Income Tax Return Filing Guidelines for Taxable Calendar Year 2016

For most business owners in the Philippines, it has been a yearly tradition to think about our Annual Income Tax Return which is normally due every April 15.

Many business owners may already be done filing/paying their Annual Income Tax Return, while some are still in progress of completing it.

To avoid confusion on the process of filing/paying the Annual Income Tax Return, including its required attachments, the Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No 28-2017, to serve as a guide for business owners or taxpayers.

In this article, I will be sharing with you some of the important information in the said guideline and other quick information regarding which form to file:

Which BIR Form should I use in filing my Annual Income Tax Return?

The BIR Form you will use in filing annual income tax return should be based on the formation of the business, as follows:

  • BIR Form 1700 – For Individual Earning Purely Compensation Income
  • BIR Form 1701 – For Self-Employed, Sole Proprietor, Professionals, Estates and Trusts
  • BIR Form 1702-RT – For Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate
  • BIR Form 1702-MX — For Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE
  • BIR Form 1702-EX — For Use ONLY by Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as Amended, {Sec. 30 and those exempted in Sec. 27(C) and Other Special Laws, with NO Other Taxable Income

When is the deadline of filing and/or payment of the Annual Income Tax Return?

The deadline for filing and payment of the Annual Income Tax Return, for the calendar year ending December 31, 2016, is on April 17, 2017 (Monday) since April 15, 2017 falls on a Saturday which is also a holiday/non-working day. This is clearly stated in the RMC 28-2017.

When is the deadline of submission for the required attachment to the Annual Income Tax Return?

In filing the Annual Income Tax Return, there are certain documents required to be attached in the BIR Form. Submission of the said required attachments depends on the manner you filed and/or paid the Annual Income Tax Returns, as follows:

  • Manual
  • eBIRForm Package
  • eFPS

To know which manner of filing applies to you, click here.

Below is a tabular summary of the guideline from the RMC 28-2017:

Manner of FilingWhere to File and PayRequired Attachments
Where to submitWhen to submit
A. With Payment
Manual Filing
  • Authorized Bank of the RDO where the business is located
  • GCash of the RDO where the business is located
Authorized Bank or BIR RDOUpon filling
Electronic Filing Payment System (EFPS)Create the Annual Income Tax Return via eBIRForms then file and pay it using eFPS.BIR Large Taxpayer Division or BIR RDOFifteen (15) days from the deadline of filing or date of electronic filing of the BIR Annual Income tax return, whichever comes later.
eBIBForms
  • Authorized Bank of the RDO where the business is located
  • GCash of the RDO where the business is located
Authorized Bank or BIR RDOFifteen (15) days from the deadline of filing or date of electronic filing of the BIR Annual Income tax return, whichever comes later.
B. No Payment Returns
Electronic Filing Payment System (EFPS)
  • Create the Annual Income Tax Return via eBIRForms then file it using eFPS.
BIR Large Taxpayer Division or BIR RDOFifteen (15) days from the deadline of filing or date of electronic filing of the BIR Annual Income tax return, whichever comes later.
eBIRForms PackageFile using eBIRFormRDOFifteen (15) days from the deadline of filing or date of electronic filing of the BIR Annual Income tax return, whichever comes later.

Optional Manual Filing of “No Payment Returns”

In general, tax return with no payment is mandatory to be filed using eBIRForms or eFPS, except the following:

  • Employee with pure compensation income from more than one employer who choose to file a consolidated income tax return
  • Employee qualified for substituted filing but wish to file own annual income tax return for purposes of visa, loans, etc.
  • Persons with Disability for their own income tax return filing
  • Senior Citizen for their own income tax return filing

 

Important Reminder for eFiled Annual Income Tax Returns

  1. Annual Income Tax Returns electronically filed/paid using eBIRForm or eFPS but without attachment are not required to submit printed forms in the BIR
  2. Annual Income Tax Returns electronically filed/paid using eBIRForm or eFPS but with attachment are required to do the following:
      • Submit printed and signed electronically filed BIR Form, with Filing Reference No (FRN) if filed thru eFPS or Tax Return Receipt Confirmation email, if filed thru eBIRForm, to BIR LTD or RDO for “Received Stamping”. Print three (3) copies (at least) or five (5) copies for Corporation. Received stamp will be placed in the Audit Certificate, Statement of Management Responsibility, Statement of Financial Position, and Statement of Income and Expense.
      • Submit Summary Alphalist of Withholding Tax (SAWT) using Data Entry Module of the BIR and email it to esubmission@bir.gov.ph
      • Submit required attachment together with the BIR Form. For the list of required attachment, click here.

I hope this article has been helpful for you in filing the Annual Income Tax Return for the year ending December 31, 2016.

PS

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Disclaimer: The content of this article may become outdated because of changes in the rules and regulations over time. It does not substitute the need for inquiring professional advice.