(To be filled up by the BIR)

DLN: BCS No. PSIC:

Republika ng Pilipinas
Kagawaran ng Pananalapi Annual Income BIR Form No.

Kawanihan ng Rentas Internas

For Corporations, Partnerships and other Non-Individual Taxpayers
Tax Return 1702
September 2005 (ENCS)
Fill in all applicable spaces. Mark all appropriate boxes with an X.
1 For the Calendar Fiscal 3 Amended 4 Short 5 No. of 6 ATC
2 Year Ended Return? Yes Period Yes sheets
( MM / YYYY ) No Return? No attached
Part I Background Information
7 TIN 8 RDO Code 9 Line of Business/
Occupation
10 Taxpayer's Name

11 Registered Address 12 Zip Code

13 Are you availing of tax relief under Special Law/ 13B

International Tax Treaty? 13A Yes No If yes, specify
14 Date of Incorporation/Creation 14A Date of Registration with BIR 14B
(MM/DD/YYYY) (MM/DD/YYYY)
Part II Computation of Tax
EXEMPT TAXABLE
Special Rate Regular Rate
15 15 15
15 Sales/Revenues/Receipts/Fees (Sch.1) A B C
16 16 16
16 Less: Cost of Sales/Services (Sch.2/3) A B C
17 17 17
17 Gross Income from Operation A B C
18 18
18 Add: Non-Operating & Taxable Other Income(Schedule 4) A B
19 19 19
19 Total Gross Income A B C
20 20 20
20 Less: Deductions (Section D) A B C
21 21
21 Taxable IncomeA B
22A 22B
22 Tax Rate (except MCIT Rate)..
23A 23
23 Income Tax .. . .. B
24A
24 Less: Share of Other Agencies (RA 7916/8748, etc)

25 Minimum Corporate Income Tax (MCIT)(Section B) 25

26 Tax Due
26A
26A Tax on transactions under Regular Rate (Normal Income Tax or Minimum Corporate Income Tax whichever is higher)..

26B Less: Unexpired Excess of Prior Year's MCIT over Normal Income Tax Rate 26B
(deductible only if the current year's tax due is the normal rate)(Section C)..
26C
26C Balance (Item 26A less Item 26B)..
26D
26D Add: Tax Due to the BIR on transactions under Special Rate (23A less 24A).
27
27 Aggregate Income Tax Due (Sum of Items 26C and 26D).
28 Less: Tax Credits/Payments 28A
28A Prior Year's Excess Credits other than MCIT ....................................................................
28B
28B Tax Payments for the First Three Quarters..
28C
28C Creditable Tax Withheld for the First Three Quarters ..
28D
28D Creditable Tax Withheld Per BIR Form No. 2307 for the Fourth Quarter .
28E
28E Foreign Tax Credits, if applicable................................................
28F
28F Tax Paid in Return Previously Filed, if this is an Amended Return.............
28G
28G Total Tax Credits/Payments (Sum of Items 28A to 28F)
29
29 Tax Payable/(Overpayment)(Item 27 less Item 28G)......................................

30 Add: Penalties
Surcharge Interest Compromise
30A 30B 30C 30D

31 Total Amount Payable/(Overpayment) (Sum of Items 29 & 30D)........................................ 31

If overpayment, mark one box only: (once the choice is made, the same is irrevocable)
To be refunded To be issued a Tax Credit Certificate To be carried over as tax credit next year/quarter
Part III D e t a i l s of P a y m e n t
Drawee Bank/ Date
Particulars Agency Number MM DD YYYY Amount
32 Cash/Bank 32A 32B 32C 32D Stamp of Receiving
Debit Memo. Office/AAB and
33 Check 33A 33B 33C 33D Date of Receipt
34 Tax Debit 34A 34B 34C (RO's Signature/
Memo Bank Teller's Initial)
35 Others 35A 35B 35C 35D

