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How to File Your Income Tax Returns in the Philippines

August 19, 2020

How to File Your Income Tax Returns in the Philippines

How can you file your Income Tax Returns in the Philippines?

  1. Manual Filing of ITR
  2. Making Use of the Electronic Filing System

Taxes are present in almost every type of transaction in the Philippines. There are many sources whereby these taxes are secured from — one being the most popular, are income tax returns, or the ITR. Whether you’re an employee or a self-employed businessman, learning how to file an income tax return in the Philippines is something that you should definitely understand.

What is an Income Tax Return?

Table with files about how to file an income tax return

An ITR simply refers to a form that you have to dutifully file and submit to the necessary authoritative bodies, like the Bureau of Internal Revenue. As an employee, for example, the value of your income tax is determined by the monthly salary that has been agreed upon between you and your employer. In many cases, your company’s HR department is responsible for handling taxation, especially if you earn a salary of more than Php 21,000. This is on top of other subtracted fees that may come from other government-mandated expenses, like your social security.

If you’re a self-employed individual, then you may find yourself having to do this task on your own. In this kind of situation, you need to be aware of the deadlines for tax returns, memorandums, documents, and other pertinent information that may be circulated by the BIR on their website. Still feel lost? This guide aims to break down this complicated process into something more manageable for you. Continue reading to learn more.

Manual Filing of ITR

The manual filing process of ITR

It’s already a given that you have already registered yourself and your business to the proper authorities. Once you have successfully done this, then you’re now required to comply with certain taxpaying guidelines as part of your duty.

Though BIR has online services available, it’s still important to know how you can file your returns manually. You’ll need to do the following.

  1. Secure the BIR Form No. 1701A (Annual Income Tax Return for Individuals Earning Income Purely from Business/Profession.
  2. Visit the Revenue District Office where you’re currently registered.
  3. Submit your requirements and have them properly validated by the right personnel.

You can easily download Form 1701A by visiting the BIR website or by clicking here. On top of this form, you’d also need to attach documents like the following:

  • Certificate of Income Tax Withheld on Compensation BIR Form 2316
  • BIR Form 2311 (or your tax debit memo)
  • BIR Form 2304 (or Certificate of Income Payments not Subjected to Withholding Tax)
  • Document serving as proof of the previous year’s excess tax credits.

You need to be able to supplant your personal information and other tax return details, ensuring that all the information that you’ve placed is accurate and not falsified. It’s a good idea to bring along with you a sturdy envelope or folder where you can put all these documents that are ready for processing by your district office.

Making Use of the Electronic Filing System

One more convenient method of filing your taxes requires you to make use of the eFPS, or the Electronic Filing and Payment System. The system recognizes not only your ITR document, but also the other attachments that have been mentioned above.

The eFPS is much like an internet banking service, meaning that you should have already enrolled in this type of service with Authorized Agent Banks that have partnered with the BIR for this service.

Before using the eFPS, you’ll need to make sure that you have secured the following requirements and information:

  • E-mail address
  • File reader to fill out documents.
  • Compression software to minimize the size of your attachments.
  • Word processor for viewing of information.

Enrolling in the system is as easy as visiting the BIR website, and clicking on the eFPS icon. Follow the procedures until you have submitted all the pre-requisite information. With a simple user interface, you’ll easily be able to start filing your taxes in no time at all.

Key Takeaway

Currently, there are two types of methods that you can choose from— manual, or e-filing. Though the latter is ideally more convenient than manual filing, computer systems can sometimes break down. It’s still important that you’re aware of how to do this on your own.

In both methods, you must have all the necessary documents that are required of you by the BIR. Always double-check to make sure that you’re placing the correct information in the right fields. The best piece of advice is to always keep yourself abreast of the many developments that may be posted by the BIR on their website.