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Guidelines and Instructions RMC 57-2011 New Bir Itr Form 1702 November 2011

Who Shall File

Every corporation, partnership no matter how created or organized, joint stock companies, joint accounts, associations (except foreign corporation not engaged in trade or business in the Philippines and joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations), government-owned or controlled corporations, agencies and instrumentalities shall render a true and accurate income tax return in accordance with the provisions of the Tax Code. The return shall be filed by the president, vice-president or other principal officer, and shall be sworn to by such officer and by the treasurer or assistant treasurer.

Every general professional partnership (GPP) shall file this return setting forth the items of gross income and of deductions and the names, TINs, addresses and shares of each of the partners.

When and Where to File and Pay

A. 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 the fourth month following the close of the taxpayer’s taxable year using the eFPS facilities thru the BIR website http//

B. 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 the fourth month following the close of the taxpayer's taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer’s principal office 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’s principal office is registered or with the concerned RCO under the same RDO.

Rate of Income Tax

The regular/normal rate of income tax is 30% of net taxable income. However, preferential/special rate is accorded to a taxpayer pursuant to the provisions of the Tax Code and/or any prevailing special laws.

Minimum Corporate Income Tax (MCIT)

A minimum corporate income tax (MCIT) of two percent (2%) of the gross income is imposed upon any domestic corporation and resident foreign corporation beginning on the fourth (4th) taxable year (whether calendar or fiscal year, depending on the accounting period employed) immediately following the taxable year in which such corporation commenced its business operation. The MCIT shall be imposed whenever the corporation has zero or negative taxable income or whenever the amount of minimum corporate income tax is greater than the normal income tax due from such corporation. Any excess of the MCIT over the normal income tax shall be carried forward and credited against the normal income tax for the three (3) immediate succeeding taxable years.

The computation and the payment of MCIT shall apply each time a corporate income tax return is filed, whether quarterly or annual basis.


A corporation shall choose either the itemized or optional standard deduction. It shall indicate the choice by marking with “X” the appropriate box, otherwise, the corporation shall be considered as having availed of the itemized deduction. Such choice made in the initial quarterly return during the taxable year is irrevocable for the said year for which the return is made.

Optional Standard Deduction (OSD) – A maximum of 40% of the gross income shall be allowed as deduction in lieu of the itemized deduction. However, a corporation who availed and claimed this deduction is still required to submit its financial statements when it files its annual tax return and to keep such records pertaining to its gross income.

Regular Allowable Itemized Deduction – There shall be allowed as deduction from gross income all the ordinary and necessary trade and business expenses paid or incurred during the taxable year in carrying on or which are directly attributable to the development, management, operation and/or conduct of the trade and business. Itemized deduction includes also interest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust.

Special Allowable Itemized Deduction – There shall be allowable deduction from gross income in computing taxable income, in addition to the regular allowable itemized deduction, as provided under the existing regular and special laws, rules and issuances such as, but not limited to, Rooming-in and Breast-feeding Practices under R.A. 7600, Adopt-a-School Program under R.A. 8525, Senior Citizen Discount under R.A. 9257, Free Legal Assistance under R.A. 9999.

Tax Relief Availment

Taxpayer availing of any tax relief under the Tax Code and/or any prevailing special laws [e.g., Income Tax Holiday (ITH), preferential income tax rate, income tax exemption, additional special deductions, etc.] must completely fill-up Schedule 1 showing the details for each and every registered activity and/or program. In case the columns provided in Schedule 1 in the tax form proper are not adequate to cover all the registered activities, additional sheets of Schedule 1 must be accomplished, clearly indicating therein the number of sheets used in the said schedules, and the same must be filed together with the tax form proper.

Other Special Tax Credit refers to tax credit allowed under special laws, rules and issuances such as, but not limited to, 50% of training expenses under R.A. 7916.

Tax Refund/Credit

An excess of the total tax credits/payments over the actual income tax due computed in the final adjusted return may be refunded or issued with the Tax Credit Certificate to the taxpayer or credited against its estimated income tax liabilities for the quarters of the succeeding taxable years. The taxpayer shall exercise its option by marking with an "x" the appropriate box, which option shall be considered irrevocable for that taxable period. Thus, once the taxpayer opted to carry-over and apply the excess income tax against income tax due for the succeeding taxable year, no application for cash refund or issuance of a tax credit certificate shall be allowed. In case the taxpayer fails to signify its choice, the excess payment shall be automatically carried-over to the next taxable period.


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 dates;

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 basic 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 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.

Attachments Required

1. Certificate of independent CPA duly accredited by the BIR (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P 150,000).

2. Supplemental Form (Schedule 4) for taxpayers with multiple activities per tax regime.

3. Account Information Form (AIF) and/or Financial Statements (FS), including the following schedules prescribed under existing revenue issuances which must form part of the Notes to the audited FS:

a. Sales/Receipts/Fees

b. Cost of Sales/Services

c. Non-Operating and Taxable Other Income

d. Itemized Deductions (if taxpayer did not avail of OSD)

e. Taxes and Licenses

f. Other information prescribed to be disclosed in the notes to FS

4. Statement of Management’s Responsibility (SMR) for Annual Income Tax Return.

5. Certificate of Income Payments not subjected to Withholding Tax

(BIR Form No. 2304).

6. Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307).

7. Duly approved Tax Debit Memo, if applicable.

8. Proof of prior years' excess credits, if applicable.

9. Proof of Foreign Tax Credits, if applicable.

10.For amended return, proof of tax payment and the return previously filed.

11.Certificate of Tax Treaty Relief/Entitlement issued by the concerned Investment Promotion Agency (IPA).

12.Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if applicable.

13.Proof of other tax payment/credit, if applicable.

14.Schedule for returns filed by General Professional Partnership.





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 1702 November 2011

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