copy of the completed tax return after completing the required form.
Step 5. Send the completed form to the system for Online eBIRForms.
Step 6. Your ITR will be acknowledged by email by the BIR.
Step 7. To pay your taxes, go to the AAB of your RDO that is closest to you.
Deadline of Submission
Following the conclusion of each taxable year, taxpayers are required to submit their annual ITRs by April 15. However, the National Internal Revenue Code (NIRC) of 1997 stipulates that certain ITRs have distinct deadlines.
If you have any concerns regarding your taxes, please don’t hesitate to call our team. We offer comprehensive accounting services in the Philippines, including helping you with tax compliance.
