following guidelines are designed to assist Self-Employed Individuals
(Including those with both Business and Compensation Income), Estates and
Trusts with the preparation of the annual income tax return (ITR). For Corporate Taxpayers, go here. For regular employees and individuals earning non-business/non-professional income, go here . For general guidelines, go here.
If you filed MANUALLY A NO-PAYMENT 2014 INCOME TAX RETURN FOR THE APRIL 15, 2015 INCOME TAX DEADLINE, PLEASE BE REMINDED THAT YOU MUST ELECTRONICALLY RE-FILE YOUR 2014 INCOME TAX RETURN ON OR BEFORE JUNE 15, 2015! (You will be penalized if you don’t…)
there are questions which are not adequately covered, consult your BIR Revenue
District Office. If there appears to be any discrepancy between these
instructions and the applicable laws and regulations, the laws and regulations
shall be filed by individuals who are
in trade/business or
those with mixed income (i.e., those engaged in the trade/business or profession who are also earning compensation income)
the transactions covering the calendar year of the taxpayer.
Shall File This Form (BIR Form 1701)
amount of gross income:
- A resident citizen engaged in trade,
business, or practice of profession within and without the Philippines.
- A resident alien, non-resident citizen
or non-resident alien individual engaged in trade, business or practice of
profession within the Philippines.
trustee of a trust, guardian of a minor, executor/administrator of an
estate, or any person acting in any fiduciary capacity for any person,
where such trust, estate, minor, or person is engaged in trade or
- An individual engaged in trade or
business or in the exercise of their profession and receiving compensation
income as well.
individuals, estates and trusts:
issuances to file this return should also fill up Part IX hereof. Said individuals, estates and trusts shall
declare such income subject to final tax and exclusions from gross income under
Section 32(B) of the Tax Code, as amended.
exceeds P2,000, the taxpayer may elect to pay in two equal installments,
first installment to be paid at the time the return is filed and
second installment, on or before July 15 of the same year.
In case taxpayer has no legal residence or
place of business in the Philippines, the return shall be filed with the Office
of the Commissioner thru RDO No. 39,
South Quezon City.
Accomplish the Form:
and Instructions” before filing-up the forms.
all required information in CAPITAL LETTERS using BLACK Ink.
Mark applicable boxes with an “X”. Two copies MUST be filed with the
BIR and one held by the Tax Filer.
Taxpayer Identification Number (TIN) and registered name
on each page;
all questions wherein an appropriate box is provided for a possible answer,
mark the applicable box corresponding to the chosen answer with an “X”;
one space blank for every word.
if the word is followed by a comma or period, there is NO NEED to leave
blank after the comma or period.
NOT write “NONE” or make any other marks in the box/es.
information wherein the space provided has a letter separator, the same
must be supplied with CAPITAL LETTERS where each character (including
comma or period) shall occupy one box and leave one space blank for every
comma or period, there is no need to leave blank after the comma or period.
9. If you have filed your 2013 ITR using the old
form, you must RE-FILE your ITR using the new income tax form!
peso! If the amount of centavos is 49 or less, drop down the
centavos. (Example: P100.49 = P100.00. If the amount is 50 centavos
or more, round up to the next peso (Example: P100.50 = P101.00).
applicable SCHEDULES / TABLES.
amounts in the applicable SCHEDULES shall be replicated/transferred to the
Each ITEM may provide you instructions such
Items 23 to 25
to X with accompanying
1 to 12.
instructions as to the source of the information and the necessary calculations
are provided on each line item.
tax filer’s TIN.
TIN is entered in Item 95.
TIN, apply for one before filing using Application for Registration-For
Self-Employed and Mixed Income Individuals, Estates and Trusts (BIR Form No. 1901).
Code. This code represents the BIR
Revenue District Office where you are registered. You can find your RDO Code on
your Certificate of Registration or here. (e.g., If you are registered in Baguio, the
RDO Code is 008)
of First Name, Middle Name, Last Name
ESTATE OF JUAN SANTOS DELA CRUZ
FAO First Name, Middle Name, Last Name as it was entered on the BIR Form Nos. 1901/1905/2303.
TRUST FAO OF JUANITA SANTOS DELA CRUZ
Item 10 Registered Address:
Registered Address as indicated in BIR Form No. 2303 (Certificate of
filer has moved since the previous filing and has NOT updated the registration,
UPDATE the registration by filing BIR Form No. 1905.
meantime, accomplish Part VIIB on page 4 of this ITR.
PhilippineStandard Occupational Classification Code (PSOC)
Do you know your PSIC Code? Check it here.