Machine Validation/Revenue Official Receipt Details (If not filed with the bank)
 BIR FORM 1702 (ENCS) - PAGE 2
Section A Gross Income (Attach additional sheet, if necessary)
Schedule 1 Schedule of Sales/Revenues/Receipts/Fees
Special Rate Regular Rate
Creditable Tax Withheld Taxable Amount Creditable Tax Withheld Taxable Amount
36 Sale of Goods/Properties
37 Sale of Services
38 Lease of Properties
39 Total
40 Less: Sales Returns/Discounts
41 Net Sales/Revenues/Receipts/Fees (to Item 15)
Schedule 2 Schedule of Cost of Sales (Trading / Manufacturing)
Amount under Special Rate Amount under Regular Rate
42 Merchandise/Finished Goods Inventory, Beginning
43 Add: Purchases of Merchandise/Cost of Goods Manufactured
44 Total Goods Available for Sale
45 Less: Merchandise/Finished Goods Inventory, End
46 Cost of Sales (to Item 16)
Schedule 3 Schedule of Cost of Sales (Service)
Amount under Special Rate Amount under Regular Rate
47 Direct Charges - Salaries, Wages and Benefits
48 Direct Charges - Materials, Supplies, and Facilities
49 Direct Charges - Depreciation
50 Direct Charges - Rental
51 Direct Charges - Outside Services
52 Direct Charges - Others
53 Total Cost of Services (Sum of Items 47 to 52) (to Item 16)
Schedule 4 Schedule of Non-Operating and Taxable Other Income
Special Rate Regular Rate
Nature of Income Creditable Tax Withheld Taxable Amount Creditable Tax Withheld Taxable Amount
54
55
56
57
58
59
60 Total Non- Operating and Taxable
Other Income (to Item 18)
Schedule 5A Computation of Net Operating Loss Carry Over (NOLCO)

61 Gross Income
62 Less: Total Deductions exclusive of NOLCO & Deductions under Special Laws
63 Net Operating Loss Carry Over (to Schedule 5B)
Schedule 5B Computation of Available Net Operating Loss Carry Over (NOLCO) (Attach additional sheet, if necessary)
Net Operating Loss Net Operating Loss Carry Over Net Operating
Year Applied Applied Loss
Amount Expired
Incurred Previous Year Current Year (Unapplied)
64
65
66
67
68 Total (To Item 112)

Section B Computation of Minimum Corporate Income Tax (MCIT) of Current Year

69 Total Gross Income for MCIT purposes

70 Tax Rate 2%
71 Minimum Corporate Income Tax (to Item 25)
Section C Computation of Excess Minimum Corporate Income Tax (MCIT) of Previous Year
Normal Income Tax MCIT Excess of MCIT over Excess MCIT applied Balance MCIT Expired Portion
Year as adjusted Normal Income Tax this Year still allowable of Excess MCIT
as adjusted as Tax Credit
72
73
74
75
 BIR FORM 1702 (ENCS) - PAGE 3
Section D Deductions
EXEMPT TAXABLE
Nature of Expense / Deduction Special Rate Regular Rate
76 Salaries and Allowances
77 Fringe Benefits
78 Rental
79 Professional Fees
80 Director's Fees
81 Management and Consultancy Fee
82 Security Services
83 Janitorial and Messengerial Services
84 Tolling Fees
85 Other Outside Services
86 Advertising
87 Commissions
88 Repairs and Maintenance-Labor
89 Repairs and Maintenance-Materials/Supplies
90 Research and Development
91 Office Supplies
92 Royalties
93 Interest
94 SSS, GSIS, Philhealth, HDMF and Other Contributions
95 Insurance
96 Representation and Entertainment
97 Transportation and Travel
98 Fuel and Oil
99 Communication, Light and Water
100 Taxes and Licenses
101 Losses
102 Bad Debts
103 Depreciation
104 Amortization of Intangibles
105 Depletion
106 Charitable Contributions
107 Amortization of Pension Trust Contribution
108 Miscellaneous
109 Others :
(attached addit'l sheets, if
110
necessary)
111 Total Expenses (Sum of Items 76 to 110)
112 Allowance of NOLCO (From Schedule 5B)
113 Total (Sum of Items 111& 112)
(to Item 20A, B & C)
Section E Reconciliation of Net Income Per Books Against Taxable Income (Attach additional sheets if necessary)
Special Rate Regular Rate
114 Net Income/(Loss)per books..
115 Add: Non-deductible Expenses/Taxable Other Income

