Understanding the Income Tax Return Forms in the Philippines

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Originally, deadline is every April 15 but due to this unnecessary circumstance, the internal revenue made several extensions in order for taxpayers to be able to comply. The latest memorandum issued RR 11-2020 extending the deadline of 2019 ITR filing to June 14.

Let's define the three important annual income tax return forms to guide you as taxpayer or tax preparer and fill-out the correct form.

BIR form 1700 - for taxpayers who are earning purely compensation income (including non-business/non-profession related income).

For 1701, this refers to the taxpayers who are engaged in business and practice of profession earning mixed income and those under the graduated income tax rates with itemized deduction as the mode of deduction.

1701A refers to the taxpayers whose income is under the graduated income tax rates with optional standard deduction (OSD) as mode of deduction OR those who opted to avail of the 8% flat income tax rate)

Here's an summarized chart for visualization.Presentation2
Lastly, remember that if your net taxable income is below P250,000 you no longer need to file the income tax.

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