Who Are Required To File ITR In The Philippines?

Who Are Required To File ITR In The Philippines?



According to Benjamin Franklin, there are only two things that are certain in life: Death and Taxes.

It is the dreaded Tax Season once again! Arghhhh!  I know exactly how you feel. Hugz! Cheer up, most of the BIR personnel are kind and nice. Don’t  be afraid because they won’t bite.
Who Are Required To File ITR In The Philippines?


The Essential Facts

Are you making PHP60,000.00 and over in a year’s time? If your answer is a resounding “Yes”, then that means you are required to file an ITR (Income Tax Return)

Blessed are those corporate employees because they need not worry about this because most human resource (HR) departments take care of filing their ITR’s on their behalf. 
Unfortunately, freelancers and entrepreneurs will have to take care of filing their own ITR themselves.
What you need to file: Form 1701. (Download it here.)

What you need to do:

For Personal/ Individual Income Tax


Freelance: Taxing as it may sound ( No pun intended, lol), you have to ask for a Form 2307 from every company that has withheld tax on their payments to you. Using the data, you have to fill out BIR Form 1701.

Business Owner: Are you making money from a business venture with another person? Are you an employee of your own company? Or are you receiving dividends or share on the total profit of a business?  Please make sure to include the income you received from your different sources of income. BIR Form 1701 provides you with the specifics. With the BIR, be as specific as you can be!

For Mixed Income

If you have a day job, but also do freelance work or own a small business be it online or physical store, you will need to file an ITR declaring mixed income. That means you are telling the BIR that you have several income sources. Similarly, if you run several businesses, you need to itemize them all.


Freelancing on the side: You have to ask for a Form 2307 from every company that has withheld tax on their payments to you, including one from your day job.

Business Owner: You have to ask your day job for a Form 2307, and then consolidate the income you made from your business/es into one form 1701.

Filling out the form

Filling out the Form 1701 can be a little tricky.  You may need to consult with an accountant the first few times you do it or every time you find that you have a new source of income. 

The 1st section of Form 1701 only requires personal data. That means, it is very simple. But that is not the case with the other sections, such as your tax code and the computations, which can get confusing. So it is best to consult your friendly accountant to help you with this.

The BIR provides a lot of information on their website. You can access the information on filing income tax returns online. Please use the BIR’s Electronic Filing and Payment System (eFPS).

Things to keep in mind

You must understand the changes that the BIR made year after year, as well as the requirements you need to remember.

1. The BIR will now pre-audit Tax Returns filed. This means that BIR agents and officials will pre-audit or check the forms and their attachments prior to the acceptance of the forms. expect long lines.

2. There are new Income Tax Forms. Minor changes were made to the ITR forms. You can download the latest versions on this official BIR page. The proper form will depend on how you are registered as a taxpayer.

3. There are new limitations and/or allowable expenses. There are limitations on entertainment and representation expenses, donations to charitable contributions, on interest expenses, and on depreciation expenses for transportation and maintenance expenses.

4. Make sure you attach all requirements to your ITR. Attachments such as a summary of taxes, duties and licenses need to be included. Make attachments using Form 1702. (Download both page 1 and page 2.)

5. Be aware of penalties. Surcharges ranges from 25% to 50% for failure to file returns, late payments, and problems with attachments, etc. Avoid the extra charges by fixing your papers early and filing on time.

For your reference, you can refer to these documents that were recently released to Certified Public Accountants (CPAs). 

If you happen to know a CPA, it is best to consult these professionals so you’ll get the specifics clear according to your own unique situation.

Once again, let’s review who are required to file an ITR. Game? Okay, here it goes.

You are required to file an ITR if:

1. You are a Filipino citizen living in the Philippines, receiving income from sources within or outside the Philippines, and if:
  • You are employed by two or more employers, any time during the taxable year
  • You are self-employed, either through conduct of trade or professional practice
  • You are deriving mixed income. This means you have been an employee and a self-employed individual during the taxable year
  • You derive other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
  • You are married, employed by a single employer, and your income has been correctly withheld – the tax due is equal to the tax withheld – but your spouse is not entitled to substituted filing
  • You are a marginal income earner
  • Your income tax during the past calendar year was not withheld correctly – if the tax due is not equal to the tax withheld
2. You are a non-resident citizen – if you are a Filipino who works or resides abroad and receiving income from sources within the Philippines. Note, however, that you are taxable only for the income you earn from the Philippines.
3. You are not a Filipino citizen but you receive income from sources within the Philippines, regardless of your residency. You are taxable only for the income you earn from the Philippines.
4. Domestic corporations (including partnerships) receiving income from sources within and outside the Philippines.
5. Foreign corporations (including partnerships) receiving income from sources within the Philippines.
6. Estates and trusts engaged in trade or business.
File ITR using eFPS if you are:
  1. Large taxpayers duly notified by the BIR
  2. Top 20,000 private corporations duly notified by the BIR
  3. Top 5,000 individual taxpayers duly notified by the BIR
  4. Taxpayers who wish to enter into contracts with government offices
  5. Corporations with paid-up capital stock of P10 million ($224,517.32)
  6. PEZA-registered entities and those located within Special Economic Zones
  7. Government offices, in so far as remittance of withheld Value Added Tax (VAT) and business tax is concerned
  8. Per Revenue Regulations 10-2014, Taxpayer Account Management Program (TAMP). Taxpayers, whether individual or juridical entities, who have been identified by the Revenue District Office (RDO) based on selection criteria pursuant to existing revenue issuances
Non-eFPS filers covered by RR 5-2015 are mandated to use the eBIR to file their ITR. These are:
  1. Accredited tax agents/practitioners and all its client-taxpayers
  2. Accredited printers of principal and supplementary receipts/ invoices
  3. One-Time Transaction (ONETT) taxpayers
  4. Those who shall file a “no payment” return
  5. Government-owned or controlled corporations (GOCCs)
  6. Local Government Units (LGUs), except barangays
  7. Cooperatives registered with National Electrification Administration (NEA) and Local Water Utilities Administration (LWUA)
The following taxpayers may file manually “no payment returns” to the RDO where registered using officially printed forms/photocopies or electronic/computer-generated returns:
  1. Senior Citizen (SC) or Persons with Disabilities (PWD) filing for their own ITR
  2. Employees deriving purely compensation income and the income tax of which has been withheld correctly showing tax due is equal to tax withheld whether single or multiple employers (with two or more employers concurrently and successively at any time during the taxable year)
  3. Employees qualified for substituted filing under RR 2-98 Sec. 2.83.4, as amended, but opted to file for an ITR and are filing for purposes of promotion (Philippine National Police /Armed Forces of the Philippines), loans, scholarship, foreign travel requirements, etc.
Exemptions


You are not required to file an ITR if:

  • You are a minimum wage earner.
  • Your gross income (total earned for the past year) does not exceed your total personal and additional exemptions.
  • Your income derived from a single employer does not exceed Php60,000 and the income tax on which has been correctly withheld.
  • Your income has been subjected to final withholding tax.
  • You are qualified for substituted filing.
1. You are a non-resident citizen who is:
  • A Filipino citizen not residing in the Philippines, but who has established with the BIR that you wish to remain living outside the country.
  • A Filipino citizen who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for permanent employment.
  • A Filipino citizen who works and earns income abroad.
  • A Filipino citizen previously considered a non-resident citizen.
2. You are an overseas Filipino worker whose income is derived solely from sources outside the Philippines.
3. If you are a Filipino citizen working as an overseas seaman, your vessel must be engaged exclusively in international trade.
The deadline for filing your Income Tax Return (ITR) for the Taxable Year 2014 will be on Wednesday, April 15, 2015.
Please do note that every individual or entity required to file his/its income tax return and pay his/its corresponding income tax due is expected to beat the deadline to avoid being penalized and imposed with additional charges of about 25% to 50% surcharge, 20% interest per annum and the Php1,000 compromise penalty for non-filing and/or non-payment of taxes. 

I know, many of us find the new BIR tax filing system burdensome and full of loopholes. Still, I’d like to encourage all taxpayers to be vigilant and to call BIR offices for assistance.

NOTE: Please do not deal with fixers or entrust the filing of your ITR to anybody.

Please remember, filing of ITR and paying the right taxes is our civic duty as Filipino citizen.

This is not a sponsored post. I did not receive any compensation for this post. I just like to remind you my dear readers about the deadline of filing of ITR.

ANNE CURTIS UNEDITED BEHIND-THE-SCENES PHOTOS

ANNE CURTIS UNEDITED BEHIND-THE-SCENES PHOTOS
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“#NoPhotoshop, #unedited” this is what Anne Curtis wrote on her Instagram and facebook accounts when she shared one of her behind-the-scenes photos with a magazine on her social media accounts.

Her photos got a mixed reactions from the netizens. The behind-the-scenes photos of Showtime darling Anne Curtis were dubbed as “Annedumi” by some malicious individuals in the world wide web. #CruelHearts #Jealous?