116 Total (Sum of Items 114 & 115)

117 Less: Non-taxable Income and Income subjected to Final Tax

118 Special Deductions:

119 Total (Sum of Items 117 & 118)

120 Net Taxable Income/(Net Loss) (Item 116 less Item 119)
We declare, under the penalties of perjury, that this return has been made in good faith, verified by us, and to the best of our knowledge and belief,
is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority
thereof.
121 122
President/Vice President/Principal Officer/Accredited Tax Agent/ Treasurer/Asst. Treasurer
(Signature Over Printed Name) (Signature over Printed Name)

Title/Position of Signatory TIN of Signatory Title/Position of Signatory

Tax Agent Acc. No./Atty's Roll No. (if applicable) Date of Issuance Date of Expiry TIN of Signatory
Date Issued
Community Tax Certificate Number Place of Issue MM DD YYYY Amount

123 124 125 126

 BIR FORM 1702 (ENCS) - PAGE 4
ATC Description Tax Rate Tax Base ATC Description Tax Rate Tax Base
DOMESTIC
CORPORATION
IC 010 1. In General IC 020 6. Taxable Partnership
a. January 1- October 31, 2005 32% a. January 1 - October 31, 2005 32% On Taxable
November 1, 2005 - December 31, 2008 35% Taxable Income November 1, 2005 - December 31, 2008 35% Income from
January 1, 2009 30% from All sources January 1, 2009 30% All Sources
IC 055 b. Minimum Corporate Income Tax 2% Gross Income IC 055 b. Minimum Corporate Income Tax 2% On Gross Income
IC 030 2. Proprietary Educational Institutions 10% 7. Exempt Corporation
On Taxable Income from All sources IC 011 a. On Exempt Activities 0%
a. Proprietary Educational Institution whose IC 010 b. On Taxable Activities *same rate On Taxable Income from all sources
gross income from unrelated trade,business as in 1a
or other activity exceeds fifty percent (50%) of IC 021 8. General Professional Partnership exempt
the total gross income from all sources. 9. Corporation covered by Special Law*
January 1- October 31, 2005 32% RESIDENT FOREIGN
November 1, 2005 - December 31, 2008 35% Taxable Income CORPORATION
January 1, 2009 30% from All sources IC 070 1. In General
a. January 1 - October 31, 2005 32% On Taxable
IC 055 b. Minimum Corporate Income Tax 2% Gross Income November 1, 2005 - December 31, 2008 35% Income from within the Philippines
IC 031 January 1, 2009 30%
3. Non Stock-Non Profit Hospitals 10%
On Taxable Income from All sources IC 055 b. Minimum Corporate Income Tax 2% On Gross Income
a. Non Stock-Non Profit Hospitals whose IC 080 2. International Carriers 2.5% Gross Philippine Billing
gross income from unrelated trade,business IC 101 3. Regional Operating Headquarters* 10% On taxable Income
or other activity exceeds fifty percent (50%) of 4. Corporation covered by Special Law*
the total gross income from all sources. IC 190 5. Offshore Banking 10% On Gross Taxable Income on
January 1- October 31, 2005 32% Units (OBU's) Foreign Currency Transaction
November 1, 2005 - December 31, 2008 35% Taxable Income not subjected to Final Tax
January 1, 2009 30% from All sources
a. January 1 - October 31, 2005 32% On Taxable Income
IC 055 b. Minimum Corporate Income Tax 2% Gross Income November 1, 2005 - December 31, 2008 35% Other Than Foreign
IC 040 4. GOCC, Agencies & Instrumentalities On Taxable January 1, 2009 30% Currency Transaction
a. January 1 - October 31, 2005 32% Income from
November 1, 2005 - December 31, 2008 35% All sources
January 1, 2009 30% 6. Foreign Currency 10% On Gross Taxable Income on
Deposit Units (FCDU's) Foreign Currency Transaction
IC 055 b. Minimum Corporate Income Tax 2% On Gross Income IC 191 not subjected to Final Tax
IC 041 5. National Gov't & LGU's
a. January 1 - October 31, 2005 32% On Taxable a. January 1 - October 31, 2005 32% On Taxable Income
November 1, 2005 - December 31, 2008 35% Income from November 1, 2005 - December 31, 2008 35% Other Than Foreign
January 1, 2009 30% Proprietary activities January 1, 2009 30% Currency Transaction

