Income Tax Return

Group Members:
Objectives
To know the definition of income tax return
To know how to prepare income tax return
Income Tax Return
a document you file with the
InternalRevenueService or the
statetaxboard reporting yourincome,
profits and losses of your business and other
deductions as well as details about yourtax
refundortaxliability

Filing Date
This return is filed on or before April 15 of
each year covering income for the preceding
taxable year.
Documentary Requirements
1. Certificate of Income Payments not Subjected to
Withholding Tax (BIR Form 2304), if applicable
2. Certificate of Creditable Tax Withheld at Source (BIR Form
2307), if applicable
3. Duly approved Tax Debit Memo, if applicable
4. Proof of Foreign Tax Credits, if applicable
5. Income tax return previously filed and proof of payment, if
amended return is filed for the same taxable year
6. BIR Form 1702 Account Information Form (AIF) and/or
the Certificate of the independent CPA with Audited
Financial Statements, if the gross quarterly sales, earnings,
receipts or output exceed P150,000.00 *
7. Proof of prior years excess tax credits, if applicable
NOTE: Pursuant to Revenue Memorandum Circular No.
6 2001, corporations, companies or persons whose
gross quarterly sales, earnings, receipts or output
exceed P 150,000.00 may not accomplish BIR Form
1702 Account Information Form (AIF). In lieu
thereof, they may file their annual income tax returns
accompanied by balance sheets, profit and loss
statement, schedules listing income-producing
properties and the corresponding income therefrom,
and other relevant statements duly certified by an
independent CPA.
Procedures for payment and
filling
1. Fill-up BIR Form 1702 in triplicate.
2. If there is payment:
-Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District
Office where you are registered and present the duly accomplished BIR Form 1702,
together with the required attachments and your payment.
-In places where there are no AABs, proceed to the Revenue Collection Officer or
duly Authorized City or Municipal Treasurer located within the Revenue District
Office where you are registered and present the duly accomplished BIR Form 1702
with the required attachments and your payments.
-Receive your copy of the duly stamped and validated form from the teller of the
AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
3. For No Payment Returns including refundable/ creditable returns and returns
with excess tax credit carry over:
-Proceed to the Revenue District Office where you are registered or to any Tax
Filing Center established by BIR and present the duly accomplished BIR Form
1702, together with the required attachments.
-Receive your copy of the duly stamped and validated form from the RDO/Tax
Filing Center representative
Who are required to file ITR?
A. Individuals
1. Resident citizens receiving income from sources
within or outside the Philippines
2. Non-resident citizens receiving income from
sources within the Philippines
3. Aliens, whether resident or not, receiving
income from sources within the Philippines
B. Corporations no matter how created or
organized including partnerships: -
Domestic corporations receiving income from
sources within and outside the Philippines
Foreign corporations receiving income from
sources within the Philippines
Taxable partnerships

C. Estates and trusts engaged in trade or

business
Who are exempted tofile ITR?
1. A Non-resident citizen who is:
A citizen of the Philippines who establishes to the satisfaction of the
Commissioner the fact of his physical presence abroad with a definite intention
to reside therein
A citizen of the Philippines who leaves the Philippines during the taxable year to
reside abroad, either as an immigrant or for employment on a permanent basis
A citizen of the Philippines who works and derives income from abroad and
whose employment thereat requires him to be physically present abroad most
of the time during the taxable year
A citizen who has been previously considered as a non-resident citizen and who
arrives in the Philippines at any time during the year to reside permanently in
the Philippines will likewise be treated as a non-resident citizen during the
taxable year in which he arrives in the Philippines, with respect to his income
derived from sources abroad until the date of his arrival in the Philippines.
2. Overseas Filipino Worker, including overseas
seaman
Anindividualcitizen of the Philippines who is working
and deriving income from abroad as an overseas
Filipino worker is taxable only on income from sources
within the Philippines; provided, that a seaman who is
a citizen of the Philippines and who receives
compensation for services rendered abroad as a
member of the complement of a vessel engaged
exclusively in international trade will be treated as an
overseas Filipino worker.

Minimum Wage Earners are Exempt From Income

Tax
BIR Forms to be used for filing annual
income tax return for different types of
taxpayers
1. BIR Form 1700Annual Income Tax Return
(ForIndividualEarning Purely Compensation
Income Including Non-Business/Non-
Profession Related Income)
2. BIR Form 1701- Annual Income Tax Return
(For Self-Employed Individuals, Estates and
Trusts Including Those With Both Business
and Compensation Income).
3. 3. BIR Form 1702 Annual Income Tax
Return (For Corporations and Partnerships)
See more info at:
http://
www.bir.gov.ph/index.php/bir-forms/income-tax
-return.html
http://
www.mommyunwired.com/2013/04/how-to-file-y
our-income-tax-return-in.html
http://businesstips.ph/how-to-prepare-income-t
ax-return-corporation-partnership-philippines
/