Anne will always be the pambansang Diyosa (national goddess) no matter what!

BTS #AnneForCosmo #CosmoSummer

Beautiful inside out!

#No photoshop 

#SummerReady

Those individuals are just #envious with Anne’s almost perfect beauty and body.

Anne Curtis

Anne, don’t mind them! Remember you cannot please everybody. 

It is a good thing that Anne Curtis is called Annebisyosa and Annekapal. That means she’s resilient and won’t stoop down to her bashers’ level.

Photos: Cosmo FB, Instagram and Anne Curtis FB

THIS SUMMER, GET COOL WITH UNIQLO LINENS

THIS SUMMER, GET COOL WITH UNIQLO LINENS

I hardly go out these days because of the hot weather and humid condition here in our country.  As much as possible, I just stay indoors because I don’t want to end up dead because of heat stroke. But sometimes, one is left with no choice but to attend to some important commitments. The least that I can do when I really have to go somewhere is to dress appropriately for summer. High-street brand UNIQLO understands that so well, that’s why it’s rolling the Premium Linen Shirts in time for your travel adventures and summer soirees.  It combined French sartorial sensibility with Japanese clothing engineering so you and I can get the most essential shirt for the dry season

Linen breathes and wicks away moisture naturally, to help keep your skin dry in the heat. Linen is a UNIQLO LifeWear essential, and a centerpiece of the brand’s Spring/Summer collection. The entire range is made of 100% premium French linen, created from long, soft fibers that are smooth on the skin.


Linen is derived from the fibers of the flax plant. It requires intense labor to manufacture, but linen is prized for the refreshing coolness it provides. The fabric is strong, durable, doesn’t stretch and is resistant to damage from abrasion.

“Our linen is available in diverse colors, from long-sleeved shirts in paler hues for spring through early summer, to more vivid colors for mid-summer—helping you to look your seasonal best. Our men’s Linen Cotton Shirt is now available in both plain colors, and refreshing Madras plaid. The subtly wrinkled texture expands your summer casual fashion options,” says Katsumi Kubota, Chief Operating Officer of Fast Retailing Philippines Inc. – Uniqlo.


The men’s Premium Linen Shirts has an updated silhouette, for great lines whether you want the shirt tucked in or not. The women’s range, meanwhile, brings long-sleeve, three-quarter-sleeve and sleeveless options.

“Our women’s long-sleeve and sleeveless shirts now have gussets on both sides of the hems. We added a chest pocket to our three-quarter sleeve shirts, and introduced Madras plaid and other patterns for summer. We also reduced the flare on our sleeveless items, to enhance the vertical lines—particularly effective for more mature wearers. UNIQLO’s Premium Linen Shirts perfectly completes any wardrobe,” Kubota adds.

It won’t be surprising if Filipinos make these linen shirts their summer staple. With the linen’s weave allowing more airflow and its fabric possessing high air permeability, your body will be free of moisture, especially under the punishing heat of the tropical sun.

About UNIQLO and Fast Retailing
UNIQLO is a brand of Fast Retailing Co., Ltd., a leading global Japanese retail holding company that designs, manufactures and sells clothing under seven main brands: Comptoir des Cotonniers, GU, Helmut Lang, J Brand, Princesse tam.tam, Theory, and UNIQLO. With global sales of approximately 1.14 trillion yen for the 2013 fiscal year ending August 31, 2013 (US $11.62 billion, calculated in yen using the end of August 2013 rate of $1 = 98.36 yen), Fast Retailing is one of the world’s largest apparel retail companies, and UNIQLO is Japan’s leading specialty retailer.

UNIQLO continues to open large-scale stores in some of the world’s most important cities and locations, as part of its ongoing efforts to solidify its status as a truly global brand. Today the company has a total of more than 1,400 stores in 16 markets worldwide: Japan, Australia, China, France, Germany, Hong Kong, Indonesia, Malaysia, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, U.K. and the U.S. In addition, Grameen UNIQLO, a social business established in Bangladesh in September 2010, currently operates several Grameen UNIQLO stores in Dhaka. UNIQLO manages an integrated business model under which it designs, manufactures, markets and sells high-quality, casual apparel. The company believes that truly great clothes should be supremely comfortable, feature universal designs, are of high quality and offer a superb fit to everyone who wears them.

With a corporate statement committed to changing clothes, changing conventional wisdom and change the world, Fast Retailing is dedicated to creating great clothing with new and unique value to enrich the lives of people everywhere. For more information about UNIQLO and Fast Retailing, please visit www.uniqlo.com and www.fastretailing.com.