How to File an Income Tax Return in the Philippines

Tax season is coming up and for beginners (even those working for years), filing taxes can be very confusing. It's a duty of every law-abiding citizen and earning individual from the Philippines.

Here's a handy guide on what you need to know about filing income tax returns in the Philippines. Remember, the deadline is April 15.

What is an income tax return?

An income tax return is a form filed by individuals receiving compensation from within the Philippines with the Bureau of Internal Revenue.

Who are required to file ITRs?

According to the BIR, Filipino citizens receiving income from sources within or outside the Philippines are required to file their ITRs. This covers employees, self-employed individuals, and individuals receiving mixed income. 

Also required to file ITRs are foreigners or non-resident citizens receiving income from within the Philippines, corporations, and estates and trusts.

When is the deadline for filing?

The deadline for ITR filing is April 15 of every year.

What are the requirements?

For those who are earning purely compensation income, including non-business or non-profession related income, these are the requirements according to the BIR:

1. BIR Form 1700 - Annual Income Tax For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income)

2. Certificate of Income Tax Withheld on Compensation (BIR Form 2316)

3. Duly approved Tax Debit Memo, if applicable

4. Proofs of Foreign Tax Credits, if applicable

5. Income Tax Return previously filed and proof of payment, if filing an amended return for the same taxable year.

How to file an ITR?

Here are the different ways by which you can file your ITR:

• eFiling and Payment System or eFPS

  1. Fill-up applicable fields in the BIR Form No. 1701

  2. Pay electronically by clicking the “Proceed to Payment” button and fill-up the required fields in the “eFPS Payment Form” then click “Submit” button.

  3. Receive payment confirmation from eFPS authorized agent banks (AABs) for successful e-filing and e-payment.

• For Non-eFPS Filer

  1. Fill-up fields in the BIR Form No. 1701 in the downloaded Electronic Bureau of Internal Revenue Form (eBIRForm) Package

  2. Print the duly accomplished BIR Form No. 1701

  3. Proceed to the nearest AABs under the jurisdiction of the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1701, together with the required attachments and your payment.

  4. 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 1701, together with the required attachments and your payment.

  5. 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.

• For Manual Filer

  1. Fill-up the BIR Form No. 1701 in triplicate (three) copies.

  2. 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 No. 1701, together with the required attachments.

  3. Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.

It's important to file your taxes on time so as to avoid penalties and trouble with the BIR.