New BIR Income Tax Forms (RR No. 2-2014)

The Bureau of Internal Revenue (BIR) issued this month of February the Revenue Regulations No. 2-2014 prescribing the New Income Tax Forms that will be used in filing of Income Tax Returns (ITRs) for the taxable year ending December 31, 2013.

What are the Changes?

The new income tax forms have the following changes:

  1. The revised income tax forms will reflect changes in the information required to be presented.
  2. The revised income tax forms will now have bar codes that will enable the bureau to scan and have it read by an optical character reader (OCR)
  3. The revised income tax forms are required to be printed in an A4 size bond paper.
  4. The revised income tax forms will increase the number of income tax forms from three (3) to five (5). These new forms will be required to be submitted for income tax returns on taxable year ended December 31, 2013.
    1. BIR Form No. 1700 Annual Income Tax Return for Individuals Earning Purely Compensation Income
    2. BIR Form No. 1701 version June 2013 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts)
    3. BIR Form No. 1702-RT version June 2013 (Annual Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers Subject Only to the REGULAR Income Tax Rate)
    4. BIR Form No. 1702-EX version June 2013 (Annual Income Tax Return for Use Only by Corporations, Partnerships and Other Non-Individual Taxpayers 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)
    5. BIR Form No. 1702-MX version June 2013 (Annual Income Tax Return for Corporations, Partnerships and Other Non-Individuals with Mixed Income Subject to Multiple Income Tax Rates or with Income Subject to Special/Preferential Rate)
  5. The revised income tax forms eliminate entering centavos in the income tax return. If the amount of centavos is 49 or less, drop down the centavos. If the amount is 50 centavos or more, round up to the nearest peso.
  6. The revised income tax form requires the following to itemized deductions, thus are not entitled to avail of the Optional Standard Deduction (OSD):
    1. Corporation, partnerships and other non-individuals who are:
      1. Exempt under the tax code and other special laws, with no other taxable income
      2. With income subject to special/preferential tax rates
      3. With income subject to income tax under Section 27(A) and 28 (A)(1) of the tx code, and also with income subject to special/preferential tax rates
      4. Juridical entities whose taxable base is the gross revenue or receipts (e.g., non-resident foreign international carriers) are not entitled to the itemized deductions nor to the optional standard deduction (OSD) under Section 34(L) of the Tax Code, as amended.
    2. Individual taxpayers
      1. Exempt under the Tax Code, as amended, and other special laws with no other taxable income [e.g. Barangay Micro Business Enterprise (BMBE)
      2. Those with income subject to special/preferential tax rates
      3. Those with income subject to income tax rate under Section 24 of the Tax Code, as amended, and also with income subject to special/preferential tax rates.
  7. The taxpayers who filed using old forms for their 2013 ITRs (manual and/or electronic) must re-file using the new income tax forms upon their availability.
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