Who Shall File Income Tax Return (ITR)
This return shall be filed by every resident citizen deriving compensation income from all sources, or resident alien and non-resident citizen with respect to compensation income from within the
1. An individual whose gross compensation income does not exceed his total personal and additional exemptions.
2. An individual with respect to pure compensation income, as defined in Section 32(A)(1) derived from sources within the Philippines, the income tax on which has been correctly withheld (tax due equals tax withheld) under the provisions of Section 79 of the Code: Provided, That an individual deriving compensation concurrently from two or more employers at any time during the taxable year shall file an income tax return.
3. An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee occupying the same position as that of the alien employee of regional or area headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors, and offshore banking units; non-resident alien not engaged in trade or business).
4. A minimum wage earner or an individual who is exempt from income tax.
In case of married individuals who are still required to file returns or in those instances not covered by the substituted filing of returns, only one return for the taxable year shall be filed by either spouse to cover the income of the spouses, which return shall be signed by the husband and wife, unless it is physically impossible to do so, in which case signature of one of the spouses would suffice.
Individuals not required to file an ITR or those qualified for substituted filing may voluntarily file this return for purposes of loans, foreign travel requirements and for other purposes they may deem proper.
However, individuals other than those solely earning income as OFWs as defined in RR No. 1-2011 availing of the benefits of special law, such as, but not limited to the PERA Law are required to file an ITR.
“Minimum Wage Earner” shall refer to a worker in the private sector paid the statutory minimum wage or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where he/she is assigned.
“Fair Market Value” as determined in accordance with Section 6(E) of the Tax Code, as amended, shall be used in reporting the non-cash income and receipts in the Supplementary Information.
The term "individual whose compensation income has been subjected to final withholding tax” shall include aliens or Filipino citizens occupying the same positions as the alien employees, as the case may be, who are employed by regional operating headquarters, regional or area headquarters, offshore banking units, petroleum service contractors and sub-contractors, pursuant to pertinent provisions of Sections 25 (C), (D), E) and 57(A), including those subject to Fringe Benefit Tax (FBT) under Section 33 of the Tax Code, as amended, Republic Act No. 8756, Presidential Decree No. 1354, and other pertinent laws.
“Registered Address” refers to the preferred address (i.e. residence or employer’s business address) provided by the taxpayer upon registration with the BIR using BIR Form No. 1902 (Application for Registration-For Individuals Earning Purely Compensation Income and Non-Resident Citizens/Resident Alien Employee).
When and Where to File and Pay
1. For Electronic Filing and Payment System (eFPS) Taxpayer
The return shall be e-filed and the tax shall be e-paid on or before the 15th day of April of each year covering income for the preceding taxable year using the eFPS facilities thru the BIR website http://www.bir.gov.ph.
2. For Non-Electronic Filing and Payment System (Non-eFPS) Taxpayer
The return shall be filed and the tax shall be paid on or before the 15th day of April of each year covering income for the preceding taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered. In places where there are no AABs, the return shall be filed and the tax shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO.
In case of “NO PAYMENT RETURNS”, the same shall be filed with the RDO where the taxpayer is registered or with the concerned RCO under the same RDO.
3. For Installment Payment
When the tax due exceeds P 2,000, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second, on or before July 15 of the same year.
4. For Non-Resident Taxpayer
In case taxpayer has no legal residence or place of business in the
Gross Taxable Compensation Income
The gross taxable compensation income of the taxpayer does not include employees’ contributions to SSS, GSIS, HDMF, PHIC and Union Dues.
The non-business/non-profession related income reported under "other taxable income" should reflect only the net taxable amount.