DEDUCTION under Section 34(A-J), NIRC or
STANDARD DEDUCTION (OSD), which is
40% of Gross Sales/Receipts/Revenues/Fees under Section 34(L), NIRC as amended by RA
OPTION TO CHOOSE APPLIES ONLY TO INDIVIDUALS SUBJECT TO SEC. 24 of the Tax
Code, as amended, and with no special/preferential tax rates applied.
chosen method of deduction used in the first quarter of the year shall be
irrevocable and consistently applied throughout the year
with MIXED INCOME subject to income tax rates other than the income tax rates prescribed under Sec. 24 of the Tax
Code, as amended, are not included among those individuals with option to elect
the Optional Standard Deductions under Sec. 24 (L) of the same Tax Code.
allowed to use ONLY THE ITEMIZED DEDUCTIONS method.
Complete first Part
IV – Computation of Income Tax on page 2 before accomplishing these
Then TRANSFER the information
from Part IV to each of the items. Individual instructions as to the source of
the information and the necessary calculations are provided on each line item.
An excess of the
total tax credits/payments over the actual income tax due computed in the final adjusted return may be
with the Tax Credit Certificate or
against its estimated income tax liabilities for the quarters of the succeeding
exercise its option by placing an “X” in the appropriate box, which option
shall be considered irrevocable for that taxable period.
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
for all the lines in this part there is a need to complete the appropriate
then TRANSFER THE SUB-TOTALS to the appropriate line.
other lines make the appropriate
calculations as directed and enter the totals.
Personal and Additional Exemptions FAQ
Exemption Allowed to
Estates and Trusts:
allowed an exemption of Twenty thousand pesos (P 20,000) from the
income of the estate and trust.
Part V (Items 68 to 80) Summary of Income Tax Due
appropriate schedules and then transfer the sub-totals to the appropriate line
from Part IV- Computation of Income Tax-Regular Rate,
Schedule 2- Sales/Revenues/Receipts/Fees from
Business/Profession, including amount received from General Professional
Subject to Final Tax
4B – Cost of Sales
those engaged in Manufacturing)
Schedule 4C – Cost of Services (For those engaged in
Services, indicate only those directly incurred or related to the gross revenue
from rendition of services)
Schedule 5 – Non-Operating Income
(Attach additional sheet/s, if necessary)
Schedule 6 – Ordinary Allowable Itemized Deductions
(Attach additional sheet/s, if necessary)
Ordinary Allowable Itemized Deductions
7 – Special Allowable Itemized Deductions
(Attach additional sheet/s, if necessary
Schedule 8B–Spouse’s Computation of Net Operating Loss
Carry Over (NOLCO)
Schedule 9 – Tax Credits/Payments (Attach
Schedule 10 – BALANCE SHEET
all the reconciling items to be added or subtracted from the net income
reported in the financial statements to arrive at the taxable income reported
in the income tax return.
FOR TAXPAYER SUBJECT TO REGULAR RATES, fill up the non-deductible expenses such as:
allowance for bad debts not actually written
which are not deductible for taxation purposes.
of bad debts previously written off,
to retained earnings, and
adjustments that are considered as income for tax purposes.
Schedule 11 –
Reconciliation of Net Income per Books Against Taxable Income
(Attach additional sheet/s, if necessary)
Part V- Summary of income Tax Due
from Income Tax? Yes No
also Mandatory Attachments PER ACTIVITY (Part X).
subject to Special/Preferential Rate? Yes No
also Mandatory Attachments PER ACTIVITY
Tax Code, as amended, shall be used in reporting the non-cash income and
receipts in Part VIII.
the Commissioner to Prescribe Real Property Values. – The Commissioner is
hereby authorized to divide the Philippines into different zones or areas and
shall, upon consultation with competent appraisers both from the private and
public sectors, determine the fair market value of real properties located in each
zone or area.
internal revenue tax, the value of the PROPERTY shall be, whichever
is the higher of;
value as determined by the Commissioner, or
value as shown in the schedule of values of the
bequests, and devises; and other exempt income and receipts under Sec. 32(B) of
the NIRC, as amended.
(Actual Amount/Fair Market Value)
- CPA Certificate is required if
the gross quarterly sales, earnings, receipts or output exceed P 150,000).
- 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
disclosed in the notes to FS
- Statement of Management’s
Responsibility (SMR) for Annual Income Tax Return.
- Certificate of Income Payments
not subjected to Withholding Tax (BIR Form No. 2304).
- Certificate of Creditable Tax
Withheld at Source (BIR
Form No. 2307).
- Certificate of Compensation
Payment/Tax Withheld (BIR Form
- Duly approved Tax Debit Memo, if
- Proof of prior years’ excess
credits, if applicable.
- Proof of Foreign Tax Credits, if
- For amended return, proof of
tax payment and the return previously filed.
- Summary Alphalist of
Withholding Agents of Income Payments Subjected to Withholding Tax at
Source (SAWT), if applicable.
- Proof of other tax
payment/credit, if applicable.