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Last Updated on April 13, 2017 by Marie Bautista
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These guidelines are
for Employees Only (Individuals Earning Purely Compensation Income) and Individuals Earning Non-Business / Non-Profession Income. For Corporate Taxpayers, go here. For self-employed individuals (including those with both business and compensation income), go here. For general guidelines, go here.
for Employees Only (Individuals Earning Purely Compensation Income) and Individuals Earning Non-Business / Non-Profession Income. For Corporate Taxpayers, go here. For self-employed individuals (including those with both business and compensation income), go here. For general guidelines, go here.
Have you applied for your TIN as an employee? If not, go here: How to apply for your TIN as an employee.
I get a lot of
queries from employees on how to file their Income Tax Returns. The
following guidelines are designed to assist employees earning purely compensation income
with the preparation of the annual income tax return (ITR). If 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 take precedence.
What Form to Use:
IMPORTANT!
- Enter 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. - Indicate Taxpayer
Identification Number (TIN) and registered name on each page; - For all questions wherein
an appropriate box is provided for a possible answer, mark the applicable
box corresponding to the chosen answer with an “X”; - LEAVE one space blank for
every word. - However, if the word is
followed by a comma or period, there is NO NEED to leave blank after
the comma or period. - Do NOT write “NONE” or
make any other marks in the box/es. - Required 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 word.
8. However,
if the word is followed by a comma or period, there is no need to leave blank after
the comma or period.
if the word is followed by a 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!
have filed your 2013 ITR using the old form, you must RE-FILE your
ITR using the new income tax form!
10. Round
off your tax due to the nearest 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).
off your tax due to the nearest 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).
Who Shall File Income Tax Return (ITR) BIR FORM 1700?
This return shall be
filed by:
filed by:
•
every resident citizen deriving compensation
income from all sources, or
every resident citizen deriving compensation
income from all sources, or
•
resident
alien and non-resident citizen with respect to compensation income from within
the Philippines, except the following:
resident
alien and non-resident citizen with respect to compensation income from within
the Philippines, except the following:
Who are Not required to file BIR Form 1700?
- An individual whose gross compensation
income does not exceed his total personal and additional exemptions. - An
individual with respect to pure compensation income, as defined in Section
32(A)(1) derived from sources within the Philippines, the income tax on
which has been correctly withheld
(tax due equals tax withheld) under the provisions of Section 79 of
the Code, provided, that an individual
deriving compensation concurrently from two or more employers at any time
during the taxable year shall file an income tax return. - An individual whose income has been
subjected to final withholding tax (alien employee as well as Filipino
employee occupying the same position as that of the alien employee of
regional or area headquarters and regional operating headquarters of multinational
companies, petroleum service contractors and sub-contractors, offshore
banking units; non-resident alien not engaged in trade or business). - A minimum wage earner (MWE) or an individualwho is exempt from income tax.
FILING OF MARRIED TAXPAYERS
Married individuals shall :
FILE A SINGLE RETURN for the taxable year to include the income of both
spouses, SEPARATELY COMPUTING their individual income tax based on their
respective taxable income. The return shall
be signed by the tax filer or the spouse, or their authorized representative.
spouses, SEPARATELY COMPUTING their individual income tax based on their
respective taxable income. The return shall
be signed by the tax filer or the spouse, or their authorized representative.
Where
it is impracticable for the spouses to file one return, each spouse may file a
separate return.
it is impracticable for the spouses to file one return, each spouse may file a
separate return.
•
In case
of married individuals who are still required to file returns or
In case
of married individuals who are still required to file returns or
•
in those
instances not covered by the substituted filing of returns,
in those
instances not covered by the substituted filing of returns,
ONLY ONE RETURN FOR
THE TAXABLE YEAR SHALL BE FILED by
either spouse to cover the income of the spouses, which return shall be signed
by the husband and wife, unless it is physically impossible to do so, in which
case signature of one of the spouses would suffice.
THE TAXABLE YEAR SHALL BE FILED by
either spouse to cover the income of the spouses, which return shall be signed
by the husband and wife, unless it is physically impossible to do so, in which
case signature of one of the spouses would suffice.
Can individuals not required to file an ITR or those
qualified for substituted filing choose to file their ITR?
qualified for substituted filing choose to file their ITR?
