This document summarizes the key points about filing income tax returns in the Philippines. It defines income tax as a tax on a person's income minus authorized deductions. It outlines who is required to file a return, including resident citizens, employees with multiple employers, self-employed individuals, and non-resident citizens receiving Philippine income. It also lists those not required to file, such as individuals earning below 250,000 PHP from one employer. The procedures for filing returns are also summarized, whether paying taxes or claiming a refund/exemption. Returns are filed with Authorized Agent Banks or Revenue District Offices depending on the situation.
This document summarizes the key points about filing income tax returns in the Philippines. It defines income tax as a tax on a person's income minus authorized deductions. It outlines who is required to file a return, including resident citizens, employees with multiple employers, self-employed individuals, and non-resident citizens receiving Philippine income. It also lists those not required to file, such as individuals earning below 250,000 PHP from one employer. The procedures for filing returns are also summarized, whether paying taxes or claiming a refund/exemption. Returns are filed with Authorized Agent Banks or Revenue District Offices depending on the situation.
This document summarizes the key points about filing income tax returns in the Philippines. It defines income tax as a tax on a person's income minus authorized deductions. It outlines who is required to file a return, including resident citizens, employees with multiple employers, self-employed individuals, and non-resident citizens receiving Philippine income. It also lists those not required to file, such as individuals earning below 250,000 PHP from one employer. The procedures for filing returns are also summarized, whether paying taxes or claiming a refund/exemption. Returns are filed with Authorized Agent Banks or Revenue District Offices depending on the situation.
This document summarizes the key points about filing income tax returns in the Philippines. It defines income tax as a tax on a person's income minus authorized deductions. It outlines who is required to file a return, including resident citizens, employees with multiple employers, self-employed individuals, and non-resident citizens receiving Philippine income. It also lists those not required to file, such as individuals earning below 250,000 PHP from one employer. The procedures for filing returns are also summarized, whether paying taxes or claiming a refund/exemption. Returns are filed with Authorized Agent Banks or Revenue District Offices depending on the situation.
•JUSTINE RIVERA • QUEENCYL SINGSON • STEPHEN SOLAS •FRENZY ERIC CZAR TAYONG What is Income Tax?
• Income Tax is a tax on a person's income, emoluments, profits arising
from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions if any, authorized for such types of income, by the Tax Code, as amended, or other special laws. Who are Required to File Income Tax Returns? Individuals • Resident citizens receiving income from sources within or outside the Philippines • Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year • Employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return • Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession • Individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession • Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax • Individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing • Non-resident citizens receiving income from sources within the Philippines • Aliens, whether resident or not, receiving income from sources within the Philippines Non-Individuals • Corporations including partnerships, no matter how created or organized. • Domestic corporations receiving income from sources within and outside the Philippines • Foreign corporations receiving income from sources within the Philippines • Estates and trusts engaged in trade or business Who are not required to file Income Tax returns? • a. An individual earning purely compensation income whose taxable income does not exceed P250,000.00
• b. An individual whose income tax has been withheld correctly by his employer, provided that such individual has only one employer for the taxable year
• c. An individual whose sole income has been subjected to final withholding tax or who is exempt from income tax pursuant to the Tax Code and other special laws.
• d. An individual who is a minimum wage earner
• e. Those who are qualified under “substituted filing”. However, substituted filing applies only if all of the following requirements are present: - the employee received purely compensation income (regardless of amount) during the taxable year; - the employee received the income from only one employer in the Philippines during the taxable year; - the amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer; - the employee’s spouse also complies with all 3 conditions stated above; - the employer files the annual information return (BIR Form No. 1604-CF); and - the employer issues BIR Form No. 2316 (Oct 2002 ENCS version) to each employee. What are the procedures in filing Income Tax returns (ITRs)? a. For “with payment” ITRs (BIR Form Nos. 1700 / 1701 / 1701Q / 1702 / 1702Q / 1704) • File the return in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) of the place where taxpayer is registered or required to be registered. In places where there are no AABs, file the return directly with the Revenue Collection Officer or duly Authorized Treasurer of the city or municipality in which such person has his legal residence or principal place of business in the Philippines, or if there is none, filing of the return will be at the Office of the Commissioner. b. For “no payment” ITRs -- refundable, break-even, exempt and no operation/transaction, including returns to be paid on 2nd installment and returns paid through a Tax Debit Memo(TDM) • File the return with the concerned Revenue District Office (RDO) where the taxpayer is registered. However, "no payment" returns filed late shall not be accepted by the RDO but instead, they shall be filed with an Authorized Agent Bank (AAB) or Collection Officer/Deputized Municipal Treasurer (in places where there are no AABs), for collection of necessary penalties. End of Presentation