Premium Payment on Health and/or Hospitalization Insurance
The amount of premiums not to exceed Two Thousand Four Hundred Pesos (P 2,400) per family or Two Hundred Pesos (P 200) a month paid during the taxable year for health and/or hospitalization insurance taken by the taxpayer for himself, including his family, shall be allowed as a deduction from his gross income: Provided, That said family has a gross income of not more than Two Hundred Fifty Thousand Pesos (P 250,000) for the taxable year: Provided, finally, That in the case of married taxpayers, only the spouse claiming the additional exemption for dependents shall be entitled to this deduction.
Personal and Additional Exemptions
Individual taxpayer, whether single or married, shall be allowed a basic personal exemption of Fifty Thousand Pesos (P 50,000).
In the case of married individuals where only one of the spouses is deriving gross income, only such spouse shall be allowed the personal exemption.
An individual, whether single or married, shall be allowed an additional exemption of P 25,000 for each qualified dependent child, not exceeding four (4). The additional exemption for dependents shall be claimed by the husband, who is deemed the proper claimant unless he explicitly waives his right in favor of his wife.
“Dependent Child” means a legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect.
In the case of legally separated spouses, additional exemptions may be claimed only by the spouse who has custody of the child or children: Provided, That the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed by the Tax Code.
Part IV – Items 53 to 68
The filling-up of these fields are optional. The figures placed therein should be properly documented and/or substantiated. For purposes of the Bureau’s investigations, figures placed therein will be presumed true and correct. If left blank, it will be presumed that the taxpayer has no such income.
Change of Status
If the taxpayer marries or should have additional dependent(s) during the taxable year, the taxpayer may claim the corresponding personal or additional exemption, as the case may be, in full for such year.
If the taxpayer dies during the taxable year, his estate may still claim the personal and additional exemptions for himself and his dependent(s) as if he died at the close of such year.
If the spouse or any of the dependents dies or if any of such dependents marries, becomes twenty-one (21) years old or becomes gainfully employed during the taxable year, the taxpayer may still claim the same exemptions as if the spouse or any of the dependents died, or as if such dependents married, became twenty-one (21) years old or became employed at the close of such year.
There shall be imposed and collected as part of the tax:
1. A surcharge of twenty five percent (25%) for each of the following violations:
a) Failure to file any return and pay the amount of tax or installment due on or before the due date;
b) Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed;
c) Failure to pay the full or part of the amount of tax shown on the return, or the full amount of tax due for which no return is required to be filed on or before the due date;
d) Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment.
2. A surcharge of fifty percent (50%) of the tax or of the deficiency tax shall be imposed in case of willful neglect to file the return within the period prescribed by the Tax Code and/or by rules and regulations or in case a false or fraudulent return is filed.
3. Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid.
4. Compromise penalty, pursuant to existing/applicable revenue issuances.
Excess Withholding Tax
Over withholding of income tax on compensation shall be refunded by the employer, except if the over withholding is due to the employee’s failure or refusal to file the withholding exemption certificate, or supplies false or inaccurate information, the excess shall not be refunded but shall be forfeited in favor of the government.
1. Certificate of Income Tax Withheld on Compensation (BIR Form No. 2316).
2. Waiver of the husband’s right to claim additional exemption, if applicable.
3. Duly approved Tax Debit Memo, if applicable.
4. Proof of Foreign Tax Credits, if applicable.
5. For amended return, proof of tax payment and the return previously filed.
6. Proof of other tax payment/credit, if applicable.
7. Authorization letter, if filed by authorized representative,
Note: All Background Information must be properly filled up.
§ All returns filed by an accredited tax agent on behalf of a taxpayer shall bear the following information:
A. For CPAs and others (individual practitioners and members of GPPs);
a.1 Taxpayer Identification Number (TIN); and
a.2 Certificate of Accreditation Number, Date of Issuance, and Date of Expiry.
B. For members of the Philippine Bar (individual practitioners, members of GPPs);
b.1 Taxpayer Identification Number (TIN); and
b.2 Attorney’s Roll number or Accreditation Number, if any.
Guidelines and Instructions RMC 57-2011 New Bir Itr Form 1700 November 2011
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