IC 055 b. Minimum Corporate Income Tax 2% On Gross Income

* PLEASE REFER TO REVENUE DISTRICT OFFICES

BIR Form No. 1702 - Annual Income Tax Return (For Corporations and Partnerships)
GUIDELINES AND INSTRUCTIONS
Who shall file
Every corporation, partnership no matter how created or organized, joint
following the year in which such corporation commenced its business
stock companies, joint accounts, associations (except foreign corporation not
operation, when the MCIT is greater than the tax computed using the normal
engaged in trade or business in the Philippines and joint venture or consortium
income tax rate. Any excess of the MCIT over the normal income tax shall be
formed for the purpose of undertaking construction projects or engaging in
carried forward and credited against the normal income tax for the three (3)
petroleum, coal, geothermal and other energy operations), government-owned
immediate succeeding taxable years.
or controlled corporations, agencies and instrumentalities shall render a true
The MCIT shall be determined on a taxable year basis.
and accurate income tax return in accordance with the provisions of the Tax
Code. The return shall be filed in triplicate copies by the president/ vice-
Penalties:
president/other principal officer/Accredited Tax Agent and shall be sworn to
There shall be imposed and collected as part of the tax:
by such officer/agent and by the Treasurer or Assistant Treasurer.
1. A surcharge of twenty five percent (25%) for each of the following
Every general professional partnership shall file a return of its income
violations:
setting forth the items of gross income and of deductions and the names,
a) Failure to file any return and pay the amount of tax or
TINs, addresses and shares of each of the partners.
installment due on or before the due dates;
b) Unless otherwise authorized by the Commissioner, filing a
When and Where to File
return with a person or office other than those with whom it
The return shall be filed, with or without payment, on or before the 15th
is required to be filed;
day of the fourth month following the close of the taxpayer's taxable year.
c) Failure to pay the full or part of the amount of tax shown on
This return shall be filed with any Authorized Agent Bank (AAB) located
the return, or the full amount of tax due for which no return is
within the territorial jurisdiction of the Revenue District Office where the
required to be filed, on or before the due date;
taxpayer is required to register/which has jurisdiction over the location of the
d) Failure to pay the deficiency tax within the time prescribed
principal office of the CORPORATION filing the return.
for its payment in the notice of assessment.
In places where there are no AABs, the return shall be filed with the
2. A surcharge of fifty percent (50%) of the tax or of the deficiency
Revenue Collection Officer or Duly Authorized City or Municipal Treasurer
tax, in case any payment has been made on the basis of such return
of the municipality or city under the jurisdiction of the Revenue District
before the discovery of the falsity or fraud, for each of the
Office where the taxpayer is required to register/which has jurisdiction over
following violations:
the location of the principal office of the CORPORATION filing the return.
a) Willful neglect to file the return within the period prescribed
by the code or by rules and regulations; or
When and Where to Pay
b) In case a false or fraudulent return is willfully made.
Upon filing this return, the total amount payable shall be paid in full to
3. Interest at the rate of twenty percent (20%) per annum on any
the AAB where the return is filed. In places where there are no AABs,
unpaid amount of tax, from the date prescribed for the payment