Yes,
they may voluntarily file this return for purposes of loans, foreign
travel requirements, and for other purposes they may deem proper.
they may voluntarily file this return for purposes of loans, foreign
travel requirements, and for other purposes they may deem proper.
Employers are required to submit Certificate of
Compensation Payment/Tax Withheld (BIR Form No. 2316) to the Revenue District Office (RDO) where registered on or
before February 28 of the following year.
Compensation Payment/Tax Withheld (BIR Form No. 2316) to the Revenue District Office (RDO) where registered on or
before February 28 of the following year.
OTHER TAXABLE INCOME
This return shall likewise be used by individuals earning other taxable
income from non-business/
non-profession.
income from non-business/
non-profession.
“Individual
whose compensation income has been SUBJECTED TO FINAL WITHHOLDING TAX” shall
include aliens or Filipino citizens occupying the same positions as
the alien employees,
as the case may be, who are
employed by
whose compensation income has been SUBJECTED TO FINAL WITHHOLDING TAX” shall
include aliens or Filipino citizens occupying the same positions as
the alien employees,
as the case may be, who are
employed by
•
regional operating headquarters,
regional operating headquarters,
•
regional or area headquarters,
regional or area headquarters,
•
offshore banking units,
offshore banking units,
•
petroleum service contractors and sub-contractors
petroleum service contractors and sub-contractors
•
including those subject to Fringe Benefits Tax (FBT)
under Section 33 of the Tax Code, as amended,
including those subject to Fringe Benefits Tax (FBT)
under Section 33 of the Tax Code, as amended,
•
Republic Act No. 8756,
Republic Act No. 8756,
•
Presidential Decree No. 1354, and other pertinent
laws.
Presidential Decree No. 1354, and other pertinent
laws.
“Registered
Address”
Address”
Registered Address
refers
to the preferred address
to the preferred address
•
residence or
residence or
•
employer’s
business address
employer’s
business address
provided by the taxpayer upon registration with
the BIR using BIR Form No. 1902 (Application for Registration-For Individuals
Earning Purely Compensation Income and Non-Resident Citizens/Resident Alien
Employee)
the BIR using BIR Form No. 1902 (Application for Registration-For Individuals
Earning Purely Compensation Income and Non-Resident Citizens/Resident Alien
Employee)
Item 9
Registered Address:
Registered Address:
If tax filer has moved since the previous filing and has NOT updated the
registration, accomplish Table 1 on the last page of this ITR.
registration, accomplish Table 1 on the last page of this ITR.
Item 6 Gross Taxable Compensation
Income:
Income:
•
This refers to Item 4A.1 or 4B.1 less the
Non-Taxable/Exempt Income in Item 5.
This refers to Item 4A.1 or 4B.1 less the
Non-Taxable/Exempt Income in Item 5.
•
The Gross Taxable Compensation Income does not
include employees’ contributions to SSS, GSIS, HDMF, PHIC and Union Dues. Refer
to BIR Form No. 2316 issued by the employer/s.
The Gross Taxable Compensation Income does not
include employees’ contributions to SSS, GSIS, HDMF, PHIC and Union Dues. Refer
to BIR Form No. 2316 issued by the employer/s.
Item 5
Non-Taxable/Exempt Income:
Non-Taxable/Exempt Income:
This includes enumerations under Sections 32B of the NIRC, as amended,
and other applicable rules and regulations, including De Minimis Benefits
within the limitations prescribed under existing revenue issuances.
and other applicable rules and regulations, including De Minimis Benefits
within the limitations prescribed under existing revenue issuances.
The
non-business/non-profession related income reported under “other taxable
income” should reflect only the net taxable amount.
non-business/non-profession related income reported under “other taxable
income” should reflect only the net taxable amount.
Personal and Additional Exemptions:
Personal exemption
of P 50,000 is allowed for every:
of P 50,000 is allowed for every:
•
Single
Single
•
Married
Married
•
Head of
family
Head of
family
An individual,
whether single or married, shall be allowed an additional exemption of P 25,000
for each qualified dependent child,
not exceeding four (4).
whether single or married, shall be allowed an additional exemption of P 25,000
for each qualified dependent child,
not exceeding four (4).
Take Note!
In the case of
married individuals where only one of the spouses is deriving gross income,
only such spouse shall be allowed the personal exemption.
married individuals where only one of the spouses is deriving gross income,
only such spouse shall be allowed the personal exemption.
In the case of
married individuals where only one of the spouses is deriving gross income,
only such spouse shall be allowed the personal exemption.
married individuals where only one of the spouses is deriving gross income,
only such spouse shall be allowed the personal exemption.
If “yes” is marked for Item 14, enter the number of Dependent Children in Item 15, and then provide the
required information for each child in Table 2.
required information for each child in Table 2.
What is a “Qualified Dependent Child”
•
means a
legitimate, illegitimate or legally adopted child chiefly dependent upon and
living with the taxpayer if such dependent is
means a
legitimate, illegitimate or legally adopted child chiefly dependent upon and
living with the taxpayer if such dependent is
•
not more
than 21 years of age,
not more
than 21 years of age,
•
unmarried
and
unmarried
and
•
not
gainfully employed or
not
gainfully employed or
• if such
dependent, regardless of age, is incapable of self-support because of mental or
physical defect.
dependent, regardless of age, is incapable of self-support because of mental or
physical defect.
In the case of
legally separated spouses, additional exemptions may be claimed only by the
spouse who has custody of the child or children:
legally separated spouses, additional exemptions may be claimed only by the
spouse who has custody of the child or children:
Provided, That the total amount of additional
exemptions that may be claimed by both shall not exceed the maximum additional
exemptions allowed by the Tax Code
exemptions that may be claimed by both shall not exceed the maximum additional
exemptions allowed by the Tax Code
Note: 1. If the
taxpayer marries or should have additional dependent(s) during the taxable
year, the taxpayer may claim the corresponding personal or additional
exemption, as the case may be, in full for such year.
taxpayer marries or should have additional dependent(s) during the taxable
year, the taxpayer may claim the corresponding personal or additional
exemption, as the case may be, in full for such year.
2. If the taxpayer dies
during the taxable year, his estate may still claim the personal and additional
exemptions for himself and his dependent(s) as if he died at the close of
such year.
during the taxable year, his estate may still claim the personal and additional
exemptions for himself and his dependent(s) as if he died at the close of
such year.
3.If the spouse or any of the
dependents dies or
dependents dies or
4.if any of such dependents marries, becomes 21 years old or becomes gainfully employed
during the taxable year,
during the taxable year,
the taxpayer MAY STILL CLAIM the same exemptions as if the spouse or
any of the dependents died, or as if such dependents married, became 21 years old or became employed at the close
of such year.
any of the dependents died, or as if such dependents married, became 21 years old or became employed at the close
of such year.
Premium Payment on Health and/or Hospitalization
Insurance
Insurance
The amount of premiums
not to exceed P 2,400 per family
or P 200 a month paid during the taxable
year for health and/or hospitalization insurance taken by the taxpayer for
himself, including his family, shall be allowed as a deduction from his gross
income; provided, that said family has a gross income of not more
than P 250,000 for the taxable year. Provided,
finally, That in the case of married taxpayers, only the spouse claiming
the additional exemption for dependents shall be entitled to this deduction.
not to exceed P 2,400 per family
or P 200 a month paid during the taxable
year for health and/or hospitalization insurance taken by the taxpayer for
himself, including his family, shall be allowed as a deduction from his gross
income; provided, that said family has a gross income of not more
than P 250,000 for the taxable year. Provided,
finally, That in the case of married taxpayers, only the spouse claiming
the additional exemption for dependents shall be entitled to this deduction.
Item 12
Other Taxable Income
Other Taxable Income
Any non-business/non-profession related income reported under “other
taxable income” should reflect only the taxable amount.
taxable income” should reflect only the taxable amount.
Example: Honorarium received not in the practice of
business or profession by an employee other than from his employer.
business or profession by an employee other than from his employer.
Items 15-20 Computation of Tax Credits/Payments:
Enter the applicable amounts in the Tax filer and/or Spouse column. On
Item 20 calculate the Net Tax Payable. Attach proof on income received and
credits claimed, e.g. BIR Form No. 2316.
Item 20 calculate the Net Tax Payable. Attach proof on income received and
credits claimed, e.g. BIR Form No. 2316.
Over withholding of
income tax on compensation shall be refunded by the employer,
income tax on compensation shall be refunded by the employer,
•
except
if the over withholding is due to the employee’s failure or refusal to file BIR
Form No. 2305, or supplies false or inaccurate information, the excess shall not be
refunded but shall be forfeited in favor of the government.
except
if the over withholding is due to the employee’s failure or refusal to file BIR
Form No. 2305, or supplies false or inaccurate information, the excess shall not be
refunded but shall be forfeited in favor of the government.
When and Where to File and Pay
1. For Electronic Filing and
Payment System (eFPS) Taxpayer
e-filed and the tax
shall be e-paid on or before the 15th day of April of each year
covering income for the preceding taxable year using the eFPS facilities thru
the BIR website http://www.bir.gov.ph.
shall be e-paid on or before the 15th day of April of each year
covering income for the preceding taxable year using the eFPS facilities thru
the BIR website http://www.bir.gov.ph.
2. For Non-Electronic Filing and Payment System (eFPS) Taxpayer
•
paid on
or before the 15th day of April of each year covering income for the
preceding taxable year with any Authorized Agent Bank (AAB) located within the
territorial jurisdiction of the RDO where the taxpayer is registered.
paid on
or before the 15th day of April of each year covering income for the
preceding taxable year with any Authorized Agent Bank (AAB) located within the
territorial jurisdiction of the RDO where the taxpayer 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.
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 is
registered or with the concerned RCO under the same RDO.
PAYMENT RETURNS”, the same shall be filed with the RDO where the taxpayer is
registered or with the concerned RCO under the same RDO.
**In case taxpayer
has no legal residence or place of business in the Philippines, the return
shall be filed with the:
has no legal residence or place of business in the Philippines, the return
shall be filed with the:
•
Office of the Commissioner
Office of the Commissioner
•
thru RDO No. 39, South Quezon City.
thru RDO No. 39, South Quezon City.
Gross Taxable Compensation Income
The gross taxable
compensation income of the taxpayer DOES NOT INCLUDE employees’ contributions
to SSS, GSIS, HDMF, PHIC and Union Dues.
compensation income of the taxpayer DOES NOT INCLUDE employees’ contributions
to SSS, GSIS, HDMF, PHIC and Union Dues.
Attachments Required for BIR Form 1700:
- Certificate of Compensation Payment/Tax
Withheld (BIR Form No. 2316) - Waiver of the husband’s right to claim
additional exemption, if applicable - Duly approved Tax Debit Memo, if
applicable - Proof of Foreign Tax Credits, if
applicable - For amended return, proof of tax payment
and the return previously filed - Proof of other tax payment/credit, if
applicable - Authorization letter, if filed by authorized representative
Learn how to compute your INCOME TAXES
HERE
HERE
Its about time to file taxes and this post is very helpful. Thanks for sharing Sis:)
Do you have any idea how one can file taxes for freelance work when she doubles as an employee?
very useful, lapit na magfiling.. hehehe
I did not know that Philippine has income tax return,, maybe a lot of people don't know about it including me, they should advertise it you know.
Our employer used to file our income tax return. However, just like the past year, in spite of the large amount of tax deducted form our salary, I still have tax due of about 1200…huhuhu
I'm having a hard time filing for my annual ITR now because my previous employer used to do it for us. We're supposed to be contract based but the form I obtained from the office is 2307. Medyo confusing! 🙁
Hello Marie,
Tanong lang po. For 2013, I was with two employers. My latest employer was able to provide me with the 2316 form, pero ung previous eh wla pa hanggang ngayon. I am so worried na mapenalize dahil sa neglect ng previous employer ko. What are the penalties/surcharges na I will be shouldering?
Salamat po for any advice.
Jude
This very useful this time of year. Thanks for sharing this Sis:)
Thank you for sharing theses guidelines! Everyone definitely needs help!
Okay, I am bookmarking this because I have yet to figure out how to properly file my taxes, and I will be needing this soon. Thanks soooo much!
Very informative post and I'm sure it will help people who are doing their taxes this year.
This is indeed very informative and comprehensive. Thank you for sharing sis.
Good thing e have someone who files it for us.
Hi , thank u for this blog. I have question regarding sa waiver, in my 2316, I am already M1, so I still need to attach the waiver in 1700? khit na M1 nko sa 2316?