payment shall be made directly to the Revenue Collection Officer or duly
until it is fully paid.
Authorized City or Municipal Treasurer who shall issue Revenue Official
4. Compromise penalty.
Receipt (BIR Form No. 2524).
Where the return is filed with an AAB, taxpayer must accomplish and
Attachments Required:
submit BIR-prescribed deposit slip, which the bank teller shall machine
1. Certificate of the independent CPA (The CPA Certificate is required if
validate as evidence that payment was received by the AAB. The AAB
the gross quarterly sales, earnings, receipts or output exceed P 150,000);
receiving the tax return shall stamp mark the word Received on the return
2. Account Information Form (AIF) and/or Financial Statements;
and also machine validate the return as proof of filing the return and payment
3. Certificate of Income Payments not subjected to Withholding Tax (BIR
of the tax by the taxpayer, respectively. The machine validation shall reflect
Form 2304);
the date of payment, amount paid and transactions code, the name of the bank,
4. Certificate of Creditable Tax Withheld at Source (BIR Form 2307);
branch code, tellers code and tellers initial. Bank debit memo number and
5. Duly approved Tax Debit Memo, if applicable;
date should be indicated in the return for taxpayers paying under the bank
6. Proof of prior years' excess credits, if applicable;
debit system.
7. Proof of Foreign Tax Credits, if applicable;
8. For amended returns filed, proof of tax payment and the return
For EFPS Taxpayer
previously filed.
The deadline for electronically filing and paying the taxes due thereon
9. Certificate of Tax Treaty/Relief;
shall be in accordance with the provisions of existing applicable revenue
10. Schedule for returns filed by General Professional Partnerships;
issuances.
NAME TIN ADDRESS SHARE OF EACH
Tax Refund/Credit PARTNER
An excess of the total tax credits/payments over the actual income tax
due computed in the final adjusted return may be refunded or issued with the
Tax Credit Certificate to the taxpayer or credited against his estimated income Note: All Background information must be properly filled up.
tax liabilities for the quarters of the succeeding taxable years. The taxpayer All returns filed by an accredited tax agent on behalf of a taxpayer shall
shall exercise his option by marking with an "x" the appropriate box, which bear the following information:
option shall be considered irrevocable for that taxable period. Thus, once the A. For CPAs and others (individual practitioners and members
taxpayer opted to carry-over and apply the excess income tax against income of GPPs);
tax due for the succeeding taxable year, no application for cash refund or a.1 Taxpayer Identification Number (TIN); and
issuance of a tax credit certificate shall be allowed. In case the taxpayer fails a.2 Certificate of Accreditation Number, Date of Issuance,
and Date of Expiry.
to signify his choice, the excess payment shall be automatically carried-over B. For members of the Philippine Bar (individual practitioners,
to the next taxable period. members of GPPs);
b.1 Taxpayer Identification Number (TIN); and
Normal Rate of Income Tax b.2 Attorneys Roll number or Accreditation Number, if
any.
The regular rates of income tax are as follows: Box Nos. 1 & 2 refer to transaction period and not the date of filing this
return.
January 1 to October 31, 2005 --------------------------32% The last 3 digits of the 12-digit TIN refers to the branch code.
November 1, 2005 to December 31, 2008 ------------35% TIN = Taxpayer Identification Number
January 1, 2009 and onwards ---------------------------30% ENCS
1702

Minimum Corporate Income Tax (MCIT)

A minimum corporate income tax of two percent (2%) of the gross
income is imposed on a corporation beginning on the fourth year